4 Top Stocks With PE Between 30 and 40 to Watch for Future Multibagger Potential: Tech Mahindra, Dixon, SRF and Ajanta Pharma
- October 21, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Tech Mahindra Rs 1,779.10. Dixon Rs 12,100. SRF Rs 2,432. Ajanta Pharma Rs 3,298.90. Market caps from Rs 41,525 crore to Rs 1.62 lakh crore. Data as of 20 Oct 2026.
Quick Answer
Tech Mahindra, Dixon, SRF and Ajanta Pharma are the 4 picks in this stocks with PE between 30 and 40 watchlist, with market caps between Rs 41,525 crore and Rs 1.62 lakh crore. Tech Mahindra stands out for the lowest PE of the group at 31.30, while Dixon offers the highest return on equity at 30.76%. PE ratios run from 31.30 to 37.64, so compare each one with its industry PE before investing. All figures are as of 20 October 2026.
Stocks with PE between 30 and 40 to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Tech Mahindra, Dixon, SRF and Ajanta Pharma meet that test, with market caps from Rs 41,525 crore to Rs 1.62 lakh crore and Tech Mahindra offering the lowest PE of the group at 31.30. Each of these companies trades at a PE ratio between 30 and 40, and net profit grew in FY26 and in the latest quarter.
This list covers companies with a PE ratio between 30 and 40, rising profit in FY26 and the latest quarter, and complete, verifiable financials, ranked by market capitalisation. The companies here range from midcaps to largecaps in size. Investors screening stocks with PE between 30 and 40 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 PE Between 30 and 40 and Why Do They Attract Multibagger Interest?
Stocks with PE between 30 and 40 are shares that carry a premium to the market average because investors expect earnings to keep rising. The four here cover IT services, electronics manufacturing, specialty chemicals and pharmaceuticals.
A PE in this band usually reflects confidence in growth without the very high multiples seen in the most popular stocks. Investors who track stocks with PE between 30 and 40 watch whether profit growth is enough to justify the multiple. With stocks with PE between 30 and 40, 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 PE between 30 and 40 are complete. Read each company’s latest results and exchange filings before acting on stocks with PE between 30 and 40.
Stocks With PE Between 30 and 40 at a Glance: Price, Market Cap, PE and ROE
Prices are closing prices as of 20 October 2026. Tech Mahindra has the lowest PE of the group at 31.30, while Dixon posts the highest return on equity at 30.76%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Debt to Equity | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Tech Mahindra | 1,779.10 | 1,61,599 | 31.30 | 18.49 | 16.24% | 0.07 | 1,304.10 to 1,854.00 |
| Dixon Technologies | 12,100 | 78,360 | 37.64 | 45.19 | 30.76% | 0.21 | 9,600.00 to 17,299.00 |
| SRF | 2,432 | 73,936 | 34.20 | 36.15 | 13.07% | 0.36 | 2,355.00 to 3,210.00 |
| Ajanta Pharma | 3,298.90 | 41,525 | 36.59 | 36.35 | 23.33% | 0.06 | 2,380.20 to 3,796.00 |
Tech Mahindra: Debt-to-Equity of 0.07
Tech Mahindra, part of the Mahindra Group, provides IT and business services to telecom and other global clients. It reported FY26 revenue of Rs 56,847.30 crore, up 5.58% year on year, and net profit of Rs 4,805.50 crore, up 12.99%. Revenue has compounded at 5.57% a year since FY22. Operating margin was 15.47% in FY26. The debt-to-equity ratio is 0.07, which keeps interest costs low.
In the September 2026 quarter, revenue rose 15.23% to Rs 16,172.80 crore and net profit grew 33.95% to Rs 1,609.70 crore. The share price is up 16.96% over the past year. Domestic institutions raised their holding from 32.13% in June 2025 to 36.92% in June 2026. The stock trades at a PE of 31.30 against an industry PE of 18.49, with a return on equity of 16.24%. The dividend yield is 3.09%.
Dixon: 71.44% Profit CAGR Since FY22
Dixon Technologies is an electronics manufacturing services company that makes televisions, phones, appliances and lighting for brands. It reported FY26 revenue of Rs 49,585.84 crore, up 27.53% year on year, and net profit of Rs 1,644.25 crore, up 33.40%. Net profit has compounded at 71.44% a year since FY22, while revenue has grown 46.72% a year. Operating margin was 3.95% in FY26. The debt-to-equity ratio is 0.21.
The stock trades at a PE of 37.64 against an industry PE of 45.19, below the sector average, with a return on equity of 30.76%. In the June 2026 quarter, revenue rose 25.23% to Rs 16,075.95 crore and net profit grew 156.35% to Rs 717.83 crore. The share price has gained 114.81% over five years.
SRF: Quarterly Profit Up 75.53%
SRF operates in specialty chemicals, packaging films and technical textiles, and its chemicals business is a key earnings driver. It reported FY26 revenue of Rs 15,893.57 crore, up 7.20% year on year, and net profit of Rs 1,835.18 crore, up 46.72%. Revenue has compounded at 6.08% a year since FY22. Operating margin was 21.74% in FY26. The debt-to-equity ratio is 0.36.
In the June 2026 quarter, revenue rose 31.69% to Rs 5,067.17 crore and net profit grew 75.53% to Rs 758.87 crore. Domestic institutions raised their holding from 18.85% in June 2025 to 22.44% in June 2026. The stock trades at a PE of 34.20 against an industry PE of 36.15, below the sector average, with a return on equity of 13.07%.
Ajanta Pharma: Return on Equity of 23.33%
Ajanta Pharma sells branded generics in ophthalmology, dermatology, cardiology and pain management in India, Africa and Asia. It reported FY26 revenue of Rs 5,624.93 crore, up 18.60% year on year, and net profit of Rs 1,056 crore, up 14.73%. Net profit has compounded at 10.33% a year since FY22, while revenue has grown 12.94% a year. Operating margin was 28.74% in FY26. The debt-to-equity ratio is 0.06, which keeps interest costs low.
The stock trades at a PE of 36.59 against an industry PE of 36.35, with a return on equity of 23.33%. In the June 2026 quarter, revenue rose 27.68% to Rs 1,696.86 crore and net profit grew 30.89% to Rs 334.22 crore. The share price has gained 125.31% over five years and 35.42% over the past year. Domestic institutions raised their holding from 17.90% in September 2025 to 21.94% in September 2026.
Stocks With PE Between 30 and 40: Financial Comparison on Growth and Margins
The table compares scale and growth across these stocks with PE between 30 and 40. 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) | Revenue Growth (YoY) | 4-Year Revenue CAGR | Latest Quarter Revenue Growth | Operating Margin (Latest Quarter) |
|---|---|---|---|---|---|---|
| Tech Mahindra | 56,847.30 | 4,805.50 | 5.58% | 5.57% | 15.23% | 17.74% |
| Dixon | 49,585.84 | 1,644.25 | 27.53% | 46.72% | 25.23% | 6.43% |
| SRF | 15,893.57 | 1,835.18 | 7.20% | 6.08% | 31.69% | 25.73% |
| Ajanta Pharma | 5,624.93 | 1,056 | 18.60% | 12.94% | 27.68% | 30.41% |
Check the Univest Screener for live data on these stocks with PE between 30 and 40
Institutional Holding in Tech Mahindra, Dixon, SRF and Ajanta Pharma
Institutional holding shows who is backing these stocks with PE between 30 and 40 alongside the promoter. The table uses the latest reported quarter for each. Tech Mahindra has the deepest institutional backing, with FII and DII together holding 55.58% as of June 2026. Domestic institutions increased their holding over the past year in Tech Mahindra (from 32.13% to 36.92%), SRF (from 18.85% to 22.44%) and Ajanta Pharma (from 17.90% to 21.94%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| Tech Mahindra | 34.97% | 18.66% | 36.92% | 9.45% | June 2026 |
| Dixon | 28.50% | 18.96% | 28.71% | 23.83% | September 2026 |
| SRF | 50.26% | 15.45% | 22.44% | 11.85% | June 2026 |
| Ajanta Pharma | 63.47% | 7.63% | 21.94% | 6.96% | September 2026 |
Risks to Weigh in Stocks With PE Between 30 and 40
Being careful with stocks with PE between 30 and 40 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: Tech Mahindra trades at a PE of 31.30 against an industry PE of 18.49, 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 PE Between 30 and 40
Picking from stocks with PE between 30 and 40 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 (18.49 to 45.19) 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 Tech Mahindra, Dixon, SRF and Ajanta Pharma live prices.
Conclusion
Among stocks with PE between 30 and 40, Tech Mahindra stands out for the lowest PE of the group at 31.30, Dixon for the highest return on equity at 30.76%, SRF for 7.20% revenue growth in FY26 and Ajanta Pharma for the biggest five-year price gain at 125.31%. 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 PE between 30 and 40 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 PE Between 30 and 40 to Watch
Which are the best stocks with PE between 30 and 40 to watch for multibagger potential?
Ans. Tech Mahindra, Dixon, SRF and Ajanta Pharma are the 4 names this list highlights, with market caps of Rs 1,61,599 crore, Rs 78,360 crore, Rs 73,936 crore and Rs 41,525 crore respectively. Tech Mahindra is notable for the lowest PE of the group at 31.30. Dixon stands out for the highest return on equity at 30.76%. SRF offers 7.20% revenue growth in FY26. Ajanta Pharma brings the biggest five-year price gain at 125.31%. These are watchlist names for stocks with PE between 30 and 40, not recommendations, so match each one to your own risk profile and time horizon.
Is Dixon a good stock for long-term investors?
Ans. Dixon has a return on equity of 30.76%, a PE of 37.64 against an industry PE of 45.19 and a market cap of Rs 78,360 crore. Net profit has compounded at 71.44% a year since FY22, and FY26 revenue rose 27.53% while June 2026 quarter net profit grew 156.35%. Long-term returns in stocks with PE between 30 and 40 depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Ajanta Pharma become a multibagger from here?
Ans. Ajanta Pharma has already gained 125.31% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in stocks with PE between 30 and 40 requires earnings to keep growing faster than the market for several years. Net profit has compounded at 10.33% a year since FY22, and FY26 revenue rose 18.60%. At a PE of 36.59 against an industry PE of 36.35, valuation should be checked against that growth before investing.
What is the market cap of Tech Mahindra, Dixon, SRF and Ajanta Pharma?
Ans. As of 20 October 2026, Tech Mahindra has a market cap of Rs 1,61,599 crore, Dixon has a market cap of Rs 78,360 crore, SRF has a market cap of Rs 73,936 crore and Ajanta Pharma has a market cap of Rs 41,525 crore. Tech Mahindra is the largest of the group. 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 PE between 30 and 40.
What are the risks of investing in stocks with PE between 30 and 40?
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. Tech Mahindra trades at a PE of 31.30 against an industry PE of 18.49, so earnings growth needs to hold up.
Why is Tech Mahindra trading at a PE of 31.30?
Ans. Tech Mahindra’s PE of 31.30 compares with an industry PE of 18.49. The market is paying a premium for a return on equity of 16.24% and latest-quarter profit growth of 33.95%, which also means the stock is more sensitive if growth slows. Investors in stocks with PE between 30 and 40 who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.
How much do institutions hold in Tech Mahindra, Dixon, SRF and Ajanta Pharma?
Ans. As of the latest reported quarter, FII and DII together hold 55.58% of Tech Mahindra (18.66% and 36.92%), 47.67% of Dixon (18.96% and 28.71%), 37.89% of SRF (15.45% and 22.44%) and 29.57% of Ajanta Pharma (7.63% and 21.94%). Rising institutional holding is a useful signal in stocks with PE between 30 and 40, though it should be read with earnings trends rather than on its own.
