4 Largecap Low PEG Ratio and Below Industry PE Stocks to Watch for Future Multibagger Potential: M&M, NTPC, Bajaj Finserv and PFC
- October 30, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
M&M Rs 2,890. NTPC Rs 310.50. Bajaj Finserv Rs 1,668. PFC Rs 320.60. Market caps from Rs 1.10 lakh crore to Rs 3.51 lakh crore. Data as of 29 Oct 2026.
Quick Answer
M&M, NTPC, Bajaj Finserv and PFC are the 4 picks in this low PEG ratio and below industry PE stocks watchlist, with market caps between Rs 1.10 lakh crore and Rs 3.51 lakh crore. M&M stands out for the highest return on equity at 18.37%, while NTPC offers 6.94% revenue growth in the June 2026 quarter. PE ratios run from 3.28 to 17.35, so compare each one with its industry PE before investing. All figures are as of 29 October 2026.
Low PEG ratio and below industry PE stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. M&M, NTPC, Bajaj Finserv and PFC meet that test, with market caps from Rs 1.10 lakh crore to Rs 3.51 lakh crore and M&M offering the highest return on equity at 18.37%. Each of these companies has a PEG ratio below 1.5 and a price to earnings ratio below the industry average, 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 PEG ratio below 1.5 and a price to earnings ratio below the industry average, 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, 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 PEG ratio and below industry PE stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 29 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Low PEG Ratio and Below Industry PE Stocks and Why Do They Attract Multibagger Interest?
Low PEG ratio and below industry PE stocks are shares of large companies that trade at a lower earnings multiple than their industry and still grow profit faster than that multiple, which is a double sign of value. The four here cover utility vehicles, power generation, financial services and power sector finance.
When a share trades below its industry multiple and its growth rate is higher than the multiple, the market is pricing the company less richly than its peers despite its growth. For low PEG ratio and below industry PE stocks, both FY26 and the latest quarter showed growth. Whichever way you read low PEG ratio and below industry PE stocks, the common thread is rising profit backed by complete financial data. A sensible way to study low PEG ratio and below industry PE stocks is to look at profit growth, returns and valuation side by side. Below, each of low PEG ratio and below industry PE stocks gets its own breakdown of growth, returns and valuation. Treat low PEG ratio and below industry PE stocks as a research list, since share prices and rankings change with every earnings season.
Low PEG Ratio and Below Industry PE Stocks at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 29 October 2026. PFC has the lowest PE of the group at 3.28, 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 | 2,890 | 3,51,212 | 17.35 | 23.82 | 18.37% | 3.77 | 2,744.30 to 3,839.90 |
| NTPC | 310.50 | 3,12,424 | 11.03 | 21.61 | 13.31% | 1.54 | 298.00 to 414.40 |
| Bajaj Finserv | 1,668 | 2,72,128 | 13.19 | 17.68 | 12.58% | 3.49 | 1,597.00 to 2,195.00 |
| Power Finance Corporation | 320.60 | 1,10,263 | 3.28 | 17.68 | 18.22% | 0.77 | 313.35 to 486.50 |
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 17.35 against an industry PE of 23.82, below the sector average, with a return on equity of 18.37%.
NTPC: Five-Year Gain of 110.40%
NTPC is India’s largest power generation company and is growing its renewable energy portfolio. It reported FY26 revenue of Rs 1,89,798.56 crore and net profit of Rs 30,009.98 crore, up 48.19%. Net profit has compounded at 18.01% a year since FY22, while revenue has grown 8.89% a year. Operating margin was 32.45% in FY26.
The stock trades at a PE of 11.03 against an industry PE of 21.61, below the sector average, with a return on equity of 13.31%. The dividend yield is 2.80%. In the June 2026 quarter, revenue rose 6.94% to Rs 51,141.51 crore and net profit grew 12.90% to Rs 6,896.44 crore. The share price has gained 110.40% over five years. Domestic institutions raised their holding from 28.92% in June 2025 to 29.44% in June 2026.
Bajaj Finserv: 24.02% Profit CAGR Since FY22
Bajaj Finserv is a financial services holding company with interests in lending through Bajaj Finance and in general and life insurance. It reported FY26 total income of Rs 1,50,530.38 crore, up 13.23% year on year, and net profit of Rs 19,669.47 crore, up 12.03%. Net profit has compounded at 24.02% a year since FY22, while total income has grown 21.78% a year.
In the June 2026 quarter, total income rose 19.08% to Rs 42,036.90 crore and net profit grew 18.15% to Rs 6,296.67 crore. Domestic institutions raised their holding from 10.09% in June 2025 to 12.10% in June 2026. The stock trades at a PE of 13.19 against an industry PE of 17.68, below the sector average, with a return on equity of 12.58%.
PFC: Five-Year Gain of 179.34%
Power Finance Corporation is a government-owned lender that finances power generation, transmission, distribution and renewable energy projects. It reported FY26 total income of Rs 1,15,533.18 crore, up 8.38% year on year, and net profit of Rs 33,625.34 crore, up 10.19%. Net profit has compounded at 15.69% a year since FY22, while total income has grown 10.91% a year.
The stock trades at a PE of 3.28 against an industry PE of 17.68, below the sector average, with a return on equity of 18.22%. The dividend yield is 5.55%. Net profit for the June 2026 quarter grew 0.18% to Rs 8,997.92 crore. The share price has gained 179.34% over five years. Foreign investors raised their holding from 18.66% in June 2025 to 20.54% in June 2026.
Low PEG Ratio and Below Industry PE Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these low PEG ratio and 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) | 4-Year Revenue CAGR | 4-Year Net Profit CAGR | Net Profit Growth (YoY) |
|---|---|---|---|---|---|
| M&M | 2,02,084.34 | 18,621.71 | 22.04% | 26.58% | 32.32% |
| NTPC | 1,89,798.56 | 30,009.98 | 8.89% | 18.01% | 48.19% |
| Bajaj Finserv | 1,50,530.38 | 19,669.47 | 21.78% | 24.02% | 12.03% |
| PFC | 1,15,533.18 | 33,625.34 | 10.91% | 15.69% | 10.19% |
Check the Univest Screener for live data on these low PEG ratio and below industry PE stocks
Institutional Holding in M&M, NTPC, Bajaj Finserv and PFC
Institutional holding shows who is backing these low PEG ratio and below industry PE stocks 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 M&M (from 29.59% to 32.65%), NTPC (from 28.92% to 29.44%) and Bajaj Finserv (from 10.09% to 12.10%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| M&M | 18.45% | 34.89% | 32.65% | 14.01% | June 2026 |
| NTPC | 51.10% | 16.30% | 29.44% | 3.15% | June 2026 |
| Bajaj Finserv | 58.71% | 6.91% | 12.10% | 22.28% | June 2026 |
| PFC | 55.99% | 20.54% | 14.51% | 8.96% | June 2026 |
Risks to Weigh in Low PEG Ratio and Below Industry PE Stocks
Being careful with low PEG ratio and 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 Low PEG Ratio and Below Industry PE Stocks
Picking from low PEG ratio and 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 (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 PEG ratio and below industry PE stocks, M&M stands out for the highest return on equity at 18.37%, NTPC for 6.94% revenue growth in the June 2026 quarter, Bajaj Finserv for 13.23% revenue growth in FY26 and PFC for the lowest PE of the group at 3.28. 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 PEG ratio and 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 Low PEG Ratio and Below Industry PE Stocks to Watch
Which are the best low PEG ratio and below industry PE stocks to watch for multibagger potential?
Ans. M&M, NTPC, Bajaj Finserv and PFC are the 4 names this list highlights, with market caps of Rs 3,51,212 crore, Rs 3,12,424 crore, Rs 2,72,128 crore and Rs 1,10,263 crore respectively. M&M is notable for the highest return on equity at 18.37%. NTPC stands out for 6.94% revenue growth in the June 2026 quarter. Bajaj Finserv offers 13.23% revenue growth in FY26. PFC brings the lowest PE of the group at 3.28. These are watchlist names for low PEG ratio and below industry PE stocks, 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 17.35 against an industry PE of 23.82 and a market cap of Rs 3,51,212 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 PEG ratio and 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 Bajaj Finserv become a multibagger from here?
Ans. Bajaj Finserv has a market cap of Rs 2,72,128 crore. A multibagger outcome in low PEG ratio and below industry PE stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 24.02% a year since FY22, and FY26 revenue rose 13.23%. At a PE of 13.19 against an industry PE of 17.68, valuation should be checked against that growth before investing.
What is the market cap of M&M, NTPC, Bajaj Finserv and PFC?
Ans. As of 29 October 2026, M&M has a market cap of Rs 3,51,212 crore, NTPC has a market cap of Rs 3,12,424 crore, Bajaj Finserv has a market cap of Rs 2,72,128 crore and PFC has a market cap of Rs 1,10,263 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 PEG ratio and below industry PE stocks.
What are the risks of investing in low PEG ratio and 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 PFC trading below its industry PE?
Ans. PFC trades at a PE of 3.28 against an industry PE of 17.68. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 15.69% a year since FY22 and FY26 revenue rose 8.38%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in M&M, NTPC, Bajaj Finserv and PFC?
Ans. As of the latest reported quarter, FII and DII together hold 67.54% of M&M (34.89% and 32.65%), 45.74% of NTPC (16.30% and 29.44%), 19.01% of Bajaj Finserv (6.91% and 12.10%) and 35.05% of PFC (20.54% and 14.51%). Rising institutional holding is a useful signal in low PEG ratio and below industry PE stocks, though it should be read with earnings trends rather than on its own.
