Top Undervalued Stocks in India for Feb 2026: ICICI Bank, Power Finance Corporation and More

Undervalued stocks attract investor attention when strong fundamentals, earnings growth potential, and business quality are not fully reflected in market valuations. Such opportunities typically emerge when companies demonstrate consistent profitability and expansion prospects while trading at relatively reasonable valuation multiples.

In this article, we highlight some of the top undervalued stocks in India for February 2026, screened using valuation ratios such as P/E and P/B along with long term earnings growth metrics.

Best Undervalued Stocks in India – February 2026

Note: The list is based on available data as of February 19, 2026, and is sorted based on market cap.

Overview of Select Undervalued Stocks

1. ICICI Bank Ltd

ICICI Bank is one of India’s leading private sector banks, supported by improving asset quality, steady credit growth, and strong retail loan expansion.

Key Metrics:

• Return on Equity (ROE): 17.04%
• ROCE: 7.24%

2. Bajaj Finance Ltd

Bajaj Finance operates across consumer lending, SME financing, and digital financial services. Strong customer acquisition and diversified lending segments continue to support earnings visibility despite premium valuations relative to traditional lenders.

Key Metrics:

• Return on Equity (ROE): 18.95%
• ROCE: 5.18%

3. Adani Ports and Special Economic Zone Ltd

Adani Ports benefits from rising cargo volumes, logistics integration, and India’s growing trade infrastructure. Stable cash flows and operational scale contribute to consistent profitability metrics.

Key Metrics:

• Return on Equity (ROE): 18.52%
• ROCE: 13.83%

4. Bharat Electronics Ltd

Bharat Electronics is a key defence electronics manufacturer benefiting from government indigenisation initiatives and increasing defence spending, supporting long-term earnings growth visibility.

Key Metrics:

• Return on Equity (ROE): 29.29%
• ROCE: 33.75%

5. Hindustan Aeronautics Ltd

Hindustan Aeronautics operates in aerospace and defence manufacturing, supported by strong order books and domestic defence procurement momentum.

Key Metrics:

• Return on Equity (ROE): 26.09%
• ROCE: 17.51%

Stocks Ranked by 5Y Average Net Profit Margin

Note: The data above is as of Feb 19, 22026 and is Sorted by 5-year average net profit margin.

Stocks Ranked by 1-Year Returns

Note: The data above is as of Feb 19, 22026 and is sorted by 1-year return performance.

Read More: Best Semiconductor Funds in Feb 2026: Franklin India Technology Fund, Tata Digital India Fund and More Based on 3-Year CAGR.

Conclusion

Financial services, defence manufacturing, and infrastructure-linked companies continue to feature prominently due to structural growth drivers and improving return ratios. Investors typically combine valuation metrics with profitability and growth indicators to identify sustainable value opportunities rather than relying solely on low price multiples.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Readers should conduct their own research and assessments to form an independent opinion before making investment decisions.

Investments in the securities market are subject to market risks. Read all related documents carefully before investing.