4 Smallcap Return On Equity Higher Than PE Stocks to Watch for Future Multibagger Potential: Force Motors, Shipping Corporation, Bombay Burmah and IMFA
- October 30, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Force Motors Rs 16,856. Shipping Corporation Rs 253.90. Bombay Burmah Rs 1,180.90. IMFA Rs 1,106.50. Market caps from Rs 6,055 crore to Rs 23,247 crore. Data as of 29 Oct 2026.
Quick Answer
Force Motors, Shipping Corporation, Bombay Burmah and IMFA are the 4 picks in this return on equity higher than PE stocks watchlist, with market caps between Rs 6,055 crore and Rs 23,247 crore. Force Motors stands out for the highest return on equity at 25.19%, while Shipping Corporation offers 7.35% revenue growth in FY26. PE ratios run from 3.16 to 18.57, so compare each one with its industry PE before investing. All figures are as of 29 October 2026.
Return on equity higher than PE stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Force Motors, Shipping Corporation, Bombay Burmah and IMFA meet that test, with market caps from Rs 6,055 crore to Rs 23,247 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 return on equity that is higher than its price to earnings ratio, 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 return on equity that is higher than its price to earnings ratio, 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 return on equity higher than PE stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 29 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Return On Equity Higher Than PE Stocks and Why Do They Attract Multibagger Interest?
Return on equity higher than PE stocks are shares of smaller companies where the return on equity, in per cent, is larger than the price to earnings multiple, which means the business earns well on shareholder money compared with the price paid. The four here cover shipping, commercial vehicles, diversified trading and ferro alloys.
A return on equity above the earnings multiple points to a business that earns a lot on every rupee of shareholder money while trading at a modest multiple of its profit. Within return on equity higher than PE stocks, the four companies show rising profit. For return on equity higher than PE stocks, both FY26 and the latest quarter showed growth. Whichever way you read return on equity higher than PE stocks, the common thread is rising profit backed by complete financial data. For return on equity higher than PE stocks, checking each result against the latest quarter matters more than any single ratio. The next sections explain what stands out in each of return on equity higher than PE stocks, using FY26 and latest quarter data. Prices move daily, so recheck the figures for return on equity higher than PE stocks before you decide.
Return On Equity Higher Than PE Stocks at a Glance: Price, Market Cap, PE and ROE
Prices are closing prices as of 29 October 2026. Bombay Burmah has the lowest PE of the group at 3.16, 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 | 16,856 | 23,247 | 18.57 | 23.62 | 25.19% | 0.00 | 15,982.00 to 26,450.00 |
| Shipping Corporation of India | 253.90 | 12,913 | 7.98 | 8.87 | 14.87% | 0.29 | 195.55 to 368.75 |
| Bombay Burmah Trading Corporation | 1,180.90 | 8,146 | 3.16 | 37.21 | 17.65% | 0.23 | 1,177.00 to 1,864.00 |
| Indian Metals and Ferro Alloys | 1,106.50 | 6,055 | 11.54 | 11.27 | 15.61% | 0.35 | 1,064.10 to 1,679.90 |
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 18.57 against an industry PE of 23.62, below the sector average, with a return on equity of 25.19%.
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 7.98 against an industry PE of 8.87, below the sector average, with a return on equity of 14.87%. The dividend yield is 2.71%. 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.
Bombay Burmah: 32.90% Profit CAGR Since FY22
Bombay Burmah Trading Corporation is a Wadia group company with interests in tea and coffee plantations, auto electric components and a large stake in Britannia Industries. It reported FY26 revenue of Rs 19,853.44 crore, up 6.93% year on year, and net profit of Rs 2,499.25 crore, up 13.64%. Net profit has compounded at 32.90% a year since FY22, while revenue has grown 7.49% a year. Operating margin was 19.66% in FY26. The debt-to-equity ratio is 0.23.
In the June 2026 quarter, revenue rose 7.78% to Rs 5,156.55 crore and net profit grew 17.08% to Rs 582.67 crore. The share price has gained 579.59% over five years. Promoters hold 74.05%, which keeps ownership stable. The stock trades at a PE of 3.16 against an industry PE of 37.21, below the sector average, with a return on equity of 17.65%.
IMFA: Quarterly Profit Up 108.12%
Indian Metals and Ferro Alloys makes charge chrome and ferro alloys and runs its own mines and captive power plants in Odisha. It reported FY26 revenue of Rs 2,891.78 crore, up 9.91% year on year, and net profit of Rs 424.72 crore, up 11.97%. Operating margin was 23.09% in FY26. The debt-to-equity ratio is 0.35.
The stock trades at a PE of 11.54 against an industry PE of 11.27, with a return on equity of 15.61%. In the June 2026 quarter, revenue rose 46.69% to Rs 973.36 crore and net profit grew 108.12% to Rs 192.59 crore. The share price has gained 199.60% over five years. Domestic institutions raised their holding from 0.22% in September 2025 to 0.84% in September 2026.
Return On Equity Higher Than PE Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these return on equity higher than 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) | 4-Year Revenue CAGR | Latest Quarter Revenue Growth | Operating Margin (Latest Quarter) |
|---|---|---|---|---|---|---|
| Force Motors | 9,167.51 | 1,211.75 | 12.79% | 29.18% | 6.71% | 15.19% |
| Shipping Corporation | 6,226.78 | 1,352.92 | 7.35% | 5.12% | 33.81% | 51.32% |
| Bombay Burmah | 19,853.44 | 2,499.25 | 6.93% | 7.49% | 7.78% | 17.75% |
| IMFA | 2,891.78 | 424.72 | 9.91% | 2.50% | 46.69% | 30.63% |
Check the Univest Screener for live data on these return on equity higher than PE stocks
Institutional Holding in Force Motors, Shipping Corporation, Bombay Burmah and IMFA
Institutional holding shows who is backing these return on equity higher than PE stocks alongside the promoter. The table uses the latest reported quarter for each. Shipping Corporation has the deepest institutional backing, with FII and DII together holding 11.05% as of June 2026. Domestic institutions increased their holding over the past year in IMFA (from 0.22% to 0.84%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| Force Motors | 61.63% | 9.52% | 1.46% | 27.39% | June 2026 |
| Shipping Corporation | 63.75% | 8.97% | 2.08% | 25.20% | June 2026 |
| Bombay Burmah | 74.05% | 9.46% | 1.03% | 15.46% | June 2026 |
| IMFA | 58.69% | 2.88% | 0.84% | 37.60% | September 2026 |
Risks to Weigh in Return On Equity Higher Than PE Stocks
Being careful with return on equity higher than 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: IMFA trades at a PE of 11.54 against an industry PE of 11.27, 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 Return On Equity Higher Than PE Stocks
Picking from return on equity higher than 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 (8.87 to 37.21) 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 return on equity higher than PE stocks, Force Motors stands out for the highest return on equity at 25.19%, Shipping Corporation for 7.35% revenue growth in FY26, Bombay Burmah for the fastest profit growth, 32.90% a year since FY22 and IMFA for the strongest latest-quarter profit growth at 108.12%. 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 return on equity higher than 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 Return On Equity Higher Than PE Stocks to Watch
Which are the best return on equity higher than PE stocks to watch for multibagger potential?
Ans. Force Motors, Shipping Corporation, Bombay Burmah and IMFA are the 4 names this list highlights, with market caps of Rs 23,247 crore, Rs 12,913 crore, Rs 8,146 crore and Rs 6,055 crore respectively. Force Motors is notable for the highest return on equity at 25.19%. Shipping Corporation stands out for 7.35% revenue growth in FY26. Bombay Burmah offers the fastest profit growth, 32.90% a year since FY22. IMFA brings the strongest latest-quarter profit growth at 108.12%. These are watchlist names for return on equity higher than 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 18.57 against an industry PE of 23.62 and a market cap of Rs 23,247 crore. FY26 revenue rose 12.79%, and June 2026 quarter net profit grew 22.81%. Long-term returns in return on equity higher than PE stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Bombay Burmah become a multibagger from here?
Ans. Bombay Burmah has already gained 579.59% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in return on equity higher than PE stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 32.90% a year since FY22, and FY26 revenue rose 6.93%. At a PE of 3.16 against an industry PE of 37.21, valuation should be checked against that growth before investing.
What is the market cap of Force Motors, Shipping Corporation, Bombay Burmah and IMFA?
Ans. As of 29 October 2026, Force Motors has a market cap of Rs 23,247 crore, Shipping Corporation has a market cap of Rs 12,913 crore, Bombay Burmah has a market cap of Rs 8,146 crore and IMFA has a market cap of Rs 6,055 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 return on equity higher than PE stocks.
What are the risks of investing in return on equity higher than 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. IMFA trades at a PE of 11.54 against an industry PE of 11.27, so earnings growth needs to hold up.
Is Bombay Burmah trading below its industry PE?
Ans. Bombay Burmah trades at a PE of 3.16 against an industry PE of 37.21. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 32.90% a year since FY22 and FY26 revenue rose 6.93%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in Force Motors, Shipping Corporation, Bombay Burmah and IMFA?
Ans. As of the latest reported quarter, FII and DII together hold 10.98% of Force Motors (9.52% and 1.46%), 11.05% of Shipping Corporation (8.97% and 2.08%), 10.49% of Bombay Burmah (9.46% and 1.03%) and 3.72% of IMFA (2.88% and 0.84%). Rising institutional holding is a useful signal in return on equity higher than PE stocks, though it should be read with earnings trends rather than on its own.
