4 Smallcap Low PEG Ratio Stocks to Watch for Future Multibagger Potential: IIFL Finance, Sarda Energy, CarTrade Tech and Shipping Corporation
- October 26, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
IIFL Finance Rs 531.65. Sarda Energy Rs 443.95. CarTrade Tech Rs 2,820.30. Shipping Corporation Rs 237.80. Market caps from Rs 12,094 crore to Rs 23,227 crore. Data as of 23 Oct 2026.
Quick Answer
IIFL Finance, Sarda Energy, CarTrade Tech and Shipping Corporation are the 4 picks in this low PEG ratio stocks watchlist, with market caps between Rs 12,094 crore and Rs 23,227 crore. IIFL Finance stands out for the strongest latest-quarter profit growth at 92.61%, while Sarda Energy offers the highest return on equity at 15.00%. PE ratios run from 7.48 to 57.68, so compare each one with its industry PE before investing. All figures are as of 23 October 2026.
Low PEG ratio stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. IIFL Finance, Sarda Energy, CarTrade Tech and Shipping Corporation meet that test, with market caps from Rs 12,094 crore to Rs 23,227 crore and IIFL Finance offering the strongest latest-quarter profit growth at 92.61%. Each of these companies has a market capitalisation below Rs 30,000 crore and a PEG ratio below 1 and FY26 profit growth of at least 15 per cent, and net profit rose in FY26 and in the latest quarter.
This list covers companies with a market capitalisation below Rs 30,000 crore and a PEG ratio below 1 and FY26 profit growth of at least 15 per cent, rising profit in FY26 and the latest quarter, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap below Rs 30,000 crore. Investors screening low PEG ratio stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 23 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Low PEG Ratio Stocks and Why Do They Attract Multibagger Interest?
Low PEG ratio stocks are shares of smaller companies whose PE ratio is lower than their profit growth rate, which means growth is available at a fair price. The four here cover lending, steel and power, an online auto marketplace and shipping.
A PEG ratio below 1 means earnings are growing faster than the valuation implies. For low PEG ratio stocks, both FY26 and the latest quarter showed growth. With low PEG ratio stocks, 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 PEG ratio stocks are complete. Read each company’s latest results and exchange filings before acting on low PEG ratio stocks.
Low PEG Ratio Stocks at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 23 October 2026. Shipping Corporation has the lowest PE of the group at 7.48, while Sarda Energy posts the highest return on equity at 15.00%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| IIFL Finance | 531.65 | 23,227 | 10.29 | 17.68 | 11.93% | 1.67 | 409.10 to 705.00 |
| Sarda Energy and Minerals | 443.95 | 15,524 | 13.49 | 22.42 | 15.00% | 2.11 | 443.95 to 624.00 |
| CarTrade Tech | 2,820.30 | 14,603 | 57.68 | 64.49 | 8.98% | 5.88 | 1,600.00 to 3,290.50 |
| Shipping Corporation of India | 237.80 | 12,094 | 7.48 | 8.87 | 14.87% | 1.33 | 195.55 to 368.75 |
IIFL Finance: Revenue Up 30.64% in FY26
IIFL Finance is a diversified NBFC with a large gold loan, home loan and microfinance portfolio. It reported FY26 total income of Rs 13,373.83 crore, up 30.64% year on year, and net profit of Rs 1,816.70 crore, up 214.22%. Net profit has compounded at 11.20% a year since FY22, while total income has grown 17.47% a year.
In the September 2026 quarter, total income rose 28.38% to Rs 4,248.21 crore and net profit grew 92.61% to Rs 805.01 crore. The share price has gained 115.01% over five years and 23.21% over the past year. The stock trades at a PE of 10.29 against an industry PE of 17.68, below the sector average.
Sarda Energy: Revenue Up 23.10% in FY26
Sarda Energy and Minerals makes sponge iron, steel products and ferro alloys, mines iron ore and coal, and generates power for captive use and sale. It reported FY26 revenue of Rs 5,927.54 crore, up 23.10% year on year, and net profit of Rs 1,063.30 crore, up 56.09%. Net profit has compounded at 7.10% a year since FY22, while revenue has grown 10.58% a year. Operating margin was 35.76% in FY26. The debt-to-equity ratio is 0.36.
The stock trades at a PE of 13.49 against an industry PE of 22.42, below the sector average, with a return on equity of 15.00%. In the June 2026 quarter, revenue rose 0.22% to Rs 1,716.53 crore and net profit grew 9.39% to Rs 462.81 crore. The share price has gained 472.57% over five years. Promoters hold 73.16%, which keeps ownership stable.
CarTrade Tech: Revenue Up 22.27% in FY26
CarTrade Tech runs online marketplaces for new and used vehicles through platforms such as CarWale, CarTrade and Shriram Automall. It reported FY26 revenue of Rs 869.77 crore, up 22.27% year on year, and net profit of Rs 243.51 crore, up 67.63%. Revenue has compounded at 24.76% a year since FY22. Operating margin was 43.85% in FY26. The debt-to-equity ratio is 0.06, which keeps interest costs low.
In the June 2026 quarter, revenue rose 15.74% to Rs 229.74 crore and net profit grew 20.59% to Rs 56.75 crore. The share price has gained 123.75% over five years and 18.74% over the past year. Domestic institutions raised their holding from 10.49% in June 2025 to 15.64% in June 2026. The stock trades at a PE of 57.68 against an industry PE of 64.49, below the sector average.
Shipping Corporation: Quarterly Profit Up 74.87%
Shipping Corporation of India is a government-owned shipping line with a fleet of tankers, bulk carriers and container vessels. It reported FY26 revenue of Rs 6,226.78 crore, up 7.35% year on year, and net profit of Rs 1,352.92 crore, up 60.38%. Net profit has compounded at 11.82% a year since FY22, while revenue has grown 5.12% a year. Operating margin was 46.04% in FY26. The debt-to-equity ratio is 0.29.
The stock trades at a PE of 7.48 against an industry PE of 8.87, below the sector average, with a return on equity of 14.87%. The dividend yield is 2.89%. In the June 2026 quarter, revenue rose 33.81% to Rs 1,956.84 crore and net profit grew 74.87% to Rs 619.34 crore. The share price has gained 98.18% over five years and 23.82% over the past year. Foreign investors raised their holding from 6.13% in June 2025 to 8.97% in June 2026.
Low PEG Ratio Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these low PEG ratio stocks. 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 |
|---|---|---|---|---|---|
| IIFL Finance | 13,373.83 | 1,816.70 | 30.64% | 17.47% | 28.38% |
| Sarda Energy | 5,927.54 | 1,063.30 | 23.10% | 10.58% | 0.22% |
| CarTrade Tech | 869.77 | 243.51 | 22.27% | 24.76% | 15.74% |
| Shipping Corporation | 6,226.78 | 1,352.92 | 7.35% | 5.12% | 33.81% |
Check the Univest Screener for live data on these low PEG ratio stocks
Institutional Holding in IIFL Finance, Sarda Energy, CarTrade Tech and Shipping Corporation
Institutional holding shows who is backing these low PEG ratio stocks alongside the promoter. The table uses the latest reported quarter for each. CarTrade Tech has the deepest institutional backing, with FII and DII together holding 70.01% as of June 2026. Domestic institutions increased their holding over the past year in CarTrade Tech (from 10.49% to 15.64%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| IIFL Finance | 24.76% | 25.64% | 7.85% | 41.75% | September 2026 |
| Sarda Energy | 73.16% | 3.52% | 3.48% | 19.85% | June 2026 |
| CarTrade Tech | Nil | 54.37% | 15.64% | 29.99% | June 2026 |
| Shipping Corporation | 63.75% | 8.97% | 2.08% | 25.20% | June 2026 |
Risks to Weigh in Low PEG Ratio Stocks
Being careful with low PEG ratio 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 Stocks
Picking from low PEG ratio stocks 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 (8.87 to 64.49) 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.
Download the Univest iOS App or Univest Android App to track IIFL Finance, Sarda Energy, CarTrade Tech and Shipping Corporation live prices.
Conclusion
Among low PEG ratio stocks, IIFL Finance stands out for the strongest latest-quarter profit growth at 92.61%, Sarda Energy for the highest return on equity at 15.00%, CarTrade Tech for a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.06 and Shipping Corporation for the fastest profit growth, 11.82% a year since FY22. 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 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 Stocks to Watch
Which are the best low PEG ratio stocks to watch for multibagger potential?
Ans. IIFL Finance, Sarda Energy, CarTrade Tech and Shipping Corporation are the 4 names this list highlights, with market caps of Rs 23,227 crore, Rs 15,524 crore, Rs 14,603 crore and Rs 12,094 crore respectively. IIFL Finance is notable for the strongest latest-quarter profit growth at 92.61%. Sarda Energy stands out for the highest return on equity at 15.00%. CarTrade Tech offers a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.06. Shipping Corporation brings the fastest profit growth, 11.82% a year since FY22. These are watchlist names for low PEG ratio stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is Sarda Energy a good stock for long-term investors?
Ans. Sarda Energy has a return on equity of 15.00%, a PE of 13.49 against an industry PE of 22.42 and a market cap of Rs 15,524 crore. Net profit has compounded at 7.10% a year since FY22, and FY26 revenue rose 23.10% while June 2026 quarter net profit grew 9.39%. Long-term returns in low PEG ratio stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Shipping Corporation become a multibagger from here?
Ans. Shipping Corporation has already gained 98.18% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in low PEG ratio stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 11.82% a year since FY22, and FY26 revenue rose 7.35%. At a PE of 7.48 against an industry PE of 8.87, valuation should be checked against that growth before investing.
What is the market cap of IIFL Finance, Sarda Energy, CarTrade Tech and Shipping Corporation?
Ans. As of 23 October 2026, IIFL Finance has a market cap of Rs 23,227 crore, Sarda Energy has a market cap of Rs 15,524 crore, CarTrade Tech has a market cap of Rs 14,603 crore and Shipping Corporation has a market cap of Rs 12,094 crore. All of them qualify as smallcaps. 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 stocks.
What are the risks of investing in low PEG ratio 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 Shipping Corporation trading below its industry PE?
Ans. Shipping Corporation trades at a PE of 7.48 against an industry PE of 8.87. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 11.82% a year since FY22 and FY26 revenue rose 7.35%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in IIFL Finance, Sarda Energy, CarTrade Tech and Shipping Corporation?
Ans. As of the latest reported quarter, FII and DII together hold 33.49% of IIFL Finance (25.64% and 7.85%), 7.00% of Sarda Energy (3.52% and 3.48%), 70.01% of CarTrade Tech (54.37% and 15.64%) and 11.05% of Shipping Corporation (8.97% and 2.08%). Rising institutional holding is a useful signal in low PEG ratio stocks, though it should be read with earnings trends rather than on its own.
