4 Largecap Below Industry PE Stocks to Watch for Future Multibagger Potential: Infosys, Union Bank, Polycab and Apollo Hospitals
- October 26, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Infosys Rs 1,153.80. Union Bank Rs 178.90. Polycab Rs 7,440. Apollo Hospitals Rs 7,730. Market caps from Rs 1.16 lakh crore to Rs 4.42 lakh crore. Data as of 23 Oct 2026.
Quick Answer
Infosys, Union Bank, Polycab and Apollo Hospitals are the 4 picks in this below industry PE stocks watchlist, with market caps between Rs 1.16 lakh crore and Rs 4.42 lakh crore. Infosys stands out for the highest return on equity at 33.24%, while Union Bank offers the fastest profit growth, 37.80% a year since FY22. PE ratios run from 6.25 to 53.40, so compare each one with its industry PE before investing. All figures are as of 23 October 2026.
Below industry PE stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Infosys, Union Bank, Polycab and Apollo Hospitals meet that test, with market caps from Rs 1.16 lakh crore to Rs 4.42 lakh crore and Infosys offering the highest return on equity at 33.24%. Each of these companies has a PE ratio below the industry PE and a return on equity of at least 15 per cent, and net profit rose in FY26 and in the latest quarter.
This list covers companies with a PE ratio below the industry PE and a return on equity of at least 15 per cent, 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 below industry PE stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 23 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Below Industry PE Stocks and Why Do They Attract Multibagger Interest?
Below industry PE stocks are shares of large companies that trade at a lower PE than their industry peers while earning strong returns on equity. The four here cover IT services, public sector banking, cables and hospitals.
Trading below the industry multiple while earning high returns points to value that peers already enjoy. For below industry PE stocks, both FY26 and the latest quarter showed growth. A sensible way to study below industry PE stocks is to look at profit growth, returns and valuation side by side. Below, each of below industry PE stocks gets its own breakdown of growth, returns and valuation. Treat below industry PE stocks as a research list, since share prices and rankings change with every earnings season.
Below Industry PE Stocks at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 23 October 2026. Union Bank has the lowest PE of the group at 6.25, while Infosys posts the highest return on equity at 33.24%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Infosys | 1,153.80 | 4,42,078 | 14.58 | 18.27 | 33.24% | 5.12 | 980.40 to 1,728.00 |
| Union Bank of India | 178.90 | 1,28,984 | 6.25 | 12.02 | 15.57% | 0.97 | 135.80 to 205.49 |
| Polycab India | 7,440 | 1,20,055 | 41.32 | 49.96 | 22.25% | 10.00 | 6,663.00 to 10,126.00 |
| Apollo Hospitals Enterprise | 7,730 | 1,15,984 | 53.40 | 60.75 | 20.48% | 12.24 | 6,696.50 to 9,070.50 |
Infosys: Return on Equity of 33.24%
Infosys is a large IT services and consulting company that has built an AI-first offering around its Topaz platform. It reported FY26 revenue of Rs 1,82,972 crore, up 9.83% year on year, and net profit of Rs 29,474 crore, up 10.18%. Net profit has compounded at 7.41% a year since FY22, while revenue has grown 10.23% a year. Operating margin was 25.36% in FY26. The debt-to-equity ratio is 0.10, which keeps interest costs low.
In the June 2026 quarter, revenue rose 13.56% to Rs 49,195 crore and net profit grew 12.29% to Rs 7,775 crore. Domestic institutions raised their holding from 39.60% in June 2025 to 42.96% in June 2026. The stock trades at a PE of 14.58 against an industry PE of 18.27, below the sector average, with a return on equity of 33.24%. The dividend yield is 4.40%.
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 6.25 against an industry PE of 12.02, below the sector average, with a return on equity of 15.57%. The dividend yield is 2.96%. 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.
Polycab: 33.79% Profit CAGR Since FY22
Polycab India is a leading maker of wires and cables in India, with a growing fast-moving electrical goods business. It reported FY26 revenue of Rs 29,120.04 crore, up 28.76% year on year, and net profit of Rs 2,708.43 crore, up 32.41%. Net profit has compounded at 33.79% a year since FY22, while revenue has grown 24.06% a year. Operating margin was 14.69% in FY26. The debt-to-equity ratio is 0.02, which keeps interest costs low.
In the June 2026 quarter, revenue rose 38.90% to Rs 8,314.65 crore and net profit grew 32.84% to Rs 796.65 crore. The share price has gained 230.55% over five years. Foreign investors raised their holding from 11.44% in June 2025 to 19.00% in June 2026. The stock trades at a PE of 41.32 against an industry PE of 49.96, below the sector average, with a return on equity of 22.25%.
Apollo Hospitals: Return on Equity of 20.48%
Apollo Hospitals Enterprise runs one of India’s largest hospital networks and also operates pharmacies and a digital health platform. It reported FY26 revenue of Rs 25,420.10 crore, up 15.58% year on year, and net profit of Rs 2,002.70 crore, up 33.06%. Net profit has compounded at 16.13% a year since FY22, while revenue has grown 14.59% a year. Operating margin was 15.80% in FY26.
The stock trades at a PE of 53.40 against an industry PE of 60.75, below the sector average, with a return on equity of 20.48%. In the June 2026 quarter, revenue rose 20.57% to Rs 7,092.30 crore and net profit grew 38.41% to Rs 610.40 crore. The share price has gained 83.08% over five years. Domestic institutions raised their holding from 21.12% in September 2025 to 22.07% in September 2026.
Below Industry PE Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these below industry 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 | Revenue (Rs Cr) | Net Profit (Rs Cr) | Revenue Growth (YoY) | 4-Year Revenue CAGR | 4-Year Net Profit CAGR |
|---|---|---|---|---|---|
| Infosys | 1,82,972 | 29,474 | 9.83% | 10.23% | 7.41% |
| Union Bank | 1,28,399.52 | 18,780.63 | 0.19% | 11.95% | 37.80% |
| Polycab | 29,120.04 | 2,708.43 | 28.76% | 24.06% | 33.79% |
| Apollo Hospitals | 25,420.10 | 2,002.70 | 15.58% | 14.59% | 16.13% |
Check the Univest Screener for live data on these below industry PE stocks
Institutional Holding in Infosys, Union Bank, Polycab and Apollo Hospitals
Institutional holding shows who is backing these below industry PE stocks alongside the promoter. The table uses the latest reported quarter for each. Infosys has the deepest institutional backing, with FII and DII together holding 70.05% as of June 2026. Domestic institutions increased their holding over the past year in Infosys (from 39.60% to 42.96%) and Apollo Hospitals (from 21.12% to 22.07%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| Infosys | 13.82% | 27.09% | 42.96% | 16.13% | June 2026 |
| Union Bank | 74.76% | 8.63% | 11.98% | 4.63% | June 2026 |
| Polycab | 61.46% | 19.00% | 7.62% | 11.92% | June 2026 |
| Apollo Hospitals | 28.02% | 43.18% | 22.07% | 6.72% | September 2026 |
Risks to Weigh in Below Industry PE Stocks
Being careful with below industry 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: 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 Below Industry PE Stocks
Picking from below industry PE 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 (12.02 to 60.75) 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 below industry PE stocks, Infosys stands out for the highest return on equity at 33.24%, Union Bank for the fastest profit growth, 37.80% a year since FY22, Polycab for a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.02 and Apollo Hospitals for the strongest latest-quarter profit growth at 38.41%. 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 below industry 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 Below Industry PE Stocks to Watch
Which are the best below industry PE stocks to watch for multibagger potential?
Ans. Infosys, Union Bank, Polycab and Apollo Hospitals are the 4 names this list highlights, with market caps of Rs 4,42,078 crore, Rs 1,28,984 crore, Rs 1,20,055 crore and Rs 1,15,984 crore respectively. Infosys is notable for the highest return on equity at 33.24%. Union Bank stands out for the fastest profit growth, 37.80% a year since FY22. Polycab offers a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.02. Apollo Hospitals brings the strongest latest-quarter profit growth at 38.41%. These are watchlist names for below industry PE stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is Infosys a good stock for long-term investors?
Ans. Infosys has a return on equity of 33.24%, a PE of 14.58 against an industry PE of 18.27 and a market cap of Rs 4,42,078 crore. Net profit has compounded at 7.41% a year since FY22, and FY26 revenue rose 9.83% while June 2026 quarter net profit grew 12.29%. Long-term returns in below industry 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 below industry 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 6.25 against an industry PE of 12.02, valuation should be checked against that growth before investing.
What is the market cap of Infosys, Union Bank, Polycab and Apollo Hospitals?
Ans. As of 23 October 2026, Infosys has a market cap of Rs 4,42,078 crore, Union Bank has a market cap of Rs 1,28,984 crore, Polycab has a market cap of Rs 1,20,055 crore and Apollo Hospitals has a market cap of Rs 1,15,984 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 below industry PE stocks.
What are the risks of investing in below industry 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. Comparing each PE with growth gives a fuller picture than the PE alone.
Is Union Bank trading below its industry PE?
Ans. Union Bank trades at a PE of 6.25 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 Infosys, Union Bank, Polycab and Apollo Hospitals?
Ans. As of the latest reported quarter, FII and DII together hold 70.05% of Infosys (27.09% and 42.96%), 20.61% of Union Bank (8.63% and 11.98%), 26.62% of Polycab (19.00% and 7.62%) and 65.25% of Apollo Hospitals (43.18% and 22.07%). Rising institutional holding is a useful signal in below industry PE stocks, though it should be read with earnings trends rather than on its own.
