Investing in the stock market doesn’t require a lot of money. If you are a new investor, it is risky to invest a large sum without proper market choice. It can blow your chances of earning a good income. Here we have listed some fundamentally strong stocks under 500 rupees that you can add to your portfolio.
What are multibagger stocks?
Stocks are called multibagger when they offer far more returns than their initial cost to buy. These are often stocks of fundamentally robust companies. These shares are undervalued and not discovered by the market yet. So they are great investment options.
Multibagger stocks have strong corporate governance and a business model that can scale in a short time. If the stock’s price doubles in a short time, it is a two-bagger. Similarly, if the stock’s price grows by ten times, it is called a ten-bagger, and so on.
The article lists some of the best stocks under 500 rupees, which have earned the highest returns.
Fundamentally strong stocks under 500
| Sl No |
Company name |
Market capitalisation in ₹ crore |
% change in stock price in 12 month |
|
1 |
1,38,661 |
-20.53 |
|
|
2 |
2,13,368 |
-46.24 |
|
|
3 |
1,40.302 |
2.03 |
|
|
4 |
18,643 |
18.01 |
|
|
5 |
65,373 |
2.39 |
|
|
6 |
4,05,883 |
51.88 |
|
|
7 |
31,122 |
-28.89 |
|
|
8 |
12,201 |
10.00 |
Tata Motors
Tata Motor is one of the best stocks to add to your portfolio.
Tata Motors is one of the leading automobile manufacturing companies globally with a diversified product portfolio. Their products include a range of cars, sports utility vehicles, trucks, businesses, and defence vehicles.
Company fundamentals
P/E Ratio: NA
Industry P/E ratio (TTM): 13.83
EPS (TTM): -22.06
Profit in 2022: – ₹11,441 crore
Wipro
The nest in the list of stocks under 500 rupees is Wipro. The company is an Indian-based global information technology (IT), consulting and business process services company, operating in three primary segments: IT services, IT products, and Indian State Run Enterprise Segment (ISRE).
Company fundamentals
P/E Ratio: 18.95
Industry P/E ratio (TTM): 27.49
EPS (TTM): 20.56
Profit in 2022: ₹12.219crore
Hindustan Zinc
The company is involved in the mining and smelting of zinc, lead, and silver metal in India. It operates in two segments: zinc, lead, silver and others and wind energy. Currently, the company stocks are trading below ₹500. It is one of the best shares under 500.
Company fundamentals
P/E Ratio: 12.32
Industry P/E ratio (TTM): 10.89
EPS (TTM): 26.85
Profit in 2022: ₹ 9,629 crore
Emami limited
Emami is an Indian FMCG company that manufactures and markets personal care, healthcare, and beauty products. If you want to take exposure in the FMCG sector on budget, you can count Emami as the best stock under 500.
Company fundamentals
P/E Ratio: 22.45
Industry P/E ratio (TTM): 58.90
EPS (TTM): 18.82
Profit in 2022: ₹839 crore
Marico
Marico offers a diverse product portfolio to its customers. It is an FMCG company manufacturing and marketing health, beauty, and wellness products, focusing on producing edible oil, hair care, and personal care items.
Company fundamentals
P/E Ratio: 53.12
Industry P/E ratio (TTM): 19.52
EPS (TTM): 9.53
Profit in 2022: ₹1225 crore
ITC Ltd.
ITC Ltd. has four business segments: FMCG, Hotels, Paperboards, Paper & Packaging, and Agri. The FMCG segment of the company includes cigarettes, branded packaged foods, stationery items, personal care products, incense sticks, matchboxes and others. Because of its diversified product portfolio, ITC is one of the best all-season stocks under 500.
Company fundamentals
P/E Ratio: 23.40
Industry P/E ratio (TTM): NA
EPS (TTM): 13.98
Profit in 2022: ₹15.243 crore
Biocon Ltd.
The India-based biopharmaceutical company focuses on developing novel therapies for diabetes, oncology, and immunology. The stocks are available for under ₹500. It is a good stock for anyone who wants exposure in the pharmaceutical segment. But don’t invest in any company without researching. You should invest in sectors whose business you understand.
Company fundamentals
P/E Ratio: 50.69
Industry P/E ratio (TTM): 39.00
EPS (TTM): 5.15
Profit in 2022: ₹648 crore
Campus Activewear
Campus Activewear is an Indian sports and athleisure company that manufactures, distributes, and sells sports and athleisure shoes under the brand Campus. You can add their shares as one of the best shares under 500.
Company fundamentals
P/E Ratio: 138.60
Industry P/E ratio (TTM): 65.39
EPS (TTM): 3.14
Profit in 2022: ₹109 crore
Also read: Best stocks Under Rs 100 in India
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 online Demat accounts. To explore more investment opportunities, open a Demat account with 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.
