Top 5 Low PE Ratio Stocks in India 2025

List of 476 Low PE Stocks in India 2025

The price-to-earnings (PE) ratio is one of the few metrics that indicate a company’s valuation. The lower the PE, the better since it suggests the company is undervalued relative to its earnings. Investing in low PE stocks in India is the best strategy for value investors as it provides exposure to companies trading at attractive valuations.  

To make it easy for investors to identify lowest PE ratio stocks in India, our research team at Samco Securities have compiled a comprehensive table featuring 200 companies that fit the criteria in the Indian stock market. 

Data as on June 2025

Top 5 Low PE Ratio Stocks in India 2025

• Shekhawati Industries Ltd.

Shekhawati Industries Ltd. operates in the textile sector, specializing in manufacturing polyester yarn and related products. With a PE ratio of just 0.62 as of February 3, 2025, it is among the lowest PE ratio stocks in India, making it an attractive buy for value investors.

The stock’s CMP/BV ratio of 6.89 indicates that it is trading at a premium to its book value. Despite having no dividend yield, the company’s strong foothold in the domestic market and expanding export operations make it one of the best PE ratio stocks in India for the long term.

• Vipul Ltd.

Vipul Ltd. is a real estate company engaged in residential and commercial property development. With a PE ratio of 0.77 as of February 3, 2025, it stands out as one of the lowest PE ratio stocks in India with good upside potential. 

The company’s CMP/BV ratio is just 0.52, which essentially means that the share price is currently undervalued compared to its book value. This makes Vipul Ltd. an attractive proposition to value investors seeking the best PE ratio stocks in India.

• Phoenix International Ltd.

Phoenix International Ltd. is a manufacturing and trading company with diversified operations that includes producing and supplying shoe uppers and renting out immovable properties. The company has maintained a PE ratio of 0.82 as of February 3, 2025, placing it among the low PE stocks in India.

Trading at a CMP/BV ratio of just 0.14, Phoenix International Ltd. is significantly undervalued relative to its book value. The current market price of Rs. 6.05 as of February 3, 2025 and a market capitalization of Rs. 10.16 crore make it an ideal pick for risk tolerant investors interested in investing in the best PE ratio stocks in India. 

• Silverline Technologies Ltd.

Silverline Technologies Ltd. is an IT solutions provider focusing on software development and consulting. The company’s expertise in digital transformation and enterprise solutions puts it in a strong position for future growth. Its PE ratio of 1.04 as of February 3, 2025 indicates that it is trading at one of the most attractive valuations in the low PE stocks in India category.

Silverline’s CMP/BV ratio is just 0.12, which suggests that the stock is highly undervalued. Although it does not provide dividends, investors looking for the lowest PE ratios stocks in India can keep an eye on the company’s earnings trajectory.

• Future Market Networks Ltd.

Future Market Networks Ltd. is involved in developing retail infrastructure, trade infrastructure and infra-logistics. The company’s PE ratio of 1.16 as of Februray 2, 2025 places it among the best PE ratio stocks in India. 

The stock’s CMP/BV ratio of 0.84 suggests that it is trading below its book value, making it a strong candidate for growth as the retail sector expands. Investors seeking low PE stocks in India may find Future Market Networks to be a valuable addition to their portfolios.

Understanding Low PE Ratio Stocks

A low price-to-earnings or PE ratio often suggests that a stock is undervalued compared to its earnings potential. However, it may not always be a guaranteed bargain. Investors looking at low PE stocks in India must assess whether the low valuation stems from temporary market sentiment or deeper structural issues. 

Some companies trade at a discount due to cyclical downturns, regulatory changes or declining growth prospects. Understanding the reasons behind a low PE ratio is crucial for distinguishing value opportunities from potential traps. If you are analysing the lowest PE ratio stocks in India, it is also essential to compare them within their sector rather than using absolute numbers. 

A low PE ratio in one industry may be normal, while in another, it could indicate financial distress. Additionally, factors like earnings stability, future growth potential, and debt levels should be considered before making investment decisions. 

Strategies For Identifying Low PE Ratio Stocks

To identify suitable low PE stocks in India, you need to have the right strategy in place. Here are some actionable techniques that you can use to find the right stocks in this category 

• Compare Within the Same Industry

A low PE ratio can be misleading if you do not evaluate it contextually. You should compare low PE stocks in India within the same sector to determine whether the valuation is genuinely attractive or if the company is underpriced due to weak financials or industry downturns.

• Analyse Earnings Stability

A stock with a low PE ratio might seem cheap, but declining earnings can make it a risky bet. When assessing the lowest PE ratio stocks in India, you should check the revenue trends, profit margins and future earnings growth to ensure those companies are not in financial distress.

• Look for High Dividend Yield

Some low PE high dividend stocks in India offer both value and steady income. Stocks with strong cash flows and a history of consistent dividend payouts can be attractive investments. However, you must verify if the dividend payments are sustainable over the long term.

• Check Institutional Interest

Institutional investors conduct extensive research before investing. If the best PE ratio stocks in India are being accumulated by mutual funds or foreign institutional investors, it may indicate strong fundamentals in those firms. You can use these trends to avoid value traps.

Comparing PE Ratios Across Industries

PE ratios vary significantly across industries. This makes direct comparisons quite misleading. For example, fast-growing tech firms tend to have higher PE ratios, while established utility companies often trade at lower valuations. A seemingly low PE in one sector may be standard, while in another, it could signal weak future growth. So, investors analysing low PE stocks in India should consider sector-specific norms before assuming a stock is undervalued. 

When evaluating the lowest PE ratio stocks in India, it is also important to assess industry trends and economic cycles. Stocks in sectors like banking and infrastructure typically have lower PE ratios due to stable but slower growth. On the other hand, high-growth industries like pharmaceuticals or IT often justify higher valuations. By understanding such industry dynamics, you can avoid mistaking structurally low PE ratios for undervalued opportunities.

If you are looking at low PE high dividend stocks in India, you should also verify whether the industry you want to invest in supports high dividend payouts. Companies in sectors like energy, telecom and FMCG often distribute significant earnings as dividends. This may keep the PE ratios low. However, in industries that reinvest heavily in growth, a low PE combined with high dividends could indicate limited expansion potential. 

Conclusion 

The bottom line is that investing in the lowest PE ratio stocks in India can pay off if you find the right firms. However, finding stocks that appear promising in this regard can be challenging. With the right trading and investment tools, this becomes easier. In addition to this, you also need a reliable brokerage partner like Samco Securities. 

To make your investment journey seamless and more well-informed, open a demat and trading account with Samco Securities today. You can then download the Samco trading app and access all of its advanced trading features free of charge. 

FAQs

• What is a low PE stock?

A low PE stock is one that trades at a lower price relative to its earnings. This may potentially indicate that the stock is undervalued or is facing market or sector challenges.

• Are low PE stocks always undervalued?

No. A low PE ratio can indicate undervaluation, but it can also signal financial trouble, slowing growth or declining market confidence. This is why you must always assess other financial indicators and industry performance.

• Can low PE stocks provide good returns?

Yes. Low PE stocks may provide high returns if their undervaluation is temporary and driven by market sentiment. However, it is advisable to avoid stocks of companies with declining fundamentals or weak business prospects.

• How do market cycles affect low PE stocks?

In a downturn, PE ratios may fall across industries, thus creating buying opportunities. Conversely, in bullish markets, low PE stocks may appear unattractive compared to high-growth investments.

• What risks are involved in investing in low PE stocks?

The risks of investing in low PE stocks in India include potential financial distress, weak earnings growth and value traps. Some stocks may have low PE due to fundamental problems that could worsen over time and cause further price drops.

• Are low PE stocks in Nifty 50 a safe investment?

While low PE stocks in Nifty 50 may offer stability due to strong fundamentals, you should still evaluate the reasons for their low PE. Also look into the company’s future prospects and assess sector-specific challenges.