4 Midcap Undervalued Stocks to Watch for Future Multibagger Potential: Vedanta, Lupin, Max Healthcare and Info Edge
- October 23, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Vedanta Rs 234.85. Lupin Rs 1,922. Max Healthcare Rs 817. Info Edge Rs 1,217.50. Market caps from Rs 78,796 crore to Rs 96,235 crore. Data as of 22 Oct 2026.
Quick Answer
Vedanta, Lupin, Max Healthcare and Info Edge are the 4 picks in this undervalued stocks watchlist, with market caps between Rs 78,796 crore and Rs 96,235 crore. Vedanta stands out for the strongest latest-quarter profit growth at 77.65%, while Lupin offers the highest return on equity at 23.76%. PE ratios run from 3.37 to 57.24, so compare each one with its industry PE before investing. All figures are as of 22 October 2026.
Undervalued stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Vedanta, Lupin, Max Healthcare and Info Edge meet that test, with market caps from Rs 78,796 crore to Rs 96,235 crore and Vedanta offering the strongest latest-quarter profit growth at 77.65%. Each of these companies has a market capitalisation between Rs 30,000 crore and Rs 1,00,000 crore and a PE ratio below the industry PE and FY26 profit growth of at least 20 per cent, and net profit rose in FY26 and in the latest quarter.
This list covers companies with a market capitalisation between Rs 30,000 crore and Rs 1,00,000 crore and a PE ratio below the industry PE and FY26 profit growth of at least 20 per cent, rising profit in FY26 and the latest quarter, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap between Rs 30,000 crore and Rs 1 lakh crore. Investors screening undervalued 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 Undervalued Stocks and Why Do They Attract Multibagger Interest?
Undervalued stocks are shares of companies that trade at a clear discount to their industry on earnings. The four here cover metals, pharmaceuticals, hospitals and online classifieds.
Trading below the industry multiple while profit rises is the classic value setup. For undervalued stocks, rising profit adds to the case. Investors researching undervalued stocks get a fuller picture by reading growth and valuation together. The table below lines up undervalued stocks on size, growth and valuation, using complete FY26 and latest quarter numbers. Past performance does not guarantee future returns, so use undervalued stocks as a starting point for your own research.
Undervalued Stocks at a Glance: Price, Market Cap, PE and ROE
Prices are closing prices as of 22 October 2026. Vedanta has the lowest PE of the group at 3.37, while Lupin posts the highest return on equity at 23.76%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Debt to Equity | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Vedanta | 234.85 | 96,235 | 3.37 | 12.27 | 9.55% | 0.56 | 234.85 to 795.00 |
| Lupin | 1,922 | 89,592 | 16.14 | 36.42 | 23.76% | 0.29 | 1,900.00 to 2,529.50 |
| Max Healthcare Institute | 817 | 83,403 | 57.24 | 60.75 | 13.42% | 0.32 | 817.00 to 1,221.90 |
| Info Edge (India) | 1,217.50 | 78,796 | 41.25 | 122.81 | 3.82% | 0.01 | 908.30 to 1,419.90 |
Vedanta: Revenue Up 23.92% in FY26
Vedanta is a diversified natural resources company with operations in zinc, aluminium, oil and gas, copper and iron ore. It reported FY26 revenue of Rs 79,987 crore, up 23.92% year on year, and net profit of Rs 12,480 crore, up 34.54%. Operating margin was 31.43% in FY26.
In the June 2026 quarter, revenue rose 53.37% to Rs 24,747 crore and net profit grew 77.65% to Rs 7,918 crore. Foreign investors raised their holding from 10.60% in June 2025 to 15.77% in June 2026. The stock trades at a PE of 3.37 against an industry PE of 12.27, below the sector average.
Lupin: Revenue Up 26.76% in FY26
Lupin is a global pharmaceutical company with a large presence in the United States, India and other markets across generics, branded drugs and respiratory products. It reported FY26 revenue of Rs 29,038.95 crore, up 26.76% year on year, and net profit of Rs 5,355.47 crore, up 61.98%. Revenue has compounded at 14.98% a year since FY22. Operating margin was 31.06% in FY26. The debt-to-equity ratio is 0.29.
The stock trades at a PE of 16.14 against an industry PE of 36.42, below the sector average, with a return on equity of 23.76%. In the June 2026 quarter, revenue rose 32.45% to Rs 8,407.21 crore and net profit grew 16.01% to Rs 1,416.98 crore. The share price has gained 111.00% over five years. Foreign investors raised their holding from 21.25% in June 2025 to 22.42% in June 2026.
Max Healthcare: 24.26% Profit CAGR Since FY22
Max Healthcare Institute runs a network of multi-speciality hospitals in Delhi NCR, Mumbai and other cities. It reported FY26 revenue of Rs 8,536.07 crore, up 18.82% year on year, and net profit of Rs 1,442.41 crore, up 34.07%. Net profit has compounded at 24.26% a year since FY22, while revenue has grown 20.42% a year. Operating margin was 28.15% in FY26. The debt-to-equity ratio is 0.32.
In the June 2026 quarter, revenue rose 16.60% to Rs 2,406.69 crore and net profit grew 4.87% to Rs 322.96 crore. The share price has gained 149.91% over five years. Domestic institutions raised their holding from 17.42% in June 2025 to 29.96% in June 2026. The stock trades at a PE of 57.24 against an industry PE of 60.75, below the sector average, with a return on equity of 13.42%.
Info Edge: Debt-to-Equity of 0.01
Info Edge runs online classifieds platforms such as Naukri for jobs, 99acres for property and Shiksha for education, and invests in start-ups. It reported FY26 revenue of Rs 4,343.29 crore, up 10.72% year on year, and net profit of Rs 1,762.84 crore, up 34.58%. Revenue has compounded at 20.95% a year since FY22. Operating margin was 44.59% in FY26. The debt-to-equity ratio is 0.01, which keeps interest costs low.
The stock trades at a PE of 41.25 against an industry PE of 122.81, below the sector average. In the June 2026 quarter, revenue rose 6.87% to Rs 1,073.01 crore and net profit grew 42.93% to Rs 490.05 crore. Domestic institutions raised their holding from 19.02% in June 2025 to 27.82% in June 2026.
Undervalued Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these undervalued stocks. Latest quarter means the most recent reported quarter for each company, and only metrics that are positive for every company are shown.
| Stock | Revenue (Rs Cr) | Net Profit (Rs Cr) | Revenue Growth (YoY) | Latest Quarter Revenue Growth | Net Profit Growth (YoY) | Operating Margin (Latest Quarter) |
|---|---|---|---|---|---|---|
| Vedanta | 79,987 | 12,480 | 23.92% | 53.37% | 34.54% | 49.74% |
| Lupin | 29,038.95 | 5,355.47 | 26.76% | 32.45% | 61.98% | 31.40% |
| Max Healthcare | 8,536.07 | 1,442.41 | 18.82% | 16.60% | 34.07% | 27.00% |
| Info Edge | 4,343.29 | 1,762.84 | 10.72% | 6.87% | 34.58% | 76.33% |
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Institutional Holding in Vedanta, Lupin, Max Healthcare and Info Edge
Institutional holding shows who is backing these undervalued stocks alongside the promoter. The table uses the latest reported quarter for each. Max Healthcare has the deepest institutional backing, with FII and DII together holding 71.74% as of June 2026. Domestic institutions increased their holding over the past year in Max Healthcare (from 17.42% to 29.96%) and Info Edge (from 19.02% to 27.82%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| Vedanta | 54.72% | 15.77% | 10.83% | 18.67% | June 2026 |
| Lupin | 46.85% | 22.42% | 24.65% | 6.08% | June 2026 |
| Max Healthcare | 23.71% | 41.78% | 29.96% | 4.56% | June 2026 |
| Info Edge | 37.47% | 23.72% | 27.82% | 10.99% | June 2026 |
Risks to Weigh in Undervalued Stocks
Being careful with undervalued 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 Undervalued Stocks
Picking from undervalued stocks comes down to four checks, applied in order.
- Check balance sheet strength first, and prefer a debt-to-equity ratio below 1 for non-financial companies.
- Compare each PE with the industry PE (12.27 to 122.81) 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 undervalued stocks, Vedanta stands out for the strongest latest-quarter profit growth at 77.65%, Lupin for the highest return on equity at 23.76%, Max Healthcare for the fastest profit growth, 24.26% a year since FY22 and Info Edge for a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.01. 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 undervalued 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 Undervalued Stocks to Watch
Which are the best undervalued stocks to watch for multibagger potential?
Ans. Vedanta, Lupin, Max Healthcare and Info Edge are the 4 names this list highlights, with market caps of Rs 96,235 crore, Rs 89,592 crore, Rs 83,403 crore and Rs 78,796 crore respectively. Vedanta is notable for the strongest latest-quarter profit growth at 77.65%. Lupin stands out for the highest return on equity at 23.76%. Max Healthcare offers the fastest profit growth, 24.26% a year since FY22. Info Edge brings a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.01. These are watchlist names for undervalued stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is Lupin a good stock for long-term investors?
Ans. Lupin has a return on equity of 23.76%, a PE of 16.14 against an industry PE of 36.42 and a market cap of Rs 89,592 crore. FY26 revenue rose 26.76%, and June 2026 quarter net profit grew 16.01%. Long-term returns in undervalued stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Max Healthcare become a multibagger from here?
Ans. Max Healthcare has already gained 149.91% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in undervalued stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 24.26% a year since FY22, and FY26 revenue rose 18.82%. At a PE of 57.24 against an industry PE of 60.75, valuation should be checked against that growth before investing.
What is the market cap of Vedanta, Lupin, Max Healthcare and Info Edge?
Ans. As of 22 October 2026, Vedanta has a market cap of Rs 96,235 crore, Lupin has a market cap of Rs 89,592 crore, Max Healthcare has a market cap of Rs 83,403 crore and Info Edge has a market cap of Rs 78,796 crore. All of them qualify as midcaps. 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 undervalued stocks.
What are the risks of investing in undervalued 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 Vedanta trading below its industry PE?
Ans. Vedanta trades at a PE of 3.37 against an industry PE of 12.27. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (FY26 revenue rose 23.92% and June 2026 quarter net profit grew 77.65%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in Vedanta, Lupin, Max Healthcare and Info Edge?
Ans. As of the latest reported quarter, FII and DII together hold 26.60% of Vedanta (15.77% and 10.83%), 47.07% of Lupin (22.42% and 24.65%), 71.74% of Max Healthcare (41.78% and 29.96%) and 51.54% of Info Edge (23.72% and 27.82%). Rising institutional holding is a useful signal in undervalued stocks, though it should be read with earnings trends rather than on its own.
