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Low PE Ratio Stocks

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Here you get all NSE/BSE stocks with a price-to-earnings (PE) ratio of 20 or lower. These stocks are potentially undervalued compared to their earnings, offering opportunities for value investors looking for companies that may be trading at a discount to their intrinsic value.

List of Shares with Low PE Ratio

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Name
LTP
Change %
Volume
Market Cap (Cr.)arrow
PE Ratio
Industry PE
52W High
52W Low
1M Returns
3M Returns
1 Yr Returns
3 Yr Returns
5 Yr Returns
PB Ratio
Dividend Yield
ROE
ROCE
EPS
50 DMA
200 DMA
RSI
MTF
Margin Pledge

I

ICICI Bank

1,359.60

-1.18%1,83,42,2809,81,63718.3814.95 1,500.001,186.00-4.02%-5.52%2.30%57.90%274.55%3.130.81%16.67%6.13%64.381,429.241,361.8830.5278.00%91.00%

S

State Bank of India

856.95

-0.49%69,59,5457,68,5449.969.66 880.50680.006.08%7.52%6.87%57.73%357.65%1.531.79%15.83%5.57%81.94820.99790.1267.1478.00%91.00%

L

LIC of India

872.45

-1.77%4,99,9205,61,78611.3351.47 1,048.90715.30-1.79%-8.89%-15.14%38.36%-0.32%4.341.38%49.36%0.87%66.13891.65861.6250.1976.00%80.00%

A

Axis Bank

1,154.00

-1.08%56,18,9323,61,77212.8514.95 1,281.65933.509.89%-6.45%-9.64%55.40%162.72%1.920.09%16.77%6.50%86.461,087.941,103.3174.1478.00%91.00%

N

NTPC

337.90

-0.76%63,37,7023,30,17213.6738.84 448.45292.801.41%0.22%-22.25%113.05%286.17%1.782.47%12.31%9.85%22.08335.56335.9556.2676.00%90.30%

O

Oil & Natural Gas Corporation

238.02

-0.69%63,49,4663,01,5128.2919.99 301.80205.001.64%-2.74%-19.37%92.81%231.27%0.875.14%15.64%11.31%36.35237.47242.5859.0776.00%88.98%

P

Power Grid Corporation of India

282.25

-0.76%89,59,0352,64,50917.0038.84 366.10247.300.84%-3.83%-22.77%87.37%198.42%2.833.19%18.53%12.27%16.88287.48292.0546.9076.00%90.17%

W

Wipro

235.75

-2.58%1,69,99,6282,53,66818.3529.20 324.60228.00-6.46%-12.20%-12.99%19.43%51.34%3.192.54%14.88%18.97%21.37249.99269.3938.0476.00%89.24%

T

Tata Motors

672.90

1.29%1,57,80,4342,44,56011.4639.69 1,000.40535.75-1.28%-1.44%-32.25%69.28%406.51%2.230.89%34.17%18.34%102.18683.31695.9837.1876.00%88.23%

C

Coal India

389.15

-0.85%46,98,6932,41,8877.2323.40 517.85349.254.48%-1.27%-23.18%80.58%224.29%2.426.81%44.71%24.48%59.34385.40386.7554.5176.00%90.35%

I

Indian Oil Corporation

145.04

-0.81%1,19,25,3052,06,48113.449.64 182.46110.724.38%-0.85%-15.36%119.59%187.61%1.102.02%22.94%9.53%21.83143.88137.1257.9876.00%80.00%

H

Hindustan Zinc

449.10

-3.78%65,24,7901,97,21718.4123.40 575.40378.154.41%0.04%-13.13%64.84%114.01%14.236.46%51.06%62.89%19.26437.88444.6562.9458.00%80.00%

V

Vedanta

447.95

-2.97%1,02,71,9391,80,52313.2723.40 526.95363.004.61%-1.66%-10.72%69.49%222.03%4.259.71%17.92%28.36%13.95442.23442.1559.9275.86%80.00%

H

Hindalco Industries

743.85

-0.24%36,36,2651,67,5649.6621.76 772.65546.455.41%7.71%1.25%99.21%343.56%1.350.66%9.57%12.85%48.78712.36656.3359.4476.00%88.76%

B

Bharat Petroleum

324.35

-1.61%56,92,6651,43,0198.029.64 376.00234.013.93%-1.64%-6.01%112.76%68.42%1.733.04%35.51%17.05%44.92323.27300.2260.9576.00%80.00%

P

Power Finance Corporation

397.30

-2.00%42,14,1151,33,7865.3917.86 523.90357.252.25%-5.46%-17.31%366.31%464.67%1.113.98%19.70%9.24%62.81405.72414.4552.1272.83%80.00%

B

Bank of Baroda

248.45

-1.73%76,52,7821,30,7426.609.66 266.95190.705.66%3.81%1.35%93.87%473.13%0.843.37%15.25%5.69%36.82241.83234.3967.4776.00%80.00%

P

Punjab National Bank

107.79

-3.24%1,83,77,0531,28,0317.459.66 115.7185.464.88%1.45%0.47%199.42%257.51%0.952.69%8.25%5.75%10.66107.26102.0861.1676.00%80.00%

M

Muthoot Finance

3,020.30

-1.03%4,56,3281,22,51119.6751.47 3,100.801,756.0512.99%16.92%47.51%215.86%177.14%4.120.86%16.57%13.76%111.252,760.702,389.9367.7676.00%80.00%

S

Shriram Finance

606.05

-1.09%39,58,0211,15,22013.3951.47 730.45493.351.91%-13.82%-16.49%157.90%392.60%2.021.63%14.88%10.65%201.17618.80622.0847.5175.03%85.00%

G

GAIL

172.02

-1.38%87,60,3561,14,68311.6033.37 245.00150.520.22%-7.91%-25.39%102.73%192.55%1.334.36%12.83%15.14%17.17177.33180.7742.4276.00%80.00%

C

Canara Bank

118.08

-2.77%2,55,31,8041,10,1545.799.66 124.5578.6011.39%6.31%7.18%171.89%548.79%1.083.39%15.87%6.11%17.21110.88102.0770.5376.00%80.00%

D

Dr Reddys Laboratories

1,253.10

-1.73%22,84,3771,06,42518.4040.80 1,405.901,020.00-0.80%-5.18%-7.10%51.79%22.14%3.120.64%19.74%21.88%333.591,267.301,243.9546.5178.00%91.00%

U

Union Bank of India

134.08

-3.38%80,38,7151,05,9325.449.66 158.65100.813.40%-9.48%5.61%216.60%440.65%0.953.54%14.05%6.23%18.56134.40128.5459.6673.93%80.00%

R

REC

367.40

-2.09%45,01,24298,8125.7317.86 573.30348.601.06%-8.96%-32.48%275.47%379.76%1.244.90%20.40%9.48%55.59381.95419.3846.4872.32%80.00%

I

IDBI Bank

89.57

-1.45%46,50,91997,72912.1714.95 106.3265.89-2.50%-6.15%1.46%122.53%155.55%1.882.34%11.35%5.31%5.8592.0785.2745.7960.00%75.00%

I

Indian Bank

706.35

-0.85%12,77,06795,9588.289.66 722.00473.907.69%11.07%32.61%279.35%1,126.30%1.482.30%13.49%5.89%67.86664.60588.4368.6675.78%80.00%

I

Indus Towers

346.30

-2.85%1,00,14,82594,0379.5822.56 430.00312.551.09%-16.62%-12.05%86.18%86.28%2.87-22.32%28.12%24.54355.99364.1653.7975.51%80.00%

H

Hindustan Petroleum

422.25

-0.30%55,79,73790,1138.799.64 455.20287.5510.26%0.46%0.07%188.03%244.22%1.762.49%34.13%12.56%46.45405.83386.2369.0074.69%80.00%

I

Indian Overseas Bank

38.20

-1.77%48,92,08474,88918.729.66 59.9433.500.05%1.00%-34.89%123.39%300.00%2.55-9.67%5.53%1.4938.4342.2847.6664.04%80.00%

O

Oil India

410.25

-1.10%15,03,16667,47210.1819.99 595.00325.002.85%-7.25%-27.29%243.79%592.64%1.342.80%23.55%11.77%51.54415.50418.7957.9572.79%80.00%

N

NMDC

74.99

-1.82%2,43,63,08067,15210.0823.40 82.8359.537.31%6.29%-3.98%159.75%290.37%2.224.40%24.47%29.74%20.8272.7769.0459.5075.15%80.00%

A

Aurobindo Pharma

1,090.00

-0.64%24,25,82163,71418.8440.80 1,530.301,010.004.25%-2.96%-28.07%117.07%36.13%1.96-10.62%15.74%61.221,084.181,151.0953.7876.00%80.00%

G

GIC of India

359.70

-0.11%5,22,01463,1767.3751.47 525.50347.00-3.59%-5.73%-10.06%201.89%186.73%1.302.78%14.56%-53.04%40.52376.17401.8335.2064.68%80.00%

S

Steel Authority of India

131.02

-4.03%90,29,95256,39017.7827.95 144.2099.159.24%-1.95%-5.88%75.39%267.00%0.921.22%3.98%6.70%9.38128.05119.8966.1673.43%80.00%

M

Motilal Oswal Financial Services

910.75

-1.01%5,76,55055,15819.6851.47 1,064.00513.000.20%6.04%20.66%391.02%469.90%4.940.55%27.89%25.66%46.83918.46799.7249.6461.83%79.96%

B

Bank of India

116.33

-2.86%61,73,94054,5235.369.66 130.2490.053.51%-0.53%5.27%145.42%176.32%0.733.48%9.28%5.62%15.14114.69110.6760.5170.00%75.00%

A

Authum Inv & Infr

2,965.50

-1.24%92,47750,99812.3151.47 3,295.001,325.50-5.13%12.06%73.88%220.18%220.18%3.430.02%125.98%25.88%304.682,988.182,196.4744.4850.00%70.00%

F

Federal Bank

191.82

-0.78%38,60,75547,52011.6414.95 220.00172.66-0.33%-8.67%-0.39%72.81%279.84%1.370.63%12.70%6.45%16.45198.37196.7942.3376.00%80.00%

H

HUDCO

220.05

-3.68%23,17,53745,73315.8417.86 262.70158.855.85%-8.48%-6.20%530.52%581.27%2.451.89%11.02%8.50%11.13217.91219.0757.8769.35%80.00%

B

Bank of Maharashtra

53.99

-2.42%69,12,77142,5577.229.66 61.1742.001.43%0.28%-10.08%213.90%367.45%1.552.78%20.49%5.10%6.3355.0652.1851.0960.00%75.00%

P

Petronet LNG

266.90

-1.22%18,94,61940,53010.7933.37 368.65267.90-0.71%-10.97%-20.64%32.49%20.01%2.013.75%20.26%23.63%26.26281.38302.1937.4276.00%80.00%

M

M&M Financial Services

279.75

0.05%17,66,80738,86416.9751.47 333.74231.527.39%4.00%-15.56%56.90%129.83%1.592.06%9.73%8.28%16.77264.78265.5958.1976.00%80.00%

N

NLC India

279.53

-0.01%90,28,79238,76313.6638.84 296.80186.0318.42%22.23%1.32%309.87%450.26%2.091.06%8.09%9.82%14.49243.66234.9275.4764.70%80.00%

N

NALCO

200.58

-2.45%64,36,83437,7636.4321.76 262.99137.757.83%3.61%-1.20%191.12%513.39%2.075.24%10.93%36.82%10.50197.34190.3351.2471.97%80.00%

U

UCO Bank

29.44

-2.19%71,82,99637,74414.949.66 52.0026.813.55%-2.90%-39.36%153.79%134.58%1.331.32%6.08%5.32%1.6729.4834.6755.3550.00%70.00%

C

Cholamandalam Financial Holdings

1,839.60

-1.57%94,30435,09615.6651.47 2,231.601,357.353.09%-10.06%-11.53%194.31%353.10%2.760.07%17.35%9.82%103.821,885.241,758.3048.3566.43%80.00%

A

ACC

1,824.40

-1.47%2,57,76934,77114.6743.62 2,544.901,778.451.44%-3.05%-26.21%-23.29%32.65%1.850.41%14.31%16.38%107.421,845.361,928.3250.0676.00%80.00%

C

Central Bank of India

36.21

-2.92%51,89,46333,7627.779.66 61.9032.753.93%-6.53%-39.10%86.17%125.61%0.990.52%8.25%5.19%3.5936.4842.1256.3664.52%80.00%

L

LIC Housing Finance

564.95

-1.13%7,88,42431,4315.6528.57 671.35483.700.81%-9.18%-15.23%43.28%100.19%0.861.77%15.12%9.65%86.33579.06581.0847.9776.00%80.00%

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Please Note:

  • PE Ratio: Share Price/Earning Per Share
  • PB Ratio: Market Cap/Book Value
  • ROE: Net Income/Shareholder's Equity
  • ROCE: Earning Before Interest & Tax (EBIT)/Capital Employed
  • EPS: (Net Income-Preferred Dividend)/Weighted Average Number of Shares Outstanding
  • 50 DMA: Simple Moving Average of the past 50 days closing prices for a stock.
  • 200 DMA: Simple Moving Average of the past 200 days closing prices for a stock.
  • RSI: Relative Strength Index (14) is a momentum indicator to measure price changes to analyse overbought/oversold conditions.
  • MTF: % Amount Funded by Dhan.
  • Margin Pledge: % Collateral Benefit for Additional Margin.

*The scrips mentioned above are just for research purpose and not recommendations. Please do your own due diligence before investing.


What are the most accurate indicators?

Stocks with low price-to-earnings (PE) ratios are sometimes undervalued, especially when compared against the market or other similar companies. The most accurate indicators include:

  • Historical PE Ratio: If a company's current PE ratio is at the low end of its historical range, it may suggest the stock is undervalued compared to its past performance.
  • PE Ratio Compared to Industry Peers: A stock with a PE ratio much lower than its industry average might indicate undervaluation or potential issues specific to the company.
  • Earnings Stability and Growth: If a company has a history of steady or rising earnings, a low PE ratio makes the stock even more attractive.
  • Dividend Yield: Companies with low PE ratios often offer attractive dividend yields, suggesting that investors are being rewarded while waiting for possible price increases.
  • High Return Ratios: A high Return on Equity (ROE) or Return on Capital Employed (ROCE) with a low PE signals strong profitability.

How to identify good ones?

Identifying good Low PE Ratio Stocks requires examining the following factors:

  • Sector-Relative Screening: Begin with stock screeners filtering companies that trade at a PE below their sector average, identifying potential undervalued stocks.
  • Validate Low Valuation Cause: Assess why the valuation is low. Is it due to temporary, fixable issues, or are there deeper, structural problems within the company or its industry?
  • Evaluate Growth Consistency: Consistent revenue and profit growth over 3–5 years improves the chances that the low PE is a market mispricing rather than a red flag, indicating sustainable business expansion..
  • Check PEG Ratio: A PEG (Price-to-Earnings to Growth) ratio of below 1 (or significantly below 1) is a strong indicator of undervaluation relative to the company's expected earnings growth potential.
  • Regulatory & Industry Challenges: Verify whether the company has successfully dealt with any past regulatory problems or significant industry downturns that may have temporarily depressed the stock price, suggesting resilience.

How to analyse?

Analyzing low PE ratio stocks requires a thorough, multi-faceted approach that combines valuation assessment with both in-depth fundamental and selective technical factors. This includes:

  • Comparative PE Analysis: Compare the stock's current PE ratio with its industry average, historical PE range, and against broader market indices to identify valuation anomalies.
  • Financial Health Metrics: Examine key financial health indicators such as debt levels (e.g., Debt-to-Equity ratio), operating margins (e.g., EBITDA margin), and return ratios (ROE/ROCE) to assess the company's overall financial robustness and efficiency.
  • Profitability & Cash Flow Trends: A company with consistently improving profit margins and stable, positive cash flows is significantly more likely to get re-rated positively by the market over time, realizing its true value.
  • Sector Cycle Awareness: Pay close attention to sector-specific cycles, as a low PE might be normal for a sector in a downturn, but signals opportunity if the sector is on the road to recovery.

Where do most investors or traders go right/wrong?

Investors commonly succeed with low PE stocks when they perform deep due diligence, combining valuation metrics with fundamental analysis and growth assessments. They avoid value traps by verifying that low PE isn't due to deteriorating earnings or financial distress. Success comes from focusing on companies with strong balance sheets, stable earnings, and favorable sector trends, as well as using supplementary tools like PEG ratios.Common mistakes include buying solely based on a low PE without investigating underlying problems, such as stocks may remain cheap or “value traps” due to unresolved issues (declining earnings, corporate governance risks, or sectoral headwinds). Another mistake that most traders make is ignoring liquidity, sector shifts, or structural challenges. Overtrading, in the hope of automatic mean reversion, or neglecting diversification, adds more risk and can lead to huge losses. Effective low PE investing requires fundamental research, context-based analysis, and the discipline to avoid chasing misleading bargains.

Frequently Asked Questions

Choose Low PE Ratio stocks by identifying companies with strong earnings but low price-to-earnings ratios. This indicates potential undervaluation. Assess the company's financial health, industry position, and future growth prospects to ensure that the low PE ratio reflects a good investment opportunity.
Investing in Low PE Ratio stocks can offer potential for high returns if the market recognizes the undervaluation. These stocks often provide a margin of safety, as their prices are low relative to earnings, indicating less downside risk and potential for price appreciation.
The risks include the possibility that the low PE ratio reflects underlying problems in the company, such as declining earnings or industry challenges. External economic factors and market sentiment can also affect these stocks, leading to potential losses if the issues are not resolved.
Low PE Ratio stocks can be suitable for beginners, as they often represent value opportunities. However, beginners should conduct thorough research to understand why the PE ratio is low and consider diversifying their investments to manage risks effectively.
Low PE Ratio stocks can be a good investment if the low ratio is due to temporary factors and the company has strong fundamentals. They offer potential for growth and value appreciation. However, comprehensive research and careful analysis are essential to ensure informed investment decisions.

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