4 Largecap Low PE Stocks With Strong Quarterly Profit Growth to Watch for Future Multibagger Potential: Bajaj Finance, M&M, Grasim and Cholamandalam
- October 21, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Bajaj Finance Rs 957.35. M&M Rs 2,907. Grasim Rs 2,879. Cholamandalam Rs 1,553. Market caps from Rs 1.35 lakh crore to Rs 6.03 lakh crore. Data as of 20 Oct 2026.
Quick Answer
Bajaj Finance, M&M, Grasim and Cholamandalam are the 4 picks in this low PE stocks with strong quarterly profit growth watchlist, with market caps between Rs 1.35 lakh crore and Rs 6.03 lakh crore. Bajaj Finance stands out for the fastest profit growth, 28.78% a year since FY22, while M&M offers the highest return on equity at 18.37%. PE ratios run from 17.19 to 29.21, so compare each one with its industry PE before investing. All figures are as of 20 October 2026.
Low PE stocks with strong quarterly profit growth to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Bajaj Finance, M&M, Grasim and Cholamandalam meet that test, with market caps from Rs 1.35 lakh crore to Rs 6.03 lakh crore and Bajaj Finance offering the fastest profit growth, 28.78% a year since FY22. Each of these companies has a PE ratio below 30 and latest quarter profit growth between 25 and 50 per cent from a year earlier, and net profit rose in FY26 and in the latest quarter.
This list covers companies with a PE ratio below 30 and latest quarter profit growth between 25 and 50 per cent from a year earlier, 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 strong quarterly profit growth usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 20 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Low PE Stocks With Strong Quarterly Profit Growth and Why Do They Attract Multibagger Interest?
Low PE stocks with strong quarterly profit growth are shares that combine moderate valuations with strong recent earnings. The four here cover consumer finance, vehicles, cement and chemicals, and vehicle finance.
Fast quarterly growth at a moderate multiple is an attractive mix. For low PE stocks with strong quarterly profit growth, FY26 profit also rose. With low PE stocks with strong quarterly profit growth, 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 low PE stocks with strong quarterly profit growth are complete. Read each company’s latest results and exchange filings before acting on low PE stocks with strong quarterly profit growth.
Low PE Stocks With Strong Quarterly Profit Growth at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 20 October 2026. M&M combines the lowest PE of the group, 17.19, with the highest return on equity, 18.37%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Bajaj Finance | 957.35 | 6,02,984 | 29.21 | 17.68 | 16.68% | 5.29 | 787.90 to 1,176.40 |
| Mahindra & Mahindra | 2,907 | 3,48,064 | 17.19 | 23.82 | 18.37% | 3.74 | 2,744.30 to 3,839.90 |
| Grasim Industries | 2,879 | 1,97,563 | 17.54 | 30.91 | 4.80% | 1.90 | 2,502.50 to 3,411.10 |
| Cholamandalam Investment and Finance | 1,553 | 1,35,393 | 23.54 | 17.68 | 17.18% | 4.42 | 1,299.40 to 1,952.50 |
Bajaj Finance: 28.78% Profit CAGR Since FY22
Bajaj Finance is a large NBFC offering consumer, SME, commercial and mortgage loans along with deposits and payment services. It reported FY26 total income of Rs 81,989.50 crore, up 19.09% year on year, and net profit of Rs 19,332.36 crore, up 15.21%. Net profit has compounded at 28.78% a year since FY22, while total income has grown 26.88% a year.
In the June 2026 quarter, total income rose 18.63% to Rs 23,166.42 crore and net profit grew 27.60% to Rs 6,080.60 crore. Domestic institutions raised their holding from 14.47% in September 2025 to 17.05% in September 2026. The stock trades at a PE of 29.21 against an industry PE of 17.68, with a return on equity of 16.68%.
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.
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%. 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.
Grasim: Quarterly Profit Up 38.82%
Grasim Industries is an Aditya Birla Group company with businesses in viscose fibre, chemicals and paints, and a major stake in UltraTech Cement. It reported FY26 revenue of Rs 1,76,610.86 crore, up 17.79% year on year, and net profit of Rs 10,300.29 crore, up 32.80%. Revenue has compounded at 16.30% a year since FY22. Operating margin was 21.29% in FY26.
In the June 2026 quarter, revenue rose 21.16% to Rs 49,021.35 crore and net profit grew 38.82% to Rs 3,846.28 crore. The share price has gained 66.94% over five years. Foreign investors raised their holding from 15.94% in June 2025 to 17.17% in June 2026. The stock trades at a PE of 17.54 against an industry PE of 30.91, below the sector average.
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 Strong Quarterly Profit Growth: Financial Comparison on Growth and Margins
The table compares scale and growth across these low PE stocks with strong quarterly profit growth. 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 | Latest Quarter Income Growth |
|---|---|---|---|---|---|
| Bajaj Finance | 81,989.50 | 19,332.36 | 19.09% | 26.88% | 18.63% |
| M&M | 2,02,084.34 | 18,621.71 | 25.21% | 22.04% | 27.47% |
| Grasim | 1,76,610.86 | 10,300.29 | 17.79% | 16.30% | 21.16% |
| Cholamandalam | 31,538.73 | 5,228.88 | 20.60% | 32.50% | 21.81% |
Check the Univest Screener for live data on these low PE stocks with strong quarterly profit growth
Institutional Holding in Bajaj Finance, M&M, Grasim and Cholamandalam
Institutional holding shows who is backing these low PE stocks with strong quarterly profit growth alongside the promoter. The table uses the latest reported quarter for each. M&M has the deepest institutional backing, with FII and DII together holding 67.54% as of June 2026. Domestic institutions increased their holding over the past year in Bajaj Finance (from 14.47% to 17.05%), M&M (from 29.59% to 32.65%) and Cholamandalam (from 16.06% to 20.62%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| Bajaj Finance | 54.67% | 19.79% | 17.05% | 8.49% | September 2026 |
| M&M | 18.45% | 34.89% | 32.65% | 14.01% | June 2026 |
| Grasim | 43.74% | 17.17% | 16.13% | 22.97% | June 2026 |
| Cholamandalam | 49.22% | 24.45% | 20.62% | 5.70% | June 2026 |
Risks to Weigh in Low PE Stocks With Strong Quarterly Profit Growth
Being careful with low PE stocks with strong quarterly profit growth 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: Bajaj Finance trades at a PE of 29.21 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 Strong Quarterly Profit Growth
Picking from low PE stocks with strong quarterly profit growth 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 (17.68 to 30.91) 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 strong quarterly profit growth, Bajaj Finance stands out for the fastest profit growth, 28.78% a year since FY22, M&M for the highest return on equity at 18.37%, Grasim for 17.79% revenue growth in FY26 and Cholamandalam for the strongest latest-quarter profit growth at 45.56%. 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 strong quarterly profit growth 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 Strong Quarterly Profit Growth to Watch
Which are the best low PE stocks with strong quarterly profit growth to watch for multibagger potential?
Ans. Bajaj Finance, M&M, Grasim and Cholamandalam are the 4 names this list highlights, with market caps of Rs 6,02,984 crore, Rs 3,48,064 crore, Rs 1,97,563 crore and Rs 1,35,393 crore respectively. Bajaj Finance is notable for the fastest profit growth, 28.78% a year since FY22. M&M stands out for the highest return on equity at 18.37%. Grasim offers 17.79% revenue growth in FY26. Cholamandalam brings the strongest latest-quarter profit growth at 45.56%. These are watchlist names for low PE stocks with strong quarterly profit growth, 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 strong quarterly profit growth depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Bajaj Finance become a multibagger from here?
Ans. Bajaj Finance has a market cap of Rs 6,02,984 crore. A multibagger outcome in low PE stocks with strong quarterly profit growth requires earnings to keep growing faster than the market for several years. Net profit has compounded at 28.78% a year since FY22, and FY26 revenue rose 19.09%. At a PE of 29.21 against an industry PE of 17.68, valuation should be checked against that growth before investing.
What is the market cap of Bajaj Finance, M&M, Grasim and Cholamandalam?
Ans. As of 20 October 2026, Bajaj Finance has a market cap of Rs 6,02,984 crore, M&M has a market cap of Rs 3,48,064 crore, Grasim has a market cap of Rs 1,97,563 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 strong quarterly profit growth.
What are the risks of investing in low PE stocks with strong quarterly profit growth?
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. Bajaj Finance trades at a PE of 29.21 against an industry PE of 17.68, so earnings growth needs to hold up.
Why is Bajaj Finance trading at a PE of 29.21?
Ans. Bajaj Finance’s PE of 29.21 compares with an industry PE of 17.68. The market is paying a premium for a return on equity of 16.68%, profit growth of 28.78% a year since FY22 and latest-quarter profit growth of 27.60%, which also means the stock is more sensitive if growth slows. Investors in low PE stocks with strong quarterly profit growth who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.
How much do institutions hold in Bajaj Finance, M&M, Grasim and Cholamandalam?
Ans. As of the latest reported quarter, FII and DII together hold 36.84% of Bajaj Finance (19.79% and 17.05%), 67.54% of M&M (34.89% and 32.65%), 33.30% of Grasim (17.17% and 16.13%) and 45.07% of Cholamandalam (24.45% and 20.62%). Rising institutional holding is a useful signal in low PE stocks with strong quarterly profit growth, though it should be read with earnings trends rather than on its own.
