4 Midcap Below Industry PE Stocks to Watch for Future Multibagger Potential: Lupin, Mazagon Dock, Schaeffler India and Dr Lal PathLabs
- October 26, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Lupin Rs 1,928.90. Mazagon Dock Rs 1,860. Schaeffler India Rs 3,473.20. Dr Lal PathLabs Rs 1,838.20. Market caps from Rs 31,324 crore to Rs 89,914 crore. Data as of 23 Oct 2026.
Quick Answer
Lupin, Mazagon Dock, Schaeffler India and Dr Lal PathLabs are the 4 picks in this below industry PE stocks watchlist, with market caps between Rs 31,324 crore and Rs 89,914 crore. Lupin stands out for the lowest PE of the group at 16.20, while Mazagon Dock offers the highest return on equity at 26.48%. PE ratios run from 16.20 to 57.34, so compare each one with its industry PE before investing. All figures are as of 23 October 2026.
Below industry PE stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Lupin, Mazagon Dock, Schaeffler India and Dr Lal PathLabs meet that test, with market caps from Rs 31,324 crore to Rs 89,914 crore and Lupin offering the lowest PE of the group at 16.20. 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 a return on equity of at least 15 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 a return on equity of at least 15 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 below industry PE stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 23 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Below Industry PE Stocks and Why Do They Attract Multibagger Interest?
Below industry PE stocks are shares of mid sized companies that trade at a lower PE than their industry peers while earning strong returns on equity. The four here cover pharmaceuticals, shipbuilding, bearings and diagnostics.
Trading below the industry multiple while earning high returns points to value that peers already enjoy. For below industry PE stocks, both FY26 and the latest quarter showed growth. Investors researching below industry PE stocks get a fuller picture by reading growth and valuation together. The table below lines up below industry PE stocks on size, growth and valuation, using complete FY26 and latest quarter numbers. Past performance does not guarantee future returns, so use below industry PE stocks as a starting point for your own research.
Below Industry PE Stocks at a Glance: Price, Market Cap, PE and ROE
Prices are closing prices as of 23 October 2026. Lupin has the lowest PE of the group at 16.20, while Mazagon Dock posts the highest return on equity at 26.48%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Debt to Equity | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Lupin | 1,928.90 | 89,914 | 16.20 | 36.42 | 23.76% | 0.29 | 1,900.00 to 2,529.50 |
| Mazagon Dock Shipbuilders | 1,860 | 82,074 | 28.76 | 48.92 | 26.48% | 0.05 | 1,860.00 to 2,881.80 |
| Schaeffler India | 3,473.20 | 54,739 | 43.67 | 43.87 | 20.39% | 0.01 | 3,473.20 to 4,467.70 |
| Dr Lal PathLabs | 1,838.20 | 31,324 | 57.34 | 60.75 | 20.13% | 0.08 | 1,272.60 to 2,038.60 |
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.
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. The stock trades at a PE of 16.20 against an industry PE of 36.42, below the sector average, with a return on equity of 23.76%.
Mazagon Dock: 44.01% Profit CAGR Since FY22
Mazagon Dock Shipbuilders builds warships and submarines for the Indian Navy and is a key defence shipyard. It reported FY26 revenue of Rs 14,145.71 crore, up 12.77% year on year, and net profit of Rs 2,421.88 crore, up 6.35%. Net profit has compounded at 44.01% a year since FY22, while revenue has grown 23.18% a year. Operating margin was 26.20% in FY26. The debt-to-equity ratio is 0.05, which keeps interest costs low.
The stock trades at a PE of 28.76 against an industry PE of 48.92, below the sector average, with a return on equity of 26.48%. In the June 2026 quarter, revenue rose 10.40% to Rs 3,255.88 crore and net profit grew 22.12% to Rs 512.04 crore. The share price has gained 1461.53% over five years. Promoters hold 81.22%, which keeps ownership stable.
Schaeffler India: Return on Equity of 20.39%
Schaeffler India makes bearings and precision components for automotive, industrial and aftermarket customers. It reported CY25 revenue of Rs 9,834.13 crore, up 17.76% year on year, and net profit of Rs 1,150.35 crore, up 22.53%. Operating margin was 19.73% in CY25. The debt-to-equity ratio is 0.01, which keeps interest costs low.
In the June 2026 quarter, revenue rose 16.77% to Rs 2,797.26 crore and net profit grew 13.47% to Rs 325.78 crore. The share price has gained 130.00% over five years. Promoters hold 74.13%, which keeps ownership stable. The stock trades at a PE of 43.67 against an industry PE of 43.87, below the sector average, with a return on equity of 20.39%.
Dr Lal PathLabs: Return on Equity of 20.13%
Dr Lal PathLabs is one of India’s leading diagnostic chains, running laboratories and collection centres across the country. It reported FY26 revenue of Rs 2,864.18 crore, up 12.11% year on year, and net profit of Rs 509.75 crore, up 3.56%. Net profit has compounded at 9.83% a year since FY22, while revenue has grown 7.56% a year. Operating margin was 30.90% in FY26. The debt-to-equity ratio is 0.08, which keeps interest costs low.
The stock trades at a PE of 57.34 against an industry PE of 60.75, below the sector average, with a return on equity of 20.13%. In the June 2026 quarter, revenue rose 18.87% to Rs 829.60 crore and net profit grew 27.24% to Rs 170.50 crore. The share price is up 19.11% over the past year. Domestic institutions raised their holding from 17.91% in June 2025 to 21.59% in June 2026.
Below Industry PE Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these below industry 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 | Revenue (Rs Cr) | Net Profit (Rs Cr) | Revenue Growth (YoY) | Latest Quarter Revenue Growth | Net Profit Growth (YoY) | Operating Margin (Latest Quarter) |
|---|---|---|---|---|---|---|
| Lupin | 29,038.95 | 5,355.47 | 26.76% | 32.45% | 61.98% | 31.40% |
| Mazagon Dock | 14,145.71 | 2,421.88 | 12.77% | 10.40% | 6.35% | 25.82% |
| Schaeffler India | 9,834.13 (CY25) | 1,150.35 (CY25) | 17.76% | 16.77% | 22.53% | 19.41% |
| Dr Lal PathLabs | 2,864.18 | 509.75 | 12.11% | 18.87% | 3.56% | 35.03% |
Check the Univest Screener for live data on these below industry PE stocks
Institutional Holding in Lupin, Mazagon Dock, Schaeffler India and Dr Lal PathLabs
Institutional holding shows who is backing these below industry PE stocks alongside the promoter. The table uses the latest reported quarter for each. Lupin has the deepest institutional backing, with FII and DII together holding 47.07% as of June 2026. Domestic institutions increased their holding over the past year in Dr Lal PathLabs (from 17.91% to 21.59%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| Lupin | 46.85% | 22.42% | 24.65% | 6.08% | June 2026 |
| Mazagon Dock | 81.22% | 1.72% | 5.01% | 12.04% | June 2026 |
| Schaeffler India | 74.13% | 4.36% | 16.22% | 5.29% | June 2026 |
| Dr Lal PathLabs | 53.19% | 17.36% | 21.59% | 7.86% | June 2026 |
Risks to Weigh in Below Industry PE Stocks
Being careful with below industry 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 Below Industry PE Stocks
Picking from below industry PE 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 (36.42 to 60.75) 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 below industry PE stocks, Lupin stands out for the lowest PE of the group at 16.20, Mazagon Dock for the highest return on equity at 26.48%, Schaeffler India for a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.01 and Dr Lal PathLabs for the strongest latest-quarter profit growth at 27.24%. 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 below industry 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 Below Industry PE Stocks to Watch
Which are the best below industry PE stocks to watch for multibagger potential?
Ans. Lupin, Mazagon Dock, Schaeffler India and Dr Lal PathLabs are the 4 names this list highlights, with market caps of Rs 89,914 crore, Rs 82,074 crore, Rs 54,739 crore and Rs 31,324 crore respectively. Lupin is notable for the lowest PE of the group at 16.20. Mazagon Dock stands out for the highest return on equity at 26.48%. Schaeffler India offers a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.01. Dr Lal PathLabs brings the strongest latest-quarter profit growth at 27.24%. These are watchlist names for below industry PE stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is Mazagon Dock a good stock for long-term investors?
Ans. Mazagon Dock has a return on equity of 26.48%, a PE of 28.76 against an industry PE of 48.92 and a market cap of Rs 82,074 crore. Net profit has compounded at 44.01% a year since FY22, and FY26 revenue rose 12.77% while June 2026 quarter net profit grew 22.12%. Long-term returns in below industry PE stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Dr Lal PathLabs become a multibagger from here?
Ans. Dr Lal PathLabs has a market cap of Rs 31,324 crore. A multibagger outcome in below industry PE stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 9.83% a year since FY22, and FY26 revenue rose 12.11%. At a PE of 57.34 against an industry PE of 60.75, valuation should be checked against that growth before investing.
What is the market cap of Lupin, Mazagon Dock, Schaeffler India and Dr Lal PathLabs?
Ans. As of 23 October 2026, Lupin has a market cap of Rs 89,914 crore, Mazagon Dock has a market cap of Rs 82,074 crore, Schaeffler India has a market cap of Rs 54,739 crore and Dr Lal PathLabs has a market cap of Rs 31,324 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 below industry PE stocks.
What are the risks of investing in below industry 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 Lupin trading below its industry PE?
Ans. Lupin trades at a PE of 16.20 against an industry PE of 36.42. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (FY26 revenue rose 26.76% and June 2026 quarter net profit grew 16.01%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in Lupin, Mazagon Dock, Schaeffler India and Dr Lal PathLabs?
Ans. As of the latest reported quarter, FII and DII together hold 47.07% of Lupin (22.42% and 24.65%), 6.73% of Mazagon Dock (1.72% and 5.01%), 20.58% of Schaeffler India (4.36% and 16.22%) and 38.95% of Dr Lal PathLabs (17.36% and 21.59%). Rising institutional holding is a useful signal in below industry PE stocks, though it should be read with earnings trends rather than on its own.
