4 Top Stocks With ROE of 20-30 Per Cent and PE Below 25 to Watch for Future Multibagger Potential: Bajaj Auto, Muthoot Finance, Lupin and Ashok Leyland

Stocks with ROE of 20-30 per cent and PE below 25 to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Bajaj Auto, Muthoot Finance, Lupin and Ashok Leyland meet that test, with market caps from Rs 86,933 crore to Rs 2.81 lakh crore and Bajaj Auto offering the biggest five-year price gain at 165.89%. Each of these companies has a return on equity between 20 and 30 per cent and a PE ratio below 25, and net profit rose in FY26 and in the latest quarter.

This list covers companies with a return on equity between 20 and 30 per cent and a PE ratio below 25, 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 ROE of 20-30 per cent and PE below 25 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 ROE of 20-30 Per Cent and PE Below 25 and Why Do They Attract Multibagger Interest?

Stocks with ROE of 20-30 per cent and PE below 25 are shares of companies that earn strong returns on shareholder money yet trade at a modest multiple of earnings. The four here cover motorcycles, gold finance, pharmaceuticals and commercial vehicles.

High returns at a reasonable price is the combination many long-term investors look for. For stocks with ROE of 20-30 per cent and PE below 25, rising profit adds to the case. Whichever way you read stocks with ROE of 20-30 per cent and PE below 25, the common thread is rising profit backed by complete financial data. Each of stocks with ROE of 20-30 per cent and PE below 25 also has complete FY26 and latest quarter figures. With stocks with ROE of 20-30 per cent and PE below 25, 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 ROE of 20-30 per cent and PE below 25 are complete. Read each company's latest results and exchange filings before acting on stocks with ROE of 20-30 per cent and PE below 25.

Stocks With ROE of 20-30 Per Cent and PE Below 25 at a Glance: Price, Market Cap, PE, ROE and Price to Book

Prices are closing prices as of 20 October 2026. Muthoot Finance combines the lowest PE of the group, 9.06, with the highest return on equity, 28.01%.

Stock	CMP (Rs)	Market Cap (Rs Cr)	PE	Industry PE	ROE	Price to Book	52-Week Range (Rs)
Bajaj Auto	10,287	2,81,374	24.36	23.82	27.67%	7.25	8,605.00 to 12,470.00
Muthoot Finance	2,566	1,03,780	9.06	17.97	28.01%	2.56	2,545.00 to 4,149.50
Lupin	1,939.20	89,592	16.14	36.42	23.76%	3.99	1,900.00 to 2,529.50
Ashok Leyland	147.72	86,933	23.31	23.62	24.37%	6.10	134.21 to 215.42

Bajaj Auto: Revenue Up 24.05% in FY26

Bajaj Auto makes motorcycles, three-wheelers and electric two-wheelers, and has a large export business. It reported FY26 revenue of Rs 65,087.22 crore, up 24.05% year on year, and net profit of Rs 10,574.50 crore, up 44.37%. Net profit has compounded at 14.44% a year since FY22, while revenue has grown 17.26% a year. Operating margin was 25.06% in FY26.

In the June 2026 quarter, revenue rose 64.02% to Rs 22,376.69 crore and net profit grew 44.26% to Rs 3,188.75 crore. The share price has gained 165.89% over five years and 13.76% over the past year. Domestic institutions raised their holding from 12.09% in June 2025 to 13.54% in June 2026. The stock trades at a PE of 24.36 against an industry PE of 23.82, with a return on equity of 27.67%.

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.

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%.

Ashok Leyland: Return on Equity of 24.37%

Ashok Leyland makes trucks, buses and defence vehicles and is among the largest commercial vehicle makers in India. It reported FY26 revenue of Rs 56,946.90 crore, up 16.47% year on year, and net profit of Rs 3,720.98 crore, up 10.00%. Revenue has compounded at 21.28% a year since FY22. Operating margin was 19.17% in FY26.

The stock trades at a PE of 23.31 against an industry PE of 23.62, below the sector average, with a return on equity of 24.37%. The dividend yield is 2.36%. In the June 2026 quarter, revenue rose 12.29% to Rs 13,258.24 crore and net profit grew 1.53% to Rs 667.77 crore. The share price has gained 106.37% over five years. Domestic institutions raised their holding from 13.61% in July 2025 to 15.76% in June 2026.

Stocks With ROE of 20-30 Per Cent and PE Below 25: Financial Comparison on Growth and Margins

The table compares scale and growth across these stocks with ROE of 20-30 per cent and PE below 25. 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
Bajaj Auto	65,087.22	10,574.50	24.05%	17.26%	64.02%
Muthoot Finance	31,263.41	10,606.87	54.27%	26.42%	34.48%
Lupin	29,038.95	5,355.47	26.76%	14.98%	32.45%
Ashok Leyland	56,946.90	3,720.98	16.47%	21.28%	12.29%

Check the Univest Screener for live data on these stocks with ROE of 20-30 per cent and PE below 25

Institutional Holding in Bajaj Auto, Muthoot Finance, Lupin and Ashok Leyland

Institutional holding shows who is backing these stocks with ROE of 20-30 per cent and PE below 25 alongside the promoter. The table uses the latest reported quarter for each. Lupin has the deepest institutional backing, with FII and DII together holding 47.07% as of June 2026. Domestic institutions increased their holding over the past year in Bajaj Auto (from 12.09% to 13.54%) and Ashok Leyland (from 13.61% to 15.76%).

Stock	Promoter	FII	DII	Public	Quarter
Bajaj Auto	55.01%	9.01%	13.54%	22.44%	June 2026
Muthoot Finance	73.35%	11.61%	10.76%	4.29%	June 2026
Lupin	46.85%	22.42%	24.65%	6.08%	June 2026
Ashok Leyland	51.51%	20.68%	15.76%	12.05%	June 2026

Risks to Weigh in Stocks With ROE of 20-30 Per Cent and PE Below 25

Being careful with stocks with ROE of 20-30 per cent and PE below 25 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: Bajaj Auto trades at a PE of 24.36 against an industry PE of 23.82, 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 ROE of 20-30 Per Cent and PE Below 25

Picking from stocks with ROE of 20-30 per cent and PE below 25 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 (17.97 to 36.42) 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 ROE of 20-30 per cent and PE below 25, Bajaj Auto stands out for the biggest five-year price gain at 165.89%, Muthoot Finance for the highest return on equity at 28.01%, Lupin for 26.76% revenue growth in FY26 and Ashok Leyland for 16.47% revenue growth in FY26. 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 ROE of 20-30 per cent and PE below 25 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 ROE of 20-30 Per Cent and PE Below 25 to Watch

Which are the best stocks with ROE of 20-30 per cent and PE below 25 to watch for multibagger potential?

Ans. Bajaj Auto, Muthoot Finance, Lupin and Ashok Leyland are the 4 names this list highlights, with market caps of Rs 2,81,374 crore, Rs 1,03,780 crore, Rs 89,592 crore and Rs 86,933 crore respectively. Bajaj Auto is notable for the biggest five-year price gain at 165.89%. Muthoot Finance stands out for the highest return on equity at 28.01%. Lupin offers 26.76% revenue growth in FY26. Ashok Leyland brings 16.47% revenue growth in FY26. These are watchlist names for stocks with ROE of 20-30 per cent and PE below 25, not recommendations, so match each one to your own risk profile and time horizon.

Is Muthoot Finance a good stock for long-term investors?

Ans. Muthoot Finance has a return on equity of 28.01%, a PE of 9.06 against an industry PE of 17.97 and a market cap of Rs 1,03,780 crore. Net profit has compounded at 27.36% a year since FY22, and FY26 revenue rose 54.27% while June 2026 quarter net profit grew 43.08%. Long-term returns in stocks with ROE of 20-30 per cent and PE below 25 depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.

Can Bajaj Auto become a multibagger from here?

Ans. Bajaj Auto has already gained 165.89% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in stocks with ROE of 20-30 per cent and PE below 25 requires earnings to keep growing faster than the market for several years. Net profit has compounded at 14.44% a year since FY22, and FY26 revenue rose 24.05%. At a PE of 24.36 against an industry PE of 23.82, valuation should be checked against that growth before investing.

What is the market cap of Bajaj Auto, Muthoot Finance, Lupin and Ashok Leyland?

Ans. As of 20 October 2026, Bajaj Auto has a market cap of Rs 2,81,374 crore, Muthoot Finance has a market cap of Rs 1,03,780 crore, Lupin has a market cap of Rs 89,592 crore and Ashok Leyland has a market cap of Rs 86,933 crore. Bajaj Auto 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 ROE of 20-30 per cent and PE below 25.

What are the risks of investing in stocks with ROE of 20-30 per cent and PE below 25?

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. Bajaj Auto trades at a PE of 24.36 against an industry PE of 23.82, so earnings growth needs to hold up.

Is Muthoot Finance trading below its industry PE?

Ans. Muthoot Finance trades at a PE of 9.06 against an industry PE of 17.97. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 27.36% a year since FY22 and FY26 revenue rose 54.27%) and balance sheet strength before drawing a conclusion.

How much do institutions hold in Bajaj Auto, Muthoot Finance, Lupin and Ashok Leyland?

Ans. As of the latest reported quarter, FII and DII together hold 22.55% of Bajaj Auto (9.01% and 13.54%), 22.37% of Muthoot Finance (11.61% and 10.76%), 47.07% of Lupin (22.42% and 24.65%) and 36.44% of Ashok Leyland (20.68% and 15.76%). Rising institutional holding is a useful signal in stocks with ROE of 20-30 per cent and PE below 25, though it should be read with earnings trends rather than on its own.