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Best Stocks Under ₹500 in India

31 January 20246 mins read by Angel One
Dive into affordable stock investing with the best stocks under ₹500. Let us have a look at the best stocks on various parameters.
Best Stocks Under ₹500 in India
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If you are a new investor who wants to start investing in stocks with a small capital, you can consider stocks under ₹500 after careful evaluation. In this article, we have listed the top fundamentally strong stocks under ₹500.

Best Stocks Under ₹500 On 5Y CAGR Basis

S.No Company Name Market Cap (In ₹ crore) Close Price (₹) 5Y CAGR (%)
1 Bharat Electronics Ltd 1,38,337.56 189.25 46.97
2 Tata Power Company Ltd 1,14,057.65 356.95 36.78
3 Tata Steel Ltd 1,67,367.47 135.15 24.03
4 NTPC Ltd 2,99,481.53 308.85 21.49
5 Power Grid Corporation of India Ltd 2,28,980.87 246.20 18.57

Note: The list of the best stocks under ₹500 is as of January 24, 2024. The stocks are selected and sorted based on 5Y CAGR from Nifty 100 Universe.

1. Bharat Electronics Limited

Bharat Electronics Limited is engaged in the design, manufacture and supply of electronics products/systems for defence as well as for nondefense markets. BEL’s principal products include weapon systems, radar and fire control systems, etc. As of Q1 FY 2024, the company recorded an order book of ~₹65,356 crore.

Key Metrics:

  • ROE: 22.8%
  • ROCE: 29.9%
  • Profit Growth CAGR (5Y): 16%

2. Tata Power Company Limited

Tata Power Company Limited is an integrated power company involved in the generation, transmission, distribution and trading of electricity. It is also engaged in the mining and trading of coal. It is the largest vertically integrated power company in India. The company manufactures solar roofs and plans to build 1 lakh EV charging stations by 2025.

Key Metrics:

  • ROE: 12.6%
  • ROCE: 11.7%
  • Profit Growth CAGR (5Y): 45%

3. TATA Steel Limited

TATA Steel Limited is one of the leading diversified steel producers in the steel-making business, including raw material and finishing operations. The company has a rich presence across the entire value chain of steel manufacturing, from mining and processing iron ore and coal to producing and distributing finished products. By 2025, the company is aiming to increase its domestic steelmaking capacity to 30 MnTPA.

Key Metrics:

  • ROE: 7.28%
  • ROCE: 12.6%
  • Profit Growth CAGR (5Y): 3%

4. NTPC Limited

NTPC Limited is involved in the electricity generation business. It is engaged in generating and selling bulk power to state power utilities. The company operates this large business with its subsidiaries/associates and JVs. In addition, NTPC is focused on achieving a medium-term target of 60 GW of renewable capacity by 2032.
Key Metrics:

  • ROE: 12%
  • ROCE: 9.83%
  • Profit Growth CAGR (5Y): 9%

5. Power Grid Corporation of India Limited

Power Grid Corporation of India Limited is a transmission company engaged in the power transmission business with responsibility for planning, implementation, operation and maintenance of Inter-State Transmission Systems. It moves large blocks of power from the central generating agencies and areas that have surplus power to load centres within and across regions. It is under the administrative control of the Ministry of Power.
Key Metrics:

  • ROE: 19.6%
  • ROCE: 13.1%
  • Profit Growth CAGR (5Y): 26%

Best Stocks Under ₹500 on Net Profit Margin Basis

S.No Company Name Market Cap (In ₹ crore) Close Price (₹) Net Profit Margin (%)
1 Power Grid Corporation of India Ltd 2,28,980.87 246.20 32.21
2 ITC Ltd 5,78,531.77 463.60 26.28
3 Coal India Ltd 2,35,785.99 382.60 19.45
4 Bharat Electronics Ltd 1,38,337.56 189.25 16.57
5 Bank of Baroda Ltd 1,18,243.20 228.65 13.46

Note: The list of the best stocks under ₹500 is as of January 24, 2024, on a Net Profit Margin basis. The stocks are selected and sorted from Nifty 100 Universe.

Best Stocks Under ₹500 on ROE Basis

S.No Company Name Market Cap (In ₹ crore) Close Price (₹) ROE (%)
1 Coal India Ltd 2,35,785.99 382.60 55.32
2 ITC Ltd 5,78,531.77 463.60 29.00
3 Bharat Electronics Ltd 1,38,337.56 189.25 22.80
4 Power Grid Corporation of India Ltd 2,28,980.87 246.20 19.36
5 Vedanta Ltd 97,533.29 262.55 16.01

Note: The list of the best stocks under ₹500 is as of January 24, 2024, on an ROE basis. The stocks are selected and sorted from Nifty 100 Universe.

Best Stocks Under ₹500 on ROCE Basis

S.No Company Name Market Cap (In ₹ crore) Close Price (₹) ROCE (%)
1 ITC Ltd 5,78,531.77 463.60 29.00
2 Coal India Ltd 2,35,785.99 382.60 55.32
3 Bharat Electronics Ltd 1,38,337.56 189.25 22.80
4 Vedanta Ltd 97,533.29 262.55 16.01
5 Wipro Ltd 2,49,402.99 478.05 17.50

Note: The list of the best stocks under ₹500 is as of January 24, 2024, on an ROCE basis. The stocks are selected and sorted from Nifty 100 Universe.

Best Stocks Under ₹500 on Free Cash Flow (FCF) Basis

S.No Company Name Market Cap (In ₹ crore) Close Price (₹) FCF (In ₹ crore)
1 Oil and Natural Gas Corporation Ltd 2,94,818.84 234.35 47,418.88
2 Power Grid Corporation of India Ltd 2,28,980.87 246.20 31,102.17
3 Indian Oil Corporation Ltd 2,02,569.16 143.45 24,034.23
4 Punjab National Bank 1,12,532.58 102.20 22,039.70
5 Coal India Ltd 2,35,785.99 382.60 20,372.65

Note: The list of the best stocks under ₹500 is as of January 24, 2024, on an FCF basis. The stocks are selected and sorted from Nifty 100 Universe.

Conclusion 

Besides the companies mentioned above, you can research the market for more stocks under ₹500. Investing in the capital market has become simple with an online Demat account. To explore more investment opportunities, open a Demat account with Angel One, one of the leading stockbrokers in the country.  

Disclaimer: This article is written for educational purposes only. The securities quoted are only examples and not recommendations.

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