Best Low PE Large Cap Stocks in India – Analysis & Complete List

Best Low PE Large Cap Stocks: Large-cap stocks are generally the best investment options for risk-averse investors. Because they are generally not prone to short-term volatility in the market. But most investors think that large-cap stocks are expensive to buy. 

In reality, if we check the PE of the stocks one would know whether the stocks are overvalued or undervalued. If the stocks are trading at low PE, it implies that they are available at a lesser cost which always excites the investors.

In this article about the best low PE Large Cap Stocks in India, let us see a few of the best low PE Large Cap Stocks in India which may be considered good long-term investment options.

Best Low PE Large Cap Stocks in India

To begin with, the article on best low PE large cap stocks in India, let us look into the company followed by their financial performance over the last year to get a clear idea about the stock. Keep reading to fin out more.

Best Low PE Large Cap Stocks #1 – LIC

Life Insurance Corporation of India (LIC) is the largest insurance provider in India. It has a market capitalization of Rs 3,81,966 Crores and is owned by the government of India. With a history of over 65 years in the insurance sector, it has a 62.58%  market share in terms of new business premiums making it a market leader in the insurance segment even after 5 decades since its inception.

LIC has become typically a synonym for insurance due to competitive strengths like trusted brand value, and strong financial & investment track record. It is the 10th strongest global insurance brand with over 20.4 million individual policies being serviced and a brand value of US$ 71 billion as of FY23.

The company also has a broad outreach with 5 zonal offices, 33 divisional offices, and 212 branches across the nation. It offers individual and group insurance services like life insurance, general insurance, term insurance, health insurance, pension products, and many more.

If we look into the financials of the company, we see that it has well performed with an increase in profit from Rs 4,125 in FY22 to Rs 35,997 Crore in FY23.

The return ratios of the company show that the invested capital is used efficiently. The ROE has grown from 36.38% to 82.18 % and ROCE from 0.33 to 0.91 from FY22 to FY23.

Above all, it is a debt-free company having the government of India itself as a promoter. Currently, the stock is trading at a low P/E of 10.5 compared to the industry average of 17.36.

CMP (In Rs)	618	Market Cap (in Rs Crs)	382,314
Stock P/E	10.82	Sector P/E	17.36
EPS (In Rs)	57.55	ROE (in %)	82.18
ROCE (in %)	0.91	Book Value (In Rs)	72.2
Promoter Holding (%)	96.5	Price to Book Value	8.38
Debt Equity Ratio	0	Face value (in Rs)	10

Best Low PE Large Cap Stocks #2 – Dr. Reddy’s Laboratories

Dr. Reddy’s Laboratories is an Indian Pharmaceutical company that was incorporated in 1984 by Anji Reddy in Hyderabad, India. The company manufactures pharmaceutical products for patients’ consumption, Active Pharmaceutical Ingredients (APIs) generics, biosimilars, and differentiated formulations.

The company has a global presence in over 66 countries with a total market capitalization of Rs 81,857 Crores. It has a long history of operating even in niche pharmaceutical product segments over the years with a market share of over 48%.

Going forward with the financials of the company, we see an overall increase in sales by 23.78% from Rs 21,545 Cr in FY22 to Rs 24,669 Cr in FY23. Their profits have also increased by  110% from Rs 2,112 Cr to Rs 4,470 Cr in the same period.

The company’s return ratios, ROE and ROCE stands at 19.35 % and 25.95% respectively for FY23. The company has a low debt to equity ration of 0.06.

Further, it has a low P/E of 18.13 compared to the sector P/E of 38.21. As the pharma sector is an essential need in society. This could be seen as a huge growth opportunity.

CMP (In Rs)	5089	Market Cap (in Rs Crs)	81,857
Stock P/E	19	Sector P/E	38.21
EPS (In Rs)	270.63	ROE (in %)	19.35
ROCE (in %)	25.95	Book Value (In Rs)	1153.59
Promoter Holding (%)	26.7	Price to Book Value	4.27
Debt Equity Ratio	0.06	Face value (in Rs)	5

Best Low PE Large Cap Stocks #3 – Wipro

Wipro is an Indian Multinational Conglomerate that was established initially as an IT service provider and later branched itself into other sectors including Aerospace & Defence, FMCG, Healthcare, Consumer electronics, and many more. It was incorporated in 1945 by Mohamed Premji.

It is a leading technology services and consulting company that aim to address the clients’ complex digital transformation needs. With a global presence in over 66 countries, the company has over 1400 active clients.

The revenue of the company has increased from Rs 79,312 Cr to Rs 90,487 Cr from FY22 to FY23. The net profits, however, have reduced from Rs 12,237 Cr to Rs 11,372 Cr due to increased expenditure.

The return ratios of of the company has fallen year on year with the ROCE falling down from 20.43% in FY22 to 17.46% in FY23. Meanwhile, the ROE has come down from 18.69% to 14.61% in the same period.

This shows that although there is a short-term fluctuation overall the stock has growth potential. It is a fundamentally strong company with a good brand value that is trading at a low P/E of 18.55 compared to a sector P/E of 28.42

CMP (In Rs)	405	Market Cap (in Rs Crs)	2,09,288
Stock P/E	18	Sector P/E	28.42
EPS (In Rs)	20.68	ROE (in %)	14.61
ROCE (in %)	17.46	Book Value (In Rs)	119.16
Promoter Holding (%)	72.92	Price to Book Value	3.2
Debt Equity Ratio	0.19	Face value (in Rs)	2

Best Low PE Large Cap Stocks #4 – Infosys

Infosys Limited is a multinational information technology company that was founded in 1981 in Pune, India by a group of seven engineers including N R Narayana Murthy, Nandan Nilekani, and others.

The company provides consultancy services including business consulting, IT consulting, and outsourcing services. With 40-plus years of service, it has a global presence in 56-plus countries.

The company provides consulting services to 184 companies out of Fortune 500 companies and is the first Indian company to get listed on NASDAQ.

Coming to the financials, the revenue, as well as profits of the company, are constantly increasing. The revenue has increased from Rs 1,21,641 Cr to Rs 1,46,767 Cr and their net profits have increased from Rs 22,146 Cr to Rs 24,108 Cr from FY22 to FY23.

If we look at the return ratios, they have grown consistently over the years from a ROCE of 31.8 in FY19 to 38.8 in FY23. The ROE has also increased from 23.71 to 31.95 from FY19 to FY23. This is a blue chip stock that is trading at a low P/E of 22.08 compared to its peers.

CMP (In Rs)	1427	Market Cap (in Rs Crs)	5,36,018
Stock P/E	23	Sector P/E	28.42
EPS (In Rs)	58.06	ROE (in %)	31.95
ROCE (in %)	38.79	Book Value (In Rs)	180.06
Promoter Holding (%)	15.14	Price to Book Value	7.18
Debt Equity Ratio	0	Face value (in Rs)	5

Best Low PE Large Cap Stocks #5 – Power Grid Corporation of India

Power Grid Corporation of India Limited is a Maharatna Public sector enterprise of the Government Of India that was established in 1989. It is India’s largest electric power transmission company. It was formed with the objective to set up extra-high voltage alternating current and high-voltage direct current(HDVC) transmission lines.

The company primarily works on the planning, implementation, maintenance, and operation of Inter-State Transmission Systems (ISTS) and Telecom Services. The government of India holds a 51.34% stake in the company. It has been given triple-A ratings by the agencies like CRISIL, ICRA, and CARE for its consistently good performance over the years.

The revenue has increased by from Rs 41,616 Cr to Rs 45,581 Cr from FY22 to FY23. But the overall Net Profits have reduced from Rs 16,824 Cr to Rs 15,417 Cr in the period due to increased operating Expenses.

The company has been declaring dividends on a regular basis for the last 10 years with the Dividend Per Share of Rs 34 in FY23. It is trading at a low P/E of 11.07 compared to the sector P/E of 17.68.

CMP (In Rs)	240	Market Cap (in Rs Crs)	171,910
Stock P/E	11.15	Sector P/E	17.68
EPS (In Rs)	22.1	ROE (in %)	18.57
ROCE (in %)	12.22	Book Value (In Rs)	119.01
Promoter Holding (%)	51.34	Price to Book Value	2.08
Debt Equity Ratio	1.52	Face value (in Rs)	10

List of Top Low PE Large Cap Stocks in India

Closing Thoughts

In this article on the best Low PE Large Cap Stocks in India, we have discussed in detail the best Low PE large-cap stocks that an investor can buy at a cheaper price due to their low PE. Hope this adds value to your investment journey. Happy Investing!

Written by Bhagyalakshmi Patil

By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions.