5 Stocks Trading Below 5-Year PE Average with Over 100% YoY Profit Growth

Synopsis: Low P/E combined with high profit growth suggests a valuation disconnect where the market hasn’t yet priced in surging earnings. This list includes companies with P/E ratios as low as 3.

The Price-to-Earnings (P/E) ratio measures how much investors are willing to pay for every rupee of a company’s earnings. It helps assess valuation relative to profitability. A stock trading below its historical P/E average while delivering strong profit growth may indicate undervaluation with improving fundamentals and potential re-rating ahead. The following are the stocks that currently trade below their 5-year average P/E while reporting robust YoY profit growth.

Waaree Renewable Technologies Ltd

It is one of the leading player in the solar EPC (Engineering, Procurement, and Construction) space in India. As a subsidiary of the Waaree Group, it focuses on providing end-to-end solar solutions for industrial and commercial sectors, benefiting significantly from India’s aggressive transition toward renewable energy and green hydrogen.

With a market cap of Rs 8,500 Crore, the stock is currently trading around the PE 20, which is lesser than its 5-year average of 48. In the Q3FY26, the company saw a YoY revenue growth of 136 percent, going from Rs 360 Cr in Q3FY25 to Rs 851 Cr in Q3FY26, while the YoY Net Profits growth is at 125 percent, going from Rs 53 Cr in Q3FY25 to Rs 120 Cr in Q3FY26.

Engineers India Ltd 

EIL or Engineers India Ltd is a premier Navratna public sector undertaking that provides engineering consultancy and EPC services, primarily for the oil, gas, and petrochemical sectors. Recently, it has diversified into biofuels, green hydrogen, and infrastructure projects, leveraging its technical expertise to secure large-scale international contracts in the Middle East and Africa.

With a market cap of Rs 11,500 Crore, the stock is currently trading around the PE 15, which is lesser than its 5-year average of 22. In the Q3FY26, the company saw a YoY revenue growth of 58 percent, going from Rs 765 Cr in Q3FY25 to Rs 1,210 Cr in Q3FY26, while the YoY Net Profits growth is at 219 percent, going from Rs 109 Cr in Q3FY25 to Rs 347 Cr in Q3FY26.

Ashoka Buildcon Ltd

It is a major Indian infrastructure company specialized in the construction of highways, bridges, and power distribution systems. The firm operates on a BOT (Build-Operate-Transfer) and EPC basis, and has recently undergone significant deleveraging by monetizing several road assets to improve its consolidated balance sheet and liquidity.

With a market cap of Rs 3,400 Crore, the stock is currently trading around the PE 3, which is lesser than its 5-year average of 7. In the Q3FY26, the company saw its YoY revenue fall by 23 percent, going from Rs 2,388 Cr in Q3FY25 to Rs 1,827 Cr in Q3FY26, while the YoY Net Profits growth is at 223 percent, going from Rs 662 Cr in Q3FY25 to Rs 2,111 Cr in Q3FY26.

Valiant Communications Ltd

It is a specialized manufacturer of telecom transmission equipment and communication solutions, catering to critical infrastructure sectors like power utilities, railways, and defense. With installations in over 90 countries, the company has successfully transitioned into a high-margin cyber-security and network isolation player, recently validating hardware-based “Kill Switch” technology for mission-critical military environments.

With a market cap of Rs 1,300 Crore, the stock is currently trading around the PE 63, which is lesser than its 5-year average of 64. In the Q3FY26, the company saw a YoY revenue growth of 165 percent, going from Rs 8 Cr in Q3FY25 to Rs 22 Cr in Q3FY26, while the company made a Net loss of Rs 53 lakh in Q3FY25 this number became positive in Q3FY26 wth a net profit of Rs 6 Cr.

HBL Engineering Ltd 

The company is a specialized engineering firm that has become a critical player in India’s defense and railway modernization. The company is a primary supplier of the Kavach (Train Collision Avoidance System) and advanced electronic signaling, while maintaining a dominant global position in specialized lead-acid and nickel-cadmium batteries for aviation and industrial standby power.

With a market cap of Rs 18,700 Crore, the stock is currently trading around the PE 23, which is lesser than its 5-year average of 44. In the Q3FY26, the company saw a YoY revenue growth of 22 percent, going from Rs 451 Cr in Q3FY25 to Rs 874 Cr in Q3FY26, while the YoY Net Profits growth is at 31 percent, going from Rs 65 Cr in Q3FY25 to Rs 220 Cr in Q3FY26.

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