4 Smallcap Promoter Backed Low PE and Low Price to Book Stocks to Watch for Future Multibagger Potential: CESC, Sarda Energy, Shipping Corporation and RITES
- November 10, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
CESC Rs 131. Sarda Energy Rs 445.60. Shipping Corporation Rs 264.95. RITES Rs 197.10. Market caps from Rs 9,596 crore to Rs 18,159 crore. Data as of 9 Nov 2026.
Quick Answer
CESC, Sarda Energy, Shipping Corporation and RITES are the 4 picks in this promoter backed low PE and low price to book stocks watchlist, with market caps between Rs 9,596 crore and Rs 18,159 crore. CESC stands out for the largest market cap at Rs 18,159 crore, while Sarda Energy offers the biggest five-year price gain at 472.57%. PE ratios run from 8.33 to 20.80, so compare each one with its industry PE before investing. All figures are as of 9 November 2026.
Promoter 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. CESC, Sarda Energy, Shipping Corporation and RITES meet that test, with market caps from Rs 9,596 crore to Rs 18,159 crore and CESC offering the largest market cap at Rs 18,159 crore. Each of these companies has a market capitalisation below Rs 30,000 crore and a promoter holding of at least 50 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 below Rs 30,000 crore and a promoter holding of at least 50 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 below Rs 30,000 crore. Investors screening promoter 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 Promoter Backed Low PE and Low Price to Book Stocks and Why Do They Attract Multibagger Interest?
Promoter backed low PE and low price to book stocks are shares of smaller companies in which the promoters own at least half 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 power distribution, power and mining, shipping and railway engineering.
Owners with a large stake have their own wealth tied to the company, and a price that is reasonable against both earnings and book value shows that the stake is not being valued at an extreme premium. Within promoter backed low PE and low price to book stocks, the four companies show rising profit. In promoter backed low PE and low price to book stocks, each of the four also posted growth in the latest quarter. Across promoter backed low PE and low price to book stocks, every company here grew its FY26 profit. For promoter backed low PE and low price to book stocks, both FY26 and the latest quarter showed growth. Whichever way you read promoter backed low PE and low price to book stocks, the common thread is rising profit backed by complete financial data. With promoter 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 promoter backed low PE and low price to book stocks are complete. Read each company’s latest results and exchange filings before acting on promoter backed low PE and low price to book stocks.
Promoter Backed Low PE and Low Price to Book Stocks at a Glance: Price, Market Cap, PE and ROE
Prices are closing prices as of 9 November 2026. Shipping Corporation has the lowest PE of the group at 8.33, while RITES posts the highest return on equity at 15.30%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Debt to Equity | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| CESC | 131 | 18,159 | 11.14 | 22.18 | 12.31% | 1.73 | 123.45 to 204.50 |
| Sarda Energy and Minerals | 445.60 | 15,581 | 13.54 | 22.42 | 15.00% | 0.36 | 429.35 to 624.00 |
| Shipping Corporation of India | 264.95 | 13,475 | 8.33 | 8.87 | 14.87% | 0.29 | 195.55 to 368.75 |
| RITES | 197.10 | 9,596 | 20.80 | 36.56 | 15.30% | 0.00 | 175.00 to 259.70 |
CESC: Profit Compounding at 3.60% a Year
CESC generates and distributes power, with a distribution licence area in Kolkata, and is growing its renewable portfolio. It reported FY26 revenue of Rs 18,927.29 crore, up 8.93% year on year, and net profit of Rs 1,617.57 crore, up 13.20%. Revenue has compounded at 10.22% a year since FY22. Operating margin was 26.27% in FY26.
In the June 2026 quarter, revenue rose 5.18% to Rs 5,559 crore and net profit grew 3.71% to Rs 419 crore. Domestic institutions raised their holding from 25.38% in June 2025 to 26.14% in June 2026. The stock trades at a PE of 11.14 against an industry PE of 22.18, below the sector average, with a return on equity of 12.31%. The dividend yield is 4.40%.
Sarda Energy: Revenue Up 23.10% in FY26
Sarda Energy and Minerals makes sponge iron, steel products and ferro alloys, mines iron ore and coal, and generates power for captive use and sale. It reported FY26 revenue of Rs 5,927.54 crore, up 23.10% year on year, and net profit of Rs 1,063.30 crore, up 56.09%. Net profit has compounded at 7.10% a year since FY22, while revenue has grown 10.58% a year. Operating margin was 35.76% in FY26. The debt-to-equity ratio is 0.36.
The stock trades at a PE of 13.54 against an industry PE of 22.42, below the sector average, with a return on equity of 15.00%. In the June 2026 quarter, revenue rose 0.22% to Rs 1,716.53 crore and net profit grew 9.39% to Rs 462.81 crore. The share price has gained 472.57% over five years. Promoters hold 73.16%, which keeps ownership stable.
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.
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. The stock trades at a PE of 8.33 against an industry PE of 8.87, below the sector average, with a return on equity of 14.87%. The dividend yield is 2.59%.
RITES: Debt-to-Equity of 0.00
RITES provides engineering and consultancy services for railways and other transport infrastructure and also exports rolling stock. It reported FY26 revenue of Rs 2,524.57 crore, up 9.67% year on year, and net profit of Rs 454.44 crore, up 7.27%. Operating margin was 29.26% in FY26. The debt-to-equity ratio is 0.00, which keeps interest costs low.
The stock trades at a PE of 20.80 against an industry PE of 36.56, below the sector average, with a return on equity of 15.30%. The dividend yield is 3.63%. In the June 2026 quarter, revenue rose 9.57% to Rs 560.68 crore and net profit grew 7.58% to Rs 97.78 crore. Domestic institutions raised their holding from 8.66% in September 2025 to 9.16% in September 2026.
Promoter Backed Low PE and Low Price to Book Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these promoter 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 | Revenue (Rs Cr) | Net Profit (Rs Cr) | Revenue Growth (YoY) | Latest Quarter Revenue Growth | Net Profit Growth (YoY) | Operating Margin (Latest Quarter) |
|---|---|---|---|---|---|---|
| CESC | 18,927.29 | 1,617.57 | 8.93% | 5.18% | 13.20% | 20.95% |
| Sarda Energy | 5,927.54 | 1,063.30 | 23.10% | 0.22% | 56.09% | 47.94% |
| Shipping Corporation | 6,226.78 | 1,352.92 | 7.35% | 33.81% | 60.38% | 51.32% |
| RITES | 2,524.57 | 454.44 | 9.67% | 9.57% | 7.27% | 27.80% |
Institutional Holding in CESC, Sarda Energy, Shipping Corporation and RITES
Institutional holding shows who is backing these promoter backed low PE and low price to book stocks alongside the promoter. The table uses the latest reported quarter for each. CESC has the deepest institutional backing, with FII and DII together holding 37.61% as of June 2026. Domestic institutions increased their holding over the past year in CESC (from 25.38% to 26.14%) and RITES (from 8.66% to 9.16%). Keeping an eye on the Nifty Smallcap 100 alongside this list shows whether these shares are moving with the wider market.
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| CESC | 52.11% | 11.47% | 26.14% | 10.28% | June 2026 |
| Sarda Energy | 73.16% | 3.52% | 3.48% | 19.85% | June 2026 |
| Shipping Corporation | 63.75% | 8.97% | 2.08% | 25.20% | June 2026 |
| RITES | 72.20% | 3.38% | 9.16% | 15.26% | September 2026 |
Risks to Weigh in Promoter Backed Low PE and Low Price to Book Stocks
Being careful with promoter 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: A low PE can also reflect slower growth, so compare each PE with the growth rate instead of reading it alone.
- Concentration: Holding all 4 names puts the allocation in one sector, so size each position to match your risk appetite.
How to Choose Between Promoter Backed Low PE and Low Price to Book Stocks
Picking from promoter backed low PE and low price to book 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 36.56) 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 promoter backed low PE and low price to book stocks, CESC stands out for the largest market cap at Rs 18,159 crore, Sarda Energy for the biggest five-year price gain at 472.57%, Shipping Corporation for the fastest profit growth, 11.82% a year since FY22 and RITES for the highest return on equity at 15.30%. 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 promoter 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 Promoter Backed Low PE and Low Price to Book Stocks to Watch
Which are the best promoter backed low PE and low price to book stocks to watch for multibagger potential?
Ans. CESC, Sarda Energy, Shipping Corporation and RITES are the 4 names this list highlights, with market caps of Rs 18,159 crore, Rs 15,581 crore, Rs 13,475 crore and Rs 9,596 crore respectively. CESC is notable for the largest market cap at Rs 18,159 crore. Sarda Energy stands out for the biggest five-year price gain at 472.57%. Shipping Corporation offers the fastest profit growth, 11.82% a year since FY22. RITES brings the highest return on equity at 15.30%. These are watchlist names for promoter backed low PE and low price to book stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is RITES a good stock for long-term investors?
Ans. RITES has a return on equity of 15.30%, a PE of 20.80 against an industry PE of 36.56 and a market cap of Rs 9,596 crore. FY26 revenue rose 9.67%, and June 2026 quarter net profit grew 7.58%. Long-term returns in promoter 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 Shipping Corporation become a multibagger from here?
Ans. Shipping Corporation has already gained 98.18% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in promoter 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 11.82% a year since FY22, and FY26 revenue rose 7.35%. At a PE of 8.33 against an industry PE of 8.87, valuation should be checked against that growth before investing.
What is the market cap of CESC, Sarda Energy, Shipping Corporation and RITES?
Ans. As of 9 November 2026, CESC has a market cap of Rs 18,159 crore, Sarda Energy has a market cap of Rs 15,581 crore, Shipping Corporation has a market cap of Rs 13,475 crore and RITES has a market cap of Rs 9,596 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 promoter backed low PE and low price to book stocks.
What are the risks of investing in promoter 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. Comparing each PE with growth gives a fuller picture than the PE alone.
Is Shipping Corporation trading below its industry PE?
Ans. Shipping Corporation trades at a PE of 8.33 against an industry PE of 8.87. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 11.82% a year since FY22 and FY26 revenue rose 7.35%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in CESC, Sarda Energy, Shipping Corporation and RITES?
Ans. As of the latest reported quarter, FII and DII together hold 37.61% of CESC (11.47% and 26.14%), 7.00% of Sarda Energy (3.52% and 3.48%), 11.05% of Shipping Corporation (8.97% and 2.08%) and 12.54% of RITES (3.38% and 9.16%). Rising institutional holding is a useful signal in promoter backed low PE and low price to book stocks, though it should be read with earnings trends rather than on its own.
