These undervalued stocks trade at very low P/E ratios despite strong profits and high ROCE numbers.
Companies like Kore Digital, Mishtann Foods, and Ashoka Buildcon show value due to earnings, not price hype.
Short-term weakness hides long-term potential, which patient investors can benefit from through careful investment.
Many investors look for low-priced stocks with strong financial performance. These market participants are ignored thanks to a weak market mood or short-term issues. Value traders continue to perceive them as future winners. Let’s take a look at the top undervalued stocks on the market based on earnings, margins, and return ratios.
Kore Digital is one of the best undervalued stocks to buy, trading at a CMP of Rs. 173.55 and showing a very low P/E of 4.31. The market cap is Rs. 208.67 crores, which is quite small compared to the profit power. The company reported a net profit of Rs. 10.95 crores for the quarter with sales of Rs. 100.89 crores.
ROCE stands strong at 45.01% and ROIC at 38.75%. These numbers show the business uses capital very well. Even without dividends, the valuation still looks ideal for long-term holding.
Mishtann Foods trades at just Rs. 4.62 CMP and P/E of only 1.51, which is extremely low. Market cap is Rs. 497.81 crores. Quarterly net profit came at Rs. 95.45 crores, though profit fell by -10.43%.
Sales for the quarter reached Rs. 386.47 crores with a growth of 13.05%. ROCE is 42.17% and ROIC is 34.71%. These return numbers look very strong, and the market might be ignoring them due to the recent profit dip.
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Ashoka Buildcon trades at a CMP of Rs. 157.00 with a low P/E of 2.95. Market cap is Rs. 4407.36 crores. Quarterly profit was Rs. 90.69 crores, but profit declined by -54.50%. Sales came at Rs. 1851.18 crores and sales dropped by -25.62%.
Even with weak recent growth, ROCE stands at 39.70% and ROIC at a very high 174.55%. This shows strong asset efficiency and long-term value potential.
Reliance Infrastructure trades at Rs. 148.80 CMP with a P/E of 1.29. Market cap is Rs. 6080.43 crores. Quarterly net profit was Rs. 2575.30 crores with a growth of 50.47%, which is massive. Sales came at Rs. 6234.91 crores, though sales declined by -14.10%. ROCE and ROIC both stand at 34.0%. Despite business challenges, the valuation looks too low compared to earnings power.
Twamev Construction trades at Rs. 23.55 CMP and P/E of 3.62. Market cap is Rs. 365.03 crores. Net profit for the quarter was Rs. 3.22 crores, and profit jumped by 1050.00%, which is a very sharp growth. Quarterly sales stood at Rs. 12.37 crores with sales growth of 0.24%. ROCE and ROIC are both at 17.21%. Though small in size, its growing profits make it attractive to riskier investors.
Jindal Drilling trades at a CMP of Rs. 542.00 and a P/E of 4.69. Market cap is Rs. 1570.74 crores. The company pays a dividend yield of 0.18%. Quarterly net profit came at Rs. 132.52 crores with a strong growth of 284.45%.
Sales were Rs. 238.03 crores and grew by 37.99%. ROCE is 16.34% and ROIC is 19.59%. This stock benefits from the oil sector recovery and still trades at a low margin.
Shiv Texchem trades at Rs. 135.50 CMP with a P/E of 4.45. Market cap is Rs. 313.99 crores. Quarterly profit stood at Rs. 42.95 crores with a growth of 108.19%. Sales were very strong at Rs. 1502.99 crores with an uptrend of 45.83%. ROCE is 14.46% and ROIC is 15.33%.
Strong sales growth with low valuation makes this stock attractive even if the market ignores it now.
Vardhman Holdings trades at a CMP of Rs. 3490.00 and P/E of 4.57. Market cap is Rs. 1113.33 crores. Dividend yield is 0.14%. Quarterly net profit came at Rs. 46.12 crores, though profit declined by -6.60%.
Sales were only Rs. 2.75 crores, a sharp 62.84% decline. ROCE is 7.98%, but ROIC is very high at 2473.63% due to the investment structure. This stock suits patient investors who understand holding companies.
These undervalued stocks have relatively low P/E ratios and strong return numbers. The market often misprices such companies due to short-term fear or low coverage. Not all will perform the same, but some can give big returns if business stays stable.
Investors should consider doing their own research before buying, as undervalued stocks sometimes stay stable at low prices for longer periods of time.
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Q1. What are undervalued stocks?
Undervalued stocks are stocks trading at low prices compared to their earnings, assets, or growth potential.
Q2. Why are these stocks ignored by the market?
The market often ignores them due to the market term losses, low liquidity, or poor news sentiment.
Q3. Are low P/E stocks always safe to buy?
No, low P/E alone is not enough; business quality and profit consistency also matter.
Q4. Can these stocks give returns by 2026?
If business performance stays stable, some of these stocks can give strong returns by 2026.
Q5. Is this suitable for new investors?
New investors should study the basics first, as undervalued stocks can stay slow for long time.