Low PE Ratio Stocks in India (2025)
Most investors keep a close eye on a few key metrics to make sense of the stock market, and the price-to-earnings (P/E) ratio is usually one of them. The PE ratio is an indicator that shows how the market values a company relative to its earnings. In this article, we explain what the P/E ratio is, what low PE stocks mean, their benefits and risks, and the key factors to consider.
Top Low PE Ratio Stocks
Friday, 19 September, 2025
| 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 | 1,133.00 | 1,281.65 | 933.50 | 351,533.62 | 12.53 | 17.18 | 1.87 | 0.09 | 16.25 | -8.66 | 41.96 | 155.55 | Largecap | Banks | Banks | Diversified Banks | 0.62 |
| ICBK | ICICI Bank Ltd | ICICIBANK | /stocks/icici-bank-ICBK | Private Banks | 1,421.70 | 1,500.00 | 1,186.00 | 1,014,977.13 | 19.89 | 17.18 | 3.09 | 0.77 | 17.04 | 10.35 | 58.11 | 284.71 | Largecap | Banks | Banks | Diversified Banks | 0.18 |
| ITC | ITC Ltd | ITC | /stocks/itc-ITC | FMCG - Tobacco | 411.55 | 499.97 | 390.15 | 515,554.05 | 14.84 | 38.35 | 7.32 | 3.48 | 47.83 | -14.25 | 29.63 | 142.90 | Largecap | Food, Beverage & Tobacco | Tobacco | Tobacco | 0.55 |
| KTKM | Kotak Mahindra Bank Ltd | KOTAKBANK | /stocks/kotak-mahindra-bank-KTKM | Private Banks | 2,054.60 | 2,301.90 | 1,679.05 | 408,576.22 | 18.47 | 17.18 | 2.59 | 0.12 | 15.39 | 11.68 | 6.48 | 60.88 | Largecap | Banks | Banks | Diversified Banks | 0.21 |
| LIC | Life Insurance Corporation Of India | LICI | /stocks/life-insurance-corporation-of-india-LIC | Insurance | 889.40 | 1,048.90 | 715.30 | 562,545.30 | 11.64 | 17.18 | 4.41 | 1.35 | 45.93 | -12.68 | 35.84 | 1.62 | Largecap | Insurance | Insurance | Life & Health Insurance | 0.46 |
| NTPC | NTPC Ltd | NTPC | /stocks/ntpc-NTPC | Power Generation | 336.95 | 448.45 | 292.80 | 326,729.17 | 13.95 | 21.77 | 1.71 | 2.48 | 13.15 | -18.64 | 97.05 | 272.11 | Largecap | Utilities | Independent Power and Renewable Electricity Producers | Independent Power Producers & Energy Traders | 0.16 |
| ONGC | Oil and Natural Gas Corporation Ltd | ONGC | /stocks/oil-and-natural-gas-corporation-ONGC | Oil & Gas - Exploration & Production | 235.59 | 302.00 | 205.00 | 296,378.80 | 8.18 | 18.62 | 0.79 | 5.20 | 9.87 | -18.87 | 80.46 | 217.08 | Largecap | Energy | Oil, Gas & Consumable Fuels | Integrated Oil & Gas | -0.54 |
| PGRD | Power Grid Corporation of India Ltd | POWERGRID | /stocks/power-grid-corporation-of-india-PGRD | Power Transmission & Distribution | 289.10 | 366.25 | 247.30 | 268,880.46 | 17.32 | 21.77 | 2.90 | 3.11 | 17.26 | -13.52 | 65.33 | 198.93 | Largecap | Utilities | Electric Utilities | Electric Utilities | 0.68 |
| SBI | State Bank of India | SBIN | /stocks/state-bank-of-india-SBI | Public Banks | 854.35 | 875.45 | 680.00 | 788,617.81 | 10.17 | 17.18 | 1.56 | 1.80 | 16.58 | 7.77 | 49.30 | 343.59 | Largecap | Banks | Banks | Diversified Banks | -0.33 |
| WIPR | Wipro Ltd | WIPRO | /stocks/wipro-WIPR | IT Services & Consulting | 256.93 | 324.60 | 228.00 | 269,061.72 | 20.48 | 27.89 | 3.24 | 2.34 | 16.61 | -4.51 | 27.84 | 62.36 | Largecap | Software & Services | Software | IT Consulting & Other Services | 1.09 |
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 on this low PE ratio stocks screener is dynamic in nature and subject to real-time changes. This data is derived from Tickertape Stock Screener.
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 ten times the company’s earnings for each share.
What are Low P/E Ratio Stocks?
Low price-to-earnings stocks trade at a lower multiple of earnings than relevant benchmarks (such as their industry or a peer set). 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 Ratio 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.
- ITC Ltd: ITC Ltd is a diversified Indian conglomerate with interests in FMCG, hotels, paperboards, packaging, and agribusiness.
- 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 Ratio Stocks?
Here is how one can invest in low PE stocks in NSE in India:
- Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
- Conduct thorough research into the Indian low PE stocks list that are of interest to you. Investors can use tools like the Tickertape low PE stock screener to do this. The screener offers 200+ built-in filters to choose from, and investors can choose the parameters to research.
- Place a ‘Buy’ Order on the low PE ratio shares of your choosing.
Benefits of Low P/E Ratio Stocks
- Potential Undervaluation: A low P/E ratio can signal undervalued stocks when compared to sector averages or historical norms. It highlights companies that trade at relatively cheaper valuations.
- Opportunities in overlooked sectors: In India, cyclical industries such as manufacturing, infrastructure, or public sector enterprises often show lower P/E 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 P/E 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 Ratio 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 P/E ratio shows only part of a company’s valuation. Without including debt, cash flows, and industry trends, analysis of low price-to-earnings stocks may give an incomplete picture.
Factors to Consider When Investing in Low PE Ratio 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 price-to-earnings 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 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 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 solely rely on 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 stocks based on various metrics.
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Frequently Asked Questions About Low PE Ratio Stocks
1. What are low PE ratio stocks?
Low PE ratio 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.
2. How to choose Low PE Ratio Stocks for investing?
A low P/E ratio doesn’t always mean an undervalued opportunity, so it’s important to analyse 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.
3. Can low PE stocks 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.
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.
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 small-cap stocks, low PE mid-cap stocks, and low PE large-cap stocks, along with other financial factors.
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