Copyright © HT Digital Streams Limited All rights reserved. Equitymaster 5 min read Oct 16, 2025, 02:30 pm. IST This blue-chip stock has a lower-than-median PE ratio of around 33.32 (as of October 11, 2025), a strong three-year earnings CAGR and a debt-to-equity ratio of less than 1. with long-term growth potential and solid management. Investing in India’s Nifty 50 stocks can feel like trying to find the hottest growth stocks. But some of the greatest prospects lie in plain sight, quietly trading below their true value. Several blue-chip firms have low PE ratios, stable fundamentals and steady cash flow, making them attractive to long-term investors looking for growth and security. From energy and banking to metals, these stocks mix resistance with potential upside. Read more… Criteria We focused on the Nifty 50 companies. These stocks have lower-than-median P/E ratios of around 33.32 (as of 11 October 2025), a strong three-year earnings CAGR and a debt-to-equity ratio of less than 1. Additionally, these companies must have no promoter promises, and they must show incremental revenue/profit growth over at least three years. Coal India Coal India Ltd is the largest coal mining company in the world. It is a public sector unit that sells coal to major utilities, industries and exporters. In Q1 FY26, Coal India’s revenue fell 1.7% YoY to ₹35,842 crore from ₹36465 crore in Q1FY25. The net profit excluding extraordinary items was ₹8,734 crore, a 20% decline on a year from the same period last year. View full image Source: Equitymaster Even with a slight decline in sales, operating margins increased to 35%. This growth was due to operational efficiency and stable prices. Margins have also improved as demand in the power sector has been consistent and coal prices have recovered fairly. The company raised production guidance for FY26 by 5% as it believes domestic and export demand will pick up. The low debt (D/E ratio of 0.09) also helped boost profits. Coal India plans to increase coal production and also invest in sustainable coal technologies. State Bank of India The largest bank in India, State Bank of India (SBI), is a public sector bank with branches in 29 countries. It offers corporate, retail, insurance, treasury and investment banking services. In Q1FY26, SBI’s revenue grew 6.3% YoY to ₹1,25,729 crore from ₹1,18,242 crore in Q1 FY25. The net profit was ₹22,121 crore with a growth of 10% on a year for the same period. Growth in net operating income and good control over expenses drove the net profit growth. The gross NPA ratio declined to 1.83% in Q1FY26 from 2.21% in Q1FY25. Retail and SME lending remained strong. View full image Source: Equitymaster The bank’s strong balance sheet, low-cost deposits and broad customer base helped maintain earnings. Its focus on retail lending and fee income also provided solidity. The bank is expected to benefit from India’s robust GDP growth outlook of around 6-6.5% in FY25 and FY26, supporting credit demand and financial sector growth. While SBI may face some pressure on its net interest margins in the near term, the overall outlook for the bank remains positive. Its strong capital base, comfortable loan-to-deposit ratio and stable asset quality position it well for continued growth. Oil and Natural Gas Corp. Ltd ONGC Ltd is India’s largest upstream oil and gas company, accounting for 71% of India’s domestic crude production. It has four onshore and three offshore discoveries with growing exploration in Rajasthan, Maharashtra and Assam. ONGC Videsh is the international arm and is present in 15 countries worldwide. View Full Image Source: Equitymaster ONGC reported a 3.47% decline in YoY revenue in Q1FY26 to ₹1,63,108 crore from ₹1,68,968 crore in Q1FY25. The net profit rose to ₹11,568 crore from ₹9,776 crore excluding exceptional items, driven by cost efficiency and stable overseas output. Capital expenditure for exploration increased by 10% for FY26, with a view to improved hydrocarbon recovery. The company benefited from rising global oil and gas prices, along with effective cost management. Its robust balance sheet has helped ONGC invest in exploration projects without raising debt (D/E is 0.55). ONGC aims to boost domestic production and invest in renewable energy initiatives in addition to its oil and gas operations. It plans to increase production of oil and gas to 44.51 MMToE for FY26 and 45.61 MMToE for FY27. Hindalco Industries Ltd. The flagship Aditya Birla company manufactures aluminum and copper. It also produces aluminum sheet, light gauge and extrusion products used for packaging in beverages, food, cans and foils. The company caters to the automotive, construction and packaging sectors in India and abroad. The revenue rose 13% YoY from ₹57,013 crore in Q1FY25 to ₹64,232 crore in Q1FY26. Net profit grew 22% YoY to reach ₹4,004 crore. This increase was driven by efficient processes and improved product range. The numbers exclude exceptional items. View full image Source: Equitymaster Growing demand from the automotive and construction sectors drove growth, while cost control processes improved operating income. Its D/E is 0.52, indicating that Hindalco’s debt is manageable. Hindalco aims to increase green aluminum capacity and concentrate on high yielding downstream products. Indian Oil Corp Ltd IOC Ltd is the largest integrated oil refining and marketing company in India. This Maharatna has a presence in refining, pipeline transportation and petrochemical businesses, supplying fuels and lubricants across India and abroad. The company is a market infrastructure leader and manages more than 19,500 km of crude oil, gas pipelines and petroleum products. IOC’s revenue fell from ₹1,93,845 crore in Q1FY25 to ₹1,92,341 crore in Q1FY26. The net profit rose to ₹6,808 crore, which is a growth of 93% on a year. Rising refining margins and fuel sales drove this increase. View full image Source: Equitymaster Rising fuel demand, savvy cost control and improved refining margins drove profits. International crude volatility was neutralized due to a rise in prices. IOK will expand its refining and petrochemical capacity and invest in biofuels. Risks Investors should watch for volatility in crude, coal and aluminum prices. Any change could affect revenue and margins. The energy and banking sectors are vulnerable to government policies and environmental regulations. Any change can affect margins. Slower industrial activity could affect demand for banking services, fuel or metals. The export and import of aluminum or copper may be affected by rupee volatility. Conclusion The stock market is trading close to its historical average PE of 22-23, while many large-cap Nifty 50 stocks are trading below their sector averages. This could be an opportunity for value conscious investors looking for stocks with solid fundamentals. India’s GDP could grow by 6-6.5% in FY26. Several sectors, such as energy, metals and banking, could benefit from increased industrial activity and increased consumer spending. However, investors should not get carried away. Focus on companies with robust corporate governance, low debt and healthy cash flow. Happy investing. Disclaimer: This article is for informational purposes only. This is not a stock recommendation and should not be treated as such. This article is syndicated from Equitymaster.com. Get all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download the Mint News app to get daily market updates. more topics #bluechips #Nifty 50 stocks #equitymasters #marketpremie #Stockmarkets Read next story
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