4 Largecap Dividend Paying Stocks With Strong Quarterly Profit Growth to Watch for Future Multibagger Potential: Asian Paints, Hindustan Zinc, Tech Mahindra and Union Bank
- November 2, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Asian Paints Rs 2,320. Hindustan Zinc Rs 505.80. Tech Mahindra Rs 1,790.80. Union Bank Rs 186. Market caps from Rs 1.34 lakh crore to Rs 2.30 lakh crore. Data as of 30 Oct 2026.
Quick Answer
Asian Paints, Hindustan Zinc, Tech Mahindra and Union Bank are the 4 picks in this dividend paying stocks with strong quarterly profit growth watchlist, with market caps between Rs 1.34 lakh crore and Rs 2.30 lakh crore. Asian Paints stands out for the largest market cap at Rs 2,29,517 crore, while Hindustan Zinc offers the highest return on equity at 61.13%. PE ratios run from 6.50 to 47.45, so compare each one with its industry PE before investing. All figures are as of 30 October 2026.
Dividend paying stocks with strong quarterly profit growth to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Asian Paints, Hindustan Zinc, Tech Mahindra and Union Bank meet that test, with market caps from Rs 1.34 lakh crore to Rs 2.30 lakh crore and Asian Paints offering the largest market cap at Rs 2,29,517 crore. Each of these companies has a dividend yield of at least 1 per cent and latest quarter net profit growth of at least 15 per cent year on year 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 latest quarter net profit growth of at least 15 per cent year on year 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 stocks with strong quarterly profit growth usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 30 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Dividend Paying Stocks With Strong Quarterly Profit Growth and Why Do They Attract Multibagger Interest?
Dividend paying stocks with strong quarterly profit growth are shares of large companies that pay a dividend yield of one per cent or more and also grew quarterly profit by fifteen per cent or more over the same quarter last year, so income and fresh growth come together. The four here cover paints, IT services, public sector banking and zinc mining.
A regular dividend gives income while you hold, and a strong latest quarter shows that the business is still growing, which gives the company room to keep or raise its payout. Within dividend paying stocks with strong quarterly profit growth, the four companies show rising profit. For dividend paying stocks with strong quarterly profit growth, both FY26 and the latest quarter showed growth. Whichever way you read dividend paying stocks with strong quarterly profit growth, the common thread is rising profit backed by complete financial data. With dividend paying stocks with strong quarterly profit growth, 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 dividend paying stocks with strong quarterly profit growth are complete. Read each company’s latest results and exchange filings before acting on dividend paying stocks with strong quarterly profit growth.
Dividend Paying Stocks With Strong Quarterly Profit Growth at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 30 October 2026. Union Bank has the lowest PE of the group at 6.50, while Hindustan Zinc posts the highest return on equity at 61.13%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Asian Paints | 2,320 | 2,29,517 | 47.45 | 42.98 | 20.24% | 10.74 | 2,115.00 to 2,985.70 |
| Hindustan Zinc | 505.80 | 2,18,709 | 12.81 | 12.27 | 61.13% | 9.67 | 412.25 to 609.05 |
| Tech Mahindra | 1,790.80 | 1,59,523 | 30.90 | 18.49 | 16.24% | 5.38 | 1,304.10 to 1,854.00 |
| Union Bank of India | 186 | 1,34,103 | 6.50 | 12.02 | 15.57% | 1.01 | 135.80 to 205.49 |
Asian Paints: Return on Equity of 20.24%
Asian Paints is India’s largest paint maker and sells decorative and industrial paints, waterproofing and home decor products. It reported FY26 revenue of Rs 36,307.34 crore, up 5.31% year on year, and net profit of Rs 4,394.69 crore, up 18.46%. Net profit has compounded at 9.25% a year since FY22, while revenue has grown 5.34% a year. Operating margin was 20.87% in FY26. The debt-to-equity ratio is 0.18.
In the June 2026 quarter, revenue rose 18.09% to Rs 10,782.79 crore and net profit grew 39.60% to Rs 1,559.45 crore. Foreign investors raised their holding from 11.85% in June 2025 to 13.32% in June 2026. The stock trades at a PE of 47.45 against an industry PE of 42.98, with a return on equity of 20.24%.
Hindustan Zinc: Return on Equity of 61.13%
Hindustan Zinc is among the world’s largest integrated zinc producers and also produces lead and silver. It reported FY26 revenue of Rs 41,934 crore, up 19.59% year on year, and net profit of Rs 13,832 crore, up 33.60%. Net profit has compounded at 9.48% a year since FY22, while revenue has grown 8.15% a year. Operating margin was 56.75% in FY26. The debt-to-equity ratio is 0.39.
The stock trades at a PE of 12.81 against an industry PE of 12.27, with a return on equity of 61.13%. The dividend yield is 1.94%. In the June 2026 quarter, revenue rose 74.70% to Rs 14,063 crore and net profit grew 144.81% to Rs 5,469 crore. Foreign investors raised their holding from 1.31% in September 2025 to 2.36% in September 2026.
Tech Mahindra: Debt-to-Equity of 0.07
Tech Mahindra, part of the Mahindra Group, provides IT and business services to telecom and other global clients. It reported FY26 revenue of Rs 56,847.30 crore, up 5.58% year on year, and net profit of Rs 4,805.50 crore, up 12.99%. Revenue has compounded at 5.57% a year since FY22. Operating margin was 15.47% in FY26. The debt-to-equity ratio is 0.07, which keeps interest costs low.
In the September 2026 quarter, revenue rose 15.23% to Rs 16,172.80 crore and net profit grew 33.95% to Rs 1,609.70 crore. The share price is up 16.96% over the past year. Domestic institutions raised their holding from 32.13% in June 2025 to 36.92% in June 2026. The stock trades at a PE of 30.90 against an industry PE of 18.49, with a return on equity of 16.24%. The dividend yield is 3.13%.
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 6.50 against an industry PE of 12.02, below the sector average, with a return on equity of 15.57%. The dividend yield is 2.85%. 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 Stocks With Strong Quarterly Profit Growth: Financial Comparison on Growth and Margins
The table compares scale and growth across these dividend paying stocks with strong quarterly profit growth. 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 |
|---|---|---|---|---|---|
| Asian Paints | 36,307.34 | 4,394.69 | 5.31% | 5.34% | 18.09% |
| Hindustan Zinc | 41,934 | 13,832 | 19.59% | 8.15% | 74.70% |
| Tech Mahindra | 56,847.30 | 4,805.50 | 5.58% | 5.57% | 15.23% |
| Union Bank | 1,28,399.52 | 18,780.63 | 0.19% | 11.95% | 2.17% |
Institutional Holding in Asian Paints, Hindustan Zinc, Tech Mahindra and Union Bank
Institutional holding shows who is backing these dividend paying stocks with strong quarterly profit growth alongside the promoter. The table uses the latest reported quarter for each. Tech Mahindra has the deepest institutional backing, with FII and DII together holding 55.58% as of June 2026. Domestic institutions increased their holding over the past year in Tech Mahindra (from 32.13% to 36.92%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| Asian Paints | 52.63% | 13.32% | 20.77% | 13.28% | June 2026 |
| Hindustan Zinc | 60.71% | 2.36% | 4.85% | 32.07% | September 2026 |
| Tech Mahindra | 34.97% | 18.66% | 36.92% | 9.45% | June 2026 |
| Union Bank | 74.76% | 8.63% | 11.98% | 4.63% | June 2026 |
Risks to Weigh in Dividend Paying Stocks With Strong Quarterly Profit Growth
Being careful with dividend paying stocks with strong quarterly profit growth 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: Tech Mahindra trades at a PE of 30.90 against an industry PE of 18.49, 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 Stocks With Strong Quarterly Profit Growth
Picking from dividend paying stocks with strong quarterly profit growth 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 (12.02 to 42.98) 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 stocks with strong quarterly profit growth, Asian Paints stands out for the largest market cap at Rs 2,29,517 crore, Hindustan Zinc for the highest return on equity at 61.13%, Tech Mahindra for a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.07 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 stocks with strong quarterly profit growth 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 Stocks With Strong Quarterly Profit Growth to Watch
Which are the best dividend paying stocks with strong quarterly profit growth to watch for multibagger potential?
Ans. Asian Paints, Hindustan Zinc, Tech Mahindra and Union Bank are the 4 names this list highlights, with market caps of Rs 2,29,517 crore, Rs 2,18,709 crore, Rs 1,59,523 crore and Rs 1,34,103 crore respectively. Asian Paints is notable for the largest market cap at Rs 2,29,517 crore. Hindustan Zinc stands out for the highest return on equity at 61.13%. Tech Mahindra offers a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.07. Union Bank brings the fastest profit growth, 37.80% a year since FY22. These are watchlist names for dividend paying stocks with strong quarterly profit growth, not recommendations, so match each one to your own risk profile and time horizon.
Is Hindustan Zinc a good stock for long-term investors?
Ans. Hindustan Zinc has a return on equity of 61.13%, a PE of 12.81 against an industry PE of 12.27 and a market cap of Rs 2,18,709 crore. Net profit has compounded at 9.48% a year since FY22, and FY26 revenue rose 19.59% while June 2026 quarter net profit grew 144.81%. Long-term returns in dividend paying stocks with strong quarterly profit growth 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 stocks with strong quarterly profit growth 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 6.50 against an industry PE of 12.02, valuation should be checked against that growth before investing.
What is the market cap of Asian Paints, Hindustan Zinc, Tech Mahindra and Union Bank?
Ans. As of 30 October 2026, Asian Paints has a market cap of Rs 2,29,517 crore, Hindustan Zinc has a market cap of Rs 2,18,709 crore, Tech Mahindra has a market cap of Rs 1,59,523 crore and Union Bank has a market cap of Rs 1,34,103 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 stocks with strong quarterly profit growth.
What are the risks of investing in dividend paying stocks with strong quarterly profit growth?
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. Tech Mahindra trades at a PE of 30.90 against an industry PE of 18.49, so earnings growth needs to hold up.
Why is Tech Mahindra trading at a PE of 30.90?
Ans. Tech Mahindra’s PE of 30.90 compares with an industry PE of 18.49. The market is paying a premium for a return on equity of 16.24% and latest-quarter profit growth of 33.95%, which also means the stock is more sensitive if growth slows. Investors in dividend paying stocks with strong quarterly profit growth who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.
How much do institutions hold in Asian Paints, Hindustan Zinc, Tech Mahindra and Union Bank?
Ans. As of the latest reported quarter, FII and DII together hold 34.09% of Asian Paints (13.32% and 20.77%), 7.21% of Hindustan Zinc (2.36% and 4.85%), 55.58% of Tech Mahindra (18.66% and 36.92%) and 20.61% of Union Bank (8.63% and 11.98%). Rising institutional holding is a useful signal in dividend paying stocks with strong quarterly profit growth, though it should be read with earnings trends rather than on its own.
