4 Smallcap Stocks With PB Between 1 and 3 to Watch for Future Multibagger Potential: IIFL Finance, CESC, Sarda Energy and Shipping Corporation
- October 27, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
IIFL Finance Rs 529.20. CESC Rs 124.75. Sarda Energy Rs 446.60. Shipping Corporation Rs 246.90. Market caps from Rs 12,557 crore to Rs 23,120 crore. Data as of 26 Oct 2026.
Quick Answer
IIFL Finance, CESC, Sarda Energy and Shipping Corporation are the 4 picks in this stocks with PB between 1 and 3 watchlist, with market caps between Rs 12,557 crore and Rs 23,120 crore. IIFL Finance stands out for the strongest latest-quarter profit growth at 92.61%, while CESC offers 8.93% revenue growth in FY26. PE ratios run from 7.76 to 13.57, so compare each one with its industry PE before investing. All figures are as of 26 October 2026.
Stocks with PB between 1 and 3 to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. IIFL Finance, CESC, Sarda Energy and Shipping Corporation meet that test, with market caps from Rs 12,557 crore to Rs 23,120 crore and IIFL Finance offering the strongest latest-quarter profit growth at 92.61%. Each of these companies has a market capitalisation below Rs 30,000 crore and a price to book ratio between 1 and 3, a return on equity of at least 10 per cent and 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 price to book ratio between 1 and 3, a return on equity of at least 10 per cent and 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 stocks with PB between 1 and 3 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 Stocks With PB Between 1 and 3 and Why Do They Attract Multibagger Interest?
Stocks with PB between 1 and 3 are shares that trade at one to three times book value, a range that keeps the share price close to the value of the assets behind the business. The four here cover lending, power distribution, steel and power, and shipping.
A price to book ratio in this range ties the share price closely to the assets and reserves on the balance sheet. For stocks with PB between 1 and 3, both FY26 and the latest quarter showed growth. Whichever way you read stocks with PB between 1 and 3, the common thread is rising profit backed by complete financial data. For stocks with PB between 1 and 3, checking each result against the latest quarter matters more than any single ratio. The next sections explain what stands out in each of stocks with PB between 1 and 3, using FY26 and latest quarter data. Prices move daily, so recheck the figures for stocks with PB between 1 and 3 before you decide.
Stocks With PB Between 1 and 3 at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 26 October 2026. Shipping Corporation has the lowest PE of the group at 7.76, while Sarda Energy posts the highest return on equity at 15.00%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| IIFL Finance | 529.20 | 23,120 | 10.25 | 17.68 | 11.93% | 1.67 | 409.10 to 705.00 |
| CESC | 124.75 | 17,293 | 10.61 | 22.18 | 12.31% | 1.38 | 124.75 to 204.50 |
| Sarda Energy and Minerals | 446.60 | 15,616 | 13.57 | 22.42 | 15.00% | 2.12 | 443.95 to 624.00 |
| Shipping Corporation of India | 246.90 | 12,557 | 7.76 | 8.87 | 14.87% | 1.38 | 195.55 to 368.75 |
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.
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. The stock trades at a PE of 10.25 against an industry PE of 17.68, below the sector average.
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 10.61 against an industry PE of 22.18, below the sector average, with a return on equity of 12.31%. The dividend yield is 4.63%. 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.
Sarda Energy: Revenue Up 23.10% in FY26
Sarda Energy and Minerals makes sponge iron, steel products and ferro alloys, mines iron ore and coal, and generates power for captive use and sale. It reported FY26 revenue of Rs 5,927.54 crore, up 23.10% year on year, and net profit of Rs 1,063.30 crore, up 56.09%. Net profit has compounded at 7.10% a year since FY22, while revenue has grown 10.58% a year. Operating margin was 35.76% in FY26. The debt-to-equity ratio is 0.36.
In the June 2026 quarter, revenue rose 0.22% to Rs 1,716.53 crore and net profit grew 9.39% to Rs 462.81 crore. The share price has gained 472.57% over five years. Promoters hold 73.16%, which keeps ownership stable. The stock trades at a PE of 13.57 against an industry PE of 22.42, below the sector average, with a return on equity of 15.00%.
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 7.76 against an industry PE of 8.87, below the sector average, with a return on equity of 14.87%. The dividend yield is 2.78%. 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.
Stocks With PB Between 1 and 3: Financial Comparison on Growth and Margins
The table compares scale and growth across these stocks with PB between 1 and 3. 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 |
|---|---|---|---|---|---|
| IIFL Finance | 13,373.83 | 1,816.70 | 30.64% | 17.47% | 11.20% |
| CESC | 18,927.29 | 1,617.57 | 8.93% | 10.22% | 3.60% |
| Sarda Energy | 5,927.54 | 1,063.30 | 23.10% | 10.58% | 7.10% |
| Shipping Corporation | 6,226.78 | 1,352.92 | 7.35% | 5.12% | 11.82% |
Check the Univest Screener for live data on these stocks with PB between 1 and 3
Institutional Holding in IIFL Finance, CESC, Sarda Energy and Shipping Corporation
Institutional holding shows who is backing these stocks with PB between 1 and 3 alongside the promoter. The table uses the latest reported quarter for each. CESC has the deepest institutional backing, with FII and DII together holding 37.61% as of June 2026. Domestic institutions increased their holding over the past year in CESC (from 25.38% to 26.14%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| IIFL Finance | 24.76% | 25.64% | 7.85% | 41.75% | September 2026 |
| CESC | 52.11% | 11.47% | 26.14% | 10.28% | June 2026 |
| Sarda Energy | 73.16% | 3.52% | 3.48% | 19.85% | June 2026 |
| Shipping Corporation | 63.75% | 8.97% | 2.08% | 25.20% | June 2026 |
Risks to Weigh in Stocks With PB Between 1 and 3
Being careful with stocks with PB between 1 and 3 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 Stocks With PB Between 1 and 3
Picking from stocks with PB between 1 and 3 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 22.42) 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 stocks with PB between 1 and 3, IIFL Finance stands out for the strongest latest-quarter profit growth at 92.61%, CESC for 8.93% revenue growth in FY26, Sarda Energy for the highest return on equity at 15.00% and Shipping Corporation for the fastest profit growth, 11.82% a year since FY22. 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 stocks with PB between 1 and 3 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 Stocks With PB Between 1 and 3 to Watch
Which are the best stocks with PB between 1 and 3 to watch for multibagger potential?
Ans. IIFL Finance, CESC, Sarda Energy and Shipping Corporation are the 4 names this list highlights, with market caps of Rs 23,120 crore, Rs 17,293 crore, Rs 15,616 crore and Rs 12,557 crore respectively. IIFL Finance is notable for the strongest latest-quarter profit growth at 92.61%. CESC stands out for 8.93% revenue growth in FY26. Sarda Energy offers the highest return on equity at 15.00%. Shipping Corporation brings the fastest profit growth, 11.82% a year since FY22. These are watchlist names for stocks with PB between 1 and 3, not recommendations, so match each one to your own risk profile and time horizon.
Is Sarda Energy a good stock for long-term investors?
Ans. Sarda Energy has a return on equity of 15.00%, a PE of 13.57 against an industry PE of 22.42 and a market cap of Rs 15,616 crore. Net profit has compounded at 7.10% a year since FY22, and FY26 revenue rose 23.10% while June 2026 quarter net profit grew 9.39%. Long-term returns in stocks with PB between 1 and 3 depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Shipping Corporation become a multibagger from here?
Ans. Shipping Corporation has already gained 98.18% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in stocks with PB between 1 and 3 requires earnings to keep growing faster than the market for several years. Net profit has compounded at 11.82% a year since FY22, and FY26 revenue rose 7.35%. At a PE of 7.76 against an industry PE of 8.87, valuation should be checked against that growth before investing.
What is the market cap of IIFL Finance, CESC, Sarda Energy and Shipping Corporation?
Ans. As of 26 October 2026, IIFL Finance has a market cap of Rs 23,120 crore, CESC has a market cap of Rs 17,293 crore, Sarda Energy has a market cap of Rs 15,616 crore and Shipping Corporation has a market cap of Rs 12,557 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 stocks with PB between 1 and 3.
What are the risks of investing in stocks with PB between 1 and 3?
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 Shipping Corporation trading below its industry PE?
Ans. Shipping Corporation trades at a PE of 7.76 against an industry PE of 8.87. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 11.82% a year since FY22 and FY26 revenue rose 7.35%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in IIFL Finance, CESC, Sarda Energy and Shipping Corporation?
Ans. As of the latest reported quarter, FII and DII together hold 33.49% of IIFL Finance (25.64% and 7.85%), 37.61% of CESC (11.47% and 26.14%), 7.00% of Sarda Energy (3.52% and 3.48%) and 11.05% of Shipping Corporation (8.97% and 2.08%). Rising institutional holding is a useful signal in stocks with PB between 1 and 3, though it should be read with earnings trends rather than on its own.
