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Best Stocks Under ₹500 in India

Investing in Indian stocks priced under ₹500 offers an affordable entry into the stock market, enabling portfolio diversification across various sectors.

Best Stocks Under ₹500 in India

Overview of the Best Stocks Under ₹500 in India

ITC Ltd

ITC Ltd is a diversified conglomerate operating in FMCG, hotels, paper, packaging, and agri-business. Known for brands like Aashirvaad and Sunfeast, it is also one of India’s largest cigarette manufacturers.

NTPC Ltd

NTPC Ltd is India’s largest energy conglomerate, primarily engaged in power generation and related activities. It focuses on thermal, hydro, solar, and wind energy projects to drive sustainable growth.

Wipro Ltd

Wipro Ltd is a leading global IT services company, providing consulting, business process services, and digital solutions. It operates in sectors like cloud computing, cybersecurity, and artificial intelligence.

Oil and Natural Gas Corporation Ltd

ONGC is India’s largest oil and gas exploration and production company. It plays a vital role in the country’s energy security by discovering and extracting hydrocarbons.

Power Grid Corporation of India Ltd

Power Grid Corporation of India Ltd is responsible for the transmission of electricity across India. It operates and maintains a vast network, ensuring efficient power delivery and grid stability.

Advantages of Investing in Stocks Under ₹500 in India

Affordability

Lower-priced stocks allow investors to purchase multiple shares without substantial capital.

Diversification

Investing in various sectors reduces risk by spreading investments across different industries.

Growth Potential

Smaller companies may offer significant appreciation as they expand and capture market share.

Dividend Opportunities

Some low-priced stocks offer dividends, providing regular income alongside capital gains.

Flexibility

Investors can easily adjust their portfolios by buying or selling these stocks without large financial implications.

Potential for Multibagger Returns

Identifying undervalued stocks under ₹500 can lead to substantial returns if the company performs well.

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Factors to Consider Before Investing in Stocks Under ₹500

Company Fundamentals

Analyse financial health, including revenue, profit margins, and debt levels, to assess stability.

Industry Position

Evaluate the company's competitive advantage and market share within its industry.

Management Quality

Research the experience and track record of the company's leadership team.

Growth Prospects

Consider the company's plans for expansion and potential catalysts for future growth.

Liquidity

Ensure the stock has sufficient trading volume for easy buying and selling without significant price impact.

Regulatory Environment

Be aware of any government policies or regulations that could affect the company's operations.

Frequently Asked Questions on Stocks Under ₹500

  1. 1. What are stocks under ₹500?

    These are shares of companies trading at a market price below or at par ₹500 per share.

  2. 2. Are low-priced stocks riskier?

    Irrespective of the share price, any investment in the stock market carries a risk. Therefore, conduct a thorough research before investing in stocks under ₹500.

  3. 3. Can I earn dividends from these stocks?

    Yes, some companies whose share price is trading below ₹500 offer dividends.

  4. 4. How do I choose the right stock under ₹500?

    Analyse company fundamentals, industry position, and growth prospects to make informed decisions.

  5. 5. Can these stocks become multibaggers?

    Some low-priced stocks have the potential for significant appreciation, but this is not guaranteed.

  6. 6. Where can I find a list of stocks under ₹500?

    Financial platforms like Tickertape Stock Screener provides curated lists of such stocks.