4 Largecap Return On Equity Higher Than PE Stocks to Watch for Future Multibagger Potential: SBI, Infosys, Hindustan Zinc and PFC

Return on equity higher than PE stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. SBI, Infosys, Hindustan Zinc and PFC meet that test, with market caps from Rs 1.10 lakh crore to Rs 8.82 lakh crore and SBI offering the fastest profit growth, 23.72% a year since FY22. Each of these companies has a return on equity that is higher than its price to earnings ratio, 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 return on equity that is higher than its price to earnings ratio, 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 return on equity higher than 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 Return On Equity Higher Than PE Stocks and Why Do They Attract Multibagger Interest?

Return on equity higher than PE stocks are shares of large companies where the return on equity, in per cent, is larger than the price to earnings multiple, which means the business earns well on shareholder money compared with the price paid. The four here cover IT services, zinc mining, power sector finance and public sector banking.

A return on equity above the earnings multiple points to a business that earns a lot on every rupee of shareholder money while trading at a modest multiple of its profit. Within return on equity higher than PE stocks, the four companies show rising profit. For return on equity higher than PE stocks, both FY26 and the latest quarter showed growth. Whichever way you read return on equity higher than PE stocks, the common thread is rising profit backed by complete financial data. Investors researching return on equity higher than PE stocks get a fuller picture by reading growth and valuation together. The table below lines up return on equity higher than PE stocks on size, growth and valuation, using complete FY26 and latest quarter numbers. Past performance does not guarantee future returns, so use return on equity higher than PE stocks as a starting point for your own research.

Return On Equity Higher Than PE Stocks at a Glance: Price, Market Cap, PE, ROE and Price to Book

Prices are closing prices as of 29 October 2026. PFC has the lowest PE of the group at 3.28, 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	971.90	8,82,479	9.84	12.05	14.29%	1.50	877.05 to 1,234.70
Infosys	1,146.50	4,39,281	14.48	18.27	33.24%	5.09	980.40 to 1,728.00
Hindustan Zinc	516.50	2,23,335	13.08	12.27	61.13%	9.87	412.25 to 609.05
Power Finance Corporation	320.60	1,10,263	3.28	17.68	18.22%	0.77	313.35 to 486.50

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 9.84 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%.

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 14.48 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%. 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.

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 13.08 against an industry PE of 12.27, with a return on equity of 61.13%. The dividend yield is 1.90%.

PFC: Five-Year Gain of 179.34%

Power Finance Corporation is a government-owned lender that finances power generation, transmission, distribution and renewable energy projects. It reported FY26 total income of Rs 1,15,533.18 crore, up 8.38% year on year, and net profit of Rs 33,625.34 crore, up 10.19%. Net profit has compounded at 15.69% a year since FY22, while total income has grown 10.91% a year.

The stock trades at a PE of 3.28 against an industry PE of 17.68, below the sector average, with a return on equity of 18.22%. The dividend yield is 5.55%. Net profit for the June 2026 quarter grew 0.18% to Rs 8,997.92 crore. The share price has gained 179.34% over five years. Foreign investors raised their holding from 18.66% in June 2025 to 20.54% in June 2026.

Return On Equity Higher Than PE Stocks: Financial Comparison on Growth and Margins

The table compares scale and growth across these return on equity higher than 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	Total Income (Rs Cr)	Net Profit (Rs Cr)	Income Growth (YoY)	4-Year Income CAGR	4-Year Net Profit CAGR
SBI	7,12,643.53	85,168.47	7.43%	15.03%	23.72%
Infosys	1,82,972	29,474	9.83%	10.23%	7.41%
Hindustan Zinc	41,934	13,832	19.59%	8.15%	9.48%
PFC	1,15,533.18	33,625.34	8.38%	10.91%	15.69%

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Institutional Holding in SBI, Infosys, Hindustan Zinc and PFC

Institutional holding shows who is backing these return on equity higher than 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%).

Stock	Promoter	FII	DII	Public	Quarter
SBI	55.47%	10.81%	26.64%	7.08%	June 2026
Infosys	13.82%	27.09%	42.96%	16.13%	June 2026
Hindustan Zinc	60.71%	2.36%	4.85%	32.07%	September 2026
PFC	55.99%	20.54%	14.51%	8.96%	June 2026

Risks to Weigh in Return On Equity Higher Than PE Stocks

Being careful with return on equity higher than 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 Return On Equity Higher Than PE Stocks

Picking from return on equity higher than PE 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 18.27) 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 return on equity higher than PE stocks, SBI stands out for the fastest profit growth, 23.72% a year since FY22, Infosys for a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.10, Hindustan Zinc for the highest return on equity at 61.13% and PFC for the biggest five-year price gain at 179.34%. 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 return on equity higher than 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 Return On Equity Higher Than PE Stocks to Watch

Which are the best return on equity higher than PE stocks to watch for multibagger potential?

Ans. SBI, Infosys, Hindustan Zinc and PFC are the 4 names this list highlights, with market caps of Rs 8,82,479 crore, Rs 4,39,281 crore, Rs 2,23,335 crore and Rs 1,10,263 crore respectively. SBI is notable for the fastest profit growth, 23.72% a year since FY22. Infosys stands out for a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.10. Hindustan Zinc offers the highest return on equity at 61.13%. PFC brings the biggest five-year price gain at 179.34%. These are watchlist names for return on equity higher than 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 return on equity higher than PE stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.

Can SBI become a multibagger from here?

Ans. SBI has already gained 92.86% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in return on equity higher than PE stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 23.72% a year since FY22, and FY26 revenue rose 7.43%. At a PE of 9.84 against an industry PE of 12.05, valuation should be checked against that growth before investing.

What is the market cap of SBI, Infosys, Hindustan Zinc and PFC?

Ans. As of 29 October 2026, SBI has a market cap of Rs 8,82,479 crore, Infosys has a market cap of Rs 4,39,281 crore, Hindustan Zinc has a market cap of Rs 2,23,335 crore and PFC has a market cap of Rs 1,10,263 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 return on equity higher than PE stocks.

What are the risks of investing in return on equity higher than 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 PFC trading below its industry PE?

Ans. PFC trades at a PE of 3.28 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 15.69% a year since FY22 and FY26 revenue rose 8.38%) and balance sheet strength before drawing a conclusion.

How much do institutions hold in SBI, Infosys, Hindustan Zinc and PFC?

Ans. As of the latest reported quarter, FII and DII together hold 37.45% of SBI (10.81% and 26.64%), 70.05% of Infosys (27.09% and 42.96%), 7.21% of Hindustan Zinc (2.36% and 4.85%) and 35.05% of PFC (20.54% and 14.51%). Rising institutional holding is a useful signal in return on equity higher than PE stocks, though it should be read with earnings trends rather than on its own.