4 Largecap High Operating Margin Low PE Stocks to Watch for Future Multibagger Potential: Infosys, M&M, Bajaj Auto and Hindustan Zinc

High operating margin low PE stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Infosys, M&M, Bajaj Auto and Hindustan Zinc meet that test, with market caps from Rs 2.23 lakh crore to Rs 4.39 lakh crore and Infosys offering the largest market cap at Rs 4,39,281 crore. Each of these companies has an operating margin of at least 20 per cent and a price to earnings ratio below 25, a return on equity of at least 10 per cent and profit growth in FY26 and in the latest quarter, and net profit rose in FY26 and in the latest quarter.

This list covers companies with an operating margin of at least 20 per cent and a price to earnings ratio below 25, a return on equity of at least 10 per cent and profit growth in FY26 and in the latest quarter, rising profit in FY26 and the latest quarter, market capitalisation above Rs 1,00,000 crore, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap above Rs 1 lakh crore. Investors screening high operating margin low PE stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 29 October 2026 and are drawn from NSE and BSE data and company filings.

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What Are High Operating Margin Low PE Stocks and Why Do They Attract Multibagger Interest?

High operating margin low PE stocks are shares of large companies that keep at least twenty paise of operating profit from every rupee of sales and still trade at a price to earnings ratio below 25, a rare mix of rich margins and a modest price. The four here cover IT services, utility vehicles, motorcycles and zinc mining.

High margins show pricing power and cost control, and a modest earnings multiple shows that investors are not paying a steep price for that strength. Within high operating margin low PE stocks, the four companies show rising profit. For high operating margin low PE stocks, both FY26 and the latest quarter showed growth. Whichever way you read high operating margin low PE stocks, the common thread is rising profit backed by complete financial data. Investors researching high operating margin low PE stocks get a fuller picture by reading growth and valuation together. The table below lines up high operating margin low PE stocks on size, growth and valuation, using complete FY26 and latest quarter numbers. Past performance does not guarantee future returns, so use high operating margin low PE stocks as a starting point for your own research.

High Operating Margin Low PE Stocks at a Glance: Price, Market Cap, PE and ROE

Prices are closing prices as of 29 October 2026. Hindustan Zinc combines the lowest PE of the group, 13.08, with the highest return on equity, 61.13%.

Stock	CMP (Rs)	Market Cap (Rs Cr)	PE	Industry PE	ROE	Debt to Equity	52-Week Range (Rs)
Infosys	1,146.50	4,39,281	14.48	18.27	33.24%	0.10	980.40 to 1,728.00
Mahindra & Mahindra	2,890	3,51,212	17.35	23.82	18.37%	1.44	2,744.30 to 3,839.90
Bajaj Auto	10,383	2,87,691	24.91	23.82	27.67%	0.58	8,605.00 to 12,470.00
Hindustan Zinc	516.50	2,23,335	13.08	12.27	61.13%	0.39	412.25 to 609.05

Infosys: Return on Equity of 33.24%

Infosys is a large IT services and consulting company that has built an AI-first offering around its Topaz platform. It reported FY26 revenue of Rs 1,82,972 crore, up 9.83% year on year, and net profit of Rs 29,474 crore, up 10.18%. Net profit has compounded at 7.41% a year since FY22, while revenue has grown 10.23% a year. Operating margin was 25.36% in FY26. The debt-to-equity ratio is 0.10, which keeps interest costs low.

In the June 2026 quarter, revenue rose 13.56% to Rs 49,195 crore and net profit grew 12.29% to Rs 7,775 crore. Domestic institutions raised their holding from 39.60% in June 2025 to 42.96% in June 2026. The stock trades at a PE of 14.48 against an industry PE of 18.27, below the sector average, with a return on equity of 33.24%. The dividend yield is 4.43%.

M&M: 26.58% Profit CAGR Since FY22

Mahindra & Mahindra is one of the largest SUV makers in India and the country's largest tractor maker, with financial services and electric vehicles in its portfolio. It reported FY26 revenue of Rs 2,02,084.34 crore, up 25.21% year on year, and net profit of Rs 18,621.71 crore, up 32.32%. Net profit has compounded at 26.58% a year since FY22, while revenue has grown 22.04% a year. Operating margin was 21.19% in FY26.

The stock trades at a PE of 17.35 against an industry PE of 23.82, below the sector average, with a return on equity of 18.37%. In the June 2026 quarter, revenue rose 27.47% to Rs 59,203.60 crore and net profit grew 37.04% to Rs 5,997.56 crore. The share price has gained 220.52% over five years. Domestic institutions raised their holding from 29.59% in June 2025 to 32.65% in June 2026.

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 24.91 against an industry PE of 23.82, with a return on equity of 27.67%.

Hindustan Zinc: Return on Equity of 61.13%

Hindustan Zinc is among the world's largest integrated zinc producers and also produces lead and silver. It reported FY26 revenue of Rs 41,934 crore, up 19.59% year on year, and net profit of Rs 13,832 crore, up 33.60%. Net profit has compounded at 9.48% a year since FY22, while revenue has grown 8.15% a year. Operating margin was 56.75% in FY26. The debt-to-equity ratio is 0.39.

The stock trades at a PE of 13.08 against an industry PE of 12.27, with a return on equity of 61.13%. The dividend yield is 1.90%. In the June 2026 quarter, revenue rose 74.70% to Rs 14,063 crore and net profit grew 144.81% to Rs 5,469 crore. Foreign investors raised their holding from 1.31% in September 2025 to 2.36% in September 2026.

High Operating Margin Low PE Stocks: Financial Comparison on Growth and Margins

The table compares scale and growth across these high operating margin low PE 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)
Infosys	1,82,972	29,474	9.83%	10.23%	7.41%	25.71%
M&M	2,02,084.34	18,621.71	25.21%	22.04%	26.58%	20.77%
Bajaj Auto	65,087.22	10,574.50	24.05%	17.26%	14.44%	24.99%
Hindustan Zinc	41,934	13,832	19.59%	8.15%	9.48%	64.19%

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Institutional Holding in Infosys, M&M, Bajaj Auto and Hindustan Zinc

Institutional holding shows who is backing these high operating margin low PE stocks alongside the promoter. The table uses the latest reported quarter for each. Infosys has the deepest institutional backing, with FII and DII together holding 70.05% as of June 2026. Domestic institutions increased their holding over the past year in Infosys (from 39.60% to 42.96%), M&M (from 29.59% to 32.65%) and Bajaj Auto (from 12.09% to 13.54%).

Stock	Promoter	FII	DII	Public	Quarter
Infosys	13.82%	27.09%	42.96%	16.13%	June 2026
M&M	18.45%	34.89%	32.65%	14.01%	June 2026
Bajaj Auto	55.01%	9.01%	13.54%	22.44%	June 2026
Hindustan Zinc	60.71%	2.36%	4.85%	32.07%	September 2026

Risks to Weigh in High Operating Margin Low PE Stocks

Being careful with high operating margin low PE 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: Hindustan Zinc trades at a PE of 13.08 against an industry PE of 12.27, 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 High Operating Margin Low PE Stocks

Picking from high operating margin low PE 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 (12.27 to 23.82) and ask whether the growth rate justifies any gap.
3. Track net profit growth, the operating margin and the return on equity in every quarterly result.
4. Stagger entries across quarters and review institutional holding every reporting season.

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Conclusion

Among high operating margin low PE stocks, Infosys stands out for the largest market cap at Rs 4,39,281 crore, M&M for the fastest profit growth, 26.58% a year since FY22, Bajaj Auto for 24.05% revenue growth in FY26 and Hindustan Zinc for the highest return on equity at 61.13%. 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 high operating margin low PE 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 High Operating Margin Low PE Stocks to Watch

Which are the best high operating margin low PE stocks to watch for multibagger potential?

Ans. Infosys, M&M, Bajaj Auto and Hindustan Zinc are the 4 names this list highlights, with market caps of Rs 4,39,281 crore, Rs 3,51,212 crore, Rs 2,87,691 crore and Rs 2,23,335 crore respectively. Infosys is notable for the largest market cap at Rs 4,39,281 crore. M&M stands out for the fastest profit growth, 26.58% a year since FY22. Bajaj Auto offers 24.05% revenue growth in FY26. Hindustan Zinc brings the highest return on equity at 61.13%. These are watchlist names for high operating margin low PE stocks, not recommendations, so match each one to your own risk profile and time horizon.

Is Hindustan Zinc a good stock for long-term investors?

Ans. Hindustan Zinc has a return on equity of 61.13%, a PE of 13.08 against an industry PE of 12.27 and a market cap of Rs 2,23,335 crore. Net profit has compounded at 9.48% a year since FY22, and FY26 revenue rose 19.59% while June 2026 quarter net profit grew 144.81%. Long-term returns in high operating margin low PE stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.

Can M&M become a multibagger from here?

Ans. M&M has already gained 220.52% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in high operating margin low PE stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 26.58% a year since FY22, and FY26 revenue rose 25.21%. At a PE of 17.35 against an industry PE of 23.82, valuation should be checked against that growth before investing.

What is the market cap of Infosys, M&M, Bajaj Auto and Hindustan Zinc?

Ans. As of 29 October 2026, Infosys has a market cap of Rs 4,39,281 crore, M&M has a market cap of Rs 3,51,212 crore, Bajaj Auto has a market cap of Rs 2,87,691 crore and Hindustan Zinc has a market cap of Rs 2,23,335 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 high operating margin low PE stocks.

What are the risks of investing in high operating margin low PE 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. Hindustan Zinc trades at a PE of 13.08 against an industry PE of 12.27, so earnings growth needs to hold up.

Is Hindustan Zinc trading below its industry PE?

Ans. Hindustan Zinc trades at a PE of 13.08 against an industry PE of 12.27. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 9.48% a year since FY22 and FY26 revenue rose 19.59%) and balance sheet strength before drawing a conclusion.

How much do institutions hold in Infosys, M&M, Bajaj Auto and Hindustan Zinc?

Ans. As of the latest reported quarter, FII and DII together hold 70.05% of Infosys (27.09% and 42.96%), 67.54% of M&M (34.89% and 32.65%), 22.55% of Bajaj Auto (9.01% and 13.54%) and 7.21% of Hindustan Zinc (2.36% and 4.85%). Rising institutional holding is a useful signal in high operating margin low PE stocks, though it should be read with earnings trends rather than on its own.