Sharp market declines often test investor patience and conviction. As volatility rises and sentiment weakens, uncertainty tends to dominate decision-making.
However, such periods have historically offered opportunities for long-term investors to accumulate quality names at more reasonable valuations.
Market corrections can provide the perfect time to look for fundamentally strong companies trading at attractive valuations. This is where blue-chip stocks come into focus.
Blue-chip stocks are shares of large, well-established, and financially sound companies with a track record of consistent performance. These companies typically lead their industries, maintain strong balance sheets, and demonstrate resilience across market cycles.
With this in mind, here are five blue-chip stocks that appear undervalued in the current market and are worth watching.
#1 Tata Consultancy Services
First on the list is Tata Consultancy Services (TCS).
Tata Consultancy Services is the flagship company and a part of the Tata group.
TCS is an IT services, consulting and business solutions organisation partnering with many of the world’s largest businesses in their transformational journeys for the last 57 years.
With a global presence and deep domain expertise across multiple industry verticals, TCS offers a comprehensive portfolio of application development and management, digital transformation, AI, data and cloud services, engineering services, cognitive business operations, cyber security, and products & platforms – targeting every C-suite stakeholder.
TCS has a strong global footprint with operations across six continents and a workforce representing 152 nationalities.
Its geographic presence spans North America, Latin America, the UK, Continental Europe, Asia Pacific, India, and the Middle East & Africa, underlining its diversified revenue base and global delivery capabilities.
According to its FY25 annual report, TCS emerged as the second global IT services brand to cross the US $20 billion (bn) mark in brand value, reaching US $21.3 bn, as per Brand Finance.
TCS is currently trading at a PE multiple of 17.94x, compared to the industry average of 20.43x, indicating that the stock is relatively undervalued among blue-chip peers.
| Company | TCS PE | Industry PE |
| TCS | 17.94x | 20.43x |
Going forward, the company plans to strengthen its presence in the AI space, focusing on expanding AI-led solutions and capabilities.
#2 ITC
Next on the list is ITC.
ITC operates across multiple diversified business segments, with FMCG being one of its key pillars.
The company has a strong presence in branded packaged foods, cigarettes, personal care products, education and stationery products, as well as agarbattis and matches.
In its agri business, ITC is positioned as one of India’s leading players, sourcing around 3.5 million tonnes and supporting over 20 value chain clusters across 22 states.
The company’s paperboards and packaging business is another strong vertical, where it leads in value-added paperboards.
ITC Hotels, now a listed entity, operates over 140 hotels across more than 90 locations.
Additionally, ITC Infotech is a wholly owned subsidiary of ITC Limited.
ITC is currently trading at a PE multiple of 10.9x, compared to the industry average of 44.9x, indicating that the stock is relatively undervalued among blue-chip peers.
| Company | ITC PE | Industry PE |
| ITC | 10.9x | 44.9x |
Moving forward, ITC is continuing its sharp focus on portfolio augmentation and structural cost management to mitigate near-term challenges.
#3 Maruti Suzuki
Next on the list is Maruti Suzuki.
Maruti Suzuki India was established in 1981, followed by a joint venture agreement between the Government of India and Suzuki Motor Corporation (SMC), Japan, in 1982.
In 2002, the company became a subsidiary of SMC, which currently holds a 58.28% equity stake.
The company is the market leader in India’s passenger vehicle segment and also the country’s largest exporter of passenger vehicles.
In FY 2024–25, Maruti Suzuki achieved its highest-ever total sales, crossing the 2 million units milestone for the second consecutive year, becoming the first passenger vehicle manufacturer in India to reach this achievement.
It is also India’s largest exporter of passenger vehicles with a share of nearly 43% as of FY25.
Maruti Suzuki as of 26 March 2026 is trading at a PE multiple of 26.75x, compared to the industry average of 28.2x, indicating that the stock is relatively undervalued among blue-chip peers.
| Company | Maruti Suzuki PE | Industry PE |
| Maruti Suzuki | 26.75x | 28.2x |
Going forward, the company plans to deepen its customer base, broaden its product portfolio, and embrace sustainable mobility initiatives.
#4 ONGC
Next on the list is ONGC.
Maharatna ONGC is the largest crude oil and natural gas company in India, contributing around 71 per cent to Indian domestic production.
Crude oil is the raw material used by downstream companies like IOC, BPCL, HPCL and MRPL (last two are subsidiaries of ONGC) to produce petroleum products like petrol, diesel, kerosene, naphtha, and cooking gas LPG.
ONGC has a unique distinction of being a company with in-house service capabilities in all areas of exploration and production of oil & gas and related oil-field services.
ONGC as of 26 March 2026 is trading at a PE multiple of 7.5x, compared to the industry average of 21.6x, indicating that the stock is relatively undervalued.
| Company | ONGC PE | Industry PE |
| ONGC | 7.5x | 21.6x |
Going forward, the company plans to expand its Enhanced Oil Recovery (EOR) portfolio.
#5 Infosys
Last on the list is Infosys.
According to its FY25 annual report, Infosys is a global leader in next-generation digital services and consulting, with a strong focus on delivering AI, cloud, and other digital solutions across industry verticals in more than 59 countries.
The company enables clients through an AI-first foundation while scaling enterprise AI, cloud, and digital technologies to deliver higher performance and enhanced customer experience.
Infosys pioneered the Global Delivery Model and was the first Indian IT company to be listed on NASDAQ, marking key milestone in India’s IT services evolution.
Infosys as of 26 March 2026 is trading at a PE multiple of 18.5x, compared to the industry average of 20.4x, indicating that the stock is relatively undervalued.
| Company | Infosys PE | Industry PE |
| Infosys | 18.5x | 20.4x |
Going forward, the company plans to expand its strategic partnership with AI Companies.
Conclusion
It may look appealing, especially during market corrections, when fundamentally strong blue-chip stocks trade at lower valuations.
However, undervalued does not always mean attractive. Some stocks may appear cheap due to slowing growth, declining earnings, or sector-specific challenges.
Therefore, investors should focus on strong fundamentals, stable earnings, manageable debt, and a positive industry outlook before investing.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Happy investing.
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