4 Largecap Low PE Stocks With 20-30 Per Cent Operating Margin to Watch for Future Multibagger Potential: TCS, Infosys, M&M and Bajaj Auto

Low PE stocks with 20-30 per cent operating margin to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. TCS, Infosys, M&M and Bajaj Auto meet that test, with market caps from Rs 2.81 lakh crore to Rs 8.33 lakh crore and TCS offering the highest return on equity at 43.37%. Each of these companies has a PE ratio below 25 and an FY26 operating margin between 20 and 30 per cent, and net profit rose in FY26 and in the latest quarter.

This list covers companies with a PE ratio below 25 and an FY26 operating margin between 20 and 30 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 stocks with 20-30 per cent operating margin 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 Low PE Stocks With 20-30 Per Cent Operating Margin and Why Do They Attract Multibagger Interest?

Low PE stocks with 20-30 per cent operating margin are shares of efficient businesses that earn healthy margins yet trade at moderate multiples. The four here cover two IT majors, vehicles and motorcycles.

Healthy margins at a moderate price leave room for the valuation to improve. For low PE stocks with 20-30 per cent operating margin, rising profit adds to the case. Whichever way you read low PE stocks with 20-30 per cent operating margin, the common thread is rising profit backed by complete financial data. Each of low PE stocks with 20-30 per cent operating margin also has complete FY26 and latest quarter figures. With low PE stocks with 20-30 per cent operating margin, 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 low PE stocks with 20-30 per cent operating margin are complete. Read each company's latest results and exchange filings before acting on low PE stocks with 20-30 per cent operating margin.

Low PE Stocks With 20-30 Per Cent Operating Margin at a Glance: Price, Market Cap, PE and ROE

Prices are closing prices as of 21 October 2026. Infosys has the lowest PE of the group at 14.57, while TCS posts the highest return on equity at 43.37%.

Stock	CMP (Rs)	Market Cap (Rs Cr)	PE	Industry PE	ROE	Debt to Equity	52-Week Range (Rs)
Tata Consultancy Services	2,529	8,32,884	16.06	18.27	43.37%	0.10	1,976.80 to 3,350.00
Infosys	1,168	4,41,906	14.57	18.27	33.24%	0.10	980.40 to 1,728.00
Mahindra & Mahindra	2,889	3,48,064	17.19	23.82	18.37%	1.44	2,744.30 to 3,839.90
Bajaj Auto	10,072	2,81,374	24.36	23.82	27.67%	0.58	8,605.00 to 12,470.00

TCS: Return on Equity of 43.37%

TCS is India's largest IT services company by market capitalisation and runs large AI and data practices for global clients. It reported FY26 revenue of Rs 2,71,423 crore, up 4.68% year on year, and net profit of Rs 49,454 crore, up 1.35%. Net profit has compounded at 6.49% a year since FY22, while revenue has grown 8.51% a year. Operating margin was 27.07% in FY26. The debt-to-equity ratio is 0.10, which keeps interest costs low.

In the September 2026 quarter, revenue rose 11.79% to Rs 74,525 crore and net profit grew 14.86% to Rs 13,934 crore. Domestic institutions raised their holding from 12.01% in June 2025 to 13.47% in June 2026. The stock trades at a PE of 16.06 against an industry PE of 18.27, below the sector average, with a return on equity of 43.37%. The dividend yield is 4.78%.

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.

The stock trades at a PE of 14.57 against an industry PE of 18.27, below the sector average, with a return on equity of 33.24%. The dividend yield is 4.40%. 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.

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.

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. The stock trades at a PE of 17.19 against an industry PE of 23.82, below the sector average, with a return on equity of 18.37%.

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.

The stock trades at a PE of 24.36 against an industry PE of 23.82, with a return on equity of 27.67%. 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.

Low PE Stocks With 20-30 Per Cent Operating Margin: Financial Comparison on Growth and Margins

The table compares scale and growth across these low PE stocks with 20-30 per cent operating margin. 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)
TCS	2,71,423	49,454	4.68%	8.51%	6.49%	27.53%
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%

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Institutional Holding in TCS, Infosys, M&M and Bajaj Auto

Institutional holding shows who is backing these low PE stocks with 20-30 per cent operating margin 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 TCS (from 12.01% to 13.47%), 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
TCS	71.77%	9.06%	13.47%	5.70%	June 2026
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

Risks to Weigh in Low PE Stocks With 20-30 Per Cent Operating Margin

Being careful with low PE stocks with 20-30 per cent operating margin 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 Low PE Stocks With 20-30 Per Cent Operating Margin

Picking from low PE stocks with 20-30 per cent operating margin 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 (18.27 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 low PE stocks with 20-30 per cent operating margin, TCS stands out for the highest return on equity at 43.37%, Infosys for the lowest PE of the group at 14.57, M&M for the fastest profit growth, 26.58% a year since FY22 and Bajaj Auto for the strongest latest-quarter profit growth at 44.26%. 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 stocks with 20-30 per cent operating margin 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 Stocks With 20-30 Per Cent Operating Margin to Watch

Which are the best low PE stocks with 20-30 per cent operating margin to watch for multibagger potential?

Ans. TCS, Infosys, M&M and Bajaj Auto are the 4 names this list highlights, with market caps of Rs 8,32,884 crore, Rs 4,41,906 crore, Rs 3,48,064 crore and Rs 2,81,374 crore respectively. TCS is notable for the highest return on equity at 43.37%. Infosys stands out for the lowest PE of the group at 14.57. M&M offers the fastest profit growth, 26.58% a year since FY22. Bajaj Auto brings the strongest latest-quarter profit growth at 44.26%. These are watchlist names for low PE stocks with 20-30 per cent operating margin, not recommendations, so match each one to your own risk profile and time horizon.

Is TCS a good stock for long-term investors?

Ans. TCS has a return on equity of 43.37%, a PE of 16.06 against an industry PE of 18.27 and a market cap of Rs 8,32,884 crore. Net profit has compounded at 6.49% a year since FY22, and FY26 revenue rose 4.68% while September 2026 quarter net profit grew 14.86%. Long-term returns in low PE stocks with 20-30 per cent operating margin 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 low PE stocks with 20-30 per cent operating margin 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 17.19 against an industry PE of 23.82, valuation should be checked against that growth before investing.

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

Ans. As of 21 October 2026, TCS has a market cap of Rs 8,32,884 crore, Infosys has a market cap of Rs 4,41,906 crore, M&M has a market cap of Rs 3,48,064 crore and Bajaj Auto has a market cap of Rs 2,81,374 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 stocks with 20-30 per cent operating margin.

What are the risks of investing in low PE stocks with 20-30 per cent operating margin?

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 Infosys trading below its industry PE?

Ans. Infosys trades at a PE of 14.57 against an industry PE of 18.27. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 7.41% a year since FY22 and FY26 revenue rose 9.83%) and balance sheet strength before drawing a conclusion.

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

Ans. As of the latest reported quarter, FII and DII together hold 22.53% of TCS (9.06% and 13.47%), 70.05% of Infosys (27.09% and 42.96%), 67.54% of M&M (34.89% and 32.65%) and 22.55% of Bajaj Auto (9.01% and 13.54%). Rising institutional holding is a useful signal in low PE stocks with 20-30 per cent operating margin, though it should be read with earnings trends rather than on its own.