Looking for stocks under Rs 500 in India? Here are some great opportunities that might fit your budget! Whether you are a beginner or a seasoned investor, these stocks could offer potential growth. Do your research and keep an eye on market trends. So, what’s your top pick from the list?
This blog focuses on the stocks under 500 Rs in India, based on their market capitalization. It also provides insights into why these stocks are worth investing in.
List of Stocks Under 500 Rs
| Stock Name | Segment | CMP (13th March 2025) | Market Cap in Cr (13th March 2025) | PE Ratio | 52 Week High | 52 Week Low |
|---|---|---|---|---|---|---|
| ITC Ltd | Finance - NBFC | 412.70 | 5,15,680 | 25.61 | 499.96 | 377.79 |
| NTPC Ltd | Power Generation/Distribution | 330.25 | 3,20,087 | 14.56 | 448.45 | 292.80 |
| Oil and Natural Gas Corporation Ltd | Oil Exploration and Production | 226.00 | 2,82,616 | 7.24 | 345.00 | 215.48 |
| Wipro Ltd | Software & IT Services | 264.80 | 2,81,059 | 22.67 | 324.60 | 208.50 |
| Power Grid Corporation of India Ltd | Power Generation/Distribution | 267.60 | 2,48,419 | 15.98 | 366.25 | 247.30 |
| Coal India Ltd | Coal | 379.15 | 2,34,492 | 6.81 | 543.55 | 349.25 |
| Bharat Electronics Ltd | Aerospace & Defence | 282.20 | 2,02,298 | 40.52 | 340.50 | 179.10 |
| Zomato Ltd | Online Services | 203.45 | 1,98,266 | 297.75 | 304.70 | 144.30 |
| Tata Steel Ltd | Iron & Steel | 151.24 | 1,87,627 | 68.63 | 184.60 | 122.62 |
* The values for share price, market cap, 52-week high, and 52-week low are in rupees.
Disclaimer: The information provided on the above stocks is for informational purposes only. It is crucial to conduct thorough research before making any investment decisions regarding these stocks. We do not recommend trading any stocks without comprehensive research and professional financial advice. Always consult with a certified financial advisor to ensure informed and appropriate investment choices.
Table of Contents
Top Stocks Under Rs 500
Below is the overview of top stocks under ₹500.
ITC Ltd
Founded in 1910, ITC Limited is an Indian multinational conglomerate with diverse operations in FMCG, hotels, paperboards, agri-business, and IT. Known for brands like Aashirvaad and Sunfeast, ITC focuses on sustainability and rural development.
Get more details about ITC Ltd share price today here.
Know the ITC Ltd share price history here
NTPC Ltd
NTPC Ltd, or National Thermal Power Corporation, is India's largest power generation company, established in 1975. It primarily generates electricity through thermal, hydro, and renewable energy sources, playing a crucial role in meeting the country’s energy needs. NTPC is committed to sustainable practices and reducing its carbon footprint.
Get more details about NTPC Ltd share price today here.
Know the NTPC Ltd share price history here.
Oil and Natural Gas Corporation Ltd
Oil and Natural Gas Corporation Ltd. (ONGC) is a state-owned oil and gas exploration and production company, founded in 1956. It is the largest producer of crude oil and natural gas in India and plays a vital role in the country’s energy security. ONGC is also involved in renewable energy initiatives to diversify its portfolio.
Get more details about Oil and Natural Gas Corporation Ltd share price today here.
Know the Oil and Natural Gas Corporation Ltd share price history here.
Wipro Ltd
Wipro Ltd is a global information technology, consulting, and business process services company headquartered in India. It provides a wide range of services including software development, IT consulting, cloud solutions, and cybersecurity to clients across various industries.
Get more details about Wipro Ltd share price today here.
Know the Wipro Ltd share price history here.
Power Grid Corporation of India Ltd
Power Grid Corporation of India Ltd. is a government-owned corporation responsible for transmitting electricity across India. Established in 1989, it operates the country’s largest transmission network, ensuring reliable power supply. The company also invests in technology and infrastructure to enhance grid efficiency and stability.
Get more details about Power Grid Corporation of India Ltd share price today here.
Know the Power Grid Corporation of India Ltd share price history here.
Coal India Ltd
Coal India Ltd is a state-owned coal mining company and the largest producer of coal in India. It operates multiple coal mines across the country, supplying fuel to power plants and various industries. The company plays a crucial role in meeting India's energy demands and supporting economic growth.
Get more details about Coal India Ltd share price today here.
Know the Coal India Ltd share price history here.
Bharat Electronics Ltd
Bharat Electronics Ltd. (BEL) is a state-owned aerospace and defense company, established in 1954. It specializes in manufacturing advanced electronic products and systems for defense and civilian applications. BEL plays a key role in enhancing India’s defense capabilities and technological advancements.
Get more details about Bharat Electronics Ltd share price today here.
Know the Bharat Electronics Ltd share price history here.
Zomato Limited
Zomato Ltd is a leading food delivery and restaurant discovery platform, founded in 2008 in India. It connects customers with local restaurants, offering online food ordering, reviews, and restaurant listings. Zomato aims to enhance dining experiences while expanding its services globally.
Get more details about Zomato Limited share price today here.
Know the Zomato Limited share price history here.
Tata Steel Ltd
Tata Steel Ltd is one of the world's largest steel manufacturing companies, headquartered in India. Established in 1907, it is part of the Tata Group and operates in over 26 countries. The company is known for its high-quality steel products and commitment to sustainability and innovation.
Get more details about Tata Steel Ltd share price today here.
Know the Tata Steel Ltd share price history here.
What are the Benefits of Investing in Stocks Under 500 Rs?
Investing in stocks under 500 Rs can offer several benefits, especially for beginners or those looking to start small. Here are five advantages:
Affordability: Stocks under 500 Rs are budget-friendly, making it easier for new investors to start without needing a large sum of money.
Diversification: You can buy shares of multiple companies with smaller amounts, helping to spread risk across different industries or sectors.
Potential for Growth: Many lower-priced stocks have high growth potential, offering opportunities for significant returns if the company performs well.
Learning Opportunity: Investing in affordable stocks allows beginners to understand market trends and develop their skills without risking too much capital.
Compounding Returns: Small investments in stocks can grow over time due to the power of compounding, increasing the value of your portfolio in the long run.
What are the Risks Associated with Stocks Under 500 Rs?
Here are five simple risks associated with stocks priced under 500 Rs:
Volatility: Stocks under 500 Rs tend to be more volatile, meaning their prices can fluctuate wildly in a short time, leading to potential losses.
Lower Liquidity: These stocks might not have as much trading volume, making it harder to buy or sell without impacting the price.
Speculative Nature: Many low-priced stocks are subject to speculative trading, making them more vulnerable to market manipulation or sudden price swings.
Company Stability: Stocks under 500 Rs may belong to smaller or financially weaker companies, which can have higher risks of bankruptcy or poor performance.
Limited Information: There is often less research and analyst coverage for these stocks, making it harder for investors to make informed decisions.
How to Choose Stocks Under 500 Rs?
Choosing stocks under ₹500 can be a great way to invest without breaking the bank. The below information will help you choose stocks under Rs 500.
Look for Strong Fundamentals: Focus on companies with solid financial health, including stable revenue growth, low debt, and good profit margins. You can check key financial ratios like P/E (Price-to-Earnings) and P/B (Price-to-Book).
Analyze Industry and Growth Potential: Choose companies in industries that show growth potential, like tech, renewable energy, or pharmaceuticals. Look for stocks that could benefit from long-term trends.
Check for Consistency in Earnings: Focus on stocks with consistent earnings growth over the past few years. This shows that the company has a stable and reliable business model.
Assess the Stock's Valuation: Even if the stock is under ₹500, make sure it is not overvalued. Compare its current price with its earnings, book value, and growth prospects to see if it's a good deal.
Look for Dividends or Buyback Potential: Stocks that offer dividends or have a history of share buybacks can provide additional returns apart from price appreciation. This is especially valuable for long-term investors.
Who Can Invest in Stocks Under 500 Rs?
Investing in stocks with a budget of under 500 Rs is possible, though it requires understanding certain factors.:
Retail Investors: Any individual investor can invest in stocks under 500 Rs through a stockbroker or trading platform, regardless of their income or financial background.
Small Investors: People with limited capital or savings can also invest in stocks priced under 500 Rs, as these stocks are typically affordable compared to higher-priced stocks.
New Investors: Beginners or people new to the stock market might prefer lower-priced stocks (penny stocks) to start their investment journey, as they require less capital upfront.
Institutional Investors: Though institutional investors typically buy large quantities of stocks, they can still invest in low-priced stocks if they find value or opportunities in these stocks.
People Seeking Speculative Opportunities: Individuals who are willing to take higher risks may invest in stocks under 500 Rs, hoping for significant returns if the stock price increases.
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Conclusion
Overall, these stocks are investing heavily in capital expenditures to boost sales. All of these firms have good balance sheets and return ratios, so their stocks may do well in the long run. If you want to invest in any of them, you should conduct your own research and carefully consider your risk-return profile. Finally, for all this, you need a reliable stock market app for your investment needs.
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FAQs on Stocks less than ₹500
Are stocks under Rs. 500 riskier investments?
Stocks under Rs. 500 can be riskier due to market volatility and lower market capitalization, but careful selection based on strong financial metrics can mitigate some risks.
How can one identify stocks with good growth potential under Rs. 500?
Look for companies with consistent sales growth, high ROE, significant promoter's ownership, a low debt-to-equity ratio, and a high Altman Z Score.
What role does promoter's ownership play in selecting stocks?
Promoter's ownership over 50% signals strong commitment from the founders or major stakeholders, indicating confidence in the company's future prospects and stability.
How important is the debt-to-equity ratio for stocks under Rs. 500?
A favorable debt-to-equity ratio of less than 1 indicates a balanced financial structure, reducing financial risk and enhancing sustainability.
Why is the Altman Z Score important for evaluating stocks?
An Altman Z Score above 3 helps assess bankruptcy risk, providing added confidence in a company's financial stability and reducing the likelihood of future financial distress.
Can stocks under Rs. 500 provide good returns?
Yes, stocks under Rs. 500 can provide good returns if chosen carefully based on strong financial health, growth potential, and favourable ownership and debt metrics.
