TCS, SBI Among 10 Large-Cap Stocks Trading Below Industry PE Ratios with Potential Upside of Up to 38%

Investors seeking value opportunities in the Indian stock market may find promise in large-cap companies trading below their industry average Price-to-Earnings (PE) ratios. Such stocks are often considered undervalued, presenting potential for substantial returns. Notably, companies like Tata Consultancy Services (TCS) and State Bank of India (SBI) are among those identified with significant upside potential.

Tata Consultancy Services (TCS)

As of February 10, 2025, TCS was trading at ₹4,014, with a PE ratio of 29.8, slightly below the industry average of 32.9. Broker analyses suggest an average target price of ₹4,532, indicating a potential upside of 13%. 

State Bank of India (SBI)

SBI’s shares were priced at ₹733 on February 10, 2025, featuring a PE ratio of 8.25, notably lower than the industry average of 14.9. Analysts have set an average target price of ₹960, suggesting a potential increase of 31%. 

Other large-cap stocks trading below their industry PE levels include:

• Infosys: Trading at ₹1,893 with a PE ratio of 28.4, below the industry average of 32.9. The target price is ₹2,112, indicating a 12% potential upside. 

• Hindustan Unilever Limited (HUL): With a current price of ₹2,363 and a PE ratio of 51.7, just under the industry average of 52.6. The target price is ₹2,640, suggesting a 12% potential gain. 

• ITC: Trading at ₹430, ITC has a PE ratio of 26.7, marginally below the industry average of 26.8. The target price is ₹535, indicating a 24% potential rise. 

• Life Insurance Corporation (LIC): Priced at ₹816 with a PE ratio of 12.4, significantly lower than the industry average of 73.8. The target price is ₹1,151, suggesting a 40% potential increase. 

• HCL Technologies: Trading at ₹1,721 with a PE ratio of 27.3, under the industry average of 32.9. The target price is ₹1,969, indicating a 14% potential upside. 

• Larsen & Toubro (L&T): With a current price of ₹3,318 and a PE ratio of 33.48, slightly below the industry average of 35.3. The target price is ₹4,061, suggesting a 22% potential gain. 

• Sun Pharmaceutical Industries: Trading at ₹1,744 with a PE ratio of 36.58, under the industry average of 40.8. The target price is ₹2,066, indicating a 19% potential rise. 

• Axis Bank: Priced at ₹1,019 with a PE ratio of 11.2, below the industry average of 14.9. The target price is ₹1,292, suggesting a 27% potential increase. 

Investors should conduct thorough research and consider market conditions before making investment decisions, as stock markets are subject to volatility and risks.