Synopsis: Here are 4 stocks that have Vanguard, a global investment giant’s investment, and are also undervalued, as their PE is lower than the industry along with its median PE. The investment giant owns around a 1 to 5% stake in these firms; let us see which they are.
Global investment powerhouse Vanguard, known for its disciplined, long-term approach and over $10 trillion in global assets, has quietly built meaningful positions in several Indian companies that remain undervalued despite solid fundamentals. These stocks not only have lower PE ratios compared to their industry averages and median levels but also show strong business resilience and long-term potential. Vanguard’s stake, ranging from 1% to 5%, signals institutional confidence in their stability, growth runway, and governance quality.
In a market where valuations often run ahead of earnings, these four companies stand out as value pockets backed by a global giant. From consumer durables and media to engineering services and renewable energy, each offers a unique blend of scale, innovation, and industry relevance. Here’s a closer look at the four undervalued Indian stocks that have Vanguard’s stake in them.
With a strong legacy of over 85 years, this company has grown into one of India’s leading consumer durables and lighting brands, reaching more than 10 crore households through a vast network of 3,14,000+ retailers and supported by a team of 3,000+ employees. Guided by experienced industry professionals, it focuses on creating modern, reliable, and high-quality products that genuinely improve everyday life.
Its long-standing commitment to innovation, trust, and sustainability has helped it become a household name, and it continues to shape the consumer durables space with solutions designed to enrich the lives of future generations.
With a market cap of Rs 16,094 crore, the shares of Crompton Greaves Ltd have closed at Rs 250 and have given a return of 85% since their listing in 2016 and have an ROCE and ROE of 19% and 17.4%, respectively.
The stock is said to be undervalued, as it is trading at a PE of 33.2, whereas its industry PE is 50.7 and its median PE is 41.5; both are higher than its current PE, which showcases an undervaluation as per its current price. Vanguard, the global investment giant, lately has around a total of 2.74% stake in the company through two of the funds, which are the Vanguard Total International Stock Index Fund and the Vanguard Emerging Markets Stock Index Fund, a series.
Financials
The revenue from operations is at Rs 1,916 crore in Q2 FY26 versus Rs 1,896 crore in Q2 FY25, which is an increase of about 1 per cent YoY. However, the net profit also decreased from Rs 128 crore in Q2 FY25 to Rs 75 crore in Q2 FY26, which is a fall of about 41%.
Zee Entertainment Enterprises is mainly in the following businesses: broadcasting of satellite television channels, space selling agent for other satellite television channels, and sale of media content, i.e., programmes/film rights/feeds/music rights.
With a market cap of Rs 8,971 crore, the shares of Zee Entertainment closed at Rs 93.4 and have given a return of 188% since their listing in 1999. The shares have an ROCE and ROE of 9.21% and 6.71%, respectively.
The stock is said to be undervalued, as it is trading at a PE of 14, whereas its industry PE is 19.6 and its median PE is 25.3; both are higher than its current PE, which showcases an undervaluation as per its current price. Vanguard, the global investment giant, lately has around 4.96% stake in the company, through 3 funds which are Vanguard international value fund, Vanguard total international stock index fund and Vanguard emerging markets stock index fund, a series.
Financials
The revenue from operations is at Rs 1,969 crore in Q2 FY26 versus Rs 2,001 crore in Q2 FY25, which is a fall of about 1.6 percent YoY. Similarly, the net profit also decreased from Rs 209 crore in Q2 FY25 to Rs 76 crore in Q2 FY26, which is a fall of about 64%.
The company positions itself as a trusted engineering and technology partner, working with over 300 customers, including 40% of the world’s top 100 global innovators. Its core focus is helping clients tackle today’s challenges while building a digital, autonomous, and sustainable future. With three decades of continuous co-innovation, the company has steadily invested in advanced technologies, platforms, and engagement models to stay aligned with evolving business needs.
This long-term commitment to engineering excellence and innovation highlights its role as a strategic partner for companies seeking high-end, future-ready solutions across industries
With a market cap of Rs 12,650 crore, the shares of Cyient Ltd closed at Rs 1138.8 and have given a return of about 129% over the last 5 years. The stocks are trading at an ROCE and ROE of 16.6% and 12.8%, respectively.
The stock is said to be undervalued, as it is trading at a PE of 22.5, whereas its industry PE is 31.8 and its median PE is 24.3; both are higher than its current PE, which showcases an undervaluation as per its current price. Vanguard, the global investment giant, lately has around a 2.11% stake in the company through its two funds, which are the Vanguard Total International Stock Index Fund and the Vanguard Emerging Markets Stock Index Fund, a series.
Financials
The revenue from operations is at Rs 1,781 crore in Q2 FY26 versus Rs 1,849 crore in Q2 FY25, which is an increase of 4 per cent YoY. Similarly, the net profit also decreased from Rs 187 crore in Q2 FY25 to Rs 143 crore in Q2 FY26.
Websol Energy System Limited is a seasoned player in India’s solar industry, having started its journey back in the 1990s when solar was still in its infancy. Over more than 30 years, the company has built a reputation for technical excellence, steady leadership, and long-term partnerships, adapting to the fast-changing landscape of solar technology and global standards.
Today, Websol operates with a strong manufacturing backbone of 1,200 MW of solar cell capacity and 550 MW of module capacity, producing high-efficiency, globally certified products. In simple terms, it’s a company that has grown with the industry, weathered its ups and downs, and continues to position itself as a reliable, technology-driven contributor to India’s renewable energy future.
With a market cap of Rs 4,041 crore, the shares of Websol Energy System Ltd are trading at a price of Rs 95.75 and have given a return of 3,310% over the last 5 years. The ROCE and ROE are 59.2% and 80.2%, respectively.
The stock is said to be undervalued, as it is trading at a PE of 20.5, whereas its industry PE is 31 and its median PE is 38; both are higher than its current PE, which showcases an undervaluation as per its current price. Vanguard, the global investment giant, lately has around a 1% stake in the company through Vanguard Total International Stock Index.
Financials
The revenue from operations is at Rs 168 crore in Q2 FY26 versus Rs 144 crore in Q2 FY25, which is a rise of about 16 per cent YoY. Similarly, the net profit also increased from Rs 42 crore in Q2 FY25 to Rs 46 crore in Q2 FY26.
Written by Leon Mendonca
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