4 Top Stocks With PE of 20-30 and ROE Above 20 to Watch for Future Multibagger Potential: Bajaj Auto, Ashok Leyland, Mazagon Dock and Premier Energies
- October 22, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Bajaj Auto Rs 10,072. Ashok Leyland Rs 146.74. Mazagon Dock Rs 1,997.50. Premier Energies Rs 881. Market caps from Rs 41,991 crore to Rs 2.81 lakh crore. Data as of 21 Oct 2026.
Quick Answer
Bajaj Auto, Ashok Leyland, Mazagon Dock and Premier Energies are the 4 picks in this stocks with PE of 20-30 and ROE above 20 watchlist, with market caps between Rs 41,991 crore and Rs 2.81 lakh crore. Bajaj Auto stands out for the largest market cap at Rs 2,81,374 crore, while Ashok Leyland offers the lowest PE of the group at 23.31. PE ratios run from 23.31 to 29.72, so compare each one with its industry PE before investing. All figures are as of 21 October 2026.
Stocks with PE of 20-30 and ROE above 20 to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Bajaj Auto, Ashok Leyland, Mazagon Dock and Premier Energies meet that test, with market caps from Rs 41,991 crore to Rs 2.81 lakh crore and Bajaj Auto offering the largest market cap at Rs 2,81,374 crore. Each of these companies has a PE ratio between 20 and 30 and a return on equity above 20 per cent, and net profit rose in FY26 and in the latest quarter.
This list covers companies with a PE ratio between 20 and 30 and a return on equity above 20 per cent, 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 of 20-30 and ROE above 20 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 PE of 20-30 and ROE Above 20 and Why Do They Attract Multibagger Interest?
Stocks with PE of 20-30 and ROE above 20 are shares that earn high returns on shareholder money and trade at mid-range multiples. The four here cover motorcycles, commercial vehicles, shipbuilding and solar manufacturing.
High returns at a mid-range multiple are what many long-term investors look for. For stocks with PE of 20-30 and ROE above 20, rising profit adds to the case. Whichever way you read stocks with PE of 20-30 and ROE above 20, the common thread is rising profit backed by complete financial data. Each of stocks with PE of 20-30 and ROE above 20 also has complete FY26 and latest quarter figures. For stocks with PE of 20-30 and ROE above 20, checking each result against the latest quarter matters more than any single ratio. The next sections explain what stands out in each of stocks with PE of 20-30 and ROE above 20, using FY26 and latest quarter data. Prices move daily, so recheck the figures for stocks with PE of 20-30 and ROE above 20 before you decide.
Stocks With PE of 20-30 and ROE Above 20 at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 21 October 2026. Ashok Leyland has the lowest PE of the group at 23.31, while Premier Energies posts the highest return on equity at 35.05%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Bajaj Auto | 10,072 | 2,81,374 | 24.36 | 23.82 | 27.67% | 7.25 | 8,605.00 to 12,470.00 |
| Ashok Leyland | 146.74 | 86,933 | 23.31 | 23.62 | 24.37% | 6.10 | 134.21 to 215.42 |
| Mazagon Dock Shipbuilders | 1,997.50 | 84,823 | 29.72 | 48.92 | 26.48% | 8.70 | 1,987.70 to 2,881.80 |
| Premier Energies | 881 | 41,991 | 25.09 | 53.49 | 35.05% | 9.75 | 660.00 to 1,134.00 |
Bajaj Auto: Revenue Up 24.05% in FY26
Bajaj Auto makes motorcycles, three-wheelers and electric two-wheelers, and has a large export business. It reported FY26 revenue of Rs 65,087.22 crore, up 24.05% year on year, and net profit of Rs 10,574.50 crore, up 44.37%. Net profit has compounded at 14.44% a year since FY22, while revenue has grown 17.26% a year. Operating margin was 25.06% in FY26.
In the June 2026 quarter, revenue rose 64.02% to Rs 22,376.69 crore and net profit grew 44.26% to Rs 3,188.75 crore. The share price has gained 165.89% over five years and 13.76% over the past year. Domestic institutions raised their holding from 12.09% in June 2025 to 13.54% in June 2026. The stock trades at a PE of 24.36 against an industry PE of 23.82, with a return on equity of 27.67%.
Ashok Leyland: Return on Equity of 24.37%
Ashok Leyland makes trucks, buses and defence vehicles and is among the largest commercial vehicle makers in India. It reported FY26 revenue of Rs 56,946.90 crore, up 16.47% year on year, and net profit of Rs 3,720.98 crore, up 10.00%. Revenue has compounded at 21.28% a year since FY22. Operating margin was 19.17% in FY26.
The stock trades at a PE of 23.31 against an industry PE of 23.62, below the sector average, with a return on equity of 24.37%. The dividend yield is 2.36%. In the June 2026 quarter, revenue rose 12.29% to Rs 13,258.24 crore and net profit grew 1.53% to Rs 667.77 crore. The share price has gained 106.37% over five years. Domestic institutions raised their holding from 13.61% in July 2025 to 15.76% in June 2026.
Mazagon Dock: 44.01% Profit CAGR Since FY22
Mazagon Dock Shipbuilders builds warships and submarines for the Indian Navy and is a key defence shipyard. It reported FY26 revenue of Rs 14,145.71 crore, up 12.77% year on year, and net profit of Rs 2,421.88 crore, up 6.35%. Net profit has compounded at 44.01% a year since FY22, while revenue has grown 23.18% a year. Operating margin was 26.20% in FY26. The debt-to-equity ratio is 0.05, which keeps interest costs low.
In the June 2026 quarter, revenue rose 10.40% to Rs 3,255.88 crore and net profit grew 22.12% to Rs 512.04 crore. The share price has gained 1461.53% over five years. Promoters hold 81.22%, which keeps ownership stable. The stock trades at a PE of 29.72 against an industry PE of 48.92, below the sector average, with a return on equity of 26.48%.
Premier Energies: Revenue Up 20.65% in FY26
Premier Energies makes solar cells and modules at manufacturing plants in Telangana. It reported FY26 revenue of Rs 8,025.91 crore, up 20.65% year on year, and net profit of Rs 1,509.69 crore, up 61.10%. Revenue has compounded at 79.85% a year since FY22. Operating margin was 33.02% in FY26.
The stock trades at a PE of 25.09 against an industry PE of 53.49, below the sector average, with a return on equity of 35.05%. In the June 2026 quarter, revenue rose 34.13% to Rs 2,507.63 crore and net profit grew 53.33% to Rs 471.92 crore. Domestic institutions raised their holding from 13.26% in September 2025 to 18.88% in September 2026.
Stocks With PE of 20-30 and ROE Above 20: Financial Comparison on Growth and Margins
The table compares scale and growth across these stocks with PE of 20-30 and ROE above 20. 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) |
|---|---|---|---|---|---|---|
| Bajaj Auto | 65,087.22 | 10,574.50 | 24.05% | 17.26% | 64.02% | 24.99% |
| Ashok Leyland | 56,946.90 | 3,720.98 | 16.47% | 21.28% | 12.29% | 20.01% |
| Mazagon Dock | 14,145.71 | 2,421.88 | 12.77% | 23.18% | 10.40% | 25.82% |
| Premier Energies | 8,025.91 | 1,509.69 | 20.65% | 79.85% | 34.13% | 30.86% |
Check the Univest Screener for live data on these stocks with PE of 20-30 and ROE above 20
Institutional Holding in Bajaj Auto, Ashok Leyland, Mazagon Dock and Premier Energies
Institutional holding shows who is backing these stocks with PE of 20-30 and ROE above 20 alongside the promoter. The table uses the latest reported quarter for each. Ashok Leyland has the deepest institutional backing, with FII and DII together holding 36.44% as of June 2026. Domestic institutions increased their holding over the past year in Bajaj Auto (from 12.09% to 13.54%), Ashok Leyland (from 13.61% to 15.76%) and Premier Energies (from 13.26% to 18.88%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| Bajaj Auto | 55.01% | 9.01% | 13.54% | 22.44% | June 2026 |
| Ashok Leyland | 51.51% | 20.68% | 15.76% | 12.05% | June 2026 |
| Mazagon Dock | 81.22% | 1.72% | 5.01% | 12.04% | June 2026 |
| Premier Energies | 58.49% | 7.12% | 18.88% | 15.51% | September 2026 |
Risks to Weigh in Stocks With PE of 20-30 and ROE Above 20
Being careful with stocks with PE of 20-30 and ROE above 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: Bajaj Auto trades at a PE of 24.36 against an industry PE of 23.82, 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 of 20-30 and ROE Above 20
Picking from stocks with PE of 20-30 and ROE above 20 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 (23.62 to 53.49) 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.
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Conclusion
Among stocks with PE of 20-30 and ROE above 20, Bajaj Auto stands out for the largest market cap at Rs 2,81,374 crore, Ashok Leyland for the lowest PE of the group at 23.31, Mazagon Dock for the fastest profit growth, 44.01% a year since FY22 and Premier Energies for the highest return on equity at 35.05%. 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 of 20-30 and ROE above 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 PE of 20-30 and ROE Above 20 to Watch
Which are the best stocks with PE of 20-30 and ROE above 20 to watch for multibagger potential?
Ans. Bajaj Auto, Ashok Leyland, Mazagon Dock and Premier Energies are the 4 names this list highlights, with market caps of Rs 2,81,374 crore, Rs 86,933 crore, Rs 84,823 crore and Rs 41,991 crore respectively. Bajaj Auto is notable for the largest market cap at Rs 2,81,374 crore. Ashok Leyland stands out for the lowest PE of the group at 23.31. Mazagon Dock offers the fastest profit growth, 44.01% a year since FY22. Premier Energies brings the highest return on equity at 35.05%. These are watchlist names for stocks with PE of 20-30 and ROE above 20, not recommendations, so match each one to your own risk profile and time horizon.
Is Premier Energies a good stock for long-term investors?
Ans. Premier Energies has a return on equity of 35.05%, a PE of 25.09 against an industry PE of 53.49 and a market cap of Rs 41,991 crore. FY26 revenue rose 20.65%, and June 2026 quarter net profit grew 53.33%. Long-term returns in stocks with PE of 20-30 and ROE above 20 depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Mazagon Dock become a multibagger from here?
Ans. Mazagon Dock has already gained 1461.53% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in stocks with PE of 20-30 and ROE above 20 requires earnings to keep growing faster than the market for several years. Net profit has compounded at 44.01% a year since FY22, and FY26 revenue rose 12.77%. At a PE of 29.72 against an industry PE of 48.92, valuation should be checked against that growth before investing.
What is the market cap of Bajaj Auto, Ashok Leyland, Mazagon Dock and Premier Energies?
Ans. As of 21 October 2026, Bajaj Auto has a market cap of Rs 2,81,374 crore, Ashok Leyland has a market cap of Rs 86,933 crore, Mazagon Dock has a market cap of Rs 84,823 crore and Premier Energies has a market cap of Rs 41,991 crore. Bajaj Auto 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 of 20-30 and ROE above 20.
What are the risks of investing in stocks with PE of 20-30 and ROE above 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. Bajaj Auto trades at a PE of 24.36 against an industry PE of 23.82, so earnings growth needs to hold up.
Is Ashok Leyland trading below its industry PE?
Ans. Ashok Leyland trades at a PE of 23.31 against an industry PE of 23.62. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (FY26 revenue rose 16.47% and June 2026 quarter net profit grew 1.53%) and balance sheet strength before drawing a conclusion.
How much do institutions hold in Bajaj Auto, Ashok Leyland, Mazagon Dock and Premier Energies?
Ans. As of the latest reported quarter, FII and DII together hold 22.55% of Bajaj Auto (9.01% and 13.54%), 36.44% of Ashok Leyland (20.68% and 15.76%), 6.73% of Mazagon Dock (1.72% and 5.01%) and 26.00% of Premier Energies (7.12% and 18.88%). Rising institutional holding is a useful signal in stocks with PE of 20-30 and ROE above 20, though it should be read with earnings trends rather than on its own.
