4 Top Stocks With Price-to-Book Below 1 to Watch for Future Multibagger Potential: Union Bank, Canara Bank, LIC Housing Finance and Ramco Industries

Stocks with price-to-book below 1 to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Union Bank, Canara Bank, LIC Housing Finance and Ramco Industries meet that test, with market caps from Rs 2,548 crore to Rs 1.32 lakh crore and Union Bank offering the fastest profit growth, 37.80% a year since FY22. Each of these companies has a price-to-book ratio below 1, and net profit rose in FY26 and in the latest quarter.

This list covers companies with a price-to-book ratio below 1, rising profit in FY26 and the latest quarter, and complete, verifiable financials, ranked by market capitalisation. The companies here range from midcaps to largecaps in size. Investors screening stocks with price-to-book below 1 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 Price-to-Book Below 1 and Why Do They Attract Multibagger Interest?

Stocks with price-to-book below 1 are shares priced below the accounting value of the company. The four here cover two public sector banks, housing finance and building materials.

A price below book value is a classic value signal. For stocks with price-to-book below 1, rising profit adds support. With stocks with price-to-book below 1, 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 stocks with price-to-book below 1 are complete. Read each company's latest results and exchange filings before acting on stocks with price-to-book below 1.

Stocks With Price-to-Book Below 1 at a Glance: Price, Market Cap, PE, ROE and Price to Book

Prices are closing prices as of 20 October 2026. LIC Housing Finance has the lowest PE of the group at 5.11, while Canara Bank posts the highest return on equity at 16.77%.

Stock	CMP (Rs)	Market Cap (Rs Cr)	PE	Industry PE	ROE	Price to Book	52-Week Range (Rs)
Union Bank of India	180.70	1,31,832	6.39	12.02	15.57%	0.99	135.80 to 205.49
Canara Bank	122	1,06,353	5.23	12.02	16.77%	0.87	116.51 to 162.89
LIC Housing Finance	511.50	29,318	5.11	17.68	13.53%	0.71	458.90 to 598.20
Ramco Industries	306.35	2,548	7.79	10.01	6.77%	0.56	230.65 to 395.50

Union Bank: 37.80% Profit CAGR Since FY22

Union Bank of India is a large government-owned bank that serves retail, MSME and corporate customers across India. It reported FY26 total income of Rs 1,28,399.52 crore, up 0.19% year on year, and net profit of Rs 18,780.63 crore, up 4.80%. Net profit has compounded at 37.80% a year since FY22, while total income has grown 11.95% a year.

In the June 2026 quarter, total income rose 2.17% to Rs 32,660.24 crore and net profit grew 29.77% to Rs 5,368.17 crore. The share price has gained 249.43% over five years and 23.10% over the past year. Foreign investors raised their holding from 7.70% in June 2025 to 8.63% in June 2026. The stock trades at a PE of 6.39 against an industry PE of 12.02, below the sector average, with a return on equity of 15.57%. The dividend yield is 2.90%.

Canara Bank: 34.48% Profit CAGR Since FY22

Canara Bank is a large government-owned bank with a wide branch network and a growing retail and digital business. It reported FY26 total income of Rs 1,53,083.22 crore, up 0.28% year on year, and net profit of Rs 18,951.23 crore, up 9.32%. Net profit has compounded at 34.48% a year since FY22, while total income has grown 12.89% a year.

The stock trades at a PE of 5.23 against an industry PE of 12.02, below the sector average, with a return on equity of 16.77%. The dividend yield is 3.58%. Net profit for the September 2026 quarter grew 6.50% to Rs 5,182.03 crore. The share price has gained 198.67% over five years. Foreign investors raised their holding from 11.90% in September 2025 to 12.27% in September 2026.

LIC Housing Finance: 25.13% Profit CAGR Since FY22

LIC Housing Finance is a housing finance company promoted by Life Insurance Corporation of India that offers home loans and loans against property. It reported FY26 total income of Rs 28,843.49 crore, up 2.64% year on year, and net profit of Rs 5,604.24 crore, up 2.97%. Net profit has compounded at 25.13% a year since FY22, while total income has grown 9.58% a year.

Net profit for the June 2026 quarter grew 9.90% to Rs 1,499.03 crore. The stock trades at a PE of 5.11 against an industry PE of 17.68, below the sector average, with a return on equity of 13.53%. The dividend yield is 1.88%.

Ramco Industries: Debt-to-Equity of 0.04

Ramco Industries makes fibre cement sheets, boards and cement products and also has a yarn business. It reported FY26 revenue of Rs 1,807.26 crore, up 6.97% year on year, and net profit of Rs 135.63 crore, up 44.83%. Revenue has compounded at 5.32% a year since FY22. Operating margin was 14.24% in FY26. The debt-to-equity ratio is 0.04, which keeps interest costs low.

The stock trades at a PE of 7.79 against an industry PE of 10.01, below the sector average. In the June 2026 quarter, revenue rose 15.57% to Rs 617.88 crore and net profit grew 72.87% to Rs 79.21 crore. Promoters hold 54.83%, which keeps ownership stable.

Stocks With Price-to-Book Below 1: Financial Comparison on Growth and Margins

The table compares scale and growth across these stocks with price-to-book below 1. 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
Union Bank	1,28,399.52	18,780.63	0.19%	11.95%	37.80%
Canara Bank	1,53,083.22	18,951.23	0.28%	12.89%	34.48%
LIC Housing Finance	28,843.49	5,604.24	2.64%	9.58%	25.13%
Ramco Industries	1,807.26	135.63	6.97%	5.32%	1.76%

Check the Univest Screener for live data on these stocks with price-to-book below 1

Institutional Holding in Union Bank, Canara Bank, LIC Housing Finance and Ramco Industries

Institutional holding shows who is backing these stocks with price-to-book below 1 alongside the promoter. The table uses the latest reported quarter for each. LIC Housing Finance has the deepest institutional backing, with FII and DII together holding 40.57% as of September 2026.

Stock	Promoter	FII	DII	Public	Quarter
Union Bank	74.76%	8.63%	11.98%	4.63%	June 2026
Canara Bank	62.93%	12.27%	12.38%	12.42%	September 2026
LIC Housing Finance	45.24%	18.93%	21.64%	14.19%	September 2026
Ramco Industries	54.83%	0.69%	3.34%	41.14%	September 2026

Risks to Weigh in Stocks With Price-to-Book Below 1

Being careful with stocks with price-to-book below 1 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 Price-to-Book Below 1

Picking from stocks with price-to-book below 1 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 (10.01 to 17.68) 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 price-to-book below 1, Union Bank stands out for the fastest profit growth, 37.80% a year since FY22, Canara Bank for the highest return on equity at 16.77%, LIC Housing Finance for the lowest PE of the group at 5.11 and Ramco Industries for the strongest latest-quarter profit growth at 72.87%. 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 price-to-book below 1 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 Price-to-Book Below 1 to Watch

Which are the best stocks with price-to-book below 1 to watch for multibagger potential?

Ans. Union Bank, Canara Bank, LIC Housing Finance and Ramco Industries are the 4 names this list highlights, with market caps of Rs 1,31,832 crore, Rs 1,06,353 crore, Rs 29,318 crore and Rs 2,548 crore respectively. Union Bank is notable for the fastest profit growth, 37.80% a year since FY22. Canara Bank stands out for the highest return on equity at 16.77%. LIC Housing Finance offers the lowest PE of the group at 5.11. Ramco Industries brings the strongest latest-quarter profit growth at 72.87%. These are watchlist names for stocks with price-to-book below 1, not recommendations, so match each one to your own risk profile and time horizon.

Is Canara Bank a good stock for long-term investors?

Ans. Canara Bank has a return on equity of 16.77%, a PE of 5.23 against an industry PE of 12.02 and a market cap of Rs 1,06,353 crore. Net profit has compounded at 34.48% a year since FY22, and FY26 revenue rose 0.28% while September 2026 quarter net profit grew 6.50%. Long-term returns in stocks with price-to-book below 1 depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.

Can Union Bank become a multibagger from here?

Ans. Union Bank has already gained 249.43% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in stocks with price-to-book below 1 requires earnings to keep growing faster than the market for several years. Net profit has compounded at 37.80% a year since FY22, and FY26 revenue rose 0.19%. At a PE of 6.39 against an industry PE of 12.02, valuation should be checked against that growth before investing.

What is the market cap of Union Bank, Canara Bank, LIC Housing Finance and Ramco Industries?

Ans. As of 20 October 2026, Union Bank has a market cap of Rs 1,31,832 crore, Canara Bank has a market cap of Rs 1,06,353 crore, LIC Housing Finance has a market cap of Rs 29,318 crore and Ramco Industries has a market cap of Rs 2,548 crore. Union Bank is the largest of the group. 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 price-to-book below 1.

What are the risks of investing in stocks with price-to-book below 1?

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 Housing Finance trading below its industry PE?

Ans. LIC Housing Finance trades at a PE of 5.11 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 25.13% a year since FY22 and FY26 revenue rose 2.64%) and balance sheet strength before drawing a conclusion.

How much do institutions hold in Union Bank, Canara Bank, LIC Housing Finance and Ramco Industries?

Ans. As of the latest reported quarter, FII and DII together hold 20.61% of Union Bank (8.63% and 11.98%), 24.65% of Canara Bank (12.27% and 12.38%), 40.57% of LIC Housing Finance (18.93% and 21.64%) and 4.03% of Ramco Industries (0.69% and 3.34%). Rising institutional holding is a useful signal in stocks with price-to-book below 1, though it should be read with earnings trends rather than on its own.