4 Largecap Dividend Paying Low PE Stocks to Watch for Future Multibagger Potential: HDFC Bank, SBI, TCS and Union Bank
- November 2, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
HDFC Bank Rs 692.80. SBI Rs 961.85. TCS Rs 2,502.60. Union Bank Rs 186. Market caps from Rs 1.34 lakh crore to Rs 11.21 lakh crore. Data as of 30 Oct 2026.
Quick Answer
HDFC Bank, SBI, TCS and Union Bank are the 4 picks in this dividend paying low PE stocks watchlist, with market caps between Rs 1.34 lakh crore and Rs 11.21 lakh crore. HDFC Bank stands out for the largest market cap at Rs 11,20,606 crore, while SBI offers 7.43% revenue growth in FY26. PE ratios run from 6.50 to 16.03, so compare each one with its industry PE before investing. All figures are as of 30 October 2026.
Dividend paying low PE stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. HDFC Bank, SBI, TCS and Union Bank meet that test, with market caps from Rs 1.34 lakh crore to Rs 11.21 lakh crore and HDFC Bank offering the largest market cap at Rs 11,20,606 crore. Each of these companies has a dividend yield of at least 1 per cent and a price to earnings ratio below 20, 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 price to earnings ratio below 20, 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 PE stocks 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 Low PE Stocks and Why Do They Attract Multibagger Interest?
Dividend paying low PE stocks are shares of large companies that pay a dividend yield of one per cent or more and trade at a price to earnings ratio below 20, so shareholders get regular income at a modest price. The four here cover private banking, state banking, IT services and public sector banking.
A regular dividend gives income while you hold, and a price to earnings ratio below 20 shows that the market is not asking for a rich premium, which leaves room for the share price to catch up with growth. For dividend paying low PE stocks, both FY26 and the latest quarter showed growth. Whichever way you read dividend paying low PE stocks, the common thread is rising profit backed by complete financial data. For dividend paying low 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 dividend paying low PE stocks, using FY26 and latest quarter data. Prices move daily, so recheck the figures for dividend paying low PE stocks before you decide.
Dividend Paying Low PE Stocks 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 TCS posts the highest return on equity at 43.37%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| HDFC Bank | 692.80 | 11,20,606 | 13.59 | 11.94 | 13.14% | 1.87 | 680.20 to 1,020.50 |
| State Bank of India | 961.85 | 8,73,354 | 9.74 | 12.05 | 14.29% | 1.49 | 877.05 to 1,234.70 |
| Tata Consultancy Services | 2,502.60 | 8,31,455 | 16.03 | 18.27 | 43.37% | 6.99 | 1,976.80 to 3,350.00 |
| Union Bank of India | 186 | 1,34,103 | 6.50 | 12.02 | 15.57% | 1.01 | 135.80 to 205.49 |
HDFC Bank: 20.04% Profit CAGR Since FY22
HDFC Bank is India’s largest private sector bank by assets and serves retail, business and corporate customers through a wide branch and digital network. It reported FY26 total income of Rs 4,95,462.81 crore, up 5.21% year on year, and net profit of Rs 79,219.46 crore, up 7.87%. Net profit has compounded at 20.04% a year since FY22, while total income has grown 31.11% a year.
In the September 2026 quarter, total income rose 9.11% to Rs 1,29,358.69 crore and net profit grew 5.76% to Rs 21,537.09 crore. Domestic institutions raised their holding from 36.26% in September 2025 to 43.63% in September 2026. The stock trades at a PE of 13.59 against an industry PE of 11.94, with a return on equity of 13.14%. The dividend yield is 2.13%.
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.
The stock trades at a PE of 9.74 against an industry PE of 12.05, below the sector average, with a return on equity of 14.29%. The dividend yield is 1.84%. 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.
TCS: Return on Equity of 43.37%
TCS is India’s largest IT services company by market capitalisation and runs large AI and data practices for global clients. It reported FY26 revenue of Rs 2,71,423 crore, up 4.68% year on year, and net profit of Rs 49,454 crore, up 1.35%. Net profit has compounded at 6.49% a year since FY22, while revenue has grown 8.51% a year. Operating margin was 27.07% in FY26. The debt-to-equity ratio is 0.10, which keeps interest costs low.
In the September 2026 quarter, revenue rose 11.79% to Rs 74,525 crore and net profit grew 14.86% to Rs 13,934 crore. Domestic institutions raised their holding from 12.01% in June 2025 to 13.47% in June 2026. The stock trades at a PE of 16.03 against an industry PE of 18.27, below the sector average, with a return on equity of 43.37%. The dividend yield is 4.79%.
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 Low PE Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these dividend paying low 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 | Total Income (Rs Cr) | Net Profit (Rs Cr) | Income Growth (YoY) | 4-Year Income CAGR | 4-Year Net Profit CAGR |
|---|---|---|---|---|---|
| HDFC Bank | 4,95,462.81 | 79,219.46 | 5.21% | 31.11% | 20.04% |
| SBI | 7,12,643.53 | 85,168.47 | 7.43% | 15.03% | 23.72% |
| TCS | 2,71,423 | 49,454 | 4.68% | 8.51% | 6.49% |
| Union Bank | 1,28,399.52 | 18,780.63 | 0.19% | 11.95% | 37.80% |
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Institutional Holding in HDFC Bank, SBI, TCS and Union Bank
Institutional holding shows who is backing these dividend paying low PE stocks alongside the promoter. The table uses the latest reported quarter for each. HDFC Bank has the deepest institutional backing, with FII and DII together holding 83.03% as of September 2026. Domestic institutions increased their holding over the past year in HDFC Bank (from 36.26% to 43.63%) and TCS (from 12.01% to 13.47%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| HDFC Bank | Nil | 39.40% | 43.63% | 16.97% | September 2026 |
| SBI | 55.47% | 10.81% | 26.64% | 7.08% | June 2026 |
| TCS | 71.77% | 9.06% | 13.47% | 5.70% | June 2026 |
| Union Bank | 74.76% | 8.63% | 11.98% | 4.63% | June 2026 |
Risks to Weigh in Dividend Paying Low PE Stocks
Being careful with dividend paying low 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: HDFC Bank trades at a PE of 13.59 against an industry PE of 11.94, 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 PE Stocks
Picking from dividend paying low PE 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 (11.94 to 18.27) 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 PE stocks, HDFC Bank stands out for the largest market cap at Rs 11,20,606 crore, SBI for 7.43% revenue growth in FY26, TCS for the highest return on equity at 43.37% 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 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 Dividend Paying Low PE Stocks to Watch
Which are the best dividend paying low PE stocks to watch for multibagger potential?
Ans. HDFC Bank, SBI, TCS and Union Bank are the 4 names this list highlights, with market caps of Rs 11,20,606 crore, Rs 8,73,354 crore, Rs 8,31,455 crore and Rs 1,34,103 crore respectively. HDFC Bank is notable for the largest market cap at Rs 11,20,606 crore. SBI stands out for 7.43% revenue growth in FY26. TCS offers the highest return on equity at 43.37%. Union Bank brings the fastest profit growth, 37.80% a year since FY22. These are watchlist names for dividend paying low PE stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is TCS a good stock for long-term investors?
Ans. TCS has a return on equity of 43.37%, a PE of 16.03 against an industry PE of 18.27 and a market cap of Rs 8,31,455 crore. Net profit has compounded at 6.49% a year since FY22, and FY26 revenue rose 4.68% while September 2026 quarter net profit grew 14.86%. Long-term returns in dividend paying low PE 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 PE 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 6.50 against an industry PE of 12.02, valuation should be checked against that growth before investing.
What is the market cap of HDFC Bank, SBI, TCS and Union Bank?
Ans. As of 30 October 2026, HDFC Bank has a market cap of Rs 11,20,606 crore, SBI has a market cap of Rs 8,73,354 crore, TCS has a market cap of Rs 8,31,455 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 low PE stocks.
What are the risks of investing in dividend paying low 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. HDFC Bank trades at a PE of 13.59 against an industry PE of 11.94, so earnings growth needs to hold up.
Is Union Bank trading below its industry PE?
Ans. Union Bank trades at a PE of 6.50 against an industry PE of 12.02. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 37.80% a year since FY22 and FY26 revenue rose 0.19%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in HDFC Bank, SBI, TCS and Union Bank?
Ans. As of the latest reported quarter, FII and DII together hold 83.03% of HDFC Bank (39.40% and 43.63%), 37.45% of SBI (10.81% and 26.64%), 22.53% of TCS (9.06% and 13.47%) and 20.61% of Union Bank (8.63% and 11.98%). Rising institutional holding is a useful signal in dividend paying low PE stocks, though it should be read with earnings trends rather than on its own.
