4 Largecap PE Below Industry Average Stocks to Watch for Future Multibagger Potential: TCS, M&M, Bajaj Finserv and Tata Steel

PE below industry average stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. TCS, M&M, Bajaj Finserv and Tata Steel meet that test, with market caps from Rs 2.19 lakh crore to Rs 8.30 lakh crore and TCS offering the highest return on equity at 43.37%. Each of these companies has a price to earnings ratio below the PE of their industry, 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 a price to earnings ratio below the PE of their industry, 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 PE below industry average stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 27 October 2026 and are drawn from NSE and BSE data and company filings.

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What Are PE Below Industry Average Stocks and Why Do They Attract Multibagger Interest?

PE below industry average stocks are shares whose price to earnings ratio is lower than the average PE of their own industry, which means investors pay less for each rupee of profit than they do for rivals. The four here cover IT services, utility vehicles, financial services and steel.

A PE below the industry average, backed by rising profit, shows a company that is priced sensibly against its peers while its earnings keep growing. For PE below industry average stocks, both FY26 and the latest quarter showed growth. With PE below industry average stocks, 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 PE below industry average stocks are complete. Read each company’s latest results and exchange filings before acting on PE below industry average stocks.

PE Below Industry Average Stocks at a Glance: Price, Market Cap, PE, ROE and Price to Book

Prices are closing prices as of 27 October 2026. Bajaj Finserv has the lowest PE of the group at 13.26, while TCS posts the highest return on equity at 43.37%.

Stock	CMP (Rs)	Market Cap (Rs Cr)	PE	Industry PE	ROE	Price to Book	52-Week Range (Rs)
Tata Consultancy Services	2,496.90	8,29,562	16.00	18.27	43.37%	6.97	1,976.80 to 3,350.00
Mahindra & Mahindra	2,858.40	3,47,371	17.16	23.82	18.37%	3.73	2,744.30 to 3,839.90
Bajaj Finserv	1,677	2,73,597	13.26	17.68	12.58%	3.51	1,597.00 to 2,195.00
Tata Steel	171.42	2,19,109	19.46	22.42	10.56%	2.18	160.06 to 224.40

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 16.00 against an industry PE of 18.27, below the sector average, with a return on equity of 43.37%. The dividend yield is 4.80%.

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 17.16 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 Finserv: 24.02% Profit CAGR Since FY22

Bajaj Finserv is a financial services holding company with interests in lending through Bajaj Finance and in general and life insurance. It reported FY26 total income of Rs 1,50,530.38 crore, up 13.23% year on year, and net profit of Rs 19,669.47 crore, up 12.03%. Net profit has compounded at 24.02% a year since FY22, while total income has grown 21.78% a year.

In the June 2026 quarter, total income rose 19.08% to Rs 42,036.90 crore and net profit grew 18.15% to Rs 6,296.67 crore. Domestic institutions raised their holding from 10.09% in June 2025 to 12.10% in June 2026. The stock trades at a PE of 13.26 against an industry PE of 17.68, below the sector average, with a return on equity of 12.58%.

Tata Steel: Market Cap of Rs 2,19,109 Crore

Tata Steel is one of the world’s major steel makers, with operations in India, the UK and the Netherlands. It reported FY26 revenue of Rs 2,33,541.72 crore, up 6.12% year on year, and net profit of Rs 10,885.82 crore, up 242.99%. Operating margin was 15.12% in FY26.

The stock trades at a PE of 19.46 against an industry PE of 22.42, below the sector average. The dividend yield is 2.28%. In the June 2026 quarter, revenue rose 14.14% to Rs 61,026.97 crore and net profit grew 18.82% to Rs 2,385.24 crore. Domestic institutions raised their holding from 26.25% in June 2025 to 26.62% in June 2026.

PE Below Industry Average Stocks: Financial Comparison on Growth and Margins

The table compares scale and growth across these PE below industry average 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)	Latest Quarter Revenue Growth	Net Profit Growth (YoY)
TCS	2,71,423	49,454	4.68%	11.79%	1.35%
M&M	2,02,084.34	18,621.71	25.21%	27.47%	32.32%
Bajaj Finserv	1,50,530.38	19,669.47	13.23%	19.08%	12.03%
Tata Steel	2,33,541.72	10,885.82	6.12%	14.14%	242.99%

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Institutional Holding in TCS, M&M, Bajaj Finserv and Tata Steel

Institutional holding shows who is backing these PE below industry average stocks alongside the promoter. The table uses the latest reported quarter for each. M&M has the deepest institutional backing, with FII and DII together holding 67.54% as of June 2026. Domestic institutions increased their holding over the past year in TCS (from 12.01% to 13.47%), M&M (from 29.59% to 32.65%), Bajaj Finserv (from 10.09% to 12.10%) and Tata Steel (from 26.25% to 26.62%).

Stock	Promoter	FII	DII	Public	Quarter
TCS	71.77%	9.06%	13.47%	5.70%	June 2026
M&M	18.45%	34.89%	32.65%	14.01%	June 2026
Bajaj Finserv	58.71%	6.91%	12.10%	22.28%	June 2026
Tata Steel	32.95%	19.37%	26.62%	21.06%	June 2026

Risks to Weigh in PE Below Industry Average Stocks

Being careful with PE below industry average 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: A low PE can also reflect slower growth, so compare each PE with the growth rate instead of reading it alone.
• Concentration: Holding all 4 names puts the allocation in one sector, so size each position to match your risk appetite.

How to Choose Between PE Below Industry Average Stocks

Picking from PE below industry average 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 (17.68 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 PE below industry average stocks, TCS stands out for the highest return on equity at 43.37%, M&M for the fastest profit growth, 26.58% a year since FY22, Bajaj Finserv for the lowest PE of the group at 13.26 and Tata Steel for 6.12% revenue growth in FY26. 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 PE below industry average 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 PE Below Industry Average Stocks to Watch

Which are the best PE below industry average stocks to watch for multibagger potential?

Ans. TCS, M&M, Bajaj Finserv and Tata Steel are the 4 names this list highlights, with market caps of Rs 8,29,562 crore, Rs 3,47,371 crore, Rs 2,73,597 crore and Rs 2,19,109 crore respectively. TCS is notable for the highest return on equity at 43.37%. M&M stands out for the fastest profit growth, 26.58% a year since FY22. Bajaj Finserv offers the lowest PE of the group at 13.26. Tata Steel brings 6.12% revenue growth in FY26. These are watchlist names for PE below industry average stocks, 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 16.00 against an industry PE of 18.27 and a market cap of Rs 8,29,562 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 PE below industry average 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 PE below industry average 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 17.16 against an industry PE of 23.82, valuation should be checked against that growth before investing.

What is the market cap of TCS, M&M, Bajaj Finserv and Tata Steel?

Ans. As of 27 October 2026, TCS has a market cap of Rs 8,29,562 crore, M&M has a market cap of Rs 3,47,371 crore, Bajaj Finserv has a market cap of Rs 2,73,597 crore and Tata Steel has a market cap of Rs 2,19,109 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 PE below industry average stocks.

What are the risks of investing in PE below industry average 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. Comparing each PE with growth gives a fuller picture than the PE alone.

Is Bajaj Finserv trading below its industry PE?

Ans. Bajaj Finserv trades at a PE of 13.26 against an industry PE of 17.68. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 24.02% a year since FY22 and FY26 revenue rose 13.23%) and balance sheet strength before drawing a conclusion.

How much do institutions hold in TCS, M&M, Bajaj Finserv and Tata Steel?

Ans. As of the latest reported quarter, FII and DII together hold 22.53% of TCS (9.06% and 13.47%), 67.54% of M&M (34.89% and 32.65%), 19.01% of Bajaj Finserv (6.91% and 12.10%) and 45.99% of Tata Steel (19.37% and 26.62%). Rising institutional holding is a useful signal in PE below industry average stocks, though it should be read with earnings trends rather than on its own.