Low-risk stocks are typically large-cap companies with strong returns on equity, steady earnings, and low debt levels.
Banking giants like HDFC Bank and diversified leaders such as Reliance Industries provide stability across market cycles.
Diversification across sectors like IT, energy, FMCG, and infrastructure reduces overall portfolio risk.
Achieving stability in stock market investments depends on your choice of companies. The stocks you shortlist must have steady profits, low debt, and good financial health. They should also be leaders in their industry. Large companies often perform better when markets are uncertain. They usually have stable earnings and better control over their debt. The companies listed below are well valued and have strong financial positions. You can consider these firms for in-depth research before making any investments.
Note: The stock prices and other metrics mentioned in the article are recorded as of 20 February 2026 and may change based on market conditions.
Banking is one of the strongest sectors of the Indian economy.
HDFC Bank Ltd has a market capitalization of Rs. 14,08,926.69 crore, and its share price is Rs. 915.60. The stock’s performance remains stable with a PE ratio of 19.90 and a return on equity of 14.05%. The company has no debt, making it a financially strong investment option.
ICICI Bank Ltd has a market cap of Rs. 9,93,947.15 crore and trades at Rs. 1,388.80. Its PE ratio is 19.48, while return on equity is 17.04%. This indicates steady growth and decent profits.
Axis Bank Ltd posted a 1-year return of 34.14% at a PE ratio of 15.02. The stock appears to be reasonably priced among private banks.
State Bank of India is the largest public sector bank in the country. The financial institution booked a strong 1-year return of 65.78% with an attractive PE ratio of 14.35.
Kotak Mahindra Bank Ltd follows careful financial management; its PE ratio is 18.72, and it has a zero debt-to-equity ratio.
Bajaj Finance Ltd is a major consumer finance company, trading at Rs. 1,017.05. Its PE ratio is 38.00, and return on equity is 18.95%, indicating strong profits.
Bajaj Finserv Ltd operates in the insurance and financial services sectors. The stock’s PE ratio is 36.67, and it manages its debt carefully.
The IT sector provides stability due to global revenue streams and strong margins.
Tata Consultancy Services Ltd has a market cap of Rs. 9,68,887.66 crore and trades at Rs. 2,677.90. Despite a 1-year return of -29.23%, return on equity remains strong at 51.90%. The company’s debt-to-equity ratio is low at 0.10, while its dividend yield is 4.71%.
Infosys Ltd trades at Rs. 1,370.50 with a PE ratio of 20.76 and a return on equity of 28.93%. HCL Technologies Ltd maintains a PE ratio of 22.57 and offers a dividend yield of 4.15%. These firms generate consistent cash flows and maintain strong global client bases.
Reliance Industries Ltd holds the highest market cap at Rs. 19,07,402.02 crore and trades at Rs. 1,409.50. With a PE ratio of 27.39 and a debt-to-equity ratio of 0.37, the company combines energy, telecom, and retail operations under one diversified structure.
Oil and Natural Gas Corporation Ltd trades at Rs. 274.65 with a PE ratio of 9.54 and a dividend yield of 4.46%. NTPC Ltd and Power Grid Corporation of India Ltd add defensive exposure to the power sector. NTPC trades at Rs. 363.20 with a PE of 15.04 and a dividend yield of 2.30%.
On the other hand, Power Grid shows a PE of 17.66 and a dividend yield of 3.05%. Larsen and Toubro Ltd supports infrastructure growth with 1-year returns of 30.67% and a PE ratio of 39.16.
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Hindustan Unilever Ltd trades at Rs. 2,279.30 with a PE ratio of 50.29 and a return on equity of 21.08%. ITC Ltd offers a lower PE of 11.76, a strong return on equity of 47.83%, and a dividend yield of 4.40%.
Titan Company Ltd delivered 1-year returns of 30.77% but trades at a premium PE of 111.60. Maruti Suzuki India Ltd and Mahindra and Mahindra Ltd provide automobile exposure with PE ratios of 32.31 and 31.86, respectively.
Bharat Electronics Ltd recorded 1-year returns of 71.80% and maintains a return on equity of 29.29%. Hindustan Aeronautics Ltd, on the other hand, posts a PE ratio of 33.04 and a return on equity of 26.09%. These figures are supported by the increasing demand in the defense sector.
Adani Ports and Special Economic Zone Ltd trades at Rs. 1,513.30 with a PE ratio of 31.43. UltraTech Cement Ltd trades at Rs. 12,688.00 with a PE of 61.80, reflecting strong demand for cement.
Sun Pharmaceutical Industries Ltd has a PE ratio of 37.62. Its return on equity is 15.66%. This means the company is making a decent profit, but the stock price is slightly high compared to its earnings.
Life Insurance Corporation of India is trading at Rs. 864.25 with a PE ratio of 11.31 and a return on equity of 45.93%. This shows the company is making strong profits, and the stock price is more reasonable compared to its earnings.
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Investors can reduce risk by investing in different sectors like banking, IT, energy, FMCG, infrastructure, and healthcare. Companies with long-term potential usually have a strong return on equity, a fair stock price, low or manageable debt, and regular dividend payments. By investing in such firms, you can distribute your money across strong companies, which can help you grow your wealth over time and reduce massive losses.
1. What are low-risk stocks in the stock market?
Low-risk stocks are shares of financially strong companies with stable earnings, solid balance sheets, and lower price volatility compared to the broader market.
2. Why is HDFC Bank considered a stable stock?
HDFC Bank shows consistent profitability, controlled volatility, strong return on equity, and a zero debt-to-equity ratio, which support long-term stability.
3. How does Reliance Industries add stability to a portfolio?
Reliance Industries operates across energy, telecom, and retail, offering diversified revenue streams and a large market cap that supports resilience.
4. Are IT stocks suitable for low-risk investing?
Leading IT companies with global contracts and strong cash flows can provide defensive exposure, though short-term returns may fluctuate.
5. Is diversification important for reducing stock market risk?
Yes, spreading investments across banking, energy, consumer, healthcare, and infrastructure sectors helps manage overall portfolio volatility.
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