4 Midcap PE Below Industry Average Stocks to Watch for Future Multibagger Potential: Lupin, Mazagon Dock, SRF and NMDC
- October 28, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Lupin Rs 1,952. Mazagon Dock Rs 1,754. SRF Rs 2,335. NMDC Rs 69. Market caps from Rs 62,461 crore to Rs 90,990 crore. Data as of 27 Oct 2026.
Quick Answer
Lupin, Mazagon Dock, SRF and NMDC are the 4 picks in this PE below industry average stocks watchlist, with market caps between Rs 62,461 crore and Rs 90,990 crore. Lupin stands out for the largest market cap at Rs 90,990 crore, while Mazagon Dock offers the highest return on equity at 26.48%. PE ratios run from 8.37 to 34.26, so compare each one with its industry PE before investing. All figures are as of 27 October 2026.
PE below industry average stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Lupin, Mazagon Dock, SRF and NMDC meet that test, with market caps from Rs 62,461 crore to Rs 90,990 crore and Lupin offering the largest market cap at Rs 90,990 crore. Each of these companies has a market capitalisation between Rs 30,000 crore and Rs 1,00,000 crore and a price to earnings ratio below the PE of their industry, 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 between Rs 30,000 crore and Rs 1,00,000 crore and a price to earnings ratio below the PE of their industry, 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 between Rs 30,000 crore and Rs 1 lakh crore. Investors screening PE below industry average stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 27 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are PE Below Industry Average Stocks and Why Do They Attract Multibagger Interest?
PE below industry average stocks are shares whose price to earnings ratio is lower than the average PE of their own industry, which means investors pay less for each rupee of profit than they do for rivals. The four here cover pharmaceuticals, shipbuilding, specialty chemicals and iron ore.
A PE below the industry average, backed by rising profit, shows a company that is priced sensibly against its peers while its earnings keep growing. For PE below industry average stocks, both FY26 and the latest quarter showed growth. For PE below industry average stocks, checking each result against the latest quarter matters more than any single ratio. The next sections explain what stands out in each of PE below industry average stocks, using FY26 and latest quarter data. Prices move daily, so recheck the figures for PE below industry average stocks before you decide.
PE Below Industry Average Stocks at a Glance: Price, Market Cap, PE and ROE
Prices are closing prices as of 27 October 2026. NMDC has the lowest PE of the group at 8.37, 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 | 1,952 | 90,990 | 16.39 | 36.42 | 23.76% | 0.29 | 1,900.00 to 2,529.50 |
| Mazagon Dock Shipbuilders | 1,754 | 77,397 | 27.12 | 48.92 | 26.48% | 0.05 | 1,754.00 to 2,881.80 |
| SRF | 2,335 | 74,076 | 34.26 | 36.15 | 13.07% | 0.36 | 2,310.00 to 3,210.00 |
| NMDC | 69 | 62,461 | 8.37 | 10.06 | 21.87% | 0.19 | 66.35 to 97.49 |
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 16.39 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 27.12 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.
SRF: Quarterly Profit Up 75.53%
SRF operates in specialty chemicals, packaging films and technical textiles, and its chemicals business is a key earnings driver. It reported FY26 revenue of Rs 15,893.57 crore, up 7.20% year on year, and net profit of Rs 1,835.18 crore, up 46.72%. Revenue has compounded at 6.08% a year since FY22. Operating margin was 21.74% in FY26. The debt-to-equity ratio is 0.36.
In the June 2026 quarter, revenue rose 31.69% to Rs 5,067.17 crore and net profit grew 75.53% to Rs 758.87 crore. Domestic institutions raised their holding from 18.85% in June 2025 to 22.44% in June 2026. The stock trades at a PE of 34.26 against an industry PE of 36.15, below the sector average, with a return on equity of 13.07%.
NMDC: Revenue Up 31.61% in FY26
NMDC is a government-owned miner and India’s largest iron ore producer. It reported FY26 revenue of Rs 33,559.27 crore, up 31.61% year on year, and net profit of Rs 7,415.37 crore, up 13.39%. Revenue has compounded at 5.90% a year since FY22. Operating margin was 33.51% in FY26. The debt-to-equity ratio is 0.19.
The stock trades at a PE of 8.37 against an industry PE of 10.06, below the sector average, with a return on equity of 21.87%. The dividend yield is 4.93%. In the June 2026 quarter, revenue rose 1.47% to Rs 7,142.54 crore and net profit grew 1.94% to Rs 2,005.71 crore. Foreign investors raised their holding from 12.21% in June 2025 to 13.59% in June 2026.
PE Below Industry Average Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these PE below industry average 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) | 4-Year Revenue CAGR | Latest Quarter Revenue Growth | Operating Margin (Latest Quarter) |
|---|---|---|---|---|---|---|
| Lupin | 29,038.95 | 5,355.47 | 26.76% | 14.98% | 32.45% | 31.40% |
| Mazagon Dock | 14,145.71 | 2,421.88 | 12.77% | 23.18% | 10.40% | 25.82% |
| SRF | 15,893.57 | 1,835.18 | 7.20% | 6.08% | 31.69% | 25.73% |
| NMDC | 33,559.27 | 7,415.37 | 31.61% | 5.90% | 1.47% | 41.43% |
Check the Univest Screener for live data on these PE below industry average stocks
Institutional Holding in Lupin, Mazagon Dock, SRF and NMDC
Institutional holding shows who is backing these PE below industry average 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 SRF (from 18.85% to 22.44%).
| 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 |
| SRF | 50.26% | 15.45% | 22.44% | 11.85% | June 2026 |
| NMDC | 60.79% | 13.59% | 13.81% | 11.80% | June 2026 |
Risks to Weigh in PE Below Industry Average Stocks
Being careful with PE below industry average 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 PE Below Industry Average Stocks
Picking from PE below industry average 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 (10.06 to 48.92) 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 PE below industry average stocks, Lupin stands out for the largest market cap at Rs 90,990 crore, Mazagon Dock for the highest return on equity at 26.48%, SRF for the strongest latest-quarter profit growth at 75.53% and NMDC for the lowest PE of the group at 8.37. 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 PE below industry average 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 PE Below Industry Average Stocks to Watch
Which are the best PE below industry average stocks to watch for multibagger potential?
Ans. Lupin, Mazagon Dock, SRF and NMDC are the 4 names this list highlights, with market caps of Rs 90,990 crore, Rs 77,397 crore, Rs 74,076 crore and Rs 62,461 crore respectively. Lupin is notable for the largest market cap at Rs 90,990 crore. Mazagon Dock stands out for the highest return on equity at 26.48%. SRF offers the strongest latest-quarter profit growth at 75.53%. NMDC brings the lowest PE of the group at 8.37. These are watchlist names for PE below industry average 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 27.12 against an industry PE of 48.92 and a market cap of Rs 77,397 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 PE below industry average stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Lupin become a multibagger from here?
Ans. Lupin has already gained 111.00% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in PE below industry average stocks requires earnings to keep growing faster than the market for several years. FY26 revenue rose 26.76%, and June 2026 quarter net profit grew 16.01%. At a PE of 16.39 against an industry PE of 36.42, valuation should be checked against that growth before investing.
What is the market cap of Lupin, Mazagon Dock, SRF and NMDC?
Ans. As of 27 October 2026, Lupin has a market cap of Rs 90,990 crore, Mazagon Dock has a market cap of Rs 77,397 crore, SRF has a market cap of Rs 74,076 crore and NMDC has a market cap of Rs 62,461 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 PE below industry average stocks.
What are the risks of investing in PE below industry average 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 NMDC trading below its industry PE?
Ans. NMDC trades at a PE of 8.37 against an industry PE of 10.06. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (FY26 revenue rose 31.61% and June 2026 quarter net profit grew 1.94%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in Lupin, Mazagon Dock, SRF and NMDC?
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%), 37.89% of SRF (15.45% and 22.44%) and 27.40% of NMDC (13.59% and 13.81%). Rising institutional holding is a useful signal in PE below industry average stocks, though it should be read with earnings trends rather than on its own.
