3 LIC held stocks with PE lower than the industry average to keep on your radar

Synopsis: Three Indian listed companies with LIC stakes of 2% to 7% stand out as value opportunities due to their strong market positions and scalable business models. LIC’s presence signals long-term institutional confidence, while current valuations remain relatively attractive considering their PE being less than the industry. Let us see which these stocks are. 

Institutional shareholding often serves as an important reference point for investors when evaluating listed companies. The presence of a large, long-term investor can indicate confidence in a company’s governance, business model, and future prospects. At the same time, market pricing does not always immediately reflect this confidence, creating situations where stocks remain reasonably valued despite strong institutional backing. 

Life Insurance Corporation of India (LIC), as the country’s largest institutional investor, holds significant stakes across a wide range of listed companies, often reflecting its long-term investment approach and focus on stable businesses with strong fundamentals and governance standards. Examining such cases helps investors better understand where long-term conviction and current market valuation may not yet be fully aligned. Considering this, let us see 3 stocks that have both institutions, like LIC’s trust, along with good valuation considering stock and industry PE. 

Amara Raja Energy & Mobility Ltd

Amara Raja Energy & Mobility Limited, the flagship of the Amara Raja Group, is a leading name in India’s storage battery industry. Known for its strong expertise and technology-driven approach, the company is one of the largest producers of lead-acid batteries for both automotive and industrial use. Its long-standing presence and reliable manufacturing capabilities have helped it become a trusted energy solutions provider in the country.

A big part of Amara Raja’s strength comes from its impressive list of automotive OEM clients, including Maruti Suzuki, Hyundai, Tata Motors, Mahindra, Honda, Renault Nissan, Royal Enfield, and Bajaj Auto. This strong customer base reflects the company’s quality and consistency. Beyond India, Amara Raja also exports its batteries to over 60 countries, giving it a solid global footprint and reinforcing its position as a dependable and widely respected player in the energy and mobility space.

With a market cap of Rs 17,053 crore, the shares of Amara Raja Energy & Mobility Limited have closed at Rs 931 and have given a return of 91% since April 2020 and have an ROCE and ROE of 16.8% and 12.3%, respectively. 

LIC, through its investment fund P&G’s fund, has acquired a 6.88 per cent stake in the company, highlighting confidence from one of India’s largest institutional investors. Interestingly, the valuation story supports this sentiment—the stock currently trades at a PE of 21.3, which is noticeably below the industry average of 30. This lower multiple suggests the company may be undervalued relative to its peers, offering potential upside if earnings momentum continues and the market re-rates the stock in line with sector benchmarks.

The revenue from operations is at Rs 3,388 crore in Q2 FY26 versus Rs 3,136 crore in Q2 FY25, which is an increase of about 8 per cent YoY. Similarly, the net profit also increased from Rs 241 crore in Q2 FY25 to Rs 302 crore in Q2 FY26, which is an increase of about 25 per cent. 

CESC Ltd

CESC Limited is a long-standing Indian energy company with a strong footprint in both power generation and distribution. As part of the RPSG Group, it focuses on sustainable growth and innovation, actively supporting India’s transition toward cleaner and more efficient energy solutions.

The company operates through a robust distribution network that ensures a reliable, round-the-clock power supply while continuously improving service quality. By adopting modern technology and optimising operations, CESC delivers dependable electricity to a wide consumer base and remains committed to building a more sustainable energy future.

With a market cap of Rs 22,418 crore, the shares of CESC Limited closed at Rs 169 and have given a return of 178% over the last 5 years. The shares have an ROCE and ROE of 11.2% and 11.3%, respectively. 

LIC holds a 6.6 per cent stake in the company, strengthening its shareholder base with a long-term institutional presence. What makes the setup particularly compelling is the attractive valuation. With a PE ratio of 15.7 compared to the industry’s higher PE of 22.5, the stock appears to be priced conservatively. This discount signals that the market may not be fully recognising the company’s potential, yet creating an opportunity for value-focused investors.

The revenue from operations is at Rs 5,267 crore in Q2 FY26 versus Rs 4,700 crore in Q2 FY25, which is a growth of about 12 per cent YoY. Similarly, the net profit also increased from Rs 373 crore in Q2 FY25 to Rs 445 crore in Q2 FY26, which is a growth of about 19 percent. 

BLS International Services Ltd

BLS International Services Ltd. is a globally trusted, technology-driven partner that works with governments to deliver visa, passport, consular, and citizen services. With nearly two decades of experience, the company has grown into one of the top players worldwide and is the only listed firm in this niche on Indian stock exchanges.

Operating across 70 countries, BLS offers a wide range of solutions—from e-governance and biometrics to e-visa and attestation services—backed by strong global certifications. Its focus on quality, security, and efficient service delivery has made it a reliable partner for governments and a convenient service provider for millions of citizens around the world.

With a market cap of Rs 13,299 crore, the shares of BLS International Services Ltd closed at Rs 323 and have given a return of about 1,316% over the last 5 years. The stocks are trading at an ROCE and ROE of 33.6% and 34.3%, respectively. 

LIC has taken a 2.23 per cent stake in the company, signalling confidence from a major institutional player. Alongside this endorsement, the valuation stands out positively—the stock trades at a PE of 21.6, well below the industry norm of 40.5. Such a gap indicates undervaluation, suggesting the stock could have meaningful room for appreciation as the market eventually aligns its price with sector standards and future growth prospects.

The revenue from operations is at Rs 737 crore in Q2 FY26 versus Rs 495 crore in Q2 FY25, which is an increase of about 49 per cent YoY. Similarly, the net profit also increased from Rs 146 crore in Q2 FY25 to Rs 186 crore in Q2 FY26, an increase of about 27 per cent. 

Written by Leon Mendonca

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