Stocks to Buy Under Rs. 500

Stocks under Rs. 500 are shares of publicly traded companies priced at Rs. 500 or less per share, making them accessible to investors with a modest budget. They often belong to small or mid-sized companies and can offer growth potential along with higher risk and volatility.

Key things to know:

• Popular stocks under Rs. 500 include ITC Ltd, NTPC Ltd, ONGC, Wipro, Bharat Electronics, Power Grid, Coal India, Tata Steel, and Hindustan Zinc
• Sectors covered include FMCG, energy, utilities, IT, infrastructure, and mining
• Key metrics to evaluate: continuous sales growth, return on equity (ROE), promoter holdings, and debt-to-equity ratio
• NMDC has delivered a 3-year ROE of 29% with a dividend payout of 38%
• ITC has maintained a 3-year ROE of 28% with a dividend payout of 84%
• NTPC has a dividend payout of 36% with a 3-year CAGR of 53%

• Gujarat Mineral Development Corporation has delivered a 3-year CAGR of 78% with a dividend payout of 44%

  
  

While there may be numerous picks for best stocks under Rs. 500, we have chosen a few with significant growth potential after considering price and market trends, fundamental analysis, and speculation.

Note: Market capitalisations are approximate and may change frequently. Please verify with real-time data sources for the most accurate figures.

For investors seeking quality businesses at affordable price points, several fundamentally strong Indian companies trade below Rs. 500 per share, spanning FMCG, power, energy, IT, and automobiles.

ITC Ltd

ITC is a diversified FMCG major with strong cigarette, hotels, and packaged foods businesses. In FY26, its FMCG (others) segment revenue grew 10.1% to Rs. 24,210 crore. The stock offers a notable dividend yield of around 7.88%, based on its Rs. 8 per share final dividend declared in May 2026.

NTPC Ltd

NTPC is India's largest government-owned power generation company, with thermal, hydro, and renewable capacity. Its Q1 FY27 net profit stood at Rs. 5,342.4 crore on revenue of Rs. 43,832 crore. NTPC's group power generation capacity has scaled up to 90,904 MW, with a PLF of 76.7%.

Power Grid Corporation of India

Power Grid is India's dominant electricity transmission utility, connecting power generation to distribution networks nationwide. The company holds a market capitalisation of nearly Rs. 2.9 lakh crore. Its steady, regulated-return business model makes it a preferred pick for conservative long-term investors.

Tata Motors Ltd

Tata Motors is India's largest automobile manufacturer, spanning passenger vehicles, commercial vehicles, and Jaguar Land Rover. Its Q4 FY26 net profit jumped 33.81% year-on-year to Rs. 1,793 crore. Commercial vehicle sales rose 17% in May 2026 to 32,850 units.

Oil and Natural Gas Corporation (ONGC)

ONGC is India's largest crude oil and natural gas producer, contributing around 70-71% of the country's crude oil output. The company holds a market capitalisation of over Rs. 3 lakh crore. ONGC offers a healthy dividend yield of around 5.13%, backed by a consistent payout policy.

Wipro Ltd

Wipro is one of India's leading IT services companies, offering consulting, technology, and outsourcing solutions globally. The company has consistently expanded its digital and cloud service offerings in recent years. Its relatively affordable share price makes it accessible for retail investors seeking IT sector exposure.

Coal India Ltd

Coal India is the world's largest coal-mining company and a key supplier to India's power sector. The company plays a critical role in supporting the country's energy security and thermal power generation needs. Its scale of operations and government backing offer relative stability to shareholders.

Punjab National Bank (PNB)

PNB is one of India's largest public sector banks, with a strong retail and corporate lending base. Management has expressed confidence that FY27 profit will surpass Rs. 20,000 crore, up from Rs. 16,904 crore in the previous financial year. This steady earnings growth reflects improving asset quality across recent quarters.

Disclaimer: Stock prices are subject to constant change; please verify the latest price and financials before investing. This is not investment advice.

With a few of the popular stocks under Rs. 500 discussed, it would seem very enticing to jump into the stock market immediately and start investing. However, it is important to note the following major considerations when choosing stocks to invest in. These metrics have been the primary considerations in choosing the above-mentioned stocks under Rs. 500 and will also help you make informed decisions in your trading journey.

        1. Continuous sales growth

Having sales growth numbers that are continuously increasing is a sign of robust mechanisms internally and promotes trust among consumers. We have also prioritised entities that have a consistent track record of sales growth.

        2.Robust ROE

A high return on equity is an indicator of better returns for shareholders in the financial market. We have chosen businesses with a strong ROE. Investors in the market should also consider assessing stocks using this metric to make sound decisions.

        3.Ownership of promoters

Stocks under Rs. 500 with a high level of promoter holdings indicate confidence in the business and its offerings. We have also chosen stocks of companies where promoter holdings are a reflection of stakeholder confidence in the firm.

        4.Positive debt-to-equity

Having a favourable number in the debt-to-equity ratio metric is a sign of solid fundamentals. It indicates that the company’s financials are balanced and the financial structure is sustainable.

Also read: IPO allotment status

Traders often look for high-liquidity names with clear catalysts. The table below outlines sectors that are frequently monitored for short-term opportunities:Investing in stocks priced under Rs. 500 allows individuals to enter the equity market at affordable levels. These stocks often belong to established companies with growth potential, offering several advantages to investors.

• Affordable Entry Point: Investors can buy quality shares without needing large capital, making stock market participation accessible.
• Diversification: Lower prices enable spreading investments across multiple sectors, reducing overall portfolio risk.
• Growth Potential: Many mid-cap and large-cap companies trade below Rs. 500, offering scope for long-term capital appreciation.
• Dividend Opportunities: Several stocks under Rs. 500 belong to dividend-paying companies, providing regular income along with capital gains.
• Exposure to Strong Businesses: Stocks of reputed companies in power, FMCG, IT, and infrastructure sectors often trade below Rs. 500, ensuring stable fundamentals.
• Flexibility for Retail Investors: Lower investment amounts allow investors to accumulate shares gradually and benefit from compounding over time.

Investing in stocks under Rs. 500 in 2025 offers a promising entry point for new investors. Key considerations such as continuous sales growth, robust ROE, and promoter confidence ensure sound investment decisions. These stocks under Rs. 500 provide substantial growth potential while maintaining a low barrier to entry.