4 Smallcap Financial Services Stocks to Watch for Future Multibagger Potential: PNB Housing, LIC Housing Finance, Capri Global and IIFL Finance
- October 27, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
PNB Housing Rs 1,086. LIC Housing Finance Rs 497.40. Capri Global Rs 231.05. IIFL Finance Rs 529.20. Market caps from Rs 23,120 crore to Rs 29,262 crore. Data as of 26 Oct 2026.
Quick Answer
PNB Housing, LIC Housing Finance, Capri Global and IIFL Finance are the 4 picks in this financial services stocks watchlist, with market caps between Rs 23,120 crore and Rs 29,262 crore. PNB Housing stands out for the biggest five-year price gain at 133.28%, while LIC Housing Finance offers the lowest PE of the group at 5.06. PE ratios run from 5.06 to 20.59, so compare each one with its industry PE before investing. All figures are as of 26 October 2026.
Financial services stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. PNB Housing, LIC Housing Finance, Capri Global and IIFL Finance meet that test, with market caps from Rs 23,120 crore to Rs 29,262 crore and PNB Housing offering the biggest five-year price gain at 133.28%. Each of these companies has a market capitalisation below Rs 30,000 crore and a return on equity of at least 10 per cent and net profit growth in FY26 and in the latest quarter, 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 return on equity of at least 10 per cent and net profit growth in FY26 and in the latest quarter, 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 financial services stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 26 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Financial Services Stocks and Why Do They Attract Multibagger Interest?
Financial services stocks are shares of lenders, housing finance smaller companies, banks and other money businesses that earn from loans, deposits and financial products. The four here cover housing finance and diversified lending.
Financial companies grow when credit demand grows, and a rising profit line shows that loan growth is turning into earnings. For financial services stocks, both FY26 and the latest quarter showed growth. With financial services stocks, comparing valuation, growth and balance sheet strength together works better than relying on one number. Every company in the table below passed a rising-profit check, and the figures for financial services stocks are complete. Read each company’s latest results and exchange filings before acting on financial services stocks.
Financial Services Stocks at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 26 October 2026. LIC Housing Finance combines the lowest PE of the group, 5.06, with the highest return on equity, 13.53%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| PNB Housing Finance | 1,086 | 29,262 | 12.64 | 17.68 | 11.92% | 1.53 | 729.60 to 1,224.80 |
| LIC Housing Finance | 497.40 | 29,049 | 5.06 | 17.68 | 13.53% | 0.70 | 458.90 to 598.20 |
| Capri Global Capital | 231.05 | 23,222 | 20.59 | 17.97 | 13.18% | 3.22 | 151.10 to 287.45 |
| IIFL Finance | 529.20 | 23,120 | 10.25 | 17.68 | 11.93% | 1.67 | 409.10 to 705.00 |
PNB Housing: 28.65% Profit CAGR Since FY22
PNB Housing Finance provides home loans, loans against property and construction finance, and is promoted by Punjab National Bank. It reported FY26 total income of Rs 8,505.04 crore, up 10.58% year on year, and net profit of Rs 2,291.24 crore, up 18.34%. Net profit has compounded at 28.65% a year since FY22, while total income has grown 8.22% a year.
In the June 2026 quarter, total income rose 8.81% to Rs 2,265.36 crore and net profit grew 4.47% to Rs 557.34 crore. The share price has gained 133.28% over five years and 39.00% over the past year. Domestic institutions raised their holding from 37.99% in June 2025 to 45.71% in June 2026. The stock trades at a PE of 12.64 against an industry PE of 17.68, below the sector average.
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.
The stock trades at a PE of 5.06 against an industry PE of 17.68, below the sector average, with a return on equity of 13.53%. The dividend yield is 1.90%. Net profit for the June 2026 quarter grew 9.90% to Rs 1,499.03 crore.
Capri Global: 46.68% Profit CAGR Since FY22
Capri Global Capital is a non-banking finance company that offers housing loans, construction finance, gold loans and loans to small businesses. It reported FY26 revenue of Rs 4,742.01 crore, up 45.87% year on year, and net profit of Rs 949.15 crore, up 98.35%. Net profit has compounded at 46.68% a year since FY22, while revenue has grown 48.25% a year. Operating margin was 65.31% in FY26.
In the June 2026 quarter, revenue rose 57.33% to Rs 1,581.21 crore and net profit grew 102.05% to Rs 353.38 crore. The share price has gained 101.76% over five years and 27.72% over the past year. Foreign investors raised their holding from 4.83% in September 2025 to 13.00% in September 2026. The stock trades at a PE of 20.59 against an industry PE of 17.97, with a return on equity of 13.18%.
IIFL Finance: Revenue Up 30.64% in FY26
IIFL Finance is a diversified NBFC with a large gold loan, home loan and microfinance portfolio. It reported FY26 total income of Rs 13,373.83 crore, up 30.64% year on year, and net profit of Rs 1,816.70 crore, up 214.22%. Net profit has compounded at 11.20% a year since FY22, while total income has grown 17.47% a year.
The stock trades at a PE of 10.25 against an industry PE of 17.68, below the sector average. In the September 2026 quarter, total income rose 28.38% to Rs 4,248.21 crore and net profit grew 92.61% to Rs 805.01 crore. The share price has gained 115.01% over five years and 23.21% over the past year.
Financial Services Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these financial services 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 |
|---|---|---|---|---|---|
| PNB Housing | 8,505.04 | 2,291.24 | 10.58% | 8.22% | 28.65% |
| LIC Housing Finance | 28,843.49 | 5,604.24 | 2.64% | 9.58% | 25.13% |
| Capri Global | 4,742.01 | 949.15 | 45.87% | 48.25% | 46.68% |
| IIFL Finance | 13,373.83 | 1,816.70 | 30.64% | 17.47% | 11.20% |
Check the Univest Screener for live data on these financial services stocks
Institutional Holding in PNB Housing, LIC Housing Finance, Capri Global and IIFL Finance
Institutional holding shows who is backing these financial services stocks alongside the promoter. The table uses the latest reported quarter for each. PNB Housing has the deepest institutional backing, with FII and DII together holding 62.52% as of June 2026. Domestic institutions increased their holding over the past year in PNB Housing (from 37.99% to 45.71%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| PNB Housing | 28.03% | 16.81% | 45.71% | 9.44% | June 2026 |
| LIC Housing Finance | 45.24% | 18.93% | 21.64% | 14.19% | September 2026 |
| Capri Global | 59.92% | 13.00% | 17.04% | 10.04% | September 2026 |
| IIFL Finance | 24.76% | 25.64% | 7.85% | 41.75% | September 2026 |
Risks to Weigh in Financial Services Stocks
Being careful with financial services 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: Capri Global trades at a PE of 20.59 against an industry PE of 17.97, so earnings need to keep growing to support the price.
- Concentration: Holding all 4 names puts the allocation in one sector, so size each position to match your risk appetite.
How to Choose Between Financial Services Stocks
Picking from financial services 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 (17.68 to 17.97) 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 financial services stocks, PNB Housing stands out for the biggest five-year price gain at 133.28%, LIC Housing Finance for the lowest PE of the group at 5.06, Capri Global for the fastest profit growth, 46.68% a year since FY22 and IIFL Finance for 30.64% revenue growth in FY26. 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 financial services 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 Financial Services Stocks to Watch
Which are the best financial services stocks to watch for multibagger potential?
Ans. PNB Housing, LIC Housing Finance, Capri Global and IIFL Finance are the 4 names this list highlights, with market caps of Rs 29,262 crore, Rs 29,049 crore, Rs 23,222 crore and Rs 23,120 crore respectively. PNB Housing is notable for the biggest five-year price gain at 133.28%. LIC Housing Finance stands out for the lowest PE of the group at 5.06. Capri Global offers the fastest profit growth, 46.68% a year since FY22. IIFL Finance brings 30.64% revenue growth in FY26. These are watchlist names for financial services stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is LIC Housing Finance a good stock for long-term investors?
Ans. LIC Housing Finance has a return on equity of 13.53%, a PE of 5.06 against an industry PE of 17.68 and a market cap of Rs 29,049 crore. Net profit has compounded at 25.13% a year since FY22, and FY26 revenue rose 2.64% while June 2026 quarter net profit grew 9.90%. Long-term returns in financial services stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Capri Global become a multibagger from here?
Ans. Capri Global has already gained 101.76% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in financial services stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 46.68% a year since FY22, and FY26 revenue rose 45.87%. At a PE of 20.59 against an industry PE of 17.97, valuation should be checked against that growth before investing.
What is the market cap of PNB Housing, LIC Housing Finance, Capri Global and IIFL Finance?
Ans. As of 26 October 2026, PNB Housing has a market cap of Rs 29,262 crore, LIC Housing Finance has a market cap of Rs 29,049 crore, Capri Global has a market cap of Rs 23,222 crore and IIFL Finance has a market cap of Rs 23,120 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 financial services stocks.
What are the risks of investing in financial services 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. Capri Global trades at a PE of 20.59 against an industry PE of 17.97, so earnings growth needs to hold up.
Is LIC Housing Finance trading below its industry PE?
Ans. LIC Housing Finance trades at a PE of 5.06 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 PNB Housing, LIC Housing Finance, Capri Global and IIFL Finance?
Ans. As of the latest reported quarter, FII and DII together hold 62.52% of PNB Housing (16.81% and 45.71%), 40.57% of LIC Housing Finance (18.93% and 21.64%), 30.04% of Capri Global (13.00% and 17.04%) and 33.49% of IIFL Finance (25.64% and 7.85%). Rising institutional holding is a useful signal in financial services stocks, though it should be read with earnings trends rather than on its own.
