Identifying potentially undervalued large-cap stocks can be a key strategy for long-term investment. This list focuses on the companies with a Price-to-Earnings (P/E) ratio below their respective industry average and a price of the stock being under Rs 500, suggesting they may be undervalued relative to their peers, and are worthy of further returns:
ITC Ltd is one of India’s foremost private sector companies. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, AgriBusiness, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches, and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging, and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care, and Stationery.
- Market Captilisation: Rs 5,38,545 crores
- Stock P/E : 27.5
- Industry P/E: 32.5
- 5-year CAGR profit growth: 10.08 percent
- 5-year Stock Returns CAGR: 22.1 percent
Wipro Ltd is one of India’s leading tech companies, providing IT Services, including Business Process Outsourcing (BPO) services, globally. The company provides comprehensive IT Solutions and Services, including Systems Integration, Information Systems Outsourcing, IT Enabled Services, Package Implementation, Software Application development and maintenance, and Research and Development Services to corporations globally.
- Market Captilisation: Rs 2,52,668 crores
- Stock P/E : 19.4
- Industry P/E: 29.8
- 5-year CAGR profit growth: 4.26 percent
- 5-year Stock Returns CAGR: 21.48 percent
Indus Towers Limited provides access to its towers, primarily to wireless telecommunication service providers, on a shared basis under long-term contracts. It has a nationwide presence with operations in all 22 telecommunication circles in India and caters to all wireless telecommunication service providers in India. It is also the largest tower infrastructure provider in the country, with a presence in all 22 telecom circles. The three leading wireless telecommunications service providers in India by revenue – Bharti Airtel, Vodafone, and Idea Cellular
- Market Captilisation: Rs 1,03,647 crores
- Stock P/E : 10.3
- Industry P/E: 13.7
- 5-year CAGR profit growth: 19.34 percent
- 5-year Stock Returns CAGR: 17.32 percent
Motherson Sumi Systems is engaged primarily in the manufacture and sale of components to automotive original equipment manufacturers MSSL group is amongst the world’s largest manufacturers of exterior rear-view mirrors with a dominant market share, and is a leading global player in polymer-based interior and exterior modules. Moreover, the group is also the largest manufacturer of wiring harnesses for passenger vehicles in India.
- Market Captilisation: Rs 99,387 crores
- Stock P/E : 23.2
- Industry P/E: 24.1
- 5-year CAGR profit growth: 7.55 percent
- 5-year Stock Returns CAGR: 27.31 percent
Hindustan Zinc Ltd, a Vedanta Group Company, is the market leader in Zinc, Lead and Sulphuric Acid business. The Company is engaged in exploring, extracting, processing of minerals and manufacturing of metals The company’s core business comprises of mining and smelting of zinc and lead along with captive power generation The company has a market share of ~75% of the growing Zinc market in India with its headquarters at Zinc City, Udaipur along with Zinc-Lead mines and smelting complexes spread across the state of Rajasthan.
- Market Captilisation: Rs 1,72,900 crores
- Stock P/E : 17.1
- Industry P/E: 30.2
- 5-year CAGR profit growth: 9.22 percent
- 5-year Stock Returns CAGR: 19.42 percent
Written By Likesh Babu S
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