Here in this article, we mention four blue-chip stocks that trade at valuations lower than their 10-year median P/E ratio. These leaders of industry in banking, IT, telecom, and public sector services are presenting investors with the chance to invest in high-quality companies at historically low prices.
1. HDFC Bank
HDFC Bank is a top private sector bank with a comprehensive array of financial products and services in India and overseas. The Bank serves through Treasury, Retail, Wholesale, and Other Banking segments, offering accounts, deposits, loans, credit cards, insurance, investment, and digital banking products. It also provides corporate clients with trade finance, working capital, treasury, and supply chain finance.
The company reported an interest earned growth of 18.59 percent to Rs 3,36,367 crores in FY25 from Rs 2,83,649 crores in FY24. Additionally, the company reported a net profit growth of 11 percent to Rs 70,792 crores in FY25 from Rs 64,062 crores in FY24. The company is trading at a P/E ratio of 20.8x, lower than its 10-year median P/E of 24.8x.
2. Tata Consultancy Services
TCS is an international IT services and consulting organization with solutions in banking, manufacturing, healthcare, telecom, and retail industries. Its products and services include cloud, AI, security, analytics, ERP, IoT, blockchain, and proprietary platforms such as TCS BaNCS, ADD, and iON.
The company reported a revenue growth of 5.99 percent to Rs 2,55,324 crores in FY25 from Rs 2,40,893 crores in FY24. Additionally, the company reported a net profit growth of 5.85 percent to Rs 48,797 crores in FY25 from Rs 46,099 crores in FY24. The company is trading at a P/E ratio of 26.6x, which is around its 10-year median P/E of 26.7x.
Also read: 500% Dividend: Stock jumps 5% announcing 1,050% YoY net profit growth and dividend
3. State Bank of India
SBI is India’s largest public sector bank, providing personal and corporate banking, insurance, and investment services. It provides loans, deposits, mutual funds, digital banking, trade finance, and international banking services to individuals, SMEs, corporates, and NRIs.
The company reported a revenue growth of 11.78 percent to Rs 4,90,938 crores in FY25 from Rs 4,39,189 crores in FY24. Additionally, the company reported a net profit growth of 15.79 percent to Rs 80,523 crores in FY25 from Rs 69,543 crores in FY24. The company is trading at a P/E ratio of 9.05x, lower than its 10-year median P/E of 11.9x.
4. Bharti Airtel
Airtel is a telecommunications behemoth with mobile, broadband, and DTH services in India and Africa. It offers 2G to 5G connectivity, enterprise solutions, data centers, digital TV, and value-added services such as streaming, cloud, and IoT through its business segments.
The company reported a revenue growth of 15.34 percent to Rs 1,72,985 crores in FY25 from Rs 1,49,982 crores in FY24. Additionally, the company reported a net profit growth of 338 percent to Rs 37,481 crores in FY25 from Rs 8,558 crores in FY24. The company is trading at a P/E ratio of 39.2x, lower than its 10-year median P/E of 62x.
Written by Satyajeet Mukherjee
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