4 Largecap Dividend Paying Low PEG Stocks to Watch for Future Multibagger Potential: SBI, NTPC, Eicher Motors and Union Bank
- October 30, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
SBI Rs 971.90. NTPC Rs 310.50. Eicher Motors Rs 7,238. Union Bank Rs 186.50. Market caps from Rs 1.34 lakh crore to Rs 8.82 lakh crore. Data as of 29 Oct 2026.
Quick Answer
SBI, NTPC, Eicher Motors and Union Bank are the 4 picks in this dividend paying low PEG stocks watchlist, with market caps between Rs 1.34 lakh crore and Rs 8.82 lakh crore. SBI stands out for the largest market cap at Rs 8,82,479 crore, while NTPC offers 6.94% revenue growth in the June 2026 quarter. PE ratios run from 6.52 to 34.35, so compare each one with its industry PE before investing. All figures are as of 29 October 2026.
Dividend paying low PEG stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. SBI, NTPC, Eicher Motors and Union Bank meet that test, with market caps from Rs 1.34 lakh crore to Rs 8.82 lakh crore and SBI offering the largest market cap at Rs 8,82,479 crore. Each of these companies has a dividend yield of at least 1 per cent and a PEG ratio below 1.5, 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 dividend yield of at least 1 per cent and a PEG ratio below 1.5, 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, market capitalisation above Rs 1,00,000 crore, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap above Rs 1 lakh crore. Investors screening dividend paying low PEG 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 Dividend Paying Low PEG Stocks and Why Do They Attract Multibagger Interest?
Dividend paying low PEG stocks are shares of large companies that pay regular dividends and also trade at a valuation that is low compared with their profit growth, a mix of income and growth value. The four here cover public sector banking, motorcycles and power generation.
A dividend gives investors a return while they wait, and a low PEG ratio shows that profit growth is ahead of the price paid, so both parts of the return can work in favour of shareholders. For dividend paying low PEG stocks, both FY26 and the latest quarter showed growth. A sensible way to study dividend paying low PEG stocks is to look at profit growth, returns and valuation side by side. Below, each of dividend paying low PEG stocks gets its own breakdown of growth, returns and valuation. Treat dividend paying low PEG stocks as a research list, since share prices and rankings change with every earnings season.
Dividend Paying Low PEG Stocks at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 29 October 2026. Union Bank has the lowest PE of the group at 6.52, while Eicher Motors posts the highest return on equity at 21.97%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| State Bank of India | 971.90 | 8,82,479 | 9.84 | 12.05 | 14.29% | 1.50 | 877.05 to 1,234.70 |
| NTPC | 310.50 | 3,12,424 | 11.03 | 21.61 | 13.31% | 1.54 | 298.00 to 414.40 |
| Eicher Motors | 7,238 | 1,98,295 | 34.35 | 23.82 | 21.97% | 7.90 | 6,442.00 to 8,230.00 |
| Union Bank of India | 186.50 | 1,34,464 | 6.52 | 12.02 | 15.57% | 1.01 | 135.80 to 205.49 |
SBI: 23.72% Profit CAGR Since FY22
State Bank of India is the country’s largest lender, with a branch network that reaches every part of India. It reported FY26 total income of Rs 7,12,643.53 crore, up 7.43% year on year, and net profit of Rs 85,168.47 crore, up 7.78%. Net profit has compounded at 23.72% a year since FY22, while total income has grown 15.03% a year.
In the June 2026 quarter, total income rose 7.83% to Rs 1,80,061.86 crore and net profit grew 13.65% to Rs 24,579.04 crore. The share price has gained 92.86% over five years. Foreign investors raised their holding from 9.98% in July 2025 to 10.81% in June 2026. The stock trades at a PE of 9.84 against an industry PE of 12.05, below the sector average, with a return on equity of 14.29%. The dividend yield is 1.82%.
NTPC: Five-Year Gain of 110.40%
NTPC is India’s largest power generation company and is growing its renewable energy portfolio. It reported FY26 revenue of Rs 1,89,798.56 crore and net profit of Rs 30,009.98 crore, up 48.19%. Net profit has compounded at 18.01% a year since FY22, while revenue has grown 8.89% a year. Operating margin was 32.45% in FY26.
The stock trades at a PE of 11.03 against an industry PE of 21.61, below the sector average, with a return on equity of 13.31%. The dividend yield is 2.80%. In the June 2026 quarter, revenue rose 6.94% to Rs 51,141.51 crore and net profit grew 12.90% to Rs 6,896.44 crore. The share price has gained 110.40% over five years. Domestic institutions raised their holding from 28.92% in June 2025 to 29.44% in June 2026.
Eicher Motors: 34.67% Profit CAGR Since FY22
Eicher Motors owns the Royal Enfield brand of premium motorcycles and is a partner in the Eicher commercial vehicle business. It reported FY26 revenue of Rs 24,894.09 crore, up 23.39% year on year, and net profit of Rs 5,515.23 crore, up 16.49%. Net profit has compounded at 34.67% a year since FY22, while revenue has grown 23.39% a year. Operating margin was 34.24% in FY26. The debt-to-equity ratio is 0.02, which keeps interest costs low.
In the June 2026 quarter, revenue rose 29.35% to Rs 7,098.73 crore and net profit grew 21.35% to Rs 1,462.51 crore. The share price has gained 174.76% over five years. The stock trades at a PE of 34.35 against an industry PE of 23.82, with a return on equity of 21.97%.
Union Bank: 37.80% Profit CAGR Since FY22
Union Bank of India is a large government-owned bank that serves retail, MSME and corporate customers across India. It reported FY26 total income of Rs 1,28,399.52 crore, up 0.19% year on year, and net profit of Rs 18,780.63 crore, up 4.80%. Net profit has compounded at 37.80% a year since FY22, while total income has grown 11.95% a year.
The stock trades at a PE of 6.52 against an industry PE of 12.02, below the sector average, with a return on equity of 15.57%. The dividend yield is 2.84%. In the June 2026 quarter, total income rose 2.17% to Rs 32,660.24 crore and net profit grew 29.77% to Rs 5,368.17 crore. The share price has gained 249.43% over five years and 23.10% over the past year. Foreign investors raised their holding from 7.70% in June 2025 to 8.63% in June 2026.
Dividend Paying Low PEG Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these dividend paying low PEG 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) | 4-Year Income CAGR | 4-Year Net Profit CAGR | Latest Quarter Income Growth |
|---|---|---|---|---|---|
| SBI | 7,12,643.53 | 85,168.47 | 15.03% | 23.72% | 7.83% |
| NTPC | 1,89,798.56 | 30,009.98 | 8.89% | 18.01% | 6.94% |
| Eicher Motors | 24,894.09 | 5,515.23 | 23.39% | 34.67% | 29.35% |
| Union Bank | 1,28,399.52 | 18,780.63 | 11.95% | 37.80% | 2.17% |
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Institutional Holding in SBI, NTPC, Eicher Motors and Union Bank
Institutional holding shows who is backing these dividend paying low PEG stocks alongside the promoter. The table uses the latest reported quarter for each. NTPC has the deepest institutional backing, with FII and DII together holding 45.74% as of June 2026. Domestic institutions increased their holding over the past year in NTPC (from 28.92% to 29.44%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| SBI | 55.47% | 10.81% | 26.64% | 7.08% | June 2026 |
| NTPC | 51.10% | 16.30% | 29.44% | 3.15% | June 2026 |
| Eicher Motors | 49.02% | 25.53% | 16.06% | 9.40% | June 2026 |
| Union Bank | 74.76% | 8.63% | 11.98% | 4.63% | June 2026 |
Risks to Weigh in Dividend Paying Low PEG Stocks
Being careful with dividend paying low PEG 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: Eicher Motors trades at a PE of 34.35 against an industry PE of 23.82, 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 Dividend Paying Low PEG Stocks
Picking from dividend paying low PEG 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 (12.02 to 23.82) 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 dividend paying low PEG stocks, SBI stands out for the largest market cap at Rs 8,82,479 crore, NTPC for 6.94% revenue growth in the June 2026 quarter, Eicher Motors for the highest return on equity at 21.97% and Union Bank for the fastest profit growth, 37.80% 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 dividend paying low PEG 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 Dividend Paying Low PEG Stocks to Watch
Which are the best dividend paying low PEG stocks to watch for multibagger potential?
Ans. SBI, NTPC, Eicher Motors and Union Bank are the 4 names this list highlights, with market caps of Rs 8,82,479 crore, Rs 3,12,424 crore, Rs 1,98,295 crore and Rs 1,34,464 crore respectively. SBI is notable for the largest market cap at Rs 8,82,479 crore. NTPC stands out for 6.94% revenue growth in the June 2026 quarter. Eicher Motors offers the highest return on equity at 21.97%. Union Bank brings the fastest profit growth, 37.80% a year since FY22. These are watchlist names for dividend paying low PEG stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is Eicher Motors a good stock for long-term investors?
Ans. Eicher Motors has a return on equity of 21.97%, a PE of 34.35 against an industry PE of 23.82 and a market cap of Rs 1,98,295 crore. Net profit has compounded at 34.67% a year since FY22, and FY26 revenue rose 23.39% while June 2026 quarter net profit grew 21.35%. Long-term returns in dividend paying low PEG stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Union Bank become a multibagger from here?
Ans. Union Bank has already gained 249.43% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in dividend paying low PEG stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 37.80% a year since FY22, and FY26 revenue rose 0.19%. At a PE of 6.52 against an industry PE of 12.02, valuation should be checked against that growth before investing.
What is the market cap of SBI, NTPC, Eicher Motors and Union Bank?
Ans. As of 29 October 2026, SBI has a market cap of Rs 8,82,479 crore, NTPC has a market cap of Rs 3,12,424 crore, Eicher Motors has a market cap of Rs 1,98,295 crore and Union Bank has a market cap of Rs 1,34,464 crore. All of them qualify as largecaps. 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 dividend paying low PEG stocks.
What are the risks of investing in dividend paying low PEG 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. Eicher Motors trades at a PE of 34.35 against an industry PE of 23.82, so earnings growth needs to hold up.
Why is Eicher Motors trading at a PE of 34.35?
Ans. Eicher Motors’ PE of 34.35 compares with an industry PE of 23.82. The market is paying a premium for a return on equity of 21.97%, profit growth of 34.67% a year since FY22 and latest-quarter profit growth of 21.35%, which also means the stock is more sensitive if growth slows. Investors in dividend paying low PEG stocks who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.
How much do institutions hold in SBI, NTPC, Eicher Motors and Union Bank?
Ans. As of the latest reported quarter, FII and DII together hold 37.45% of SBI (10.81% and 26.64%), 45.74% of NTPC (16.30% and 29.44%), 41.59% of Eicher Motors (25.53% and 16.06%) and 20.61% of Union Bank (8.63% and 11.98%). Rising institutional holding is a useful signal in dividend paying low PEG stocks, though it should be read with earnings trends rather than on its own.
