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.

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.

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.
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

1. What are low PE stocks in Nifty 100?

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2. Which Nifty 100 stocks have a low PE ratio?

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3. Is a PE below 15 considered low?

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4. Is a low PE ratio always good?

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5. Why do some PSU stocks have low PE ratios?

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6. Can a low PE stock become a value trap?

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Table of Contents

Low PE Stocks in Nifty 100

What Is the PE Ratio?

How Is the PE Ratio Calculated?

How PE changes

How to Find Low PE Stocks

1. Choose the correct universe

2. Use positive trailing PE

3. Compare companies within the same sector

4. Check EPS and profit growth

5. Review debt

6. Check operating cash flow

7. Look for one-time income

8. Compare past PE levels

9. Record the data date

Why Do Some Stocks Have a Low PE?

Key Characteristics of Low PE Stocks

Practical Example With Numbers

What to Check Beyond PE

Advantages

Risks and Limitations

Tips for Beginners

Low PE Stocks vs High PE Stocks

Common Mistakes to Avoid

Who Should Study Low PE Stocks?

Conclusion

Frequently Asked Questions