Low PE Stocks in Nifty 100: List, PE Ratio and How to Analyse Them
Blog by Aliceblue News Desk
08 October 2026
Low PE stocks in Nifty 100 are companies in the index trading at a lower price-to-earnings ratio than the selected comparison group. A low PE means the market price is low compared with reported earnings. It does not prove that a stock is undervalued. Falling profits, high debt, cyclical earnings, or weak growth expectations can also lead to a low PE.
Table of Contents
- Low PE Stocks in Nifty 100
- What Is the PE Ratio?
- How Is the PE Ratio Calculated?
- How to Find Low PE Stocks
- Why Do Some Stocks Have a Low PE?
- Key Characteristics
- Practical Example
- What to Check Beyond PE
- Advantages
- Risks and Limitations
- Tips for Beginners
- Low PE Stocks vs High PE Stocks
- Common Mistakes
- Who Should Study Low PE Stocks?
- Conclusion
- Frequently Asked Questions
Low PE Stocks in Nifty 100
The table below shows 20 Nifty 100 companies with lower positive trailing PE ratios in the selected data set. The figures are based on market data captured on September 24, 2026.
The table is arranged approximately from lower to higher PE. It is a valuation screen, not a ranking of business quality and not a recommendation. The figures can change when share prices move, or companies report new earnings.
Company | Sector | PE ratio | EPS | Market capitalisation |
Power Finance Corporation | Financial services | 3.5 | ₹78.49 | ₹1.2 lakh crore |
Vedanta | Metals and mining | 3.7 | ₹44.58 | ₹1.1 lakh crore |
REC | Financial services | 5.3 | ₹61.81 | ₹83,300 crore |
Indian Oil Corporation | Oil and gas | 5.4 | ₹30.57 | ₹1.9 lakh crore |
Canara Bank | Banking | 5.8 | ₹21.73 | ₹1.1 lakh crore |
Punjab National Bank | Banking | 6.1 | ₹16.00 | ₹1.3 lakh crore |
ONGC | Oil and gas | 6.6 | ₹32.93 | ₹2.9 lakh crore |
Bank of Baroda | Banking | 6.7 | ₹38.38 | ₹1.2 lakh crore |
Bharat Petroleum Corporation | Oil and gas | 7.7 | ₹60.49 | ₹1.3 lakh crore |
Coal India | Mining | 8.2 | ₹50.46 | ₹2.6 lakh crore |
LIC of India | Insurance | 8.7 | ₹90.84 | ₹5.2 lakh crore |
NTPC | Power | 11.4 | ₹27.90 | ₹3.2 lakh crore |
GAIL | Oil and gas | 11.6 | ₹11.53 | ₹1.2 lakh crore |
Wipro | Information technology | 12.8 | ₹12.60 | ₹1.7 lakh crore |
HDFC Bank | Banking | 13.1 | ₹49.50 | ₹10.6 lakh crore |
Bajaj Holdings and Investments | Financial services | 13.7 | ₹865.90 | ₹1.2 lakh crore |
Hindalco Industries | Metals and mining | 13.9 | ₹60.31 | ₹2.3 lakh crore |
Axis Bank | Banking | 14.2 | ₹85.04 | ₹3.9 lakh crore |
Infosys | Information technology | 14.5 | ₹71.58 | ₹4.2 lakh crore |
IRFC | Financial services | 15.1 | ₹5.36 | ₹1.1 lakh crore |
A PE below 15 is not automatically low for every sector. For example, a bank, an oil company and an IT company have different business models and normal valuation ranges.
The Nifty 100 represents the top 100 companies by full market capitalisation from the Nifty 500. It tracks the combined portfolio of the Nifty 50 and Nifty Next 50 and uses the free-float market capitalisation method.
The Nifty 100 factsheet dated August 31, 2026, reported an index PE of 20.19. This figure is a broad index reference and should not be used as the only basis for judging an individual company.
What Is the PE Ratio?
The price-to-earnings ratio, or PE ratio, compares a company’s share price with its earnings per share.
In simple terms, it shows how much investors are paying for every ₹1 that the company earns.
Suppose:
- Share price: ₹500.
- Earnings per share: ₹50.
- PE ratio: 10.
The calculation is:
PE ratio = Share price / Earnings per share
So, investors are paying ₹10 for every ₹1 of earnings.
A PE ratio becomes useful only when you compare it with:
- Similar companies.
- The company’s own past PE.
- The broader market.
- Expected earnings growth.
A low PE stock can be cheaper than its peers, but it can also have weaker growth or higher business risk.
How Is the PE Ratio Calculated?
- Market price
This is the current price of one share on the NSE or BSE.
- Earnings per share
EPS shows the profit attributable to each equity share. It uses the company’s reported profit and the number of outstanding shares.
- Earnings per share
- Trailing PE
Trailing PE uses profit from the previous 12 months. It is based on reported results.
- Forward PE
Forward PE uses estimated future profit. It depends on analyst or company estimates, which can change.
How PE changes
Suppose a share trades at ₹500 and its EPS is ₹50:
PE = ₹500 / ₹50 = 10
If EPS falls to ₹25 while the share price remains at ₹500:
New PE = ₹500 / ₹25 = 20
The price did not change, but the PE doubled because earnings fell.
How to Find Low PE Stocks
A screener can help create a low PE stocks list. It cannot tell you whether every company on the list is financially sound.
1. Choose the correct universe
Select the current Nifty 100 companies. NSE Indices publishes the constituent list and index rules.
2. Use positive trailing PE
Sort companies by trailing PE and exclude companies with negative or unavailable earnings. A negative PE usually means the company reported a loss, so it should not be compared with profitable companies using the same filter.
3. Compare companies within the same sector
Compare banks with banks, oil companies with oil companies, and IT companies with IT companies. Industry PE is more useful than one fixed PE cut-off.
4. Check EPS and profit growth
Review revenue, net profit and EPS across several years. A low PE based on falling profit may not represent good value.
5. Review debt
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6. Check operating cash flow
Operating cash flow shows whether regular business operations generate cash. It can help identify the difference between reported profit and cash actually received.
7. Look for one-time income
Asset sales, tax reversals, and other exceptional items can temporarily increase profit and reduce the PE ratio.
8. Compare past PE levels
A company with a PE of 12 may look inexpensive, but if it usually trades between 8 and 14, its current valuation may be close to normal.
9. Record the data date
Share prices change throughout the market session. Quarterly results also change EPS and PE. Always record whether the data is based on live prices or the previous closing price.
Why Do Some Stocks Have a Low PE?
- Slower expected growth
Mature companies may have stable operations but limited growth. The market may assign them a lower PE because future earnings are expected to rise slowly.
- Cyclical earnings
Metal, mining, oil and gas companies can earn more when commodity prices are favourable. Their PE can look low during a strong part of the cycle, even when profits may fall later.
- High debt
High borrowings can increase interest costs and reduce future profit. Investors may therefore assign a lower PE.
- Weak business outlook
Falling demand, competition, regulation, loss of market share or poor execution can affect how the market prices a company.
- Unpopular sectors
A company may remain profitable while its sector is out of favour. This can keep the PE low even when the business is not facing an immediate problem.
- Temporary profit increase
A one-time gain can make the current PE appear lower. If the gain does not repeat, the stock may not be as cheap as the ratio suggests.
- Temporary profit increase
- Sector-specific factors
A bank is affected by loan growth, bad loans, and capital levels. An oil company is affected by crude prices, refining margins, and government policy. The reason for a low PE depends on the business.
Key Characteristics of Low PE Stocks
- Lower earnings multiple: The market price is lower relative to reported EPS than the selected comparison group.
- Different sector mix: Low PE screens often contain banks, energy companies, mining companies, utilities, and other mature businesses.
- Changing ranking: A company can move up or down the list after a price change or quarterly result.
- Possible cyclical profits: Some companies report high profits during favourable industry conditions and lower profits later.
- Potential value trap: A low PE may continue if the business is losing its growth prospects.
- Need for comparison: The ratio should be compared with sector peers and the company’s own historical range.
- No fixed definition: A PE of 15 is not automatically low for every business.
Practical Example With Numbers
Consider two companies from the same industry.
Particular | Company A | Company B |
Share price | ₹480 | ₹720 |
EPS | ₹40 | ₹40 |
PE ratio | 12 | 18 |
Expected earnings growth | 8% | 18% |
Company A has a lower PE. Investors are paying ₹12 for every ₹1 of its earnings. They are paying ₹18 for every ₹1 of Company B’s earnings.
Company B may trade at a higher PE because the market expects faster earnings growth. Company A may be cheaper, but that does not explain whether its profits will remain stable.
If Company A’s EPS falls from ₹40 to ₹30 while the price stays at ₹480:
New PE= ₹480 / ₹30 = 16
The PE rises from 12 to 16 without a change in the share price. The original low PE was partly the result of the earlier, higher profit.
What to Check Beyond PE
Measure | Simple meaning | What it can show |
EPS growth | Change in profit per share | Whether profit per share is rising or falling |
Revenue growth | Change in sales | Whether the business is expanding |
ROE | Profit earned on shareholder capital | How well shareholder money is being used |
ROCE | Return from total operating capital | How efficiently the main business uses capital |
Debt-to-equity | Debt compared with shareholder capital | Whether borrowings are high for the sector |
Operating cash flow | Cash generated by regular operations | Whether reported profit is supported by cash |
Dividend yield | Dividend compared with share price | The income paid relative to the current price |
Industry PE | Average PE of similar companies | Whether the stock is cheaper or costlier than peers |
Price-to-book | Share price compared with book value | Often useful for banks and asset-heavy businesses |
PE looks at price relative to earnings. Debt, cash flow and return ratios show other parts of the business.
Advantages
A low PE screen can:
- Create a starting list of large companies with lower earnings multiples.
- Help compare companies in the same industry.
- Show where the market has lower growth expectations.
- Help readers study mature or cyclical businesses.
- Support further research using earnings, debt and cash-flow data.
The screen is useful for narrowing the search. It does not replace financial analysis.
Risks and Limitations
1. Value traps
A value trap is a stock that looks cheap but continues to perform poorly because its earnings or business prospects weaken.
2. Falling earnings
If profit falls, the PE can rise even when the share price does not move.
3. Cyclical profits
A low PE can appear when a commodity company is near the top of its profit cycle. Earnings may decline when prices normalise.
4. Debt pressure
High debt can increase interest costs and leave less money for expansion or dividends.
5. One-time gains
Exceptional income can make a company appear cheaper for a short period.
6. Sector concentration
A screen may contain several companies exposed to the same interest-rate, commodity or government-policy risk.
7. Data differences
Different platforms can show different PE figures because they use different earnings periods, share counts and adjustments.
8. Investor behaviour
Some people buy a low PE stock and expect a quick price increase. The market may continue to value the company at a low multiple for years.
Tips for Beginners
- Start with companies whose business you can explain clearly.
- Compare the company with its sector peers.
- Check whether EPS has increased over several years.
- Read the latest results before using an older PE figure.
- Find out whether profit includes a one-time gain.
- Check debt and operating cash flow.
- Do not call a stock undervalued only because its PE is below 15.
- Save the source and date whenever you record a stock screen.
- Do not treat a low PE as proof of low risk.
- Recheck the business if the share price falls.
Low PE Stocks vs High PE Stocks
Parameter | Low PE stocks | High PE stocks |
Price compared with earnings | Lower earnings multiple | Higher earnings multiple |
Market expectation | Lower or moderate growth expected | Higher growth expected |
Common sectors | Mature banks, energy, utilities and cyclical businesses | Growth-oriented consumer, technology and healthcare businesses |
Main question | Can current profits continue? | Can future growth support the price? |
Main risk | Falling earnings or a value trap | Price correction if growth slows |
Useful checks | Debt, cash flow, profit cycle and sector PE | Growth, margins, competition and future valuation |
A company can shift from a high PE to a low PE when its price falls or its earnings rise.
Common Mistakes to Avoid
1. Choosing the lowest PE
The lowest PE may reflect falling profits or business problems. Find out why the market is assigning a low multiple.
2. Comparing unrelated sectors
A bank, a cement company, and an IT company do not have the same normal PE range. Start with sector-level comparisons.
3. Looking only at the share price
A ₹100 stock is not automatically cheaper than a ₹1,000 stock. Compare price with earnings and business performance.
4. Ignoring debt
Debt can reduce future profit and increase repayment pressure. Check borrowings and interest costs.
5. Treating one quarter as a trend
One strong quarter may include temporary benefits. Review several years of results.
6. Using old data
A PE ratio can change after a single trading session or earnings announcement. Record the data date.
7. Assuming low PE means low risk
A low PE stock can still have weak cash flow, high debt, or large price movements.
8. Averaging down automatically
A lower price does not prove that the original valuation analysis was correct. Recheck the business before concluding.
Who Should Study Low PE Stocks?
Low PE screening is useful for beginners who want to learn how the market compares share prices with company earnings. It can also help readers build a research list for fundamental analysis.
It is less useful on its own for companies with:
- Negative earnings.
- Highly unstable profits.
- Very high debt.
- Large one-time gains or losses.
- Business models that are difficult to compare with peers.
For loss-making companies, other measures such as price-to-sales, price-to-book value, enterprise value or operating cash flow may provide additional information. Each measure answers a different question.
Conclusion
Low PE stocks in Nifty 100 are large companies trading at lower earnings multiples than the selected comparison group. The ratio can help create a research list, but it does not explain whether the business is healthy or whether current profit can continue. Compare PE with sector peers and historical levels, then check EPS growth, debt, cash flow, ROE and one-time gains. Every low PE stocks list should show its data source and date because both prices and earnings change.
Frequently Asked Questions
Blog by Aliceblue News Desk
