4 Largecap Low PE Blue Chip Stocks to Watch for Future Multibagger Potential: SBI, NTPC, Hindustan Zinc and Muthoot Finance

Low PE blue chip stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. SBI, NTPC, Hindustan Zinc and Muthoot Finance meet that test, with market caps from Rs 1.04 lakh crore to Rs 8.81 lakh crore and SBI offering the largest market cap at Rs 8,80,754 crore. Each of these companies has a PE ratio below 20 and a return on equity above 12 per cent, and net profit rose in FY26 and in the latest quarter.

This list covers companies with a PE ratio below 20 and a return on equity above 12 per cent, 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 low PE blue chip stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 22 October 2026 and are drawn from NSE and BSE data and company filings.

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What Are Low PE Blue Chip Stocks and Why Do They Attract Multibagger Interest?

Low PE blue chip stocks are shares of large companies that trade at a modest multiple of their earnings while still earning solid returns. The four here cover public sector banking, power generation, zinc and gold loans.

A low PE is only attractive when profit is growing, which these companies show. For low PE blue chip stocks, both FY26 and the latest quarter showed growth. A sensible way to study low PE blue chip stocks is to look at profit growth, returns and valuation side by side. Below, each of low PE blue chip stocks gets its own breakdown of growth, returns and valuation. Treat low PE blue chip stocks as a research list, since share prices and rankings change with every earnings season.

Low PE Blue Chip Stocks at a Glance: Price, Market Cap, PE, ROE and Price to Book

Prices are closing prices as of 22 October 2026. Muthoot Finance has the lowest PE of the group at 9.06, while Hindustan Zinc posts the highest return on equity at 61.13%.

Stock	CMP (Rs)	Market Cap (Rs Cr)	PE	Industry PE	ROE	Price to Book	52-Week Range (Rs)
State Bank of India	970	8,80,754	9.82	12.05	14.29%	1.50	877.05 to 1,234.70
NTPC	302.60	3,04,475	10.75	21.61	13.31%	1.50	302.60 to 414.40
Hindustan Zinc	518	2,23,984	13.12	12.27	61.13%	9.90	412.25 to 609.05
Muthoot Finance	2,489.80	1,03,780	9.06	17.97	28.01%	2.56	2,489.80 to 4,149.50

SBI: 23.72% Profit CAGR Since FY22

State Bank of India is the country's largest lender, with a branch network that reaches every part of India. It reported FY26 total income of Rs 7,12,643.53 crore, up 7.43% year on year, and net profit of Rs 85,168.47 crore, up 7.78%. Net profit has compounded at 23.72% a year since FY22, while total income has grown 15.03% a year.

In the June 2026 quarter, total income rose 7.83% to Rs 1,80,061.86 crore and net profit grew 13.65% to Rs 24,579.04 crore. The share price has gained 92.86% over five years. Foreign investors raised their holding from 9.98% in July 2025 to 10.81% in June 2026. The stock trades at a PE of 9.82 against an industry PE of 12.05, below the sector average, with a return on equity of 14.29%. The dividend yield is 1.82%.

NTPC: Five-Year Gain of 110.40%

NTPC is India's largest power generation company and is growing its renewable energy portfolio. It reported FY26 revenue of Rs 1,89,798.56 crore and net profit of Rs 30,009.98 crore, up 48.19%. Net profit has compounded at 18.01% a year since FY22, while revenue has grown 8.89% a year. Operating margin was 32.45% in FY26.

The stock trades at a PE of 10.75 against an industry PE of 21.61, below the sector average, with a return on equity of 13.31%. The dividend yield is 2.87%. In the June 2026 quarter, revenue rose 6.94% to Rs 51,141.51 crore and net profit grew 12.90% to Rs 6,896.44 crore. The share price has gained 110.40% over five years. Domestic institutions raised their holding from 28.92% in June 2025 to 29.44% in June 2026.

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.

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. The stock trades at a PE of 13.12 against an industry PE of 12.27, with a return on equity of 61.13%. The dividend yield is 1.89%.

Muthoot Finance: 27.36% Profit CAGR Since FY22

Muthoot Finance is India's largest gold loan NBFC by loan assets, with a branch network across the country. It reported FY26 total income of Rs 31,263.41 crore, up 54.27% year on year, and net profit of Rs 10,606.87 crore, up 98.17%. Net profit has compounded at 27.36% a year since FY22, while total income has grown 26.42% a year.

The stock trades at a PE of 9.06 against an industry PE of 17.97, below the sector average, with a return on equity of 28.01%. In the June 2026 quarter, total income rose 34.48% to Rs 8,694.81 crore and net profit grew 43.08% to Rs 2,824.84 crore. The share price has gained 67.76% over five years. Foreign investors raised their holding from 10.84% in June 2025 to 11.61% in June 2026.

Low PE Blue Chip Stocks: Financial Comparison on Growth and Margins

The table compares scale and growth across these low PE blue chip 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)	4-Year Income CAGR	4-Year Net Profit CAGR	Latest Quarter Income Growth
SBI	7,12,643.53	85,168.47	15.03%	23.72%	7.83%
NTPC	1,89,798.56	30,009.98	8.89%	18.01%	6.94%
Hindustan Zinc	41,934	13,832	8.15%	9.48%	74.70%
Muthoot Finance	31,263.41	10,606.87	26.42%	27.36%	34.48%

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Institutional Holding in SBI, NTPC, Hindustan Zinc and Muthoot Finance

Institutional holding shows who is backing these low PE blue chip stocks alongside the promoter. The table uses the latest reported quarter for each. NTPC has the deepest institutional backing, with FII and DII together holding 45.74% as of June 2026. Domestic institutions increased their holding over the past year in NTPC (from 28.92% to 29.44%).

Stock	Promoter	FII	DII	Public	Quarter
SBI	55.47%	10.81%	26.64%	7.08%	June 2026
NTPC	51.10%	16.30%	29.44%	3.15%	June 2026
Hindustan Zinc	60.71%	2.36%	4.85%	32.07%	September 2026
Muthoot Finance	73.35%	11.61%	10.76%	4.29%	June 2026

Risks to Weigh in Low PE Blue Chip Stocks

Being careful with low PE blue chip 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 13.12 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 Low PE Blue Chip Stocks

Picking from low PE blue chip stocks comes down to four checks, applied in order.

1. Check asset quality and net interest margin first, then return on equity and price to book. Debt-to-equity does not apply to lenders.
2. Compare each PE with the industry PE (12.05 to 21.61) 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 low PE blue chip stocks, SBI stands out for the largest market cap at Rs 8,80,754 crore, NTPC for the biggest five-year price gain at 110.40%, Hindustan Zinc for the highest return on equity at 61.13% and Muthoot Finance for the fastest profit growth, 27.36% 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 PE blue chip 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 Low PE Blue Chip Stocks to Watch

Which are the best low PE blue chip stocks to watch for multibagger potential?

Ans. SBI, NTPC, Hindustan Zinc and Muthoot Finance are the 4 names this list highlights, with market caps of Rs 8,80,754 crore, Rs 3,04,475 crore, Rs 2,23,984 crore and Rs 1,03,780 crore respectively. SBI is notable for the largest market cap at Rs 8,80,754 crore. NTPC stands out for the biggest five-year price gain at 110.40%. Hindustan Zinc offers the highest return on equity at 61.13%. Muthoot Finance brings the fastest profit growth, 27.36% a year since FY22. These are watchlist names for low PE blue chip 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 13.12 against an industry PE of 12.27 and a market cap of Rs 2,23,984 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 low PE blue chip stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.

Can Muthoot Finance become a multibagger from here?

Ans. Muthoot Finance has already gained 67.76% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in low PE blue chip stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 27.36% a year since FY22, and FY26 revenue rose 54.27%. At a PE of 9.06 against an industry PE of 17.97, valuation should be checked against that growth before investing.

What is the market cap of SBI, NTPC, Hindustan Zinc and Muthoot Finance?

Ans. As of 22 October 2026, SBI has a market cap of Rs 8,80,754 crore, NTPC has a market cap of Rs 3,04,475 crore, Hindustan Zinc has a market cap of Rs 2,23,984 crore and Muthoot Finance has a market cap of Rs 1,03,780 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 low PE blue chip stocks.

What are the risks of investing in low PE blue chip 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 13.12 against an industry PE of 12.27, so earnings growth needs to hold up.

Is Muthoot Finance trading below its industry PE?

Ans. Muthoot Finance trades at a PE of 9.06 against an industry PE of 17.97. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 27.36% a year since FY22 and FY26 revenue rose 54.27%) and balance sheet strength before drawing a conclusion.

How much do institutions hold in SBI, NTPC, Hindustan Zinc and Muthoot Finance?

Ans. As of the latest reported quarter, FII and DII together hold 37.45% of SBI (10.81% and 26.64%), 45.74% of NTPC (16.30% and 29.44%), 7.21% of Hindustan Zinc (2.36% and 4.85%) and 22.37% of Muthoot Finance (11.61% and 10.76%). Rising institutional holding is a useful signal in low PE blue chip stocks, though it should be read with earnings trends rather than on its own.