Best Stocks Under Rs. 500 in India 2023

People believe that investing in the stock market requires a huge chunk of capital. But that’s not true. A prospective investor can begin investing in stocks with an amount as little as Rs 500. All you need is a vigilant eye for the stock’s performance, market volatility, industry performance, and many such influential factors.

Here in this blog, we have sorted out a list of fundamentally strong stocks under 500 rupees you can consider investing in.

Best Stocks to Buy Under 500

Here is a table highlighting some of the top stocks to buy under Rs 500 across various industries-

Factors To Consider Before Investing in Stocks Under Rs 500

Picking the right stocks to build a profitable portfolio is not easy. One needs to consider a bunch of factors while investing in a certain stock.

Some of the prominent factors to keep in mind while buying stocks available below Rs 500 are-

• Performance of the Stock

One of the first factors to consider while buying a stock is analysing its performance. Simply check how it has flourished over the last few years and what forthcoming prospects it has in its store.

Analysing 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 earning and revenue made by a company directly denotes 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 capitalisation, simply check whether the company size is in accordance with 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 Price-to-Book-Value Ratio, Price-to-Earnings Ratio, Debt to Equity Ratio, and more.

Getting such numbers will make the investment choice lot easier and give you a peek into the company’s market standing.

Best Stocks Under 500 to Invest in India 2023: Brief Overview

Have a look at the brief overview of some of the stocks available below Rs 500 for investment in India-

1) Tata Motors

One of the leaders in the automobile industry, Tata Motors is a globally renowned name. It is one of the oldest entities leading the Indian automobile industry.

The company has been a top pick of stock market investors for years now, all thanks to its scale of growth, global presence, decent returns, customer trust, and reliability.

Tata Motors offers a wide range of cars, trucks, sports utility vehicles, and a lot more. Some of its popular vehicle products include Tata Nexon, Tata Tiago, Tata Harrier, Tata Tigor, etc.

2) Wipro

Wipro is a leading Information Technology Company in India, having a dominant worldwide presence. The company has created a global niche with its IT services, IT products, consulting and business process services.

From being a manufacturer of vegetable and refined oils to Information technology, Wipro has come a long way since 1945.

It has also been a top choice of stock market investors when it comes to buying stocks under 500 rupees due to its strong fundamentals, growth prospects, good returns, and global presence across the industry.

3) Hindustan Zinc Ltd

Hindustan Zinc Ltd is one of the best mining and smelting companies in India. It is a leading entity that contributes to the field of mining and smelting of zinc, lead, and silver metal in India.

With its evolving market capitalisation, growth across the country, substantial returns, and prospects, its stocks have always found their way into many investors' portfolios.

It is often called a good stock for investment while finding the best share under 500 in India.

4) Emami Limited

Emami Limited is a top FMCG company with a presence in over 50+ countries. It is a popular name in the field of personal care, healthcare, and even beauty products.

Emami Limited has been a trusted name for years since its inception, making it a worthy choice for investment. A few popular brands under its umbrella are BoroPlus, Kesh King, Fair and Handsome, Navratna, Zandu Balm, Fast Relief and many more.

Given its growth over the last few years, solid fundamentals and returns, and continent-wide presence, Emami Limited has been the favourite of many. It is often considered a feasible investment choice for those looking for economic options.

5) Adani Power Ltd

Adani Power Ltd is a leader in India in thermal power production. Trusted by millions, this Adani entity has been a major contributor to power production.

With a vision to contribute to nations developing infrastructure through sustainable value creation, they have thermal power plants planted in Gujarat, Karnataka, Maharashtra, Rajasthan, and Chhattisgarh. The company has been performing well, over the past years, with a decent return on investment, sound fundamentals and an edge over the competitors.

Adani Power Ltd has been on the list of many stock traders who intend to get stocks having low-cost prices.

Summing Up

Making a wise investment decision requires an ample amount of factors to be considered. No one should invest in stocks only because of recent trends or because it is available at a reasonable cost. It is necessary to get well acquainted with its past performance, revenues, returns, fundamentals, ratios, and many more facets.

Remember, be it Rs 500 or 50,000, investing in a stock should be done cautiously.

Lastly, this is not an exhaustive list. There are tons of, many more stocks that you can consider investing in. These are simply the good-performing ones across various industries.

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

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Research Analyst - Aakash Baid