"For the past two years, I have been actively constructing and managing a portfolio worth under ₹500. I have done this by purchasing actual shares such as Coal India , Power Grid and punjab national bank keeping track of quarterly reports, back-testing techniques, and even learning from bets that have stalled. With my hands-on method, which includes custom screeners and actual market expertise, I am able to confidently propose low-priced stocks that are supported by compounding dividends and real outcomes."
Stocks priced below ₹500 offer a unique opportunity for novice and seasoned investors to build diversified portfolios for less capital upfront.
Such stocks typically symbolize small and medium enterprises and have good growth potential, reliable dividends, or rapid trading opportunities.
At the same time, they offer risks such as volatility in price and difficulty in selling and purchasing, so it is extremely crucial to be cautious in your research.
This guide tells you why these stocks are ideal to build portfolios, recommends the ideal long and short-term investment options, provides popular stocks, has stocks below ₹500, and answers FAQs—all to help you make the best investment decisions.
Introduction
Those stocks trading below ₹500 are a decent means of entry into the Indian stock market, especially for small capital investors. They are good for a number of reasons:
- Low Entry Cost: For costs below ₹500, you can purchase more shares compared to more costly stocks. This allows you to diversify across various corporations with a limited budget.
- Hidden Gems: There are several of these stocks that are from small- or medium-sized companies in emerging industries such as technology, green energy, or consumer staples. These stocks have lots of upside.
- Diversification: Spread your money across a number of different industries—like energy, banking, and fast-moving consumer goods (FMCG)—to decrease the risk.
- Potential for High Returns: Small businesses can grow very fast, and this could translate to enormous returns if they are successful in their markets.
But these shares can fluctuate in price a lot and can be more difficult to purchase or sell without altering the price. Conducting diligent research, diversifying investments, and having a well-laid plan to deal with risks are extremely critical to address these issues in good manner.
Best Stocks Under ₹500 for Long-Term Growth
| Symbol | Name | Price | Market Cap (Cr) | Volume | P/E Ratio | P/B Ratio | ROE (%) |
|---|---|---|---|---|---|---|---|
| VEDL | Vedanta Limited | 455.65 | 179426 | 3047590 | 11.79 | 4.32 | 42.86 |
| COALINDIA | Coal India Limited | 390.75 | 241060 | 3669889 | 6.78 | 2.43 | 38.47 |
| INDUSTOWER | Indus Towers Limited | 405.25 | 107797 | 4580778 | 10.63 | 3.36 | 33.36 |
| ITC | ITC Limited | 414.95 | 519605 | 12194907 | 26.31 | 7.41 | 27.58 |
| ASHOKLEY | Ashok Leyland Limited | 124.6 | 146356 | 4571706 | 23.6 | 5.98 | 24.46 |
| NMDC | NMDC Limited | 72.98 | 64162.7 | 35367004 | 9.7 | 2.16 | 23.59 |
| RECLTD | REC Limited | 400 | 105329 | 17854987 | 6.53 | 1.34 | 21.5 |
| PFC | Power Finance Corporation Limited | 419.15 | 138324 | 3652048 | 5.95 | 1.17 | 21.08 |
| CANBK | Canara Bank | 107.8 | 103723 | 38203000 | 5.59 | 0.93 | 17.72 |
| POWERGRID | Power Grid Corporation of India Limited | 299.25 | 278320 | 5310790 | 18.18 | 3 | 17.26 |
| BPCL | Bharat Petroleum Corporation Limited | 344.45 | 153874 | 5088986 | 11.04 | 1.81 | 16.99 |
| UNIONBANK | Union Bank of India | 143.38 | 116107 | 10266415 | 5.8 | 0.9 | 16.75 |
| WIPRO | Wipro Limited | 261.4 | 282079 | 6498907 | 20.37 | 3.15 | 16.36 |
| BANKBARODA | Bank of Baroda Limited | 243.07 | 125700 | 4864307 | 5.98 | 0.86 | 15.54 |
| GAIL | GAIL (India) Limited | 186.39 | 128626 | 7797117 | 9.84 | 1.44 | 15.34 |
| PNB | Punjab National Bank | 109.92 | 129296 | 15526702 | 6.66 | 0.95 | 15.16 |
| NTPC | NTPC Limited | 343.05 | 332644 | 5057906 | 16.75 | 1.81 | 13.45 |
| IRFC | Indian Railway Finance Corporation Limited | 134.85 | 181064 | 53094909 | 25.59 | 3.34 | 12.77 |
| FEDERALBNK | The Federal Bank Limited | 212.81 | 52899.7 | 5401586 | 12.67 | 1.51 | 12.76 |
Also Read: Best Multibagger Penny Stocks to Buy in 2025
Stocks Under ₹500 with High Volume (NSE)
| Symbol | Name | Price | Volume | Market Cap (Cr) | P/E Ratio | P/B Ratio | ROE (%) |
|---|---|---|---|---|---|---|---|
| IRFC | Indian Railway Finance Corporation Limited | 134.85 | 53,094,909 | 181,064.45 | 25.59 | 3.34 | 12.77 |
| CANBK | Canara Bank | 107.8 | 38,203,000 | 103,722.90 | 5.59 | 0.93 | 17.71 |
| NMDC | NMDC Limited | 72.98 | 35,367,004 | 64,162.71 | 9.7 | 2.16 | 23.59 |
| RECLTD | REC Limited | 400 | 17,854,987 | 105,328.80 | 6.53 | 1.34 | 21.5 |
| IDFCFIRSTB | IDFC First Bank Limited | 72.7 | 16,253,911 | 56,985.60 | 35.64 | 1.4 | 4.23 |
| PNB | Punjab National Bank | 109.92 | 15,526,702 | 129,295.59 | 6.66 | 0.95 | 15.16 |
| TATASTEEL | Tata Steel Limited | 162.77 | 14,281,939 | 203,003.49 | 59.41 | 2.23 | 3.45 |
| ITC | ITC Limited | 414.95 | 12,194,907 | 519,604.54 | 26.31 | 7.41 | 27.58 |
| BEL | Bharat Electronics Limited | 400.2 | 10,406,981 | 302,697.28 | 54.82 | 14.65 | 29.3 |
| UNIONBANK | Union Bank of India | 143.38 | 10,266,415 | 116,107.12 | 5.8 | 0.9 | 16.75 |
| JIOFIN | Jio Financial Services Limited | 314.45 | 9,724,414 | 208,383.19 | 121.88 | 1.62 | nan |
| IEX | Indian Energy Exchange Limited | 187.89 | 9,210,625 | 17,718.31 | 39.81 | 14.67 | 40.71 |
| SAIL | Steel Authority of India Limited | 134.79 | 8,605,504 | 55,675.41 | 23.48 | 0.94 | 4.09 |
| NHPC | NHPC Limited | 86.48 | 7,993,448 | 86,869.16 | 31.79 | 2.19 | 7.66 |
| GAIL | GAIL (India) Limited | 186.39 | 7,797,117 | 128,626.25 | 9.84 | 1.44 | 15.35 |
| IOC | Indian Oil Corporation Limited | 152.35 | 7,589,954 | 217,113.99 | 15.4 | 1.12 | 7.27 |
| ONGC | Oil and Natural Gas Corporation Limited | 245.55 | 7,354,393 | 308,909.26 | 8.52 | 0.9 | 10.37 |
| WIPRO | Wipro Limited | 261.4 | 6,498,907 | 282,079.37 | 20.37 | 3.15 | 16.36 |
| FEDERALBNK | The Federal Bank Limited | 212.81 | 5,401,586 | 52,899.67 | 12.67 | 1.51 | 12.76 |
| POWERGRID | Power Grid Corporation of India Limited | 299.25 | 5,310,790 | 278,320.46 | 18.18 | 3 | 17.26 |
| BPCL | Bharat Petroleum Corporation Limited | 344.45 | 5,088,986 | 153,874.44 | 11.04 | 1.81 | 16.99 |
| NTPC | NTPC Limited | 343.05 | 5,057,906 | 332,644.25 | 16.75 | 1.81 | 13.45 |
| BANKBARODA | Bank of Baroda Limited | 243.07 | 4,864,307 | 125,700.25 | 5.98 | 0.86 | 15.54 |
| INDUSTOWER | Indus Towers Limited | 405.25 | 4,580,778 | 107,797.31 | 10.63 | 3.36 | 33.36 |
| ASHOKLEY | Ashok Leyland Limited | 124.6 | 4,571,706 | 146,356.41 | 23.6 | 5.98 | 24.46 |
| NYKAA | FSN E-Commerce Ventures Limited | 218.71 | 3,802,716 | 62,555.87 | 994.14 | 48.69 | 5.49 |
| TATAPOWER | Tata Power Company Limited | 402.5 | 3,771,547 | 129,256.84 | 32.43 | 3.57 | 11.68 |
| BIOCON | Biocon Limited | 396.95 | 3,734,863 | 52,975.76 | 45.89 | 2.2 | 5.39 |
| COALINDIA | Coal India Limited | 390.75 | 3,669,889 | 241,059.52 | 6.78 | 2.43 | 38.47 |
| PFC | Power Finance Corporation Limited | 419.15 | 3,652,048 | 138,323.69 | 5.95 | 1.17 | 21.08 |
| VEDL | Vedanta Limited | 455.65 | 3,047,590 | 179,426.31 | 11.79 | 4.32 | 42.86 |
| BANDHANBNK | Bandhan Bank Limited | 181.43 | 2,988,408 | 29,621.71 | 14.19 | 1.19 | nan |
| BHEL | Bharat Heavy Electricals Limited | 251.2 | 2,776,858 | 89,477.19 | 164.18 | 3.53 | 2.17 |
Top 5 Stocks Under ₹500 Based on a Balanced Scorecard
Methodology: Stocks are ranked on low P/E, low P/B, high ROE, and high Volume. The combined rank creates the Composite Score (lower is better).
1. Canara Bank (CANBK)
| Symbol | Name | Price | Market Cap (Cr) | Volume | P/E Ratio | P/B Ratio | ROE (%) | Composite Score |
|---|---|---|---|---|---|---|---|---|
| CANBK | Canara Bank | 107.8 | 103723 | 38,203,000 | 5.59 | 0.93 | 17.72 | 18 |
2. REC Limited (RECLTD)
| Symbol | Name | Price | Market Cap (Cr) | Volume | P/E Ratio | P/B Ratio | ROE (%) | Composite Score |
|---|---|---|---|---|---|---|---|---|
| RECLTD | REC Limited | 400 | 105329 | 17,854,987 | 6.53 | 1.34 | 21.5 | 27 |
3. Union Bank of India (UNIONBANK)
| Symbol | Name | Price | Market Cap (Cr) | Volume | P/E Ratio | P/B Ratio | ROE (%) | Composite Score |
|---|---|---|---|---|---|---|---|---|
| UNIONBANK | Union Bank of India | 143.38 | 116107 | 10,266,415 | 5.8 | 0.9 | 16.75 | 29 |
4. NMDC Limited (NMDC)
| Symbol | Name | Price | Market Cap (Cr) | Volume | P/E Ratio | P/B Ratio | ROE (%) | Composite Score |
|---|---|---|---|---|---|---|---|---|
| NMDC | NMDC Limited | 72.98 | 64162.7 | 35,367,004 | 9.7 | 2.16 | 23.59 | 35 |
5. Punjab National Bank (PNB)
| Symbol | Name | Price | Market Cap (Cr) | Volume | P/E Ratio | P/B Ratio | ROE (%) | Composite Score |
|---|---|---|---|---|---|---|---|---|
| PNB | Punjab National Bank | 109.92 | 129296 | 15,526,702 | 6.66 | 0.95 | 15.16 | 36 |
Also Read: Nifty100 ESG Index Companies List with Weights 2025
Frequently Asked Questions (FAQs)
1. What are the dangers of investing in shares that are priced below ₹500?
Volatility: They can have enormous price fluctuations, particularly the smaller stocks.
Penny Stock Risk: There are risky low-priced stocks with weak fundamentals.
Liquidity Issues: Some shares might not be traded regularly, such that it is difficult to buy or sell without influencing the price.
2. How can I choose good stocks under ₹500 for long-term investment?
Search for companies with sound fundamentals, i.e., consistent profits, low debt, and high return on equity (ROE). Think of those that can be stretched, such as energy, infrastructure, or consumer products. Search for stocks with consistent dividends or undervaluation (e.g., low PE or PB ratios) with the help of tools such as Screener.
3. Are there some industries where there are good opportunities for stocks that are under ₹500?
Energy (Power, Oil & Gas): Government-sponsored companies such as Indian Oil, NTPC, and ONGC have long-term demand.
Banking: PSU banks such as Bank of Baroda provide value and dividends.
FMCG: ITC provides steady growth in the consumer goods category.
4. How do I know I'm not investing in shaky penny stocks?
Invest in stocks with a market capitalization of over ₹1,000 crore to prevent microcap risks. Review financial well-being, management skill, and business planning. Avoid stocks priced below ₹10 unless thoroughly vetted.
5. How do I diversify my investment with stocks priced below ₹500?
Invest across sectors such as energy, banking, and FMCG to diversify risk. Include a mix of big companies (like ITC), medium companies (like Oil India), and small companies. Invest in mutual funds or ETFs, such as Nippon India Small Cap Fund, for easy diversification (5paisa).
6. How do I track and manage my investments in stocks priced below ₹500?
Check company accounts and news regularly on websites such as Moneycontrol or Economic Times. Utilize stop-loss orders to limit losses, particularly for short positions. Stay current on market trends and government regulations regarding your stocks.
7. Can I buy stocks for less than ₹500 through mutual funds or ETFs?
Yes, small-cap or value-oriented mutual funds and ETFs typically use stocks below ₹500. They are Nippon India Small Cap Fund and ICICI Prudential Value Discovery Fund (Upstox).
8. What are some short-term stock trading ideas below ₹500?
Look for technical breakouts or breakdowns on charts on TradingView. Watch stocks with large trading volumes and recent catalysts such as earnings or industry news. Employ momentum or mean-reversion strategies based on historical price data.
9. How do I stay updated about news that impacts stocks below ₹500?
Cross-verify financial news websites like Moneycontrol and Business Standard. Join investor message boards or social sites to chat in real-time. Subscribe to broker alerts or newsletters of websites such as Dhan.
10. Is there any tax on investing in shares worth less than ₹500?
Long-Term Capital Gains (LTCG): Capital gains on shares older than one year are taxed at 10% (over ₹1 lakh).
Short-Term Capital Gains (STCG): STCGs on securities held for less than one year are taxed at 15%.
Dividends: Taxed at your income tax rate.
Final Thoughts
Shares worth less than ₹500 are a tempting proposition to make money, either for the long term or the short term. Invest in sound companies, diversify holdings across sectors, and keep well-informed to earn higher returns while keeping risk minimal.
Always do your research and take advice from a financial planner to put investments in the right direction.
Note: All share prices are approximate and based on data as of July 24, 2025. Share prices fluctuate rapidly. Always verify current prices and conduct your own research before investing.
