4 Smallcap Stocks With PE of 25-40 to Watch for Future Multibagger Potential: Tata Elxsi, Sundram Fasteners, Sumitomo Chemical and Anant Raj

Stocks with PE of 25-40 to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Tata Elxsi, Sundram Fasteners, Sumitomo Chemical and Anant Raj meet that test, with market caps from Rs 20,103 crore to Rs 23,957 crore and Tata Elxsi offering the highest return on equity at 24.73%. Each of these companies has a market capitalisation below Rs 30,000 crore and a PE ratio between 25 and 40, and net profit rose in FY26 and in the latest quarter.

This list covers companies with a market capitalisation below Rs 30,000 crore and a PE ratio between 25 and 40, rising profit in FY26 and the latest quarter, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap below Rs 30,000 crore. Investors screening stocks with PE of 25-40 usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 21 October 2026 and are drawn from NSE and BSE data and company filings.

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What Are Stocks With PE of 25-40 and Why Do They Attract Multibagger Interest?

Stocks with PE of 25-40 are shares of smaller companies that investors value at a premium to earnings because growth is expected. The four here cover design engineering, auto fasteners, agrochemicals and real estate.

A premium multiple asks for continued growth, and rising profit is the first proof. For stocks with PE of 25-40, latest quarter profit also rose. For stocks with PE of 25-40, checking each result against the latest quarter matters more than any single ratio. The next sections explain what stands out in each of stocks with PE of 25-40, using FY26 and latest quarter data. Prices move daily, so recheck the figures for stocks with PE of 25-40 before you decide.

Stocks With PE of 25-40 at a Glance: Price, Market Cap, PE and ROE

Prices are closing prices as of 21 October 2026. Anant Raj has the lowest PE of the group at 34.63, while Tata Elxsi posts the highest return on equity at 24.73%.

Stock	CMP (Rs)	Market Cap (Rs Cr)	PE	Industry PE	ROE	Debt to Equity	52-Week Range (Rs)
Tata Elxsi	3,846.80	23,957	35.75	20.69	24.73%	0.05	2,996.00 to 5,950.00
Sundram Fasteners	1,054.20	23,824	38.83	37.22	13.83%	0.15	730.10 to 1,347.20
Sumitomo Chemical India	370.50	20,153	34.78	23.42	16.02%	0.02	362.60 to 572.05
Anant Raj	472	20,103	34.63	32.13	9.59%	0.12	403.00 to 700.00

Tata Elxsi: 33.09% Profit CAGR Since FY11

Tata Elxsi provides design and technology services to the automotive, media, communications and healthcare industries. It reported FY15 revenue of Rs 852.75 crore, up 8.31% year on year, and net profit of Rs 102.02 crore, up 41.18%. Net profit has compounded at 33.09% a year since FY11, while revenue has grown 19.39% a year. Operating margin was 21.35% in FY15. The debt-to-equity ratio is 0.05, which keeps interest costs low.

In the March 2015 quarter, revenue rose 8.97% to Rs 230.77 crore and net profit grew 36.52% to Rs 29.83 crore. The stock trades at a PE of 35.75 against an industry PE of 20.69, with a return on equity of 24.73%. The dividend yield is 1.95%.

Sundram Fasteners: Profit Compounding at 6.44% a Year

Sundram Fasteners makes high-tensile fasteners, powertrain parts and cold-extruded components for automotive and industrial customers. It reported FY26 revenue of Rs 6,368.25 crore, up 6.43% year on year, and net profit of Rs 592.85 crore, up 9.43%. Net profit has compounded at 6.44% a year since FY22, while revenue has grown 6.55% a year. Operating margin was 16.89% in FY26. The debt-to-equity ratio is 0.15, which keeps interest costs low.

The stock trades at a PE of 38.83 against an industry PE of 37.22, with a return on equity of 13.83%. In the June 2026 quarter, revenue rose 19.43% to Rs 1,854.98 crore and net profit grew 14.03% to Rs 168.69 crore. The share price is up 16.58% over the past year. Foreign investors raised their holding from 10.55% in September 2025 to 11.03% in September 2026.

Sumitomo Chemical: Debt-to-Equity of 0.02

Sumitomo Chemical India sells crop protection, household insecticides and crop nutrition products, backed by its Japanese parent. It reported FY26 revenue of Rs 3,385.04 crore, up 3.56% year on year, and net profit of Rs 542.98 crore, up 7.22%. Net profit has compounded at 6.41% a year since FY22, while revenue has grown 2.32% a year. Operating margin was 24.77% in FY26. The debt-to-equity ratio is 0.02, which keeps interest costs low.

In the June 2026 quarter, revenue rose 1.37% to Rs 1,110.63 crore and net profit grew 20.44% to Rs 214.51 crore. Domestic institutions raised their holding from 8.47% in September 2025 to 9.69% in September 2026. The stock trades at a PE of 34.78 against an industry PE of 23.42, with a return on equity of 16.02%.

Anant Raj: 83.84% Profit CAGR Since FY22

Anant Raj develops residential and commercial real estate in the Delhi NCR region and has built a data centre business. It reported FY26 revenue of Rs 2,579.08 crore, up 22.80% year on year, and net profit of Rs 553.66 crore, up 31.34%. Net profit has compounded at 83.84% a year since FY22, while revenue has grown 50.61% a year. Operating margin was 28.79% in FY26. The debt-to-equity ratio is 0.12, which keeps interest costs low.

The stock trades at a PE of 34.63 against an industry PE of 32.13. In the June 2026 quarter, revenue rose 8.03% to Rs 650.75 crore and net profit grew 17.23% to Rs 146.13 crore. The share price has gained 611.84% over five years. Promoters hold 57.42%, which keeps ownership stable.

Stocks With PE of 25-40: Financial Comparison on Growth and Margins

The table compares scale and growth across these stocks with PE of 25-40. 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	4-Year Net Profit CAGR	Operating Margin (Latest Quarter)
Tata Elxsi	852.75	102.02	8.31%	19.39%	33.09%	20.27%
Sundram Fasteners	6,368.25	592.85	6.43%	6.55%	6.44%	15.99%
Sumitomo Chemical	3,385.04	542.98	3.56%	2.32%	6.41%	28.92%
Anant Raj	2,579.08	553.66	22.80%	50.61%	83.84%	32.11%

Check the Univest Screener for live data on these stocks with PE of 25-40

Institutional Holding in Tata Elxsi, Sundram Fasteners, Sumitomo Chemical and Anant Raj

Institutional holding shows who is backing these stocks with PE of 25-40 alongside the promoter. The table uses the latest reported quarter for each. Sundram Fasteners has the deepest institutional backing, with FII and DII together holding 33.64% as of September 2026. Domestic institutions increased their holding over the past year in Sumitomo Chemical (from 8.47% to 9.69%).

Stock	Promoter	FII	DII	Public	Quarter
Tata Elxsi	43.89%	8.00%	9.98%	38.13%	September 2026
Sundram Fasteners	46.95%	11.03%	22.61%	19.42%	September 2026
Sumitomo Chemical	75.00%	2.89%	9.69%	12.42%	September 2026
Anant Raj	57.42%	10.74%	4.61%	27.22%	June 2026

Risks to Weigh in Stocks With PE of 25-40

Being careful with stocks with PE of 25-40 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: Tata Elxsi trades at a PE of 35.75 against an industry PE of 20.69, 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 Stocks With PE of 25-40

Picking from stocks with PE of 25-40 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 (20.69 to 37.22) 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 of 25-40, Tata Elxsi stands out for the highest return on equity at 24.73%, Sundram Fasteners for 6.43% revenue growth in FY26, Sumitomo Chemical for a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.02 and Anant Raj for the fastest profit growth, 83.84% 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 stocks with PE of 25-40 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 of 25-40 to Watch

Which are the best stocks with PE of 25-40 to watch for multibagger potential?

Ans. Tata Elxsi, Sundram Fasteners, Sumitomo Chemical and Anant Raj are the 4 names this list highlights, with market caps of Rs 23,957 crore, Rs 23,824 crore, Rs 20,153 crore and Rs 20,103 crore respectively. Tata Elxsi is notable for the highest return on equity at 24.73%. Sundram Fasteners stands out for 6.43% revenue growth in FY26. Sumitomo Chemical offers a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.02. Anant Raj brings the fastest profit growth, 83.84% a year since FY22. These are watchlist names for stocks with PE of 25-40, not recommendations, so match each one to your own risk profile and time horizon.

Is Tata Elxsi a good stock for long-term investors?

Ans. Tata Elxsi has a return on equity of 24.73%, a PE of 35.75 against an industry PE of 20.69 and a market cap of Rs 23,957 crore. Net profit has compounded at 33.09% a year since FY11, and FY15 revenue rose 8.31% while March 2015 quarter net profit grew 36.52%. Long-term returns in stocks with PE of 25-40 depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.

Can Anant Raj become a multibagger from here?

Ans. Anant Raj has already gained 611.84% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in stocks with PE of 25-40 requires earnings to keep growing faster than the market for several years. Net profit has compounded at 83.84% a year since FY22, and FY26 revenue rose 22.80%. At a PE of 34.63 against an industry PE of 32.13, valuation should be checked against that growth before investing.

What is the market cap of Tata Elxsi, Sundram Fasteners, Sumitomo Chemical and Anant Raj?

Ans. As of 21 October 2026, Tata Elxsi has a market cap of Rs 23,957 crore, Sundram Fasteners has a market cap of Rs 23,824 crore, Sumitomo Chemical has a market cap of Rs 20,153 crore and Anant Raj has a market cap of Rs 20,103 crore. All of them qualify as smallcaps. 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 of 25-40.

What are the risks of investing in stocks with PE of 25-40?

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. Tata Elxsi trades at a PE of 35.75 against an industry PE of 20.69, so earnings growth needs to hold up.

Why is Tata Elxsi trading at a PE of 35.75?

Ans. Tata Elxsi's PE of 35.75 compares with an industry PE of 20.69. The market is paying a premium for a return on equity of 24.73%, profit growth of 33.09% a year since FY11 and latest-quarter profit growth of 36.52%, which also means the stock is more sensitive if growth slows. Investors in stocks with PE of 25-40 who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.

How much do institutions hold in Tata Elxsi, Sundram Fasteners, Sumitomo Chemical and Anant Raj?

Ans. As of the latest reported quarter, FII and DII together hold 17.98% of Tata Elxsi (8.00% and 9.98%), 33.64% of Sundram Fasteners (11.03% and 22.61%), 12.58% of Sumitomo Chemical (2.89% and 9.69%) and 15.35% of Anant Raj (10.74% and 4.61%). Rising institutional holding is a useful signal in stocks with PE of 25-40, though it should be read with earnings trends rather than on its own.