4 Largecap Stocks With PE Ratio Below 10 to Watch for Future Multibagger Potential: SBI, LIC, Indian Bank and Muthoot Finance

Stocks with PE ratio below 10 to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. SBI, LIC, Indian Bank 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 trades at a price-to-earnings ratio below 10, and net profit rose in FY26 and in the latest quarter.

This list covers companies with a PE ratio below 10, rising profit in FY26 and the latest quarter, and market capitalisation above Rs 1,00,000 crore. Each company has a market cap above Rs 1 lakh crore. Investors screening stocks with PE ratio below 10 usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 20 October 2026 and are drawn from NSE and BSE data and company filings.

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What Are Stocks With PE Ratio Below 10 and Why Do They Attract Multibagger Interest?

Stocks with PE ratio below 10 are shares that cost less than Rs 10 for each rupee of yearly earnings. The four here cover public sector banking, life insurance and gold finance.

A single-digit PE with rising profit is a classic value signal. For stocks with PE ratio below 10, investors check that earnings growth is steady. A sensible way to study stocks with PE ratio below 10 is to look at profit growth, returns and valuation side by side. Below, each of stocks with PE ratio below 10 gets its own breakdown of growth, returns and valuation. Treat stocks with PE ratio below 10 as a research list, since share prices and rankings change with every earnings season.

Stocks With PE Ratio Below 10 at a Glance: Price, Market Cap, PE, ROE and Price to Book

Prices are closing prices as of 20 October 2026. LIC combines the lowest PE of the group, 8.30, with the highest return on equity, 32.53%.

Stock	CMP (Rs)	Market Cap (Rs Cr)	PE	Industry PE	ROE	Price to Book	52-Week Range (Rs)
State Bank of India	973.70	8,80,754	9.82	12.05	14.29%	1.50	877.05 to 1,234.70
Life Insurance Corporation of India	393.35	4,98,410	8.30	10.47	32.53%	2.81	360.75 to 468.48
Indian Bank	856.85	1,12,680	8.52	12.02	16.02%	1.41	756.50 to 1,000.90
Muthoot Finance	2,566	1,03,780	9.06	17.97	28.01%	2.56	2,545.00 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%.

LIC: 93.19% Profit CAGR Since FY22

LIC is India's largest life insurer and one of the biggest institutional investors in the stock market, with a vast agent network across the country. It reported FY26 revenue of Rs 9,90,211.25 crore, up 10.23% year on year, and net profit of Rs 57,453.15 crore, up 18.90%. Net profit has compounded at 93.19% a year since FY22, while revenue has grown 7.96% a year. Operating margin was 5.51% in FY26. The debt-to-equity ratio is 0.00, which keeps interest costs low.

The stock trades at a PE of 8.30 against an industry PE of 10.47, below the sector average, with a return on equity of 32.53%. In the June 2026 quarter, revenue rose 6.97% to Rs 2,41,166.45 crore and net profit grew 23.98% to Rs 13,584.25 crore. Domestic institutions raised their holding from 1.36% in September 2025 to 6.17% in September 2026.

Indian Bank: 32.28% Profit CAGR Since FY22

Indian Bank is a government-owned bank with a strong presence in South India and a growing national network. It reported FY26 total income of Rs 78,332.70 crore, up 8.72% year on year, and net profit of Rs 12,226.99 crore, up 11.21%. Net profit has compounded at 32.28% a year since FY22, while total income has grown 14.07% a year.

In the September 2026 quarter, total income rose 21.09% to Rs 23,335.98 crore and net profit grew 13.36% to Rs 3,446.86 crore. The share price has gained 396.82% over five years and 10.47% over the past year. Foreign investors raised their holding from 4.68% in September 2025 to 6.86% in September 2026. The stock trades at a PE of 8.52 against an industry PE of 12.02, below the sector average, with a return on equity of 16.02%. The dividend yield is 2.18%.

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.

Stocks With PE Ratio Below 10: Financial Comparison on Growth and Margins

The table compares scale and growth across these stocks with PE ratio below 10. 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%
LIC	9,90,211.25	57,453.15	10.23%	7.96%	93.19%
Indian Bank	78,332.70	12,226.99	8.72%	14.07%	32.28%
Muthoot Finance	31,263.41	10,606.87	54.27%	26.42%	27.36%

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Institutional Holding in SBI, LIC, Indian Bank and Muthoot Finance

Institutional holding shows who is backing these stocks with PE ratio below 10 alongside the promoter. The table uses the latest reported quarter for each. SBI has the deepest institutional backing, with FII and DII together holding 37.45% as of June 2026. Domestic institutions increased their holding over the past year in LIC (from 1.36% to 6.17%).

Stock	Promoter	FII	DII	Public	Quarter
SBI	55.47%	10.81%	26.64%	7.08%	June 2026
LIC	90.00%	1.55%	6.17%	2.28%	September 2026
Indian Bank	73.84%	6.86%	16.77%	2.53%	September 2026
Muthoot Finance	73.35%	11.61%	10.76%	4.29%	June 2026

Risks to Weigh in Stocks With PE Ratio Below 10

Being careful with stocks with PE ratio below 10 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 Stocks With PE Ratio Below 10

Picking from stocks with PE ratio below 10 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 (10.47 to 17.97) 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 stocks with PE ratio below 10, SBI stands out for the largest market cap at Rs 8,80,754 crore, LIC for the highest return on equity at 32.53%, Indian Bank for the biggest five-year price gain at 396.82% and Muthoot Finance for the strongest latest-quarter profit growth at 43.08%. 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 stocks with PE ratio below 10 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 Stocks With PE Ratio Below 10 to Watch

Which are the best stocks with PE ratio below 10 to watch for multibagger potential?

Ans. SBI, LIC, Indian Bank and Muthoot Finance are the 4 names this list highlights, with market caps of Rs 8,80,754 crore, Rs 4,98,410 crore, Rs 1,12,680 crore and Rs 1,03,780 crore respectively. SBI is notable for the largest market cap at Rs 8,80,754 crore. LIC stands out for the highest return on equity at 32.53%. Indian Bank offers the biggest five-year price gain at 396.82%. Muthoot Finance brings the strongest latest-quarter profit growth at 43.08%. These are watchlist names for stocks with PE ratio below 10, not recommendations, so match each one to your own risk profile and time horizon.

Is LIC a good stock for long-term investors?

Ans. LIC has a return on equity of 32.53%, a PE of 8.30 against an industry PE of 10.47 and a market cap of Rs 4,98,410 crore. Net profit has compounded at 93.19% a year since FY22, and FY26 revenue rose 10.23% while June 2026 quarter net profit grew 23.98%. Long-term returns in stocks with PE ratio below 10 depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.

Can Indian Bank become a multibagger from here?

Ans. Indian Bank has already gained 396.82% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in stocks with PE ratio below 10 requires earnings to keep growing faster than the market for several years. Net profit has compounded at 32.28% a year since FY22, and FY26 revenue rose 8.72%. At a PE of 8.52 against an industry PE of 12.02, valuation should be checked against that growth before investing.

What is the market cap of SBI, LIC, Indian Bank and Muthoot Finance?

Ans. As of 20 October 2026, SBI has a market cap of Rs 8,80,754 crore, LIC has a market cap of Rs 4,98,410 crore, Indian Bank has a market cap of Rs 1,12,680 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 stocks with PE ratio below 10.

What are the risks of investing in stocks with PE ratio below 10?

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 LIC trading below its industry PE?

Ans. LIC trades at a PE of 8.30 against an industry PE of 10.47. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 93.19% a year since FY22 and FY26 revenue rose 10.23%) and balance sheet strength before drawing a conclusion.

How much do institutions hold in SBI, LIC, Indian Bank and Muthoot Finance?

Ans. As of the latest reported quarter, FII and DII together hold 37.45% of SBI (10.81% and 26.64%), 7.72% of LIC (1.55% and 6.17%), 23.63% of Indian Bank (6.86% and 16.77%) and 22.37% of Muthoot Finance (11.61% and 10.76%). Rising institutional holding is a useful signal in stocks with PE ratio below 10, though it should be read with earnings trends rather than on its own.