Best Stocks to Buy Under Rs.500

Best Stocks to Buy Under Rs.500

by 5paisa Research Team Last Updated: Oct 09, 2023 - 11:28 am 25.8k Views
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Investing in the stock market is a long-term strategy that can help you keep track of your money. People who have never invested in the stock market before might find it scary because it can seem too complicated or risky. We're here to assist and make your life easier. This article will show you five good stocks that don't cost under Rs.500. It doesn't matter if you are a new investor or if you have been investing for a long time. When making the list, we looked at growth potential and a three-year return that was much higher than Nifty50.

1. Gujarat Gas Ltd.

CMP: 469.80 (August 25, 2022)

About the company: Gujarat Gas Limited is an Indian natural gas distribution company, owned by Gujarat State Petroleum Corporation. Established in 1980, and headquartered in Ahmedabad, the company operates primarily in Gujarat. It is India's largest city gas distribution (CGD) company. 

3 Yrs Change % vs Nifty50: Gujarat Gas Ltd. is up 172.85% vs Nifty50 at 40.26%.

Positives: Mutual Funds have Increased Holdings in Past Month, Company with Low Debt, Zero Promoter Pledge

Negatives: ROE declining.


2. Hindalco Industries Ltd.

CMP: 434 (August 25, 2022)

About the company: Hindalco Industries Limited is the metals flagship company of the Aditya Birla Group. A USD16.7 billion metals powerhouse, Hindalco is the world's largest aluminium rolling and recycling company, and a major player in copper. It is also one of Asia's largest producers of primary aluminium. 

3 Yrs Change % vs Nifty50: Hindalco Industries Ltd. is up 79.46% vs Nifty50 at 32.05%.

Positives: Consistent high returns over 5 years, high TTM EPS growth, FII/FPIs increasing their shareholdings.

Negatives: ROE declining.

3. Jindal Steel & Power Ltd.

CMP: 403.40 (August 25, 2022)

About the company: Jindal Steel and Power Ltd (JSPL) is one of India's major steel producers with a significant presence in sectors like mining, power generation, and infrastructure. JSPL is a part of the USD 18 billion diversified O. P. Jindal Group and is consistently tapping new opportunities by increasing production capacity, diversifying investments, and leveraging its core capabilities to venture into new businesses.

3 Yrs Change % vs Nifty50: Jindal Steel & Power Ltd. is up 106.25% vs Nifty50 at 32.05%.

Positives: Consistent Highest Return Stocks over Five Years, ROE improving since last 2 year

Negatives: High promoter stock pledges, Book Value Per Share deteriorating for last 2 years


4. Ajanta Soya Ltd.

CMP: 48.50 (August 25, 2022)

About the company: Ajanta Soya Ltd. (ASL) is engaged in the primary business of manufacturing Vanaspati and various kinds of cooking oil with shortening products for a bakery like biscuits, puffs, pastries, and others. The company has focused on continuous expansion, across business verticals to consolidate, and its industry leadership over the years. ASL is promoted by a well-established group that has a proven track record in the fields of cooking oils.

3 Yrs Change % vs Nifty50: Ajanta Soya Ltd. is up 925.2% vs Nifty50 at 32.05%.

Positives: Consistent High Return Stock over Five Years, Strong Annual EPS Growth

Negatives: Decline in Quarterly Net Profit with falling Profit Margin (YoY)

5. Zydus Lifesciences Ltd.

CMP: 383.40 (August 25, 2022)

About the company: Zydus Lifesciences Limited, formerly known as Cadila Healthcare Limited, is an Indian multinational pharmaceutical company headquartered in Ahmedabad, which is primarily engaged in the manufacture of generic drugs. It ranked 100th in the Fortune India 500 list in 2020. Cadila Healthcare operates as an integrated pharmaceutical company with business encompassing the entire value chain in the research, development, production, marketing, and distribution of pharmaceutical products. 

3 Yrs Change % vs Nifty50: Zydus Lifesciences Ltd. is up 43.12% vs Nifty50 at 32.05%.

Positives: Strong  Annual EPS Growth, Company with Low Debt, Company with Zero Promoter Pledge, MFs increased their shareholding last quarter.

Negatives: Declining profits for the past 2 quarters.

In conclusion
In the stock market, anyone can buy and sell shares. It is an important life skill that needs to be practised and, like all good things, takes time, patience, and study. If you invest your money wisely, you can make it work for you and help you reach your goals. Overall, if you do your own research and follow our recommendations, you should be able to choose the best stocks to get the best returns.

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About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.


Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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