Low PE Ratio Stocks in India (2026)
Low PE ratio stocks in India refer to listed companies trading at a lower price-to-earnings multiple compared to the broader market or their sector peers. As of recent market data, the Nifty 50 has typically traded in the mid-teens to low-20s PE range, while several stocks across PSU, manufacturing, metals, and select financial segments continue to trade at single-digit or below-average PE multiples. These stocks often reflect subdued earnings expectations, cyclical pressures, or sector-specific factors, making the PE ratio a commonly tracked valuation metric for comparative analysis within the Indian stock market.
Top Low PE Ratio Stocks
Wednesday, 18 February, 2026
| symbol | Company | ticker | slug | Sector | Market Price | 52W High | 52W Low | Market Cap (Cr.) | PE Ratio | Industry PE | PB Ratio | Div. Yield (%) | ROE (%) | 1YReturns | 3YReturns | 5YReturns | Market Cap Label | Industry Group | Industry | Sub Industry | percentageChange |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AXBK | Axis Bank Ltd | AXISBANK | /stocks/axis-bank-AXBK | Private Banks | 1,357.20 | 1,418.30 | 978.05 | 421,597.97 | 15.03 | 18.58 | 2.24 | 0.07 | 16.25 | 36.68 | 58.76 | 74.50 | Largecap | Banks | Banks | Diversified Banks | -0.07 |
| ICBK | ICICI Bank Ltd | ICICIBANK | /stocks/icici-bank-ICBK | Private Banks | 1,407.50 | 1,500.00 | 1,200.10 | 1,007,330.52 | 19.74 | 18.58 | 3.06 | 0.78 | 17.04 | 12.50 | 63.16 | 114.12 | Largecap | Banks | Banks | Diversified Banks | -0.17 |
| ITC | ITC Ltd | ITC | /stocks/itc-ITC | FMCG - Tobacco | 325.45 | 444.20 | 302.00 | 407,763.77 | 11.74 | 34.63 | 5.79 | 4.40 | 47.83 | -20.35 | -10.27 | 57.99 | Largecap | Food, Beverage & Tobacco | Tobacco | Tobacco | 1.21 |
| KTKM | Kotak Mahindra Bank Ltd | KOTAKBANK | /stocks/kotak-mahindra-bank-KTKM | Private Banks | 424.45 | 460.38 | 378.78 | 422,177.37 | 19.08 | 18.58 | 2.68 | 0.12 | 15.39 | 9.10 | 20.63 | 6.68 | Largecap | Banks | Banks | Diversified Banks | -0.20 |
| LIC | Life Insurance Corporation Of India | LICI | /stocks/life-insurance-corporation-of-india-LIC | Insurance | 874.10 | 980.00 | 715.30 | 552,868.05 | 11.44 | 18.58 | 4.34 | 1.37 | 45.93 | 14.24 | 45.04 | -0.13 | Largecap | Insurance | Insurance | Life & Health Insurance | 0.09 |
| NTPC | NTPC Ltd | NTPC | /stocks/ntpc-NTPC | Power Generation | 368.40 | 372.00 | 292.80 | 357,225.18 | 15.25 | 22.52 | 1.87 | 2.27 | 13.15 | 21.85 | 119.22 | 270.81 | Largecap | Utilities | Independent Power and Renewable Electricity Producers | Independent Power Producers & Energy Traders | 0.38 |
| ONGC | Oil and Natural Gas Corporation Ltd | ONGC | /stocks/oil-and-natural-gas-corporation-ONGC | Oil & Gas - Exploration & Production | 271.85 | 280.30 | 205.00 | 341,994.89 | 9.44 | 19.61 | 0.91 | 4.51 | 9.87 | 16.35 | 73.60 | 165.87 | Largecap | Energy | Oil, Gas & Consumable Fuels | Integrated Oil & Gas | -2.78 |
| PGRD | Power Grid Corporation of India Ltd | POWERGRID | /stocks/power-grid-corporation-of-india-PGRD | Power Transmission & Distribution | 300.75 | 322.00 | 247.30 | 279,715.66 | 18.02 | 22.52 | 3.02 | 2.99 | 17.26 | 14.27 | 87.56 | 132.42 | Largecap | Utilities | Electric Utilities | Electric Utilities | -0.05 |
| SBI | State Bank of India | SBIN | /stocks/state-bank-of-india-SBI | Public Banks | 1,213.40 | 1,225.50 | 680.00 | 1,120,043.14 | 14.44 | 18.58 | 2.22 | 1.27 | 16.58 | 66.74 | 128.51 | 194.69 | Largecap | Banks | Banks | Diversified Banks | 0.56 |
| WIPR | Wipro Ltd | WIPRO | /stocks/wipro-WIPR | IT Services & Consulting | 215.69 | 316.50 | 209.01 | 225,953.09 | 17.20 | 25.12 | 2.72 | 2.78 | 16.61 | -29.36 | 6.17 | 0.27 | Largecap | Software & Services | Software | IT Consulting & Other Services | -2.15 |
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.
Note: The data in the above table is dynamic in nature and subject to real-time changes. This data is derived from Tickertape Stock Screener.
- PE Ratio (%) : Low,
- Sorted based market cap.
What is P/E Ratio?
The price-to-earnings (P/E) ratio compares a company’s share price with its earnings per share (EPS):
P/E = Market Price per Share ÷ Earnings per Share (EPS)
This ratio indicates how the market prices a company’s current earnings. For example, if a stock trades at ₹200 and reports earnings per share of ₹20, the P/E ratio is 10. This means investors are currently paying 10 times the company’s earnings per share.
What are Low PE Stocks?
Low-priced-to-earnings stocks trade at lower multiples of earnings than their benchmarks (such as their industry or a peer group). Because sectors carry different “normal” P/Es, comparisons are most meaningful within the same industry.
If a share trades at ₹50 and its EPS is ₹5, the P/E is 10. Whether that is considered “low” depends on what similar companies in the same sector are trading at. A comparison against an appropriate peer average provides the context; it does not, by itself, determine fair value.
Overview of the Best Low PE Stocks
- ICICI Bank Ltd: ICICI Bank Ltd is one of India’s largest private sector banks, offering retail, corporate, and investment banking services.
- State Bank of India: State Bank of India (SBI) is India’s largest public sector bank, providing retail, corporate, and rural banking services.
- Life Insurance Corporation of India (LIC): LIC is India’s largest life insurance company, wholly owned by the Government of India.
- Axis Bank Ltd: Axis Bank Ltd is a large private sector bank in India, offering retail, corporate, and digital banking services, with nationwide branch presence and operations globally.
- Kotak Mahindra Bank Ltd: Kotak Mahindra Bank Ltd is a major private sector bank in India offering retail, corporate, and treasury services.
How to Invest in Low PE Stocks?
Here is how you can invest in the low PE ratio stocks:
- Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
- Conduct thorough research into the top low PE ratio stocks in India using Tickertape Stocks Screener. The screener offers over 200 built-in filters, allowing investors to select parameters and generate a list of low PE stocks.
- Place a ‘Buy’ Order on the top low PE stocks that align with your investment thesis.
Features of Low PE Ratio Stocks in India
- Valuation Characteristics: These stocks trade at earnings multiples significantly below market or sector benchmarks. Compressed valuations typically emerge when markets price in lower growth expectations, cyclical headwinds, or company-specific challenges.
- Sectoral Patterns: Low PE stocks frequently cluster in specific sectors. Public Sector Undertakings (PSUs) in banking, oil & gas, and power often trade at single-digit multiples. Traditional manufacturing sectors like automobiles, metals, and commodities see lower valuations during down-cycles.
- Business Profile: Companies with low PE ratios often operate mature businesses in established industries with limited rapid expansion opportunities. These businesses demonstrate stable but modest revenue growth, with substantial earnings but linear rather than exponential growth trajectories.
- Income Characteristics: Low PE stocks frequently exhibit higher dividend yields. With steady cash flows but limited high-return reinvestment opportunities, these companies often distribute larger profit portions to shareholders through higher dividend payout ratios.
Benefits of Low PE Stocks
- Potential Undervaluation: A low PE ratio can signal undervaluation relative to sector averages or historical norms. It highlights companies trading at relatively low valuations.
- Opportunities in overlooked sectors: In India, cyclical industries such as manufacturing, infrastructure, and public sector enterprises often trade at lower PE ratios during downturns. These low PE stocks in India may perform better if the cycle recovers, though this depends on demand, policy support, and sector outlook.
- Potential for Returns: In some cases, a company may have strong fundamentals while trading at a lower PE ratio than its peers. Such high-potential low PE stocks could show stronger performance if earnings visibility improves or market sentiment shifts
Risks of Investing in Low PE Stocks
- May reflect deeper business problems: A low PE ratio may indicate poor earnings quality, management challenges, or weakening demand for the company’s products or services. These low PE ratio shares may not perform well in long term if the underlying issues are not addressed.
- Value Trap Risk: Some low PE stocks or penny stocks trade at low valuations for long periods. If earnings do not improve, these stocks may stay undervalued or continue to decline.
- Negative Market Sentiment: Even strong companies can appear as low price-to-earnings stocks if market confidence remains weak, leading them to trade at discounted valuations despite reasonable fundamentals.
- Limitations of a Single Metric: The PE ratio shows only part of a company’s valuation. Without accounting for debt, cash flows, and industry trends, an analysis of low-priced stocks may give an incomplete picture.
Factors to Consider When Investing in Low PE Stocks
- Earnings Quality: A company may trade as a low PE stock, but it’s important to study whether earnings are consistent, reliable, and supported by strong demand rather than short-term gains.
- Industry Comparison: Low PE high growth stocks should be compared within their sector, since valuations vary across industries, and what looks undervalued in one sector may be standard in another.
- Growth Prospects: Certain low PE high growth stocks may combine reasonable valuations with expansion opportunities. Checking revenue drivers, market positioning, and future projects helps to understand sustainability in the long run.
- Financial Health: Some low PE ratio shares can appear undervalued due to high debt or poor cash flows. However, only reviewing balance sheets helps assess if valuations reflect financial risks.
- Growth Prospects: Although some low PE high growth stocks may be undervalued today, their performance could improve over time if they have expansion plans or new projects. Reviewing revenue drivers, market position, and future projects helps assess their actual value.
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To Wrap It Up…
Low PE stocks may either indicate undervalued opportunities or reflect weak earnings quality, sector-specific risks, or negative market sentiment. That’s why it’s important not to rely solely on the PE ratio when making investment decisions. A detailed low PE ratio shares analysis requires reviewing earnings stability, debt levels, cash flows, and industry conditions. Investors can use Tickertape Stock Screener for their analysis, which comes with more than 200 filters to analyse low PE large cap stocks based on various metrics.
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Frequently Asked Questions About Low PE Ratio Stocks
1. What are low PE stocks?
Low PE stocks are companies trading at a lower price-to-earnings multiple compared to peers or industry averages. For example, if a stock has a P/E of 10, it means investors are paying ₹10 for every ₹1 of the company’s earnings. These stocks are often viewed as potential opportunities, especially in the low PE stocks in India segment.
2. How to choose Low PE Stocks in India for investing?
A low PE ratio doesn’t always mean an undervalued opportunity, so it’s important to analyse low PE large cap stocks based on other factors as well. Using Tickertape, investors can analyse beyond the P/E ratio by reviewing debt levels, cash flows, earnings stability, and more before making a decision. This can help identify low PE stocks with higher growth potential.
3. Can low PE stocks in India be profitable for investors?
A low PE ratio alone does not decide whether a stock will be profitable. Profitability depends on various factors such as earnings stability, revenue growth, debt levels, management quality, and overall industry conditions. Investors should also consider low PE high-growth stocks for better returns.
4. What is a good PE ratio for stocks?
It’s important to note that the average P/E ratio can differ by industry, so what is deemed favourable or unfavourable depends on the comparison context. In some sectors, a low PE ratio in stock market could indicate an undervalued stock.
5. How to find the top low PE stocks by market cap?
You can find the top low PE stocks by market cap using tools like Tickertape, which allows you to screen stocks by market cap and valuation. This helps identify low PE stocks in Nifty 50 or other indices, along with other financial factors.
6. Is a low PE good for a stock?
A low PE ratio isn’t inherently good or bad, and it depends on context. Low valuations may reflect genuine value opportunities or signal underlying business challenges, declining growth prospects, or structural issues. Investors evaluate whether the low PE represents temporary mispricing or justified concerns about the company’s future.
7. What if the PE ratio is too low?
An extremely low PE ratio often signals severe market concerns about the company’s viability, such as potential financial distress, deteriorating fundamentals, or existential business threats. It may indicate a “value trap” where cheap valuations reflect justified pessimism rather than opportunity. Conversely, it could represent significant mispricing in rare cases.
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