4 Smallcap Below Industry PE Stocks to Watch for Future Multibagger Potential: Force Motors, Engineers India, Zensar and RITES
- October 26, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Force Motors Rs 16,400. Engineers India Rs 242.50. Zensar Rs 493.70. RITES Rs 189.40. Market caps from Rs 9,221 crore to Rs 22,618 crore. Data as of 23 Oct 2026.
Quick Answer
Force Motors, Engineers India, Zensar and RITES are the 4 picks in this below industry PE stocks watchlist, with market caps between Rs 9,221 crore and Rs 22,618 crore. Force Motors stands out for the highest return on equity at 25.19%, while Engineers India offers the fastest profit growth, 19.17% a year since FY22. PE ratios run from 14.16 to 20.04, 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. Force Motors, Engineers India, Zensar and RITES meet that test, with market caps from Rs 9,221 crore to Rs 22,618 crore and Force Motors offering the highest return on equity at 25.19%. Each of these companies has a market capitalisation below Rs 30,000 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 below Rs 30,000 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 below Rs 30,000 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 smaller companies that trade at a lower PE than their industry peers while earning strong returns on equity. The four here cover utility vehicles, engineering consultancy, IT services and railway consultancy.
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. A sensible way to study below industry PE stocks is to look at profit growth, returns and valuation side by side. Below, each of below industry PE stocks gets its own breakdown of growth, returns and valuation. Treat below industry PE stocks as a research list, since share prices and rankings change with every earnings season.
Below Industry PE Stocks at a Glance: Price, Market Cap, PE and ROE
Prices are closing prices as of 23 October 2026. Zensar has the lowest PE of the group at 14.16, while Force Motors posts the highest return on equity at 25.19%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Debt to Equity | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Force Motors | 16,400 | 22,618 | 18.06 | 23.62 | 25.19% | 0.00 | 15,982.00 to 26,450.00 |
| Engineers India | 242.50 | 15,715 | 20.04 | 22.89 | 21.98% | 0.01 | 163.55 to 321.40 |
| Zensar Technologies | 493.70 | 10,994 | 14.16 | 18.27 | 16.41% | 0.02 | 416.15 to 822.00 |
| RITES | 189.40 | 9,221 | 19.99 | 36.56 | 15.30% | 0.00 | 175.00 to 259.70 |
Force Motors: Return on Equity of 25.19%
Force Motors makes commercial vehicles such as the Traveller and Gurkha and supplies engines and axles to other automakers. It reported FY26 revenue of Rs 9,167.51 crore, up 12.79% year on year, and net profit of Rs 1,211.75 crore, up 51.31%. Revenue has compounded at 29.18% a year since FY22. Operating margin was 17.59% in FY26. The debt-to-equity ratio is 0.00, which keeps interest costs low.
In the June 2026 quarter, revenue rose 6.71% to Rs 2,478.11 crore and net profit grew 22.81% to Rs 216.59 crore. The share price has gained 1046.45% over five years. Promoters hold 61.63%, which keeps ownership stable. The stock trades at a PE of 18.06 against an industry PE of 23.62, below the sector average, with a return on equity of 25.19%.
Engineers India: Revenue Up 26.95% in FY26
Engineers India provides engineering consultancy and project management services to the oil, gas, petrochemical and infrastructure sectors. It reported FY26 revenue of Rs 4,123.24 crore, up 26.95% year on year, and net profit of Rs 691.59 crore, up 19.29%. Net profit has compounded at 19.17% a year since FY22, while revenue has grown 7.89% a year. Operating margin was 23.96% in FY26. The debt-to-equity ratio is 0.01, which keeps interest costs low.
The stock trades at a PE of 20.04 against an industry PE of 22.89, below the sector average, with a return on equity of 21.98%. The dividend yield is 1.79%. Net profit for the June 2026 quarter grew 117.04% to Rs 157.94 crore. The share price has gained 248.24% over five years and 38.39% over the past year. Domestic institutions raised their holding from 13.75% in September 2025 to 16.61% in September 2026.
Zensar: Debt-to-Equity of 0.02
Zensar Technologies provides digital engineering, cloud and application services to global clients. It reported FY26 revenue of Rs 5,921.30 crore, up 8.83% year on year, and net profit of Rs 774.60 crore, up 19.21%. Net profit has compounded at 16.42% a year since FY22, while revenue has grown 7.82% a year. Operating margin was 19.78% in FY26. The debt-to-equity ratio is 0.02, which keeps interest costs low.
In the June 2026 quarter, revenue rose 8.59% to Rs 1,565.60 crore and net profit grew 0.99% to Rs 183.80 crore. Domestic institutions raised their holding from 20.52% in June 2025 to 21.99% in June 2026. The stock trades at a PE of 14.16 against an industry PE of 18.27, below the sector average, with a return on equity of 16.41%. The dividend yield is 3.09%.
RITES: Debt-to-Equity of 0.00
RITES provides engineering and consultancy services for railways and other transport infrastructure and also exports rolling stock. It reported FY26 revenue of Rs 2,524.57 crore, up 9.67% year on year, and net profit of Rs 454.44 crore, up 7.27%. Operating margin was 29.26% in FY26. The debt-to-equity ratio is 0.00, which keeps interest costs low.
The stock trades at a PE of 19.99 against an industry PE of 36.56, below the sector average, with a return on equity of 15.30%. The dividend yield is 3.78%. In the June 2026 quarter, revenue rose 9.57% to Rs 560.68 crore and net profit grew 7.58% to Rs 97.78 crore. Domestic institutions raised their holding from 8.66% in September 2025 to 9.16% in September 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) | Net Profit Growth (YoY) | Latest Quarter Profit Growth | Operating Margin (Latest Quarter) |
|---|---|---|---|---|---|---|
| Force Motors | 9,167.51 | 1,211.75 | 12.79% | 51.31% | 22.81% | 15.19% |
| Engineers India | 4,123.24 | 691.59 | 26.95% | 19.29% | 117.04% | 25.26% |
| Zensar | 5,921.30 | 774.60 | 8.83% | 19.21% | 0.99% | 18.44% |
| RITES | 2,524.57 | 454.44 | 9.67% | 7.27% | 7.58% | 27.80% |
Check the Univest Screener for live data on these below industry PE stocks
Institutional Holding in Force Motors, Engineers India, Zensar and RITES
Institutional holding shows who is backing these below industry PE stocks alongside the promoter. The table uses the latest reported quarter for each. Zensar has the deepest institutional backing, with FII and DII together holding 32.72% as of June 2026. Domestic institutions increased their holding over the past year in Engineers India (from 13.75% to 16.61%), Zensar (from 20.52% to 21.99%) and RITES (from 8.66% to 9.16%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| Force Motors | 61.63% | 9.52% | 1.46% | 27.39% | June 2026 |
| Engineers India | 51.32% | 8.09% | 16.61% | 23.98% | September 2026 |
| Zensar | 48.99% | 10.73% | 21.99% | 18.29% | June 2026 |
| RITES | 72.20% | 3.38% | 9.16% | 15.26% | September 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 (18.27 to 36.56) 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, Force Motors stands out for the highest return on equity at 25.19%, Engineers India for the fastest profit growth, 19.17% a year since FY22, Zensar for the lowest PE of the group at 14.16 and RITES for a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.00. 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. Force Motors, Engineers India, Zensar and RITES are the 4 names this list highlights, with market caps of Rs 22,618 crore, Rs 15,715 crore, Rs 10,994 crore and Rs 9,221 crore respectively. Force Motors is notable for the highest return on equity at 25.19%. Engineers India stands out for the fastest profit growth, 19.17% a year since FY22. Zensar offers the lowest PE of the group at 14.16. RITES brings a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.00. These are watchlist names for below industry PE stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is Force Motors a good stock for long-term investors?
Ans. Force Motors has a return on equity of 25.19%, a PE of 18.06 against an industry PE of 23.62 and a market cap of Rs 22,618 crore. FY26 revenue rose 12.79%, and June 2026 quarter net profit grew 22.81%. 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 Engineers India become a multibagger from here?
Ans. Engineers India has already gained 248.24% in five years, so another multi-fold move would need sustained earnings growth. 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 19.17% a year since FY22, and FY26 revenue rose 26.95%. At a PE of 20.04 against an industry PE of 22.89, valuation should be checked against that growth before investing.
What is the market cap of Force Motors, Engineers India, Zensar and RITES?
Ans. As of 23 October 2026, Force Motors has a market cap of Rs 22,618 crore, Engineers India has a market cap of Rs 15,715 crore, Zensar has a market cap of Rs 10,994 crore and RITES has a market cap of Rs 9,221 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 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 Zensar trading below its industry PE?
Ans. Zensar trades at a PE of 14.16 against an industry PE of 18.27. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 16.42% a year since FY22 and FY26 revenue rose 8.83%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in Force Motors, Engineers India, Zensar and RITES?
Ans. As of the latest reported quarter, FII and DII together hold 10.98% of Force Motors (9.52% and 1.46%), 24.70% of Engineers India (8.09% and 16.61%), 32.72% of Zensar (10.73% and 21.99%) and 12.54% of RITES (3.38% and 9.16%). 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.
