Top 20 Low PE High ROE Stocks to Buy in India 2025

Introduction: Why Low PE and High ROE Stocks Are My Go-To Hunting Ground

When we sit down with my morning coffee and market charts open, I’m not looking for just “cheap” stocks. I’m looking for value with quality. Over the years, I’ve realized that Low PE and High ROE stocks often hide in plain sight — undervalued gems quietly compounding returns while others chase the next hot story.

Now, let’s be clear. This isn’t a stock recommendation or tip sheet. I’m sharing how I, as an analyst at Samco Securities, look at businesses through the lens of profitability (ROE) and valuation (PE ratio) — and how that simple pairing often tells powerful stories about strength and sustainability.

Low PE means the market hasn’t fully priced in a company’s potential.
High ROE means the company is efficient at turning every rupee of shareholder equity into profit.
Put together, they form one of my favorite filters for spotting long-term value.

In 2025, India’s market is more dynamic than ever — and this approach feels even more relevant.

Understanding PE Ratio and ROE – Two Metrics That Actually Matter

Let’s keep this simple.

• The P/E ratio (Price-to-Earnings Ratio) tells me how much investors are willing to pay for each rupee of a company’s earnings.
  A lower PE often suggests undervaluation — but only if earnings are strong and consistent.

• ROE (Return on Equity) shows how effectively a company uses its equity to generate profit.
  A higher ROE signals efficient management and a competitive edge.

When I find Low PE High ROE stocks, it often means the market hasn’t caught up yet — and there’s underlying strength the crowd hasn’t noticed.

Why I Personally Track Low PE High ROE Stocks

We remember early in my research career, I’d chase high-growth companies everyone was talking about. But experience has taught me — sometimes, quiet performers beat loud promises.

Low PE High ROE companies rarely make headlines. They’re often the “boring” businesses — banks, refineries, infrastructure players, and manufacturers — that just keep delivering results quarter after quarter.

These are the kind of companies that reward patience, not hype.

My Selection Process: How I Narrowed Down the Top 20 Low PE High ROE Stocks for 2025

Here’s how I filtered this list:

1. PE Ratio below industry average – helps eliminate overvalued plays.

2. ROE above 12–15% – indicates healthy capital efficiency.

3. Consistent earnings growth – avoids one-time performance spikes.

4. Clean balance sheet – because leverage distorts real returns.

5. Sector diversification – because risk doesn’t deserve concentration.

Now, after sifting through numbers and management commentaries, here’s my 2025 list.

Top 20 Low PE High ROE Stocks in India

1. Bank of Baroda – The Comeback Banker

Bank of Baroda has been steadily rebuilding its brand over the past few years. Its focus on digital banking, SME lending, and asset quality improvement has paid off. What stands out to me is the balance between growth and discipline.
Its low PE suggests the market still discounts public sector banks, but the high ROE signals efficiency returning to the system. This is a perfect example of how traditional banks can quietly outperform expectations.

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2. Bank of India – Quietly Rebuilding Trust

Bank of India may not dominate the headlines, but its fundamentals have been improving quarter after quarter. The NPA clean-up, digital initiatives, and steady credit growth give it momentum.
It’s one of those top Low PE high ROE stocks where management's focus on stability over speed is paying off. The valuation gap remains, but the structural turnaround feels more real than ever.

3. Bank of Maharashtra – Small Bank, Big Moves

Among smaller PSU banks, Bank of Maharashtra stands out for its strong CASA base and capital efficiency.
Its high ROE reflects consistent profitability, while the low PE shows market skepticism that may eventually fade. I like how it has positioned itself for digital lending and retail expansion — the building blocks for sustainable growth.

4. Bharat Petroleum Corporation Ltd. – Fueling Growth Efficiently

BPCL’s refining and marketing model keeps it at the center of India’s energy story. Despite global volatility, it’s managed margins smartly.
A low P/E ratio and strong ROE indicate operational excellence. With ongoing divestment talks and focus on renewables, it’s evolving while staying rooted in cash-generating efficiency.
That’s what makes BPCL one of the best Low PE high ROE stocks in India 2025.

5. Canara Bank – Strength in Stability

Canara Bank has quietly become a leader among PSU banks in profitability and credit management.
Its advances have grown steadily while maintaining healthy asset quality.
This is a classic Low PE high ROE stock — undervalued, yet consistently rewarding in terms of return ratios. The bank’s conservative approach to risk is exactly what builds compounding stories.

6. Central Bank of India – A Turnaround Story

Central Bank of India’s revival journey has been steady. From heavy NPAs to improved provisioning, it’s showing a visible change.
Its low P/E doesn’t reflect the improving profitability, and the high ROE highlights that capital is being utilized efficiently again.
These are the kind of early-stage stories I like watching — practical turnarounds, not hype-driven moves.

7. Chennai Petroleum Corporation Ltd. – Refining its Edge

Chennai Petroleum has managed to benefit from improving gross refining margins.
With modernization projects and refinery expansion plans, its numbers have started to show resilience.
The low valuation makes it appealing for analysts tracking value stocks, and the strong ROE reflects efficient asset use — a good mix for long-term investors exploring top Low PE high ROE stocks in 2025.

8. Coal India Ltd. – Old Energy, New Efficiency

Coal India continues to surprise. Despite being a traditional player, its operational efficiency and dividend yield remain attractive.
Its PE ratio stays low due to ESG concerns, but its ROE is one of the best among public sector giants.
Coal may not be fashionable, but it’s profitable — and in investing, profits matter more than trends.

9. Eternal Ltd. – Rising with Strong Fundamentals

Eternal Ltd. represents the mid-cap industrials that rarely make headlines but quietly grow earnings.
Its low PE points to undervaluation, while a solid ROE indicates capital discipline.
In 2025, when investors are chasing narratives, Eternal is an example of how fundamental-driven businesses stay resilient.

10. General Insurance Corporation of India – Risk Managed Growth

GIC’s performance reflects India’s growing insurance penetration.
The business model thrives on risk pricing, and the ROE improvement over the past few years has been impressive.
At current valuations, it remains one of the best Low PE high ROE stocks that still feels overlooked by the broader market.

11. Hindalco Industries Ltd. – Metal Giant with Margin Power

When I analyze commodity companies, I look for two things — efficiency and sustainability. Hindalco delivers both.
It’s not just a metals producer; it’s a global operator with a robust downstream business. What’s fascinating is how it continues to strengthen its balance sheet even during commodity downcycles.
Its low PE ratio signals that the market isn’t fully valuing its integrated model, while the high ROE reflects how well it utilizes capital across aluminum and copper operations.
Hindalco stands tall among the top Low PE high ROE stocks in India 2025 because it proves scale and smart capital use can coexist.

12. Hindustan Petroleum Corporation Ltd. – Energy with Efficiency

HPCL has long been a reliable player in India’s refining and marketing space.
What I find compelling is how the company continues to improve operational efficiency despite volatile crude prices.
A low PE multiple shows that the market still treats it as a cyclical business, while the high ROE tells another story — one of strategic cost control, improved throughput, and consistent cash flow.
HPCL is a perfect example of how patience in energy stocks can pay off handsomely over time.

13. Indian Bank – Underrated Performer in the PSU Space

Indian Bank doesn’t get as much attention as its larger peers, but its financials speak for themselves.
Strong asset quality, rising net interest margins, and controlled costs have all contributed to a solid return profile.
With a low P/E ratio compared to private peers and a high ROE, it checks both boxes of efficiency and undervaluation.
Sometimes, being under the radar is a blessing — and Indian Bank is quietly building shareholder value without the noise.

14. Indus Towers Ltd. – Standing Tall in Connectivity

Telecom infrastructure often goes unnoticed, but without it, there’s no digital India.
Indus Towers has proven resilience through changing industry dynamics.
Its low PE and strong ROE highlight a company that has managed capital intensity better than most expected.
What keeps me interested is its ability to generate steady cash flows, even as 5G rollouts reshape the industry.
Among infrastructure-linked names, Indus Towers stands out as a steady operator in an unpredictable sector.

15. IRB Infrastructure Developers Ltd. – Building the Future of India

Every time I travel across a newly built highway, I think of companies like IRB Infrastructure.
This is one of those rare players that has balanced execution strength with financial prudence.
Its low P/E makes it an interesting value story, while its high ROE showcases how efficiently it’s been able to manage large-scale projects.
IRB’s ability to navigate government contracts, toll revenue models, and financing challenges makes it one of the best Low PE high ROE stocks in India’s infrastructure segment.

16. Jindal Saw Ltd. – Steel Story with Strength and Structure

Jindal Saw has quietly become a leader in pipe manufacturing, a space often overlooked in the broader steel conversation.
What sets it apart is consistency — margins, exports, and operational efficiency have all improved.
With a low P/E and rising ROE, the company’s fundamentals speak of a business that has matured through cycles.
For investors exploring top Low PE high ROE stocks in manufacturing, Jindal Saw often pops up on my radar for its long-term discipline.

17. KNR Constructions Ltd. – Engineering Growth, One Project at a Time

KNR Constructions is one of the most respected mid-cap infrastructure firms in India.
I’ve followed their projects for years, and what impresses me most is execution quality.
Their ability to deliver on time without stretching finances has led to strong margins and a healthy ROE.
Combine that with a low PE ratio, and you get a company priced modestly despite consistent operational excellence.
It’s a textbook case of how efficiency-driven businesses build quiet wealth.

18. LIC Housing Finance Ltd. – Affordable Housing, Solid Returns

Housing finance companies often mirror India’s broader growth story. LIC Housing Finance sits right in the middle of it.
Its deep distribution network, improving asset quality, and focus on affordable housing make it a strong player in the lending space.
Even with conservative valuations, its ROE has improved steadily, making it one of the best Low PE high ROE stocks in the financial sector.
I see it as a case of steady compounding, backed by a strong brand and trusted borrower base.

19. Maharashtra Seamless Ltd. – Seamless Performer in Steel Tubes

Maharashtra Seamless has a simple business — but it runs it exceptionally well.
Its seamless and ERW pipe segments have seen strong domestic and export demand.
The company’s low P/E ratio hides how consistent its ROE performance has been across economic cycles.
When steel demand fluctuates, operational efficiency matters most — and Maharashtra Seamless has that edge.
This is one of those industrial stories that often stays underpriced, yet fundamentally sound.

20. Mangalore Refinery and Petrochemicals Ltd. – Refining Profits Smartly

MRPL has had its fair share of cycles, but its recent performance has been solid.
With improved refining margins and expansion in specialty products, it’s becoming more competitive globally.
Its low PE valuation compared to peers, combined with a strong ROE, reflects a business that’s learned to adapt and optimize.
For me, MRPL is a great example of a company leveraging operational discipline to drive profitability — the hallmark of top Low PE high ROE stocks in India 2025.

What have ve Learned from Studying These 20 Companies

After analyzing these twenty companies, one thing stands out — numbers tell only half the story.
Behind every low PE and high ROE metric is a company working hard to earn back market trust.
These are not “cheap” stocks — they’re misunderstood ones.
Each of them is using efficiency, discipline, and consistent cash flows to write its comeback story.

How You Can Spot Future Low PE High ROE Stocks

If you’re curious about finding such opportunities yourself, here’s how I approach it in my daily work:

• Screen for PE ratios below the sector average.

• Check ROE trends over 3–5 years, not just one.

• Avoid high-debt companies — leverage can fake ROE.

• Focus on operating cash flow growth.

• Read management commentary carefully — numbers follow leadership clarity.

This is how you find the next undervalued, efficient business before everyone else notices.

Risks to Keep in Mind

Even the best Low PE high ROE stocks carry risk. Markets can stay irrational longer than expected, and sector cycles do impact profitability.
Sometimes, low valuations exist for a reason — structural challenges, regulatory issues, or capital inefficiencies.
That’s why I always balance data with context, and discipline with patience.

My Final Thoughts: Staying Rational in a High-Return Chase

The thrill of finding a low PE high ROE stock is real — but what matters more is conviction built on understanding.
These 20 companies are not “buy calls”; they’re stories of resilience, capital efficiency, and business maturity.
As an analyst at Samco Securities, I’ve learned that successful investing is less about predicting the next move — and more about understanding why some companies keep creating value quietly in the background.