4 Midcap Value Stocks to Watch for Future Multibagger Potential: Lupin, Federal Bank, Waaree Energies and NMDC

Value stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Lupin, Federal Bank, Waaree Energies and NMDC meet that test, with market caps from Rs 62,352 crore to Rs 89,592 crore and Lupin offering the largest market cap at Rs 89,592 crore. Each of these companies has a market capitalisation between Rs 30,000 crore and Rs 1,00,000 crore and a PE ratio below 20 and a return on equity above 12 per cent, and net profit rose in FY26 and in the latest quarter.

This list covers companies with a market capitalisation between Rs 30,000 crore and Rs 1,00,000 crore and a PE ratio below 20 and a return on equity above 12 per cent, rising profit in FY26 and the latest quarter, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap between Rs 30,000 crore and Rs 1 lakh crore. Investors screening value stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 22 October 2026 and are drawn from NSE and BSE data and company filings.

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What Are Value Stocks and Why Do They Attract Multibagger Interest?

Value stocks are shares of mid-sized companies priced at modest multiples of earnings. The four here cover pharmaceuticals, banking, solar manufacturing and iron ore.

Modest multiples with decent returns and rising profit leave room for the price to catch up. For value stocks, latest quarter profit also rose. For value stocks, checking each result against the latest quarter matters more than any single ratio. The next sections explain what stands out in each of value stocks, using FY26 and latest quarter data. Prices move daily, so recheck the figures for value stocks before you decide.

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

Prices are closing prices as of 22 October 2026. NMDC has the lowest PE of the group at 8.36, while Waaree Energies posts the highest return on equity at 25.71%.

Stock	CMP (Rs)	Market Cap (Rs Cr)	PE	Industry PE	ROE	Price to Book	52-Week Range (Rs)
Lupin	1,922	89,592	16.14	36.42	23.76%	3.99	1,900.00 to 2,529.50
Federal Bank	347.80	83,333	15.47	11.94	12.60%	2.02	211.52 to 371.70
Waaree Energies	2,370	71,640	17.90	45.89	25.71%	4.96	2,281.80 to 3,718.80
NMDC	68.88	62,352	8.36	10.06	21.87%	1.83	68.88 to 97.49

Lupin: Revenue Up 26.76% in FY26

Lupin is a global pharmaceutical company with a large presence in the United States, India and other markets across generics, branded drugs and respiratory products. It reported FY26 revenue of Rs 29,038.95 crore, up 26.76% year on year, and net profit of Rs 5,355.47 crore, up 61.98%. Revenue has compounded at 14.98% a year since FY22. Operating margin was 31.06% in FY26. The debt-to-equity ratio is 0.29.

In the June 2026 quarter, revenue rose 32.45% to Rs 8,407.21 crore and net profit grew 16.01% to Rs 1,416.98 crore. The share price has gained 111.00% over five years. Foreign investors raised their holding from 21.25% in June 2025 to 22.42% in June 2026. The stock trades at a PE of 16.14 against an industry PE of 36.42, below the sector average, with a return on equity of 23.76%.

Federal Bank: 22.90% Profit CAGR Since FY22

Federal Bank is a Kerala-based private sector bank with a strong NRI deposit base and a growing retail, small business and digital franchise. It reported FY26 total income of Rs 34,272.42 crore, up 7.00% year on year, and net profit of Rs 4,483.38 crore, up 6.71%. Net profit has compounded at 22.90% a year since FY22, while total income has grown 20.05% a year.

The stock trades at a PE of 15.47 against an industry PE of 11.94, with a return on equity of 12.60%. In the September 2026 quarter, total income rose 19.01% to Rs 9,903.41 crore and net profit grew 53.42% to Rs 1,564.06 crore. The share price has gained 259.57% over five years and 57.58% over the past year. Domestic institutions raised their holding from 48.17% in June 2025 to 49.28% in June 2026.

Waaree Energies: Revenue Up 83.52% in FY26

Waaree Energies is one of India's largest solar module makers by capacity and manufactures solar cells and modules. It reported FY26 revenue of Rs 27,244.92 crore, up 83.52% year on year, and net profit of Rs 3,884.15 crore, up 101.45%. Revenue has compounded at 74.31% a year since FY22. Operating margin was 23.82% in FY26. The debt-to-equity ratio is 0.22.

In the June 2026 quarter, revenue rose 76.25% to Rs 8,102.60 crore and net profit grew 15.39% to Rs 891.87 crore. Domestic institutions raised their holding from 2.82% in September 2025 to 4.09% in September 2026. The stock trades at a PE of 17.90 against an industry PE of 45.89, below the sector average, with a return on equity of 25.71%.

NMDC: Revenue Up 31.61% in FY26

NMDC is a government-owned miner and India's largest iron ore producer. It reported FY26 revenue of Rs 33,559.27 crore, up 31.61% year on year, and net profit of Rs 7,415.37 crore, up 13.39%. Revenue has compounded at 5.90% a year since FY22. Operating margin was 33.51% in FY26. The debt-to-equity ratio is 0.19.

The stock trades at a PE of 8.36 against an industry PE of 10.06, below the sector average, with a return on equity of 21.87%. The dividend yield is 4.94%. In the June 2026 quarter, revenue rose 1.47% to Rs 7,142.54 crore and net profit grew 1.94% to Rs 2,005.71 crore. Foreign investors raised their holding from 12.21% in June 2025 to 13.59% in June 2026.

Value Stocks: Financial Comparison on Growth and Margins

The table compares scale and growth across these value 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)	4-Year Revenue CAGR	Latest Quarter Revenue Growth
Lupin	29,038.95	5,355.47	26.76%	14.98%	32.45%
Federal Bank	34,272.42	4,483.38	7.00%	20.05%	19.01%
Waaree Energies	27,244.92	3,884.15	83.52%	74.31%	76.25%
NMDC	33,559.27	7,415.37	31.61%	5.90%	1.47%

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Institutional Holding in Lupin, Federal Bank, Waaree Energies and NMDC

Institutional holding shows who is backing these value stocks alongside the promoter. The table uses the latest reported quarter for each. Federal Bank has the deepest institutional backing, with FII and DII together holding 76.99% as of June 2026. Domestic institutions increased their holding over the past year in Federal Bank (from 48.17% to 49.28%) and Waaree Energies (from 2.82% to 4.09%).

Stock	Promoter	FII	DII	Public	Quarter
Lupin	46.85%	22.42%	24.65%	6.08%	June 2026
Federal Bank	Nil	27.71%	49.28%	23.01%	June 2026
Waaree Energies	64.12%	8.57%	4.09%	23.22%	September 2026
NMDC	60.79%	13.59%	13.81%	11.80%	June 2026

Risks to Weigh in Value Stocks

Being careful with value 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: Federal Bank trades at a PE of 15.47 against an industry PE of 11.94, 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 Value Stocks

Picking from value 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 (10.06 to 45.89) 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 value stocks, Lupin stands out for the largest market cap at Rs 89,592 crore, Federal Bank for the fastest profit growth, 22.90% a year since FY22, Waaree Energies for the highest return on equity at 25.71% and NMDC for the lowest PE of the group at 8.36. 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 value 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 Value Stocks to Watch

Which are the best value stocks to watch for multibagger potential?

Ans. Lupin, Federal Bank, Waaree Energies and NMDC are the 4 names this list highlights, with market caps of Rs 89,592 crore, Rs 83,333 crore, Rs 71,640 crore and Rs 62,352 crore respectively. Lupin is notable for the largest market cap at Rs 89,592 crore. Federal Bank stands out for the fastest profit growth, 22.90% a year since FY22. Waaree Energies offers the highest return on equity at 25.71%. NMDC brings the lowest PE of the group at 8.36. These are watchlist names for value stocks, not recommendations, so match each one to your own risk profile and time horizon.

Is Waaree Energies a good stock for long-term investors?

Ans. Waaree Energies has a return on equity of 25.71%, a PE of 17.90 against an industry PE of 45.89 and a market cap of Rs 71,640 crore. FY26 revenue rose 83.52%, and June 2026 quarter net profit grew 15.39%. Long-term returns in value stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.

Can Federal Bank become a multibagger from here?

Ans. Federal Bank has already gained 259.57% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in value stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 22.90% a year since FY22, and FY26 revenue rose 7.00%. At a PE of 15.47 against an industry PE of 11.94, valuation should be checked against that growth before investing.

What is the market cap of Lupin, Federal Bank, Waaree Energies and NMDC?

Ans. As of 22 October 2026, Lupin has a market cap of Rs 89,592 crore, Federal Bank has a market cap of Rs 83,333 crore, Waaree Energies has a market cap of Rs 71,640 crore and NMDC has a market cap of Rs 62,352 crore. All of them qualify as midcaps. 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 value stocks.

What are the risks of investing in value 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. Federal Bank trades at a PE of 15.47 against an industry PE of 11.94, so earnings growth needs to hold up.

Why is Federal Bank trading at a PE of 15.47?

Ans. Federal Bank's PE of 15.47 compares with an industry PE of 11.94. The market is paying a premium for profit growth of 22.90% a year since FY22 and latest-quarter profit growth of 53.42%, which also means the stock is more sensitive if growth slows. Investors in value stocks who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.

How much do institutions hold in Lupin, Federal Bank, Waaree Energies and NMDC?

Ans. As of the latest reported quarter, FII and DII together hold 47.07% of Lupin (22.42% and 24.65%), 76.99% of Federal Bank (27.71% and 49.28%), 12.66% of Waaree Energies (8.57% and 4.09%) and 27.40% of NMDC (13.59% and 13.81%). Rising institutional holding is a useful signal in value stocks, though it should be read with earnings trends rather than on its own.