4 Largecap Low PE Stocks With FII Holding Above 20 Per Cent to Watch for Future Multibagger Potential: M&M, JSW Steel, Shriram Finance and Cholamandalam
- October 22, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
M&M Rs 2,889. JSW Steel Rs 1,222.90. Shriram Finance Rs 904.95. Cholamandalam Rs 1,529.90. Market caps from Rs 1.35 lakh crore to Rs 3.48 lakh crore. Data as of 21 Oct 2026.
Quick Answer
M&M, JSW Steel, Shriram Finance and Cholamandalam are the 4 picks in this low PE stocks with FII holding above 20 per cent watchlist, with market caps between Rs 1.35 lakh crore and Rs 3.48 lakh crore. M&M stands out for the highest return on equity at 18.37%, while JSW Steel offers the strongest latest-quarter profit growth at 112.58%. PE ratios run from 10.49 to 23.54, so compare each one with its industry PE before investing. All figures are as of 21 October 2026.
Low PE stocks with FII holding above 20 per cent to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. M&M, JSW Steel, Shriram Finance and Cholamandalam meet that test, with market caps from Rs 1.35 lakh crore to Rs 3.48 lakh crore and M&M offering the highest return on equity at 18.37%. Each of these companies has a PE ratio below 25 and foreign institutional holding above 20 per cent in the latest shareholding data, and net profit rose in FY26 and in the latest quarter.
This list covers companies with a PE ratio below 25 and foreign institutional holding above 20 per cent in the latest shareholding data, 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 low PE stocks with FII holding above 20 per cent usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 21 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Low PE Stocks With FII Holding Above 20 Per Cent and Why Do They Attract Multibagger Interest?
Low PE stocks with FII holding above 20 per cent are shares that global funds own in large amounts even though valuations are moderate. The four here cover vehicles, steel, vehicle finance and consumer finance.
Large foreign holdings show that global funds have studied the business closely. For low PE stocks with FII holding above 20 per cent, rising profit adds to the case. Whichever way you read low PE stocks with FII holding above 20 per cent, the common thread is rising profit backed by complete financial data. For low PE stocks with FII holding above 20 per cent, checking each result against the latest quarter matters more than any single ratio. The next sections explain what stands out in each of low PE stocks with FII holding above 20 per cent, using FY26 and latest quarter data. Prices move daily, so recheck the figures for low PE stocks with FII holding above 20 per cent before you decide.
Low PE Stocks With FII Holding Above 20 Per Cent at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 21 October 2026. JSW Steel has the lowest PE of the group at 10.49, while M&M posts the highest return on equity at 18.37%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Mahindra & Mahindra | 2,889 | 3,48,064 | 17.19 | 23.82 | 18.37% | 3.74 | 2,744.30 to 3,839.90 |
| JSW Steel | 1,222.90 | 2,93,638 | 10.49 | 22.42 | 7.21% | 2.94 | 1,073.20 to 1,351.00 |
| Shriram Finance | 904.95 | 2,23,308 | 19.73 | 17.68 | 15.21% | 2.12 | 662.25 to 1,153.70 |
| Cholamandalam Investment and Finance | 1,529.90 | 1,35,393 | 23.54 | 17.68 | 17.18% | 4.42 | 1,299.40 to 1,952.50 |
M&M: 26.58% Profit CAGR Since FY22
Mahindra & Mahindra is one of the largest SUV makers in India and the country’s largest tractor maker, with financial services and electric vehicles in its portfolio. It reported FY26 revenue of Rs 2,02,084.34 crore, up 25.21% year on year, and net profit of Rs 18,621.71 crore, up 32.32%. Net profit has compounded at 26.58% a year since FY22, while revenue has grown 22.04% a year. Operating margin was 21.19% in FY26.
In the June 2026 quarter, revenue rose 27.47% to Rs 59,203.60 crore and net profit grew 37.04% to Rs 5,997.56 crore. The share price has gained 220.52% over five years. Domestic institutions raised their holding from 29.59% in June 2025 to 32.65% in June 2026. The stock trades at a PE of 17.19 against an industry PE of 23.82, below the sector average, with a return on equity of 18.37%.
JSW Steel: Quarterly Profit Up 112.58%
JSW Steel is one of India’s largest steel producers, with integrated plants across the country. It reported FY26 revenue of Rs 1,86,718 crore, up 10.15% year on year, and net profit of Rs 25,508 crore, up 630.68%. Net profit has compounded at 5.06% a year since FY22, while revenue has grown 6.00% a year. Operating margin was 16.56% in FY26.
The stock trades at a PE of 10.49 against an industry PE of 22.42, below the sector average. In the June 2026 quarter, revenue rose 10.55% to Rs 48,088 crore and net profit grew 112.58% to Rs 4,696 crore. The share price has gained 68.48% over five years. Domestic institutions raised their holding from 10.92% in June 2025 to 11.49% in June 2026.
Shriram Finance: 38.64% Profit CAGR Since FY22
Shriram Finance is a major NBFC focused on commercial vehicle, small business and personal loans. It reported FY26 total income of Rs 48,192.65 crore, up 15.13% year on year, and net profit of Rs 10,004.20 crore, up 6.16%. Net profit has compounded at 38.64% a year since FY22, while total income has grown 25.75% a year.
In the June 2026 quarter, total income rose 16.26% to Rs 13,418.74 crore and net profit grew 59.95% to Rs 3,447.26 crore. The share price has gained 239.61% over five years and 40.91% over the past year. Domestic institutions raised their holding from 18.66% in September 2025 to 19.90% in June 2026. The stock trades at a PE of 19.73 against an industry PE of 17.68, with a return on equity of 15.21%.
Cholamandalam: 24.75% Profit CAGR Since FY22
Cholamandalam Investment and Finance, part of the Murugappa Group, offers vehicle finance, home loans and loans against property. It reported FY26 total income of Rs 31,538.73 crore, up 20.60% year on year, and net profit of Rs 5,228.88 crore, up 22.74%. Net profit has compounded at 24.75% a year since FY22, while total income has grown 32.50% a year.
The stock trades at a PE of 23.54 against an industry PE of 17.68, with a return on equity of 17.18%. In the June 2026 quarter, total income rose 21.81% to Rs 8,956.68 crore and net profit grew 45.56% to Rs 1,656.22 crore. The share price has gained 165.09% over five years. Domestic institutions raised their holding from 16.06% in June 2025 to 20.62% in June 2026.
Low PE Stocks With FII Holding Above 20 Per Cent: Financial Comparison on Growth and Margins
The table compares scale and growth across these low PE stocks with FII holding above 20 per cent. 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 |
|---|---|---|---|---|---|
| M&M | 2,02,084.34 | 18,621.71 | 25.21% | 22.04% | 26.58% |
| JSW Steel | 1,86,718 | 25,508 | 10.15% | 6.00% | 5.06% |
| Shriram Finance | 48,192.65 | 10,004.20 | 15.13% | 25.75% | 38.64% |
| Cholamandalam | 31,538.73 | 5,228.88 | 20.60% | 32.50% | 24.75% |
Check the Univest Screener for live data on these low PE stocks with FII holding above 20 per cent
Institutional Holding in M&M, JSW Steel, Shriram Finance and Cholamandalam
Institutional holding shows who is backing these low PE stocks with FII holding above 20 per cent alongside the promoter. The table uses the latest reported quarter for each. Shriram Finance has the deepest institutional backing, with FII and DII together holding 74.67% as of June 2026. Domestic institutions increased their holding over the past year in M&M (from 29.59% to 32.65%), JSW Steel (from 10.92% to 11.49%), Shriram Finance (from 18.66% to 19.90%) and Cholamandalam (from 16.06% to 20.62%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| M&M | 18.45% | 34.89% | 32.65% | 14.01% | June 2026 |
| JSW Steel | 44.29% | 25.92% | 11.49% | 18.30% | June 2026 |
| Shriram Finance | 20.30% | 54.77% | 19.90% | 5.04% | June 2026 |
| Cholamandalam | 49.22% | 24.45% | 20.62% | 5.70% | June 2026 |
Risks to Weigh in Low PE Stocks With FII Holding Above 20 Per Cent
Being careful with low PE stocks with FII holding above 20 per cent 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: Cholamandalam trades at a PE of 23.54 against an industry PE of 17.68, 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 Low PE Stocks With FII Holding Above 20 Per Cent
Picking from low PE stocks with FII holding above 20 per cent 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 (17.68 to 23.82) 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 low PE stocks with FII holding above 20 per cent, M&M stands out for the highest return on equity at 18.37%, JSW Steel for the strongest latest-quarter profit growth at 112.58%, Shriram Finance for the fastest profit growth, 38.64% a year since FY22 and Cholamandalam for 20.60% 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 low PE stocks with FII holding above 20 per cent 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 Low PE Stocks With FII Holding Above 20 Per Cent to Watch
Which are the best low PE stocks with FII holding above 20 per cent to watch for multibagger potential?
Ans. M&M, JSW Steel, Shriram Finance and Cholamandalam are the 4 names this list highlights, with market caps of Rs 3,48,064 crore, Rs 2,93,638 crore, Rs 2,23,308 crore and Rs 1,35,393 crore respectively. M&M is notable for the highest return on equity at 18.37%. JSW Steel stands out for the strongest latest-quarter profit growth at 112.58%. Shriram Finance offers the fastest profit growth, 38.64% a year since FY22. Cholamandalam brings 20.60% revenue growth in FY26. These are watchlist names for low PE stocks with FII holding above 20 per cent, not recommendations, so match each one to your own risk profile and time horizon.
Is M&M a good stock for long-term investors?
Ans. M&M has a return on equity of 18.37%, a PE of 17.19 against an industry PE of 23.82 and a market cap of Rs 3,48,064 crore. Net profit has compounded at 26.58% a year since FY22, and FY26 revenue rose 25.21% while June 2026 quarter net profit grew 37.04%. Long-term returns in low PE stocks with FII holding above 20 per cent depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Shriram Finance become a multibagger from here?
Ans. Shriram Finance has already gained 239.61% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in low PE stocks with FII holding above 20 per cent requires earnings to keep growing faster than the market for several years. Net profit has compounded at 38.64% a year since FY22, and FY26 revenue rose 15.13%. At a PE of 19.73 against an industry PE of 17.68, valuation should be checked against that growth before investing.
What is the market cap of M&M, JSW Steel, Shriram Finance and Cholamandalam?
Ans. As of 21 October 2026, M&M has a market cap of Rs 3,48,064 crore, JSW Steel has a market cap of Rs 2,93,638 crore, Shriram Finance has a market cap of Rs 2,23,308 crore and Cholamandalam has a market cap of Rs 1,35,393 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 low PE stocks with FII holding above 20 per cent.
What are the risks of investing in low PE stocks with FII holding above 20 per cent?
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. Cholamandalam trades at a PE of 23.54 against an industry PE of 17.68, so earnings growth needs to hold up.
Why is Cholamandalam trading at a PE of 23.54?
Ans. Cholamandalam’s PE of 23.54 compares with an industry PE of 17.68. The market is paying a premium for a return on equity of 17.18%, profit growth of 24.75% a year since FY22 and latest-quarter profit growth of 45.56%, which also means the stock is more sensitive if growth slows. Investors in low PE stocks with FII holding above 20 per cent who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.
How much do institutions hold in M&M, JSW Steel, Shriram Finance and Cholamandalam?
Ans. As of the latest reported quarter, FII and DII together hold 67.54% of M&M (34.89% and 32.65%), 37.41% of JSW Steel (25.92% and 11.49%), 74.67% of Shriram Finance (54.77% and 19.90%) and 45.07% of Cholamandalam (24.45% and 20.62%). Rising institutional holding is a useful signal in low PE stocks with FII holding above 20 per cent, though it should be read with earnings trends rather than on its own.
