3 Largecap Low PEG Stocks to Watch for Future Multibagger Potential: NTPC, Hindustan Zinc and Muthoot Finance

Low PEG stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. NTPC, Hindustan Zinc and Muthoot Finance meet that test, with market caps from Rs 1.04 lakh crore to Rs 3.04 lakh crore and NTPC offering the biggest five-year price gain at 110.40%. Each company's PE ratio is less than half of its FY26 net profit growth rate, which gives a PEG ratio below 0.5.

This list covers large companies whose PE ratio is lower than half of their FY26 net profit growth rate, with complete, verifiable financials, ranked by market capitalisation. Each company has a market cap above Rs 1 lakh crore. Investors screening low PEG 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.

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What Are Low PEG Stocks and Why Do They Attract Multibagger Interest?

Low PEG stocks are shares whose price to earnings ratio is small compared with how fast profit is growing. The PEG ratio divides the PE by the growth rate, and a value below 1 is usually seen as attractive.

A PEG below 0.5 means the market is paying little for each point of growth. Businesses that keep growing profit at this pace are the ones investors compare in low PEG stocks.

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

Prices are closing prices as of 16 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)
NTPC	315.15	3,04,475	10.75	21.61	13.31%	1.50	305.70 to 414.40
Hindustan Zinc	540	2,23,984	13.12	12.27	61.13%	9.90	412.25 to 609.05
Muthoot Finance	2,598.30	1,03,780	9.06	17.97	28.01%	2.56	2,545.00 to 4,149.50

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.

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. 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%.

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

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.

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. 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%.

Low PEG Stocks: Financial Comparison on Growth and Margins

The table compares scale and growth across these low PEG 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)	4-Year Revenue CAGR	4-Year Net Profit CAGR	Latest Quarter Revenue Growth
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 NTPC, Hindustan Zinc and Muthoot Finance

Institutional holding shows who is backing these low PEG 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
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 PEG Stocks

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

• PEG depends on growth that may not repeat.
• Cyclical earnings can distort the ratio.
• 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 3 names puts the allocation in one sector, so size each position to match your risk appetite.

How to Choose Between Low PEG Stocks

Picking from low PEG 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 21.61) and ask whether the growth rate justifies any gap.
3. Track the PE ratio, net profit growth and the return on equity in every result.
4. Stagger entries across quarters and review institutional holding every reporting season.

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Conclusion

Among low PEG stocks, NTPC stands out 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 PEG 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 PEG Stocks to Watch

Which are the best low PEG stocks to watch for multibagger potential?

Ans. NTPC, Hindustan Zinc and Muthoot Finance are the 3 names this list highlights, with market caps of Rs 3,04,475 crore, Rs 2,23,984 crore and Rs 1,03,780 crore respectively. NTPC is notable for the biggest five-year price gain at 110.40%. Hindustan Zinc stands out for the highest return on equity at 61.13%. Muthoot Finance offers the fastest profit growth, 27.36% a year since FY22. These are watchlist names for low PEG 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 PEG 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 PEG 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 NTPC, Hindustan Zinc and Muthoot Finance?

Ans. As of 16 October 2026, 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 PEG stocks.

What are the risks of investing in low PEG stocks?

Ans. The main risks are growth that eases from a high base, cyclical earnings and policy changes. Companies with steady cash flows and strong balance sheets 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 NTPC, Hindustan Zinc and Muthoot Finance?

Ans. As of the latest reported quarter, FII and DII together hold 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 PEG stocks, though it should be read with earnings trends rather than on its own.