3 Largecap Dividend and Growth Stocks to Watch for Future Multibagger Potential: UltraTech Cement, Power Grid and Hero MotoCorp

Dividend and growth stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. UltraTech Cement, Power Grid and Hero MotoCorp meet that test, with market caps from Rs 1.04 lakh crore to Rs 3.17 lakh crore and UltraTech Cement offering the strongest latest-quarter profit growth at 17.24%. Each company pays a dividend yield above 2 per cent and grew net profit by more than 20 per cent in FY26.

This list covers large companies with a dividend yield above 2 per cent, net profit growth above 20 per cent in FY26 and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap above Rs 1 lakh crore. Investors screening dividend and growth stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 16 October 2026 and are drawn from NSE and BSE data and company filings.

Click Here – Get Free Investment Predictions

What Are Dividend and Growth Stocks and Why Do They Attract Multibagger Interest?

Dividend and growth stocks are shares that pay regular income and also grow earnings. The mix matters because dividends alone can stall if profit stops growing, while growth gives room for payouts to rise.

Investors who want both cash and capital gains look for companies that return money to shareholders while still expanding. Businesses that offer both are the ones investors compare in dividend and growth stocks.

Dividend and Growth Stocks at a Glance: Price, Market Cap, PE and ROE

Prices are closing prices as of 16 October 2026. Power Grid has the lowest PE of the group at 14.61, while Hero MotoCorp posts the highest return on equity at 26.57%.

Stock	CMP (Rs)	Market Cap (Rs Cr)	PE	Industry PE	ROE	Debt to Equity	52-Week Range (Rs)
UltraTech Cement	10,907	3,16,676	36.95	29.41	10.66%	0.31	10,325.00 to 13,110.00
Power Grid Corporation of India	250.45	2,32,283	14.61	21.61	15.85%	1.47	244.65 to 324.95
Hero MotoCorp	5,225	1,04,083	18.97	23.62	26.57%	0.04	4,671.50 to 6,388.50

UltraTech Cement: Profit Compounding at 3.36% a Year

UltraTech Cement is the largest cement producer in India by capacity, with plants and grinding units across the country. It reported FY26 revenue of Rs 89,089.04 crore, up 16.15% year on year, and net profit of Rs 8,188.35 crore, up 35.58%. Revenue has compounded at 13.81% a year since FY22. Operating margin was 19.71% in FY26. The debt-to-equity ratio is 0.31.

In the June 2026 quarter, revenue rose 15.49% to Rs 24,778.47 crore and net profit grew 17.24% to Rs 2,603.72 crore. Domestic institutions raised their holding from 16.65% in September 2025 to 20.86% in September 2026. The stock trades at a PE of 36.95 against an industry PE of 29.41. The dividend yield is 2.23%.

Power Grid: Profit Compounding at 1.89% a Year

Power Grid Corporation of India owns and operates the country's main electricity transmission network. It reported FY26 revenue of Rs 47,684.43 crore, up 0.47% year on year, and net profit of Rs 18,702.34 crore, up 22.68%. Operating margin was 73.84% in FY26.

The stock trades at a PE of 14.61 against an industry PE of 21.61, below the sector average, with a return on equity of 15.85%. The dividend yield is 3.60%. Revenue for the June 2026 quarter rose 2.20% to Rs 11,696.72 crore, at an operating margin of 83.79%. The share price has gained 64.38% over five years. Domestic institutions raised their holding from 18.55% in June 2025 to 20.70% in June 2026.

Hero MotoCorp: 25.49% Profit CAGR Since FY22

Hero MotoCorp is among the largest two-wheeler makers in the world by volume, selling motorcycles and scooters. It reported FY26 revenue of Rs 48,469.37 crore, up 15.49% year on year, and net profit of Rs 5,775.70 crore, up 31.99%. Net profit has compounded at 25.49% a year since FY22, while revenue has grown 12.64% a year. Operating margin was 17.65% in FY26. The debt-to-equity ratio is 0.04, which keeps interest costs low.

Revenue for the June 2026 quarter rose 35.35% to Rs 13,586.09 crore, at an operating margin of 16.47%. The share price has gained 79.11% over five years. Foreign investors raised their holding from 27.05% in June 2025 to 31.09% in June 2026. The stock trades at a PE of 18.97 against an industry PE of 23.62, below the sector average, with a return on equity of 26.57%. The dividend yield is 3.56%.

Dividend and Growth Stocks: Financial Comparison on Growth and Margins

The table compares scale and growth across these dividend and growth stocks. 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	4-Year Net Profit CAGR	Operating Margin (Latest Quarter)
UltraTech Cement	89,089.04	8,188.35	16.15%	13.81%	3.36%	20.83%
Power Grid	47,684.43	18,702.34	0.47%	2.80%	1.89%	83.79%
Hero MotoCorp	48,469.37	5,775.70	15.49%	12.64%	25.49%	16.47%

Check the Univest Screener for live data on these dividend and growth stocks

Institutional Holding in UltraTech Cement, Power Grid and Hero MotoCorp

Institutional holding shows who is backing these dividend and growth stocks alongside the promoter. The table uses the latest reported quarter for each. Hero MotoCorp has the deepest institutional backing, with FII and DII together holding 55.45% as of June 2026. Domestic institutions increased their holding over the past year in UltraTech Cement (from 16.65% to 20.86%) and Power Grid (from 18.55% to 20.70%).

Stock	Promoter	FII	DII	Public	Quarter
UltraTech Cement	58.48%	12.69%	20.86%	7.97%	September 2026
Power Grid	51.34%	24.33%	20.70%	3.63%	June 2026
Hero MotoCorp	34.73%	31.09%	24.36%	9.83%	June 2026

Risks to Weigh in Dividend and Growth Stocks

Being careful with dividend and growth stocks means looking at what can slow the story as well as what can speed it up. Four points matter most:

• Dividends can change if profit changes.
• Growth can ease from a high base.
• Valuation: UltraTech Cement trades at a PE of 36.95 against an industry PE of 29.41, so earnings need to keep growing to support the price.
• Concentration: Holding all 3 names puts the allocation in one sector, so size each position to match your risk appetite.

How to Choose Between Dividend and Growth Stocks

Picking from dividend and growth stocks comes down to four checks, applied in order.

1. Check balance sheet strength first, and prefer a debt-to-equity ratio below 1 for non-financial companies.
2. Compare each PE with the industry PE (21.61 to 29.41) and ask whether the growth rate justifies any gap.
3. Track the dividend yield, the payout ratio and net profit growth in every annual result.
4. Stagger entries across quarters and review institutional holding every reporting season.

Download the Univest iOS App or Univest Android App to track UltraTech Cement, Power Grid and Hero MotoCorp live prices.

Conclusion

Among dividend and growth stocks, UltraTech Cement stands out for the strongest latest-quarter profit growth at 17.24%, Power Grid for the lowest PE of the group at 14.61 and Hero MotoCorp for the highest return on equity at 26.57%. 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 dividend and growth 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.

Frequently Asked Questions on Dividend and Growth Stocks to Watch

Which are the best dividend and growth stocks to watch for multibagger potential?

Ans. UltraTech Cement, Power Grid and Hero MotoCorp are the 3 names this list highlights, with market caps of Rs 3,16,676 crore, Rs 2,32,283 crore and Rs 1,04,083 crore respectively. UltraTech Cement is notable for the strongest latest-quarter profit growth at 17.24%. Power Grid stands out for the lowest PE of the group at 14.61. Hero MotoCorp offers the highest return on equity at 26.57%. These are watchlist names for dividend and growth stocks, not recommendations, so match each one to your own risk profile and time horizon.

Is Hero MotoCorp a good stock for long-term investors?

Ans. Hero MotoCorp has a return on equity of 26.57%, a PE of 18.97 against an industry PE of 23.62 and a market cap of Rs 1,04,083 crore. Net profit has compounded at 25.49% a year since FY22, and FY26 revenue rose 15.49% while June 2026 quarter revenue grew 35.35%. Long-term returns in dividend and growth stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.

Can UltraTech Cement become a multibagger from here?

Ans. UltraTech Cement has a market cap of Rs 3,16,676 crore. A multibagger outcome in dividend and growth stocks requires earnings to keep growing faster than the market for several years. FY26 revenue rose 16.15%, and June 2026 quarter net profit grew 17.24%. At a PE of 36.95 against an industry PE of 29.41, valuation should be checked against that growth before investing.

What is the market cap of UltraTech Cement, Power Grid and Hero MotoCorp?

Ans. As of 16 October 2026, UltraTech Cement has a market cap of Rs 3,16,676 crore, Power Grid has a market cap of Rs 2,32,283 crore and Hero MotoCorp has a market cap of Rs 1,04,083 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 dividend and growth stocks.

What are the risks of investing in dividend and growth stocks?

Ans. The main risks are a fall in profit that cuts the dividend, cyclical demand and input costs. Companies with steady cash flows and a record of regular dividends handle these better. UltraTech Cement trades at a PE of 36.95 against an industry PE of 29.41, so earnings growth needs to hold up.

Why is UltraTech Cement trading at a PE of 36.95?

Ans. UltraTech Cement's PE of 36.95 compares with an industry PE of 29.41. The market is paying a premium for latest-quarter profit growth of 17.24% and FY26 revenue growth of 16.15%, which also means the stock is more sensitive if growth slows. Investors in dividend and growth stocks who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.

How much do institutions hold in UltraTech Cement, Power Grid and Hero MotoCorp?

Ans. As of the latest reported quarter, FII and DII together hold 33.55% of UltraTech Cement (12.69% and 20.86%), 45.03% of Power Grid (24.33% and 20.70%) and 55.45% of Hero MotoCorp (31.09% and 24.36%). Rising institutional holding is a useful signal in dividend and growth stocks, though it should be read with earnings trends rather than on its own.