Best Stocks Under ₹500 in India (2026)
10 Jun 2026
3 mins read
Looking for stocks under 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?
List of Stocks Under ₹500 in India
Below is the list of stocks under 500 Rs that are commonly tracked in the Indian stock market:
Stock Name | Sector | CMP | Market Cap in Cr | P/E Ratio | 52-Week High | 52-Week Low |
| ITC Ltd | Finance – NBFC | 306.55 | 3,84,404.09 | 18.68 | 444.20 | 287 |
| NTPC Ltd | Power | 393.6 | 3,81,709.26 | 15.79 | 397.25 | 315.55 |
| Oil & Natural Gas Corpn Ltd | Oil Exploration and Production | 284.05 | 3,57,217.03 | 9.40 | 293 | 228.45 |
| Bharat Electronics Ltd | Aerospace & Defence | 462.75 | 3,38,223.47 | 56.70 | 473.45 | 291.15 |
| Power Grid Corporation of India Ltd | Power Generation/Distribution | 320.3 | 2,95,805.70 | 19.06 | 322 | 250 |
| Coal India Ltd | Coal | 442.8 | 2,70,358.89 | 9.05 | 476 | 368.65 |
| Wipro Ltd | Software & IT Services | 204.17 | 2,14,332.80 | 16.24 | 273.10 | 186.50 |
| Indian Oil Corporation Ltd | Oil & Gas | 144.57 | 2,05,958.26 | 5.76 | 188.96 | 130.22 |
| Jio Financial Services Ltd | Finance | 238.84 | 1,54,984.89 | 97.97 | 338.60 | 223.30 |
| Engineers India Ltd | Engineering Services | 245 | 13,576.13 | 17.50 | 255.45 | 163.55 |
Disclaimer: All the above information is accurate as of 10th June 2026. However, it is important to conduct research before making any investment decisions in these stocks. We do not recommend buying without thorough research and professional financial advice. Always consult a certified financial advisor to ensure the stocks align with your investment goals and risk tolerance.
Table of Contents
Top 10 Stocks Under ₹500 for Long-Term Investment
Below is the complete list of shares below ₹500
ITC Ltd
ITC Ltd was incorporated in 1910. The company operates as a diversified conglomerate, and it has a strong presence in the FMCG segment. It is also present in hotels, paperboards, and packaging. The company operates in agribusiness as well. Its business model focuses on branded consumer products, and these products are supported by integrated supply chains.
NTPC Ltd
NTPC Ltd was incorporated in 1975. The company operates in the power generation and distribution sector. It generates electricity at a large scale, and it also uses hydro, solar, and wind energy. The company supplies electricity to state utilities, and its operations cover regions across India.
Oil & Natural Gas Corp Ltd
ONGC was incorporated in 1956. The company operates in the oil exploration and production segment. It is engaged in crude oil exploration and focuses on natural gas exploration. The company undertakes development activities. It is involved in the production of oil and gas.
Bharat Electronics Ltd
Bharat Electronics Ltd was incorporated in 1954 and operates in the aerospace and defence sector. Its business model focuses on designing, manufacturing, and supplying electronic systems and equipment primarily for defense and strategic applications.
Power Grid Corporation of India Ltd
Power Grid Corporation of India Ltd was incorporated in 1989 and operates in the power transmission segment. The company’s business model is centered on owning, operating, and maintaining interstate power transmission networks across the country.
Coal India Ltd
Coal India Ltd was incorporated in 1975. The company operates in the coal mining sector and is engaged in coal production activities. Coal is supplied to the power industry. The company also supplies coal to steel producers, and the cement industry is another key customer. Coal India supports a large share of India’s energy needs.
Indian Oil Corporation Ltd
Indian Oil Corporation Ltd was incorporated in 1959 and operates in the oil and gas sector. The company’s business model spans refining, pipeline transportation, and marketing of petroleum products across domestic and international markets.
Wipro Ltd
Wipro Ltd was incorporated in 1945 and operates in the software and IT services sector. Its business model includes IT consulting, digital transformation, cloud services, and enterprise technology solutions for global clients.
Jio Financial Services Ltd
Jio Financial Services Ltd was incorporated in 1999. The company operates in the financial services sector. It focuses on digital-led financial offerings, and it also provides lending solutions. It is active in payment services, and all the technology platforms support its operations. The company delivers integrated financial solutions. ns.
Engineers India Limited
This company was founded in 1965 and is a Government of India enterprise under the Ministry of Petroleum & Natural Gas. It provides engineering consultancy, design, and EPC (Engineering, Procurement, Construction) services, mainly for oil & gas, petrochemicals, and infrastructure projects. The company operates both in India and internationally, supporting large-scale industrial and energy projects.
Fundamentals to Check Before Investing
Before jumping into low-priced equities, analyzing underlying financial health is vital to avoid value traps.
Revenue Growth and Profitability
Topline Consistency: Look for companies showing a steady year-on-year increase in operational revenues, proving market demand.
Profit Margins: Ensure that the operating and net profit margins are expanding or remaining stable over a 3-to-5-year period.
Core Earnings: Evaluate the Earnings Per Share (EPS) to confirm that profits are coming from core business operations rather than one-time exceptional gains.
Debt and Financial Stability
Debt-to-Equity Ratio: Prioritize companies with a debt-to-equity ratio below $1$, indicating they are not heavily reliant on borrowed capital.
Interest Coverage: Check if the company generates enough operating profit to comfortably pay off its interest obligations.
Free Cash Flow: Strong, positive free cash flow is an excellent indicator that a business has enough liquidity to fund its own expansion.
Market Cap and Valuation Ratios
Price-to-Earnings (P/E): Compare the stock's current P/E ratio against its historical average and its sector peers to gauge if it is reasonably valued.
Price-to-Book (P/B): For capital-intensive sectors, a low P/B ratio can help pinpoint asset-heavy businesses trading below their intrinsic worth.
Return Metrics: Target companies boasting a Return on Equity (ROE) and Return on Capital Employed (ROCE) greater than 15%.
Advantages of Investing in Stocks Under ₹500
Below are the advantages of investing in stocks under ₹500:
Lower Entry Barrier: These financial instruments offer excellent accessibility for retail investors and beginners with limited capital to start their market journey.
Superb Diversification: Instead of putting all your money into a single high-priced stock, a budget of ₹5,000 lets you spread risk across multiple best stocks under ₹500.
Higher Share Accumulation: Buying lower-priced equities allows you to accumulate a higher volume of shares, amplifying your returns during compounding phases and corporate actions like stock splits.
Risks to Consider Before Investing
Below are the risks before investing in stocks under 500 Rs in India:
The Cheap Trap Illusion: A low stock price does not automatically make it cheap; fundamentally weak or dying companies can often look like attractive bargains.
Liquidity Bottlenecks: Certain small and mid-cap listings under ₹500 suffer from low trading volumes, making it difficult to buy or sell large quantities without triggering extreme price swings.
High Price Volatility: These segments are far more sensitive to institutional selling, global economic shifts, and domestic policy changes compared to legacy large-caps.
How to Choose the Best Stocks Under ₹ 500?
Selecting winning assets in this price bracket requires filtering out speculative noise and focusing purely on business execution.
Identify Strong Fundamentals:
Moat Detection: Search for a distinct competitive edge, such as unique patents, dominant market share, or an unmatched distribution network.
Promoter Skin in the Game: High promoter holdings (ideally above 50%) free of pledged shares indicate strong insider confidence.
Institutional Backing: Check if domestic mutual funds or Foreign Institutional Investors (FIIs) are steadily increasing their stake in the company.
Analyze Industry Trends
Sector Tailwinds: Focus your research on high-growth sectors backed by government capital expenditure, such as renewable energy, defense, electronics manufacturing, or infrastructure.
Regulatory Landscape: Ensure the industry isn't heavily exposed to sudden price caps, strict import changes, or complex compliance overhauls.
Market Expansion: Invest in businesses that are actively tapping into global export markets or scaling their operations domestically to capture new demand.
Look for Consistent Performance
Earnings Trajectory: Steer clear of cyclical turnarounds unless you possess deep sector expertise; instead, pick reliable compounders.
Dividend Track Record: A pattern of continuous dividend payouts is a great sign of genuine earnings liquidity and corporate transparency.
Management Execution: Review management’s past guidance versus actual performance to evaluate their strategic alignment and operational competence.
Who Should Invest in Stocks Below ₹500?
Budget-Conscious Beginners: Ideal for young earners or college students looking to apply market concepts using smaller, manageable sums.
Aggressive Growth Seekers: Perfect for investors looking to add fast-growing, affordable stocks in India to their satellite portfolio for alpha generation.
SIP Systematic Investors: These shares fit perfectly into a monthly wealth-building setup, allowing you to easily purchase uniform lots with fixed regular allocations.
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 research and carefully consider your risk-return profile. Finally, for all this, you need a reliable stock market app for your investment needs.
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 capitalisation, 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.
Are there any mid-cap or small-cap stocks under ₹500 with good growth prospects?
Yes, several companies in this price range show promising potential. A few to consider include:
- Mazagon Dock Shipbuilders – With rising defence contracts, it's gaining investor attention.
- IRFC (Indian Railway Finance Corporation) – Plays a key role in railway financing and is backed by the government.
- Triveni Turbine – Known for its work in power generation and clean energy equipment.
- Bharat Dynamics – A defence stock that could benefit from higher defence spending.
- RVNL (Rail Vikas Nigam Ltd) – Involved in infrastructure development, especially in railways.
Always do your own research or consult a financial advisor before investing.
Which stocks under ₹500 offer steady dividends?
If you’re looking for regular income, here are some companies known for paying dividends:
- Coal India – Known for generous dividends and stable profits.
- Hindustan Zinc – Pays out regularly, especially when commodity prices are strong.
- REC Ltd & PFC Ltd – Both are government-backed and consistent with their payouts.
- NMDC – A PSU in mining that shares a good portion of profits with shareholders.
- Oil India – Offers attractive yields and operates in a relatively stable sector.
Can low-priced stocks turn into multibaggers over time?
Definitely. A stock’s price doesn’t always reflect its future potential. Some of today’s under-₹500 stocks might deliver impressive returns in the coming years if they have:
- A strong business model
- Consistent growth in earnings
- Good financials
- Supportive sector trends
In the past, stocks like Tejas Networks and IRCTC were available under ₹500 before climbing sharply.
What are the risks associated with Stocks Under ₹500?
Stocks under 500 are subjected to greater price fluctuation, since any slight fluctuation in the market mood can cause the price to shoot up. Some stocks can have business/sector related risk which can influence performance even with the reduced share price.
How to identify the stocks under ₹500?
Stocks under 500 can be identified by filtering listed companies based on their current market price using stock screeners or a share market app.
Are stocks under ₹500 good for long-term investment?
Yes, they can be excellent long-term investments provided you select companies backed by solid corporate governance, low debt, and structural industry tailwinds.
Can stocks under ₹500 become multibaggers?
Absolutely, as a low absolute share price allows high-growth mid-cap and small-cap companies immense room to scale their market capitalization as their earnings multiply.
How to choose stocks below ₹500?
Filter out speculative "penny traps" by utilizing screeners to identify companies with a Return on Equity (ROE) above 15%, low debt-to-equity ratios, and steady year-on-year revenue growth. Always prioritize sectors receiving substantial government capital expenditure and check for increasing institutional investor or promoter stakes.
Is it safe to invest in stocks under ₹500?
Safety depends entirely on the company's financial health rather than the stock price itself, as a ₹400 stock can belong to a highly stable, cash-rich PSU or a failing business heading toward bankruptcy. Investing in this bracket is safe only if you stay disciplined, thoroughly analyze fundamentals, and steer clear of low-liquidity speculative shares.
