Stocks to Buy Under Rs. 500

"Stocks under ₹500 are shares of publicly traded companies priced at ₹500 or less per share, making them accessible to new investors with a lower entry cost. These stocks often come from small or mid-sized companies and can offer significant growth potential. Investors typically look for continuous sales growth, strong ROE, and high promoter holdings to ensure safer and more reliable investments. Companies like Bharat Electronics, NMDC, and ITC are examples of promising options across different sectors. Such stocks allow gradual wealth-building even with a modest budget, making them attractive for both beginners and seasoned investors."

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.

1. Oil and Natural Gas Corporation Ltd
2. Power Grid Corporation of India Ltd
3. Wipro Ltd

4. Bharat Electronics Limited
 

This firm was established in 1954 and is focused on the manufacture and supply of electronic systems and equipment, primarily for the defence industry. The company’s business is diversified, and it provides a wide range of products to the Indian army. Its expertise includes making radars, missile systems, fire control systems, naval systems, and electro-optics.

The company has robust financials and is close to being free of debt. Besides this, the company has a robust dividend payout of 53%.

5. NMDC Limited

NMDC was established in 1958 under the Indian Government’s Ministry of Steel. This firm is primarily concerned with exploring and extracting iron ore. It also produces and sells sponge iron and engages in generating and distributing wind energy.

This company is free of debt and has a solid historical performance record. Over the last three years, the company’s ROE has been an impressive 29% and has a dividend payout of 38%.

6. Gujarat Mineral Development Corporation Limited

This entity operates in the power and mining sectors. Its projects cover Bauxite, Multi-Metal, Lignite, Fluorspar, Power, Solar, and Wind. These projects involve the extraction of metals and minerals and the production of power. With its diverse operations, the company has a presence in several districts of Gujarat, such as Surat, Baroda, Kutch, Jamnagar, and Rajkot, among others.

Their stock under Rs. 500 has an impressive dividend payout of 44% with a CAGR of 78% over the last three years.

Also read: Bid and ask

7. ITC Limited

ITC was set up in the year 1910 and is currently the biggest manufacturer and seller of cigarettes in India. The company has operations spread out in five sectors: FMCG, hotels, paper and packaging, agri-business, and paperboards.

The company is a well-known name in India and has had a reliable ROE of 28% in the past three years with a dividend payout of 84%.

8. NTPC Limited

The National Thermal Power Corporation in India is majorly concerned with generating and selling power in bulk to different Indian states. Additionally, the business provides other services like consulting, energy trading, project supervision and management, coal mining, gas and oil exploration, and more.

The company stock currently has a solid dividend payout of 36%, with the CAGR over the last 3 years being 53%.

With a few of the top 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.

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