4 Smallcap Low PE Stocks to Watch for Future Multibagger Potential: LIC Housing Finance, CESC, Paradeep Phosphates and Shipping Corporation
- October 23, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
LIC Housing Finance Rs 502. CESC Rs 129.96. Paradeep Phosphates Rs 140.41. Shipping Corporation Rs 251.85. Market caps from Rs 13,233 crore to Rs 29,318 crore. Data as of 22 Oct 2026.
Quick Answer
LIC Housing Finance, CESC, Paradeep Phosphates and Shipping Corporation are the 4 picks in this low PE stocks watchlist, with market caps between Rs 13,233 crore and Rs 29,318 crore. LIC Housing Finance stands out for the lowest PE of the group at 5.11, while CESC offers 8.93% revenue growth in FY26. PE ratios run from 5.11 to 14.22, so compare each one with its industry PE before investing. All figures are as of 22 October 2026.
Low PE stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. LIC Housing Finance, CESC, Paradeep Phosphates and Shipping Corporation meet that test, with market caps from Rs 13,233 crore to Rs 29,318 crore and LIC Housing Finance offering the lowest PE of the group at 5.11. Each of these companies has a market capitalisation below Rs 30,000 crore and a PE ratio below 20 and a return on equity above 12 per cent, and net profit rose in FY26 and in the latest quarter.
This list covers companies with a market capitalisation below Rs 30,000 crore and a PE ratio below 20 and a return on equity above 12 per cent, rising profit in FY26 and the latest quarter, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap below Rs 30,000 crore. Investors screening low PE 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 Low PE Stocks and Why Do They Attract Multibagger Interest?
Low PE stocks are shares of smaller companies that trade at a modest multiple of earnings while earning solid returns. The four here cover housing finance, power distribution, fertilisers and shipping.
A low multiple with rising profit is where value in smaller companies tends to sit. For low PE stocks, both FY26 and the latest quarter showed growth. For low PE stocks, checking each result against the latest quarter matters more than any single ratio. The next sections explain what stands out in each of low PE stocks, using FY26 and latest quarter data. Prices move daily, so recheck the figures for low PE stocks before you decide.
Low PE Stocks at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 22 October 2026. LIC Housing Finance has the lowest PE of the group at 5.11, while Shipping Corporation posts the highest return on equity at 14.87%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| LIC Housing Finance | 502 | 29,318 | 5.11 | 17.68 | 13.53% | 0.71 | 458.90 to 598.20 |
| CESC | 129.96 | 18,015 | 11.05 | 22.18 | 12.31% | 1.44 | 128.31 to 204.50 |
| Paradeep Phosphates | 140.41 | 15,235 | 14.22 | 21.29 | 14.69% | 2.25 | 99.70 to 181.80 |
| Shipping Corporation of India | 251.85 | 13,233 | 8.18 | 8.87 | 14.87% | 1.45 | 195.55 to 368.75 |
LIC Housing Finance: 25.13% Profit CAGR Since FY22
LIC Housing Finance is a housing finance company promoted by Life Insurance Corporation of India that offers home loans and loans against property. It reported FY26 total income of Rs 28,843.49 crore, up 2.64% year on year, and net profit of Rs 5,604.24 crore, up 2.97%. Net profit has compounded at 25.13% a year since FY22, while total income has grown 9.58% a year.
Net profit for the June 2026 quarter grew 9.90% to Rs 1,499.03 crore. The stock trades at a PE of 5.11 against an industry PE of 17.68, below the sector average, with a return on equity of 13.53%. The dividend yield is 1.88%.
CESC: Profit Compounding at 3.60% a Year
CESC generates and distributes power, with a distribution licence area in Kolkata, and is growing its renewable portfolio. It reported FY26 revenue of Rs 18,927.29 crore, up 8.93% year on year, and net profit of Rs 1,617.57 crore, up 13.20%. Revenue has compounded at 10.22% a year since FY22. Operating margin was 26.27% in FY26.
The stock trades at a PE of 11.05 against an industry PE of 22.18, below the sector average, with a return on equity of 12.31%. The dividend yield is 4.44%. In the June 2026 quarter, revenue rose 5.18% to Rs 5,559 crore and net profit grew 3.71% to Rs 419 crore. Domestic institutions raised their holding from 25.38% in June 2025 to 26.14% in June 2026.
Paradeep Phosphates: 25.75% Profit CAGR Since FY22
Paradeep Phosphates makes phosphatic fertilisers such as DAP and NPK complexes at its plant in Odisha. It reported FY26 revenue of Rs 21,972.92 crore, up 28.45% year on year, and net profit of Rs 996.36 crore, up 50.48%. Net profit has compounded at 25.75% a year since FY22, while revenue has grown 29.15% a year. Operating margin was 10.35% in FY26.
In the June 2026 quarter, revenue rose 35.44% to Rs 6,145.82 crore and net profit grew 23.93% to Rs 392.54 crore. Domestic institutions raised their holding from 12.99% in September 2025 to 20.26% in September 2026. The stock trades at a PE of 14.22 against an industry PE of 21.29, below the sector average, with a return on equity of 14.69%.
Shipping Corporation: Quarterly Profit Up 74.87%
Shipping Corporation of India is a government-owned shipping line with a fleet of tankers, bulk carriers and container vessels. It reported FY26 revenue of Rs 6,226.78 crore, up 7.35% year on year, and net profit of Rs 1,352.92 crore, up 60.38%. Net profit has compounded at 11.82% a year since FY22, while revenue has grown 5.12% a year. Operating margin was 46.04% in FY26. The debt-to-equity ratio is 0.29.
The stock trades at a PE of 8.18 against an industry PE of 8.87, below the sector average, with a return on equity of 14.87%. The dividend yield is 2.64%. In the June 2026 quarter, revenue rose 33.81% to Rs 1,956.84 crore and net profit grew 74.87% to Rs 619.34 crore. The share price has gained 98.18% over five years and 23.82% over the past year. Foreign investors raised their holding from 6.13% in June 2025 to 8.97% in June 2026.
Low PE Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these low PE 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) | Income Growth (YoY) | 4-Year Income CAGR | 4-Year Net Profit CAGR |
|---|---|---|---|---|---|
| LIC Housing Finance | 28,843.49 | 5,604.24 | 2.64% | 9.58% | 25.13% |
| CESC | 18,927.29 | 1,617.57 | 8.93% | 10.22% | 3.60% |
| Paradeep Phosphates | 21,972.92 | 996.36 | 28.45% | 29.15% | 25.75% |
| Shipping Corporation | 6,226.78 | 1,352.92 | 7.35% | 5.12% | 11.82% |
Check the Univest Screener for live data on these low PE stocks
Institutional Holding in LIC Housing Finance, CESC, Paradeep Phosphates and Shipping Corporation
Institutional holding shows who is backing these low PE stocks alongside the promoter. The table uses the latest reported quarter for each. LIC Housing Finance has the deepest institutional backing, with FII and DII together holding 40.57% as of September 2026. Domestic institutions increased their holding over the past year in CESC (from 25.38% to 26.14%) and Paradeep Phosphates (from 12.99% to 20.26%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| LIC Housing Finance | 45.24% | 18.93% | 21.64% | 14.19% | September 2026 |
| CESC | 52.11% | 11.47% | 26.14% | 10.28% | June 2026 |
| Paradeep Phosphates | 57.85% | 4.79% | 20.26% | 17.10% | September 2026 |
| Shipping Corporation | 63.75% | 8.97% | 2.08% | 25.20% | June 2026 |
Risks to Weigh in Low PE Stocks
Being careful with low PE 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 Low PE Stocks
Picking from low PE 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 (8.87 to 22.18) 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 low PE stocks, LIC Housing Finance stands out for the lowest PE of the group at 5.11, CESC for 8.93% revenue growth in FY26, Paradeep Phosphates for the fastest profit growth, 25.75% a year since FY22 and Shipping Corporation for the biggest five-year price gain at 98.18%. 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 low PE 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 Low PE Stocks to Watch
Which are the best low PE stocks to watch for multibagger potential?
Ans. LIC Housing Finance, CESC, Paradeep Phosphates and Shipping Corporation are the 4 names this list highlights, with market caps of Rs 29,318 crore, Rs 18,015 crore, Rs 15,235 crore and Rs 13,233 crore respectively. LIC Housing Finance is notable for the lowest PE of the group at 5.11. CESC stands out for 8.93% revenue growth in FY26. Paradeep Phosphates offers the fastest profit growth, 25.75% a year since FY22. Shipping Corporation brings the biggest five-year price gain at 98.18%. These are watchlist names for low PE stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is Shipping Corporation a good stock for long-term investors?
Ans. Shipping Corporation has a return on equity of 14.87%, a PE of 8.18 against an industry PE of 8.87 and a market cap of Rs 13,233 crore. Net profit has compounded at 11.82% a year since FY22, and FY26 revenue rose 7.35% while June 2026 quarter net profit grew 74.87%. Long-term returns in low PE stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Paradeep Phosphates become a multibagger from here?
Ans. Paradeep Phosphates has a market cap of Rs 15,235 crore. A multibagger outcome in low PE stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 25.75% a year since FY22, and FY26 revenue rose 28.45%. At a PE of 14.22 against an industry PE of 21.29, valuation should be checked against that growth before investing.
What is the market cap of LIC Housing Finance, CESC, Paradeep Phosphates and Shipping Corporation?
Ans. As of 22 October 2026, LIC Housing Finance has a market cap of Rs 29,318 crore, CESC has a market cap of Rs 18,015 crore, Paradeep Phosphates has a market cap of Rs 15,235 crore and Shipping Corporation has a market cap of Rs 13,233 crore. All of them qualify as smallcaps. 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 low PE stocks.
What are the risks of investing in low PE 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 LIC Housing Finance trading below its industry PE?
Ans. LIC Housing Finance trades at a PE of 5.11 against an industry PE of 17.68. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 25.13% a year since FY22 and FY26 revenue rose 2.64%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in LIC Housing Finance, CESC, Paradeep Phosphates and Shipping Corporation?
Ans. As of the latest reported quarter, FII and DII together hold 40.57% of LIC Housing Finance (18.93% and 21.64%), 37.61% of CESC (11.47% and 26.14%), 25.05% of Paradeep Phosphates (4.79% and 20.26%) and 11.05% of Shipping Corporation (8.97% and 2.08%). Rising institutional holding is a useful signal in low PE stocks, though it should be read with earnings trends rather than on its own.
