4 Midcap FII Backed Low PE and Low Price to Book Stocks to Watch for Future Multibagger Potential: Federal Bank, NALCO, Sundaram Finance and Mphasis
- November 10, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Federal Bank Rs 336.70. NALCO Rs 325.90. Sundaram Finance Rs 4,239.90. Mphasis Rs 2,524. Market caps from Rs 47,337 crore to Rs 80,673 crore. Data as of 9 Nov 2026.
Quick Answer
Federal Bank, NALCO, Sundaram Finance and Mphasis are the 4 picks in this FII backed low PE and low price to book stocks watchlist, with market caps between Rs 47,337 crore and Rs 80,673 crore. Federal Bank stands out for the fastest profit growth, 22.90% a year since FY22, while NALCO offers the highest return on equity at 26.83%. PE ratios run from 9.12 to 24.78, so compare each one with its industry PE before investing. All figures are as of 9 November 2026.
FII backed low PE and low price to book stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Federal Bank, NALCO, Sundaram Finance and Mphasis meet that test, with market caps from Rs 47,337 crore to Rs 80,673 crore and Federal Bank offering the fastest profit growth, 22.90% a year since FY22. Each of these companies has a market capitalisation between Rs 30,000 crore and Rs 1,00,000 crore and a foreign institutional holding of at least 15 per cent, a price to earnings ratio below 30 and a price to book ratio below 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 market capitalisation between Rs 30,000 crore and Rs 1,00,000 crore and a foreign institutional holding of at least 15 per cent, a price to earnings ratio below 30 and a price to book ratio below 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, 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 FII backed low PE and low price to book stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 9 November 2026 and are drawn from NSE and BSE data and company filings.
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What Are FII Backed Low PE and Low Price to Book Stocks and Why Do They Attract Multibagger Interest?
FII backed low PE and low price to book stocks are shares of mid sized companies in which foreign institutions own at least fifteen per cent of the business while the price to earnings ratio is below thirty and the price to book ratio is below five. The four here cover private banking, aluminium, information technology and vehicle finance.
Foreign funds apply strict checks before they buy, and a large stake in a company that is priced reasonably against both its earnings and its book value shows that global money sees quality without an extreme price tag. Within FII backed low PE and low price to book stocks, the four companies show rising profit. In FII backed low PE and low price to book stocks, each of the four also posted growth in the latest quarter. For FII backed low PE and low price to book stocks, both FY26 and the latest quarter showed growth. Whichever way you read FII backed low PE and low price to book stocks, the common thread is rising profit backed by complete financial data. With FII backed low PE and low price to book stocks, 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 FII backed low PE and low price to book stocks are complete. Read each company’s latest results and exchange filings before acting on FII backed low PE and low price to book stocks.
FII Backed Low PE and Low Price to Book Stocks at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 9 November 2026. NALCO combines the lowest PE of the group, 9.12, with the highest return on equity, 26.83%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Federal Bank | 336.70 | 80,673 | 14.98 | 11.94 | 12.60% | 1.96 | 211.52 to 371.70 |
| National Aluminium Company | 325.90 | 61,562 | 9.12 | 12.46 | 26.83% | 2.85 | 222.71 to 445.15 |
| Sundaram Finance | 4,239.90 | 48,366 | 21.79 | 17.70 | 13.82% | 3.25 | 3,902.00 to 5,642.00 |
| Mphasis | 2,524 | 47,337 | 24.78 | 18.49 | 17.34% | 4.40 | 2,013.00 to 2,975.00 |
Federal Bank: 22.90% Profit CAGR Since FY22
Federal Bank is a Kerala-based private sector bank with a strong NRI deposit base and a growing retail, small business and digital franchise. It reported FY26 total income of Rs 34,272.42 crore, up 7.00% year on year, and net profit of Rs 4,483.38 crore, up 6.71%. Net profit has compounded at 22.90% a year since FY22, while total income has grown 20.05% a year.
In the September 2026 quarter, total income rose 19.01% to Rs 9,903.41 crore and net profit grew 53.42% to Rs 1,564.06 crore. The share price has gained 261.13% over five years and 58.26% over the past year. Domestic institutions raised their holding from 48.17% in June 2025 to 49.28% in June 2026. The stock trades at a PE of 14.98 against an industry PE of 11.94, with a return on equity of 12.60%.
NALCO: Return on Equity of 26.83%
National Aluminium Company is a government-owned, integrated bauxite-to-aluminium producer with operations in Odisha. It reported FY26 revenue of Rs 18,508.88 crore, up 7.96% year on year, and net profit of Rs 5,797.01 crore, up 10.04%. Net profit has compounded at 18.38% a year since FY22, while revenue has grown 6.33% a year. Operating margin was 48.16% in FY26. The debt-to-equity ratio is 0.00, which keeps interest costs low.
The stock trades at a PE of 9.12 against an industry PE of 12.46, below the sector average, with a return on equity of 26.83%. The dividend yield is 3.43%. In the June 2026 quarter, revenue rose 39.31% to Rs 5,475.68 crore and net profit grew 90.87% to Rs 2,003.14 crore. The share price has gained 167.48% over five years and 43.69% over the past year. Foreign investors raised their holding from 15.06% in June 2025 to 21.99% in June 2026.
Sundaram Finance: Quarterly Profit Up 38.14%
Sundaram Finance is one of India’s oldest non-banking finance companies, with a strong record in commercial vehicle and car loans. It reported FY26 revenue of Rs 9,873.12 crore, up 15.30% year on year, and net profit of Rs 2,005.40 crore, up 10.62%. Net profit has compounded at 17.10% a year since FY22, while revenue has grown 17.69% a year. Operating margin was 77.70% in FY26.
In the June 2026 quarter, revenue rose 12.76% to Rs 2,653.34 crore and net profit grew 38.14% to Rs 568.86 crore. The share price has gained 66.55% over five years. Domestic institutions raised their holding from 7.22% in June 2025 to 8.00% in June 2026. The stock trades at a PE of 21.79 against an industry PE of 17.70, with a return on equity of 13.82%.
Mphasis: Profit Compounding at 6.81% a Year
Mphasis provides IT, cloud and application services to banking, insurance and technology clients. It reported FY26 revenue of Rs 16,205.54 crore, up 11.88% year on year, and net profit of Rs 1,862.60 crore, up 9.43%. Net profit has compounded at 6.81% a year since FY22, while revenue has grown 7.53% a year. Operating margin was 20.58% in FY26. The debt-to-equity ratio is 0.24.
The stock trades at a PE of 24.78 against an industry PE of 18.49, with a return on equity of 17.34%. The dividend yield is 2.50%. In the June 2026 quarter, revenue rose 17.14% to Rs 4,466.91 crore and net profit grew 10.82% to Rs 489.51 crore. Domestic institutions raised their holding from 37.07% in September 2025 to 45.85% in September 2026.
FII Backed Low PE and Low Price to Book Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these FII backed low PE and low price to book 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 |
|---|---|---|---|---|---|
| Federal Bank | 34,272.42 | 4,483.38 | 7.00% | 20.05% | 22.90% |
| NALCO | 18,508.88 | 5,797.01 | 7.96% | 6.33% | 18.38% |
| Sundaram Finance | 9,873.12 | 2,005.40 | 15.30% | 17.69% | 17.10% |
| Mphasis | 16,205.54 | 1,862.60 | 11.88% | 7.53% | 6.81% |
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Institutional Holding in Federal Bank, NALCO, Sundaram Finance and Mphasis
Institutional holding shows who is backing these FII backed low PE and low price to book stocks alongside the promoter. The table uses the latest reported quarter for each. Federal Bank has the deepest institutional backing, with FII and DII together holding 76.99% as of June 2026. Domestic institutions increased their holding over the past year in Federal Bank (from 48.17% to 49.28%), Sundaram Finance (from 7.22% to 8.00%) and Mphasis (from 37.07% to 45.85%). A useful check is to set these companies against the Nifty Midcap 100 and see which ones lead it.
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| Federal Bank | Nil | 27.71% | 49.28% | 23.01% | June 2026 |
| NALCO | 51.28% | 21.99% | 11.22% | 15.51% | June 2026 |
| Sundaram Finance | 37.21% | 18.58% | 8.00% | 36.21% | June 2026 |
| Mphasis | 30.53% | 19.39% | 45.85% | 4.23% | September 2026 |
Risks to Weigh in FII Backed Low PE and Low Price to Book Stocks
Being careful with FII backed low PE and low price to book 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: Mphasis trades at a PE of 24.78 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 FII Backed Low PE and Low Price to Book Stocks
Picking from FII backed low PE and low price to book 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 18.49) 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 FII backed low PE and low price to book stocks, Federal Bank stands out for the fastest profit growth, 22.90% a year since FY22, NALCO for the highest return on equity at 26.83%, Sundaram Finance for 15.30% revenue growth in FY26 and Mphasis for 11.88% revenue growth in FY26. 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 FII backed low PE and low price to book 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 FII Backed Low PE and Low Price to Book Stocks to Watch
Which are the best FII backed low PE and low price to book stocks to watch for multibagger potential?
Ans. Federal Bank, NALCO, Sundaram Finance and Mphasis are the 4 names this list highlights, with market caps of Rs 80,673 crore, Rs 61,562 crore, Rs 48,366 crore and Rs 47,337 crore respectively. Federal Bank is notable for the fastest profit growth, 22.90% a year since FY22. NALCO stands out for the highest return on equity at 26.83%. Sundaram Finance offers 15.30% revenue growth in FY26. Mphasis brings 11.88% revenue growth in FY26. These are watchlist names for FII backed low PE and low price to book stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is NALCO a good stock for long-term investors?
Ans. NALCO has a return on equity of 26.83%, a PE of 9.12 against an industry PE of 12.46 and a market cap of Rs 61,562 crore. Net profit has compounded at 18.38% a year since FY22, and FY26 revenue rose 7.96% while June 2026 quarter net profit grew 90.87%. Long-term returns in FII backed low PE and low price to book stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Federal Bank become a multibagger from here?
Ans. Federal Bank has already gained 261.13% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in FII backed low PE and low price to book stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 22.90% a year since FY22, and FY26 revenue rose 7.00%. At a PE of 14.98 against an industry PE of 11.94, valuation should be checked against that growth before investing.
What is the market cap of Federal Bank, NALCO, Sundaram Finance and Mphasis?
Ans. As of 9 November 2026, Federal Bank has a market cap of Rs 80,673 crore, NALCO has a market cap of Rs 61,562 crore, Sundaram Finance has a market cap of Rs 48,366 crore and Mphasis has a market cap of Rs 47,337 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 FII backed low PE and low price to book stocks.
What are the risks of investing in FII backed low PE and low price to book 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. Mphasis trades at a PE of 24.78 against an industry PE of 18.49, so earnings growth needs to hold up.
Why is Mphasis trading at a PE of 24.78?
Ans. Mphasis’ PE of 24.78 compares with an industry PE of 18.49. The market is paying a premium for a return on equity of 17.34% and latest-quarter profit growth of 10.82%, which also means the stock is more sensitive if growth slows. Investors in FII backed low PE and low price to book 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 Federal Bank, NALCO, Sundaram Finance and Mphasis?
Ans. As of the latest reported quarter, FII and DII together hold 76.99% of Federal Bank (27.71% and 49.28%), 33.21% of NALCO (21.99% and 11.22%), 26.58% of Sundaram Finance (18.58% and 8.00%) and 65.24% of Mphasis (19.39% and 45.85%). Rising institutional holding is a useful signal in FII backed low PE and low price to book stocks, though it should be read with earnings trends rather than on its own.
