Before going deep dive into the topic ‘Best stocks under Rs 500 in India’ let me tell you about my journey in the stock market. When I got my first job and asked my colleagues for investment in the Indian stock market then they suggested me to keep distance form Share market as it’s very risky and requires a huge amount to go with later I found that this was not true. Of course, there is a risk but anything in this world comes up with some short of risks.
Even if you are a beginner to the stock market and want to learn and invest for a better future then under Rs.500 there are many good stocks that you can pick and start your investment journey.
This article will explain to you about what are the Best stocks under Rs 500 in India for long term. All you need is a vigilant eye for the stock’s performance, stock market volatility, industry performance, and many other important factors.
Before you proceed for the Best stocks under Rs.500 you will need a Demat account to get started the stocks investment journey. Demat account is also known as Dematerialised account which helps investors hold shares and securities in an electronic format.
Disclaimer: We are not SEBI/IRDA registered. The information provided herein is for education purposes only. We will not be responsible for any of your profit/loss with this channel's suggestions. Consult your financial advisor before making any investment/trading decisions.
You can Open your free Demat account online in just 5 minutes.
- Open Free Demat Account with Angel One
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- Open Free Demat account with 5piasa
- Open free Demat account with ICICI Securities
Now you have got your Demat account ready, lets have a look on the Best stocks you can buy under Rs.500 in India right now in 2024. (Kindly note that the below stock prices are not real-time prices. With daily market open and close these prices will vary.)
Best Stocks Under Rs 500 in 2024
| List of Best Stocks under Rs 500 | Industry | Market Cap | 52 Week Low | 52 Week High |
| ITC | FMCG | 5,73,254 Cr | 326 | 500 |
| Wipro | IT | 2,46,088 Cr | 352 | 477 |
| NTPC | Power | 3,04,330 Cr | 163 | 314 |
| Adani Power | Power | 1,98,594 Cr | 132 | 589 |
| Canara Bank | Banking | 80,094 Cr | 269 | 455 |
Important Factors To Consider Before Investing in Best Stocks Under Rs 500 in India
If you are beginning your stock investment journey then picking the right stocks can be a tough task but with learning it can be easy to build a profitable stocks portfolio. You need to consider a bunch of factors while investing in a certain stock.
Some of the important factors to keep in mind while choosing and buying stocks under Rs 500 are listed below-
- Expected Return & Time frame of your investment
The first factor to consider before investing in stocks is the expected return, returns can come in the form of dividends, capital gains, loss, interest etc. As we know the higher the return the higher the risk means where there is more risk there will be a higher return as well.
The time frame of your investment also plays a great role before investing in stocks. If you invest for a long-term time frame then the return will be higher and if you invest for a short-term period the return will be comparatively lesser or maybe sometimes negative. That’s why time frame is also an important factor before investing in stocks.
- Performance of the Stock
One of the first factors to consider while buying a stock is analyzing its performance. Simply check how it has flourished over the last few years and what forthcoming prospects it has in its store.
Analyzing the stock’s performance can help you get a clear glimpse of the company and gather some insights about its market standing compared to the competitors.
- Volatility
We all are familiar with the fact that stock markets are highly volatile. Hence, before investing in a stock having a price below 500, just check the stock’s volatility. If your risk appetite permits investing in a volatile stock, go ahead, else look for other options.
- Revenue Growth
Another notable factor to remember is examining a stock’s revenue growth. Since earnings and revenue made by a company directly denote its performance and growth, it is essential to go through it once.
By comparing the growth of revenue of the companies, it will become much easier to pick the apt stocks for your portfolio.
- Company Size
The size of a company is another significant factor that affects investment decisions. It plays a pivotal role in the amount of risk you would like to bear.
Hence, based on a company’s market capitalization, simply check whether the company size is per your risk palate.
- Fundamental Ratios
Picking the right stocks needs some calculative efforts as well. Before making an investment choice, it is vital to go through some key ratios such as the Price-to-Book value Ratio, price-to-earnings ratio, Debt to Equity Ratio, and more.
Getting such numbers will make the investment choice a lot easier and give you a peek into the company’s market standing.
Risk-Return Analysis
An investor needs to understand the type of risk he\she investing in. For example, investments in gold, bank fixed deposits, saving certificates such as the National Savings Certificate, and government bonds, carry a lower return compared to listed securities but also invite lower risk.
On the other hand listed securities carry higher risks but have the potential to give higher returns compared to the traditional instruments.
So, it depends on an individual investor what kind of risk they want to take.
Financial Performance of the Company
An investor needs to check and analyze the financial condition of the company they are investing in. By checking the past financial performance of the company you can analyze the growth of the company over the past years.
You can read the balance sheet of the company and how they have grown in the past. The financial performance of the company can be checked by reading and analyzing the balance sheet, income statement, Cash Flow Statement, and Annual Reports.
Liquidity
Liquidity means how easily you can convert an asset or security into cash. Buying and selling occur when demand and supply are present in adequate quantities. Liquidity is a term that is often used while analyzing which stocks to buy.
In other words, you can say the Liquidity of stocks refers to how quickly the stock can be exchanged for or converted into money. Liquidity can be through sale on the stock exchange or redemption on the maturity of the instrument.
The liquidity of a stock can be checked by looking at the trade volume and the Bid-ask spread is narrow which means if the trade volume is high and buyers are interested in buying the stocks at the price that suits the sellers then the liquidity of the stock is good.
Let’s Discuss the company which are listed above
- ITC ( India Tobacco Company Limited )
ITC is one of India’s foremost private sector companies and a diversified conglomerate with businesses spanning Fast Moving Consumer Goods, Hotels, Paperboards and Packaging, Agri Business and Information Technology.
ITC was first listed as Imperial Tobacco Company of India Limited and then renamed as Indian Tobacco Company Limited.
The Net Income of ITC in 2023 is 19,427.68 crores INR (US$2.4 billion, 2023).
Total Asset is 85,882.98 crores INR (US$11 billion, 2023).
Total Revenue of ITC in 2023 is ₹18,439.35Cr.
Some of the Brands of ITC are Gold Flake, Wills Navy Cut, Classic, Aashirvad, Fiama Di Wills, Savlon, Classmate, Dark Fantasy.
So, overall we can say that ITC is a very good stock to invest under Rs 500.
- WIPRO
Wipro is one of the leading Big Tech companies that provides information technology, consultant, and business process services. It is a multi-national company with capabilities ranging across cloud computing, digital transformation, computer securities, robotics, and artificial intelligence.
It serves its services to customers in 167 countries. The Chairperson of Wipro is Azim Premji an Indian businessman and Philanthropist.
The Net Income of Wipro in 2023 is 2,646.30 crore.
Total Asset of Wipro in 2023 is $13.075B.
Total Revenue of Wipro in 2023 is $11.009B.
- National Thermal Power Corporation ( NTPC )
NTPC National Thermal Power Corporation is an Indian central Public Sector Undertaking under the ownership of the Ministry of Power and the Government of India, who is engaged in the generation of electricity and other activities.
The CEO of NTPC is Gurdeep Singh and Its headquarters is located in New Delhi.
The Net Income of NTPC is ₹4,614.64Cr.
Total Asset of NTPC is 4.46 lakh crores INR (US$56 billion, 2023).
Total Revenue of NTPC in 2023 is Rs 44,983.35 crore.
The Founder of NTPC National Thermal Power Corporation is the Government of India and was founded in 1975.
The Subsidiaries of NTPC are Ntpc Green Energy Limited, THDC India Limited, NSPCL, NTPC Renewable Energy Limited etc.
- Adani Power
Adani Power is a subsidiary of Adani Group and a multinational power and energy company and a private thermal power producer, with a capacity of 12,450 MW and operates a mega solar plant of 40 MW at Naliya, Bitta, Kutch, Gujarat.
Adani Power was Founded in 22 August 1996 by Gautam Adani. The subsidiaries of Adani Power are Raipur Energen Limited, Mundra Petrochem Limited, Adani Power (Jharkhand) Limited, Adani Power (Mundra) Limited, Raigarh Energy Generation Limited and more.
The Net Income of Adani Power in 2023 is 6.59TCr.
Total Asset of Adani Power in 2023 is $10.80 B.
Total Revenue of Adani Power in 2023 is 43,040 crores INR (US$5.4 billion, 2023).
- Canara Bank
Canara Bank is an Indian public sector and was established in 1906 at Mangalore by Ammembal Subba Rao Pai. Canara Bank Was Nationalised in 1969. The Head Quater of Canara Bank is in Bangalore and the CEO of the bank is K Satyanarayana Raju.
The offices of Canara Bank is also situated in London, New York and Dubai.
Canara Bank has 9,518 branches in India and the Bank services over 11.19 crore customers across the Country.
The Net Income of Canara Bank in 2023 is Rs 3606 crore.
Total Asset of Canara Bank in 2023 is $176.39 B.
Total Revenue of Canara Bank in 2023 is $7.64 B.
Best Stocks Under Rs 500: Conclusion
Thus, these are the best stocks under Rs 500 based on current market conditions but the actual numbers might vary over time. This article gives you a brief idea about how to choose best stock under Rs 500 to invest in if you are a beginner and the important factors to consider while choosing best stocks to invest in.
And by looking on the given five factors i.e. expected return, the performance of the stock in the past, Financial performance of the company, and the liquidation of the stock you can choose the best stock easily. If you are still not comfortable with direct investing in stocks then you can go with mutual funds.
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