4 Largecap Stocks With ROE Between 15 and 20 to Watch for Future Multibagger Potential: Bajaj Finance, Divi’s Labs, CG Power and Indian Hotels
- October 21, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Bajaj Finance Rs 957.35. Divi’s Labs Rs 9,087. CG Power Rs 855. Indian Hotels Rs 760. Market caps from Rs 1.05 lakh crore to Rs 6.03 lakh crore. Data as of 20 Oct 2026.
Quick Answer
Bajaj Finance, Divi’s Labs, CG Power and Indian Hotels are the 4 picks in this stocks with ROE between 15 and 20 watchlist, with market caps between Rs 1.05 lakh crore and Rs 6.03 lakh crore. Bajaj Finance stands out for the highest return on equity at 16.68%, while Divi’s Labs offers the strongest latest-quarter profit growth at 65.50%. PE ratios run from 29.21 to 103.94, so compare each one with its industry PE before investing. All figures are as of 20 October 2026.
Stocks with ROE between 15 and 20 to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Bajaj Finance, Divi’s Labs, CG Power and Indian Hotels meet that test, with market caps from Rs 1.05 lakh crore to Rs 6.03 lakh crore and Bajaj Finance offering the highest return on equity at 16.68%. Each of these companies earned a return on equity between 15 and 20 per cent, and net profit grew by more than 10 per cent in FY26.
This list covers companies with a return on equity between 15 and 20 per cent, FY26 profit growth above 10 per cent and rising profit in the latest quarter, ranked by market capitalisation. Each company has a market cap above Rs 1 lakh crore. Investors screening stocks with ROE between 15 and 20 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 Stocks With ROE Between 15 and 20 and Why Do They Attract Multibagger Interest?
Stocks with ROE between 15 and 20 are shares of companies that turn shareholder money into profit at a healthy rate. The four here cover lending, pharmaceutical ingredients, hotels and electrical equipment.
A return on equity of 15 to 20 per cent is well above what most savings options offer, which is why it is a common screening level. Looking at stocks with ROE between 15 and 20, a steady ROE alongside rising profit is the combination to watch. A sensible way to study stocks with ROE between 15 and 20 is to look at profit growth, returns and valuation side by side. Below, each of stocks with ROE between 15 and 20 gets its own breakdown of growth, returns and valuation. Treat stocks with ROE between 15 and 20 as a research list, since share prices and rankings change with every earnings season.
Stocks With ROE Between 15 and 20 at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 20 October 2026. Bajaj Finance combines the lowest PE of the group, 29.21, with the highest return on equity, 16.68%.
| 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 |
| Divi’s Laboratories | 9,087 | 2,39,982 | 82.05 | 36.42 | 15.32% | 14.32 | 5,647.50 to 9,740.00 |
| CG Power and Industrial Solutions | 855 | 1,28,873 | 103.94 | 45.89 | 15.13% | 16.17 | 525.50 to 980.90 |
| Indian Hotels Company | 760 | 1,05,334 | 45.62 | 36.77 | 15.97% | 8.07 | 568.70 to 971.00 |
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%.
Divi’s Labs: Debt-to-Equity of 0.00
Divi’s Laboratories makes active pharmaceutical ingredients and intermediates and runs a large custom synthesis business for global drug companies. It reported FY26 revenue of Rs 11,067 crore, up 13.95% year on year, and net profit of Rs 2,568 crore, up 17.21%. Revenue has compounded at 5.09% a year since FY22. Operating margin was 36.70% in FY26. The debt-to-equity ratio is 0.00, which keeps interest costs low.
The stock trades at a PE of 82.05 against an industry PE of 36.42, with a return on equity of 15.32%. In the June 2026 quarter, revenue rose 24.32% to Rs 3,144 crore and net profit grew 65.50% to Rs 902 crore. The share price has gained 71.04% over five years and 38.43% over the past year. Foreign investors raised their holding from 19.39% in September 2025 to 20.38% in September 2026.
CG Power: Revenue Up 25.73% in FY26
CG Power and Industrial Solutions makes transformers, motors, drives and railway signalling products, and has entered semiconductor assembly. It reported FY26 revenue of Rs 12,662.22 crore, up 25.73% year on year, and net profit of Rs 1,196.73 crore, up 23.00%. Net profit has compounded at 17.42% a year since FY22, while revenue has grown 23.06% a year. Operating margin was 14.88% in FY26. The debt-to-equity ratio is 0.01, which keeps interest costs low.
In the June 2026 quarter, revenue rose 15.76% to Rs 3,364.39 crore and net profit grew 15.52% to Rs 308.28 crore. The share price has gained 563.19% over five years. Domestic institutions raised their holding from 16.33% in July 2025 to 18.30% in June 2026. The stock trades at a PE of 103.94 against an industry PE of 45.89, with a return on equity of 15.13%.
Indian Hotels: Quarterly Profit Up 22.39%
Indian Hotels Company, part of the Tata Group, runs Taj, SeleQtions, Vivanta and Ginger hotels and resorts. It reported FY26 revenue of Rs 9,971.43 crore, up 16.42% year on year, and net profit of Rs 2,195.14 crore, up 11.93%. Revenue has compounded at 32.74% a year since FY22. Operating margin was 35.53% in FY26. The debt-to-equity ratio is 0.22.
The stock trades at a PE of 45.62 against an industry PE of 36.77, with a return on equity of 15.97%. In the June 2026 quarter, revenue rose 15.09% to Rs 2,419.37 crore and net profit grew 22.39% to Rs 390.93 crore. The share price has gained 658.38% over five years. Domestic institutions raised their holding from 18.52% in June 2025 to 24.59% in June 2026.
Stocks With ROE Between 15 and 20: Financial Comparison on Growth and Margins
The table compares scale and growth across these stocks with ROE between 15 and 20. 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% |
| Divi’s Labs | 11,067 | 2,568 | 13.95% | 5.09% | 24.32% |
| CG Power | 12,662.22 | 1,196.73 | 25.73% | 23.06% | 15.76% |
| Indian Hotels | 9,971.43 | 2,195.14 | 16.42% | 32.74% | 15.09% |
Check the Univest Screener for live data on these stocks with ROE between 15 and 20
Institutional Holding in Bajaj Finance, Divi’s Labs, CG Power and Indian Hotels
Institutional holding shows who is backing these stocks with ROE between 15 and 20 alongside the promoter. The table uses the latest reported quarter for each. Indian Hotels has the deepest institutional backing, with FII and DII together holding 46.30% as of June 2026. Domestic institutions increased their holding over the past year in Bajaj Finance (from 14.47% to 17.05%), CG Power (from 16.33% to 18.30%) and Indian Hotels (from 18.52% to 24.59%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| Bajaj Finance | 54.67% | 19.79% | 17.05% | 8.49% | September 2026 |
| Divi’s Labs | 51.88% | 20.38% | 19.17% | 8.58% | September 2026 |
| CG Power | 56.36% | 11.97% | 18.30% | 13.37% | June 2026 |
| Indian Hotels | 38.12% | 21.71% | 24.59% | 15.58% | June 2026 |
Risks to Weigh in Stocks With ROE Between 15 and 20
Being careful with stocks with ROE between 15 and 20 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: CG Power trades at a PE of 103.94 against an industry PE of 45.89, 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 ROE Between 15 and 20
Picking from stocks with ROE between 15 and 20 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 45.89) 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 ROE between 15 and 20, Bajaj Finance stands out for the highest return on equity at 16.68%, Divi’s Labs for the strongest latest-quarter profit growth at 65.50%, CG Power for a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.01 and Indian Hotels for the biggest five-year price gain at 658.38%. 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 ROE between 15 and 20 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 ROE Between 15 and 20 to Watch
Which are the best stocks with ROE between 15 and 20 to watch for multibagger potential?
Ans. Bajaj Finance, Divi’s Labs, CG Power and Indian Hotels are the 4 names this list highlights, with market caps of Rs 6,02,984 crore, Rs 2,39,982 crore, Rs 1,28,873 crore and Rs 1,05,334 crore respectively. Bajaj Finance is notable for the highest return on equity at 16.68%. Divi’s Labs stands out for the strongest latest-quarter profit growth at 65.50%. CG Power offers a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.01. Indian Hotels brings the biggest five-year price gain at 658.38%. These are watchlist names for stocks with ROE between 15 and 20, not recommendations, so match each one to your own risk profile and time horizon.
Is Bajaj Finance a good stock for long-term investors?
Ans. Bajaj Finance has a return on equity of 16.68%, a PE of 29.21 against an industry PE of 17.68 and a market cap of Rs 6,02,984 crore. Net profit has compounded at 28.78% a year since FY22, and FY26 revenue rose 19.09% while June 2026 quarter net profit grew 27.60%. Long-term returns in stocks with ROE between 15 and 20 depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can CG Power become a multibagger from here?
Ans. CG Power has already gained 563.19% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in stocks with ROE between 15 and 20 requires earnings to keep growing faster than the market for several years. Net profit has compounded at 17.42% a year since FY22, and FY26 revenue rose 25.73%. At a PE of 103.94 against an industry PE of 45.89, valuation should be checked against that growth before investing.
What is the market cap of Bajaj Finance, Divi’s Labs, CG Power and Indian Hotels?
Ans. As of 20 October 2026, Bajaj Finance has a market cap of Rs 6,02,984 crore, Divi’s Labs has a market cap of Rs 2,39,982 crore, CG Power has a market cap of Rs 1,28,873 crore and Indian Hotels has a market cap of Rs 1,05,334 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 ROE between 15 and 20.
What are the risks of investing in stocks with ROE between 15 and 20?
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. CG Power trades at a PE of 103.94 against an industry PE of 45.89, so earnings growth needs to hold up.
Why is CG Power trading at a PE of 103.94?
Ans. CG Power’s PE of 103.94 compares with an industry PE of 45.89. The market is paying a premium for a return on equity of 15.13%, profit growth of 17.42% a year since FY22 and latest-quarter profit growth of 15.52%, which also means the stock is more sensitive if growth slows. Investors in stocks with ROE between 15 and 20 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, Divi’s Labs, CG Power and Indian Hotels?
Ans. As of the latest reported quarter, FII and DII together hold 36.84% of Bajaj Finance (19.79% and 17.05%), 39.55% of Divi’s Labs (20.38% and 19.17%), 30.27% of CG Power (11.97% and 18.30%) and 46.30% of Indian Hotels (21.71% and 24.59%). Rising institutional holding is a useful signal in stocks with ROE between 15 and 20, though it should be read with earnings trends rather than on its own.
