4 Largecap Stocks With Price-to-Book of 2-3 and High ROE to Watch for Future Multibagger Potential: ICICI Bank, LIC, Shriram Finance and Muthoot Finance
- October 22, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
ICICI Bank Rs 1,385. LIC Rs 392.05. Shriram Finance Rs 904.95. Muthoot Finance Rs 2,489.80. Market caps from Rs 1.04 lakh crore to Rs 9.62 lakh crore. Data as of 21 Oct 2026.
Quick Answer
ICICI Bank, LIC, Shriram Finance and Muthoot Finance are the 4 picks in this stocks with price-to-book of 2-3 and high ROE watchlist, with market caps between Rs 1.04 lakh crore and Rs 9.62 lakh crore. ICICI Bank stands out for the largest market cap at Rs 9,61,516 crore, while LIC offers the highest return on equity at 32.53%. PE ratios run from 8.30 to 19.73, so compare each one with its industry PE before investing. All figures are as of 21 October 2026.
Stocks with price-to-book of 2-3 and high ROE to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. ICICI Bank, LIC, Shriram Finance and Muthoot Finance meet that test, with market caps from Rs 1.04 lakh crore to Rs 9.62 lakh crore and ICICI Bank offering the largest market cap at Rs 9,61,516 crore. Each of these companies has a price-to-book ratio between 2 and 3 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 price-to-book ratio between 2 and 3 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 stocks with price-to-book of 2-3 and high ROE 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 Stocks With Price-to-Book of 2-3 and High ROE and Why Do They Attract Multibagger Interest?
Stocks with price-to-book of 2-3 and high ROE are shares that earn strong returns on shareholder money while trading at a modest multiple of book value. The four here cover private banking, life insurance, vehicle finance and gold finance.
A moderate book multiple with high returns suggests the market is not overpaying for quality. For stocks with price-to-book of 2-3 and high ROE, rising profit adds to the case. Each of stocks with price-to-book of 2-3 and high ROE also has complete FY26 and latest quarter figures. With stocks with price-to-book of 2-3 and high ROE, 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 stocks with price-to-book of 2-3 and high ROE are complete. Read each company’s latest results and exchange filings before acting on stocks with price-to-book of 2-3 and high ROE.
Stocks With Price-to-Book of 2-3 and High ROE at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 21 October 2026. LIC combines the lowest PE of the group, 8.30, with the highest return on equity, 32.53%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| ICICI Bank | 1,385 | 9,61,516 | 16.09 | 12.05 | 15.00% | 2.57 | 1,187.60 to 1,480.00 |
| Life Insurance Corporation of India | 392.05 | 4,98,410 | 8.30 | 10.47 | 32.53% | 2.81 | 360.75 to 468.48 |
| Shriram Finance | 904.95 | 2,23,308 | 19.73 | 17.68 | 15.21% | 2.12 | 662.25 to 1,153.70 |
| Muthoot Finance | 2,489.80 | 1,03,780 | 9.06 | 17.97 | 28.01% | 2.56 | 2,489.80 to 4,149.50 |
ICICI Bank: 22.29% Profit CAGR Since FY22
ICICI Bank is one of the largest private sector banks in India, with a strong retail and digital franchise. It reported FY26 total income of Rs 3,12,118.36 crore, up 5.95% year on year, and net profit of Rs 57,673.39 crore, up 5.98%. Net profit has compounded at 22.29% a year since FY22, while total income has grown 18.64% a year.
In the June 2026 quarter, total income rose 6.86% to Rs 79,689.22 crore and net profit grew 12.62% to Rs 16,209.74 crore. The share price has gained 85.57% over five years. Foreign investors raised their holding from 45.56% in September 2025 to 50.44% in September 2026. The stock trades at a PE of 16.09 against an industry PE of 12.05, with a return on equity of 15.00%.
LIC: 93.19% Profit CAGR Since FY22
LIC is India’s largest life insurer and one of the biggest institutional investors in the stock market, with a vast agent network across the country. It reported FY26 revenue of Rs 9,90,211.25 crore, up 10.23% year on year, and net profit of Rs 57,453.15 crore, up 18.90%. Net profit has compounded at 93.19% a year since FY22, while revenue has grown 7.96% a year. Operating margin was 5.51% in FY26. The debt-to-equity ratio is 0.00, which keeps interest costs low.
The stock trades at a PE of 8.30 against an industry PE of 10.47, below the sector average, with a return on equity of 32.53%. In the June 2026 quarter, revenue rose 6.97% to Rs 2,41,166.45 crore and net profit grew 23.98% to Rs 13,584.25 crore. Domestic institutions raised their holding from 1.36% in September 2025 to 6.17% in September 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%.
Muthoot Finance: 27.36% Profit CAGR Since FY22
Muthoot Finance is India’s largest gold loan NBFC by loan assets, with a branch network across the country. It reported FY26 total income of Rs 31,263.41 crore, up 54.27% year on year, and net profit of Rs 10,606.87 crore, up 98.17%. Net profit has compounded at 27.36% a year since FY22, while total income has grown 26.42% a year.
The stock trades at a PE of 9.06 against an industry PE of 17.97, below the sector average, with a return on equity of 28.01%. In the June 2026 quarter, total income rose 34.48% to Rs 8,694.81 crore and net profit grew 43.08% to Rs 2,824.84 crore. The share price has gained 67.76% over five years. Foreign investors raised their holding from 10.84% in June 2025 to 11.61% in June 2026.
Stocks With Price-to-Book of 2-3 and High ROE: Financial Comparison on Growth and Margins
The table compares scale and growth across these stocks with price-to-book of 2-3 and high ROE. 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 | 4-Year Net Profit CAGR |
|---|---|---|---|---|---|
| ICICI Bank | 3,12,118.36 | 57,673.39 | 5.95% | 18.64% | 22.29% |
| LIC | 9,90,211.25 | 57,453.15 | 10.23% | 7.96% | 93.19% |
| Shriram Finance | 48,192.65 | 10,004.20 | 15.13% | 25.75% | 38.64% |
| Muthoot Finance | 31,263.41 | 10,606.87 | 54.27% | 26.42% | 27.36% |
Check the Univest Screener for live data on these stocks with price-to-book of 2-3 and high ROE
Institutional Holding in ICICI Bank, LIC, Shriram Finance and Muthoot Finance
Institutional holding shows who is backing these stocks with price-to-book of 2-3 and high ROE alongside the promoter. The table uses the latest reported quarter for each. ICICI Bank has the deepest institutional backing, with FII and DII together holding 92.22% as of September 2026. Domestic institutions increased their holding over the past year in LIC (from 1.36% to 6.17%) and Shriram Finance (from 18.66% to 19.90%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| ICICI Bank | Nil | 50.44% | 41.78% | 7.78% | September 2026 |
| LIC | 90.00% | 1.55% | 6.17% | 2.28% | September 2026 |
| Shriram Finance | 20.30% | 54.77% | 19.90% | 5.04% | June 2026 |
| Muthoot Finance | 73.35% | 11.61% | 10.76% | 4.29% | June 2026 |
Risks to Weigh in Stocks With Price-to-Book of 2-3 and High ROE
Being careful with stocks with price-to-book of 2-3 and high ROE 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: ICICI Bank trades at a PE of 16.09 against an industry PE of 12.05, 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 Stocks With Price-to-Book of 2-3 and High ROE
Picking from stocks with price-to-book of 2-3 and high ROE 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 (10.47 to 17.97) 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 stocks with price-to-book of 2-3 and high ROE, ICICI Bank stands out for the largest market cap at Rs 9,61,516 crore, LIC for the highest return on equity at 32.53%, Shriram Finance for the biggest five-year price gain at 239.61% and Muthoot Finance for 54.27% 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 stocks with price-to-book of 2-3 and high ROE 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 Stocks With Price-to-Book of 2-3 and High ROE to Watch
Which are the best stocks with price-to-book of 2-3 and high ROE to watch for multibagger potential?
Ans. ICICI Bank, LIC, Shriram Finance and Muthoot Finance are the 4 names this list highlights, with market caps of Rs 9,61,516 crore, Rs 4,98,410 crore, Rs 2,23,308 crore and Rs 1,03,780 crore respectively. ICICI Bank is notable for the largest market cap at Rs 9,61,516 crore. LIC stands out for the highest return on equity at 32.53%. Shriram Finance offers the biggest five-year price gain at 239.61%. Muthoot Finance brings 54.27% revenue growth in FY26. These are watchlist names for stocks with price-to-book of 2-3 and high ROE, not recommendations, so match each one to your own risk profile and time horizon.
Is LIC a good stock for long-term investors?
Ans. LIC has a return on equity of 32.53%, a PE of 8.30 against an industry PE of 10.47 and a market cap of Rs 4,98,410 crore. Net profit has compounded at 93.19% a year since FY22, and FY26 revenue rose 10.23% while June 2026 quarter net profit grew 23.98%. Long-term returns in stocks with price-to-book of 2-3 and high ROE 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 stocks with price-to-book of 2-3 and high ROE 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 ICICI Bank, LIC, Shriram Finance and Muthoot Finance?
Ans. As of 21 October 2026, ICICI Bank has a market cap of Rs 9,61,516 crore, LIC has a market cap of Rs 4,98,410 crore, Shriram Finance has a market cap of Rs 2,23,308 crore and Muthoot Finance has a market cap of Rs 1,03,780 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 stocks with price-to-book of 2-3 and high ROE.
What are the risks of investing in stocks with price-to-book of 2-3 and high ROE?
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. ICICI Bank trades at a PE of 16.09 against an industry PE of 12.05, so earnings growth needs to hold up.
Why is ICICI Bank trading at a PE of 16.09?
Ans. ICICI Bank’s PE of 16.09 compares with an industry PE of 12.05. The market is paying a premium for a return on equity of 15.00%, profit growth of 22.29% a year since FY22 and latest-quarter profit growth of 12.62%, which also means the stock is more sensitive if growth slows. Investors in stocks with price-to-book of 2-3 and high ROE who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.
How much do institutions hold in ICICI Bank, LIC, Shriram Finance and Muthoot Finance?
Ans. As of the latest reported quarter, FII and DII together hold 92.22% of ICICI Bank (50.44% and 41.78%), 7.72% of LIC (1.55% and 6.17%), 74.67% of Shriram Finance (54.77% and 19.90%) and 22.37% of Muthoot Finance (11.61% and 10.76%). Rising institutional holding is a useful signal in stocks with price-to-book of 2-3 and high ROE, though it should be read with earnings trends rather than on its own.
