4 Largecap Reasonably Priced Stocks to Watch for Future Multibagger Potential: SBI, M&M, NTPC and JSW Steel
- October 23, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
SBI Rs 970. M&M Rs 2,864.10. NTPC Rs 302.60. JSW Steel Rs 1,220. Market caps from Rs 2.94 lakh crore to Rs 8.81 lakh crore. Data as of 22 Oct 2026.
Quick Answer
SBI, M&M, NTPC and JSW Steel are the 4 picks in this reasonably priced stocks watchlist, with market caps between Rs 2.94 lakh crore and Rs 8.81 lakh crore. SBI stands out for the lowest PE of the group at 9.82, while M&M offers the highest return on equity at 18.37%. PE ratios run from 9.82 to 17.19, so compare each one with its industry PE before investing. All figures are as of 22 October 2026.
Reasonably priced stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. SBI, M&M, NTPC and JSW Steel meet that test, with market caps from Rs 2.94 lakh crore to Rs 8.81 lakh crore and SBI offering the lowest PE of the group at 9.82. Each of these companies has a PE ratio below the industry PE, a price-to-book ratio below 4 and a five-year return above 50 per cent, and net profit rose in FY26 and in the latest quarter.
This list covers companies with a PE ratio below the industry PE, a price-to-book ratio below 4 and a five-year return above 50 per cent, rising profit in FY26 and the latest quarter, market capitalisation above Rs 1,00,000 crore, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap above Rs 1 lakh crore. Investors screening reasonably priced stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 22 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Reasonably Priced Stocks and Why Do They Attract Multibagger Interest?
Reasonably priced stocks are shares of large companies priced below their industry on earnings while still rewarding long-term holders. The four here cover public sector banking, automobiles, power generation and steel.
A fair price with a proven record gives both a margin of safety and room to grow. For reasonably priced stocks, rising profit adds to the case. Investors researching reasonably priced stocks get a fuller picture by reading growth and valuation together. The table below lines up reasonably priced stocks on size, growth and valuation, using complete FY26 and latest quarter numbers. Past performance does not guarantee future returns, so use reasonably priced stocks as a starting point for your own research.
Reasonably Priced Stocks at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 22 October 2026. SBI has the lowest PE of the group at 9.82, while M&M posts the highest return on equity at 18.37%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| State Bank of India | 970 | 8,80,754 | 9.82 | 12.05 | 14.29% | 1.50 | 877.05 to 1,234.70 |
| Mahindra & Mahindra | 2,864.10 | 3,48,064 | 17.19 | 23.82 | 18.37% | 3.74 | 2,744.30 to 3,839.90 |
| NTPC | 302.60 | 3,04,475 | 10.75 | 21.61 | 13.31% | 1.50 | 302.60 to 414.40 |
| JSW Steel | 1,220 | 2,93,638 | 10.49 | 22.42 | 7.21% | 2.94 | 1,073.20 to 1,351.00 |
SBI: 23.72% Profit CAGR Since FY22
State Bank of India is the country’s largest lender, with a branch network that reaches every part of India. It reported FY26 total income of Rs 7,12,643.53 crore, up 7.43% year on year, and net profit of Rs 85,168.47 crore, up 7.78%. Net profit has compounded at 23.72% a year since FY22, while total income has grown 15.03% a year.
In the June 2026 quarter, total income rose 7.83% to Rs 1,80,061.86 crore and net profit grew 13.65% to Rs 24,579.04 crore. The share price has gained 92.86% over five years. Foreign investors raised their holding from 9.98% in July 2025 to 10.81% in June 2026. The stock trades at a PE of 9.82 against an industry PE of 12.05, below the sector average, with a return on equity of 14.29%. The dividend yield is 1.82%.
M&M: 26.58% Profit CAGR Since FY22
Mahindra & Mahindra is one of the largest SUV makers in India and the country’s largest tractor maker, with financial services and electric vehicles in its portfolio. It reported FY26 revenue of Rs 2,02,084.34 crore, up 25.21% year on year, and net profit of Rs 18,621.71 crore, up 32.32%. Net profit has compounded at 26.58% a year since FY22, while revenue has grown 22.04% a year. Operating margin was 21.19% in FY26.
The stock trades at a PE of 17.19 against an industry PE of 23.82, below the sector average, with a return on equity of 18.37%. In the June 2026 quarter, revenue rose 27.47% to Rs 59,203.60 crore and net profit grew 37.04% to Rs 5,997.56 crore. The share price has gained 220.52% over five years. Domestic institutions raised their holding from 29.59% in June 2025 to 32.65% in June 2026.
NTPC: Five-Year Gain of 110.40%
NTPC is India’s largest power generation company and is growing its renewable energy portfolio. It reported FY26 revenue of Rs 1,89,798.56 crore and net profit of Rs 30,009.98 crore, up 48.19%. Net profit has compounded at 18.01% a year since FY22, while revenue has grown 8.89% a year. Operating margin was 32.45% in FY26.
In the June 2026 quarter, revenue rose 6.94% to Rs 51,141.51 crore and net profit grew 12.90% to Rs 6,896.44 crore. The share price has gained 110.40% over five years. Domestic institutions raised their holding from 28.92% in June 2025 to 29.44% in June 2026. The stock trades at a PE of 10.75 against an industry PE of 21.61, below the sector average, with a return on equity of 13.31%. The dividend yield is 2.87%.
JSW Steel: Quarterly Profit Up 112.58%
JSW Steel is one of India’s largest steel producers, with integrated plants across the country. It reported FY26 revenue of Rs 1,86,718 crore, up 10.15% year on year, and net profit of Rs 25,508 crore, up 630.68%. Net profit has compounded at 5.06% a year since FY22, while revenue has grown 6.00% a year. Operating margin was 16.56% in FY26.
The stock trades at a PE of 10.49 against an industry PE of 22.42, below the sector average. In the June 2026 quarter, revenue rose 10.55% to Rs 48,088 crore and net profit grew 112.58% to Rs 4,696 crore. The share price has gained 68.48% over five years. Domestic institutions raised their holding from 10.92% in June 2025 to 11.49% in June 2026.
Reasonably Priced Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these reasonably priced stocks. Latest quarter means the most recent reported quarter for each company, and only metrics that are positive for every company are shown.
| Stock | Total Income (Rs Cr) | Net Profit (Rs Cr) | 4-Year Income CAGR | 4-Year Net Profit CAGR | Latest Quarter Income Growth |
|---|---|---|---|---|---|
| SBI | 7,12,643.53 | 85,168.47 | 15.03% | 23.72% | 7.83% |
| M&M | 2,02,084.34 | 18,621.71 | 22.04% | 26.58% | 27.47% |
| NTPC | 1,89,798.56 | 30,009.98 | 8.89% | 18.01% | 6.94% |
| JSW Steel | 1,86,718 | 25,508 | 6.00% | 5.06% | 10.55% |
Check the Univest Screener for live data on these reasonably priced stocks
Institutional Holding in SBI, M&M, NTPC and JSW Steel
Institutional holding shows who is backing these reasonably priced stocks alongside the promoter. The table uses the latest reported quarter for each. M&M has the deepest institutional backing, with FII and DII together holding 67.54% as of June 2026. Domestic institutions increased their holding over the past year in M&M (from 29.59% to 32.65%), NTPC (from 28.92% to 29.44%) and JSW Steel (from 10.92% to 11.49%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| SBI | 55.47% | 10.81% | 26.64% | 7.08% | June 2026 |
| M&M | 18.45% | 34.89% | 32.65% | 14.01% | June 2026 |
| NTPC | 51.10% | 16.30% | 29.44% | 3.15% | June 2026 |
| JSW Steel | 44.29% | 25.92% | 11.49% | 18.30% | June 2026 |
Risks to Weigh in Reasonably Priced Stocks
Being careful with reasonably priced stocks means looking at what can slow the story as well as what can speed it up. Four points matter most:
- Past growth may not repeat.
- Share prices can move sharply in either direction.
- Valuation: A low PE can also reflect slower growth, so compare each PE with the growth rate instead of reading it alone.
- Concentration: Holding all 4 names puts the allocation in one sector, so size each position to match your risk appetite.
How to Choose Between Reasonably Priced Stocks
Picking from reasonably priced stocks comes down to four checks, applied in order.
- Check asset quality and net interest margin first, then return on equity and price to book. Debt-to-equity does not apply to lenders.
- Compare each PE with the industry PE (12.05 to 23.82) and ask whether the growth rate justifies any gap.
- Track net profit growth, the operating margin and the return on equity in every quarterly result.
- Stagger entries across quarters and review institutional holding every reporting season.
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Conclusion
Among reasonably priced stocks, SBI stands out for the lowest PE of the group at 9.82, M&M for the highest return on equity at 18.37%, NTPC for 6.94% revenue growth in the June 2026 quarter and JSW Steel for the strongest latest-quarter profit growth at 112.58%. Which one suits a portfolio depends on how much valuation risk it can carry, so staggering entries and reviewing each quarterly result is a sound habit. Investors comparing reasonably priced stocks should rank them on growth, financial strength and the price paid, and anyone who wants personalised guidance can consult a SEBI-registered advisor before acting.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions on Reasonably Priced Stocks to Watch
Which are the best reasonably priced stocks to watch for multibagger potential?
Ans. SBI, M&M, NTPC and JSW Steel are the 4 names this list highlights, with market caps of Rs 8,80,754 crore, Rs 3,48,064 crore, Rs 3,04,475 crore and Rs 2,93,638 crore respectively. SBI is notable for the lowest PE of the group at 9.82. M&M stands out for the highest return on equity at 18.37%. NTPC offers 6.94% revenue growth in the June 2026 quarter. JSW Steel brings the strongest latest-quarter profit growth at 112.58%. These are watchlist names for reasonably priced stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is M&M a good stock for long-term investors?
Ans. M&M has a return on equity of 18.37%, a PE of 17.19 against an industry PE of 23.82 and a market cap of Rs 3,48,064 crore. Net profit has compounded at 26.58% a year since FY22, and FY26 revenue rose 25.21% while June 2026 quarter net profit grew 37.04%. Long-term returns in reasonably priced stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can SBI become a multibagger from here?
Ans. SBI has already gained 92.86% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in reasonably priced stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 23.72% a year since FY22, and FY26 revenue rose 7.43%. At a PE of 9.82 against an industry PE of 12.05, valuation should be checked against that growth before investing.
What is the market cap of SBI, M&M, NTPC and JSW Steel?
Ans. As of 22 October 2026, SBI has a market cap of Rs 8,80,754 crore, M&M has a market cap of Rs 3,48,064 crore, NTPC has a market cap of Rs 3,04,475 crore and JSW Steel has a market cap of Rs 2,93,638 crore. All of them qualify as largecaps. Market cap changes daily with the share price, so check the latest figure on the Univest Screener or on NSE before taking a decision on reasonably priced stocks.
What are the risks of investing in reasonably priced stocks?
Ans. The main risks are market swings, slower growth than expected and valuations that already reflect good news. Companies with strong balance sheets and steady earnings handle these better. Comparing each PE with growth gives a fuller picture than the PE alone.
Is SBI trading below its industry PE?
Ans. SBI trades at a PE of 9.82 against an industry PE of 12.05. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 23.72% a year since FY22 and FY26 revenue rose 7.43%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in SBI, M&M, NTPC and JSW Steel?
Ans. As of the latest reported quarter, FII and DII together hold 37.45% of SBI (10.81% and 26.64%), 67.54% of M&M (34.89% and 32.65%), 45.74% of NTPC (16.30% and 29.44%) and 37.41% of JSW Steel (25.92% and 11.49%). Rising institutional holding is a useful signal in reasonably priced stocks, though it should be read with earnings trends rather than on its own.
