This article showcases the best stocks under 500 to consider for potential investors. You can also go through our previous article which discusses the Best shares to buy for long term in India in 2023.
As beginners, we often feel hesitant about investing a large sum of money in the stock market due to fears of potential losses. This feeling is completely normal, and I can relate to it myself. When I first entered the world of the stock market, I chose to invest a smaller amount of money. My goal was to identify a few promising stocks that would be worth my investment. The article specifically aimed the readers who are looking to acquire shares of reputable companies that are priced at or below Rs. 500.
In today’s discussion, we will list 10 best stocks under 500 that you can consider for your investment portfolio after conducting thorough research. The stocks are:
- ITC Ltd
- Redington Ltd
- Sunteck Realty Ltd
- JK Paper Ltd
- Coal India Ltd
- CG Power & Industrial Solutions Ltd
- Lloyds Metals & Energy Ltd
- EKI Energy Services Ltd
- Ashok Leyland Ltd
- Granules India Ltd.
Let’s have a look at fundamentals and financials of some of the listed stocks
ITC Ltd
Current Price: ₹ 437 | Market capitalization: 5.449TINR
The first stock in the list of best stocks under 500 is ITC Ltd. With a debt-free status, the company maintains a robust balance sheet that enables it to consistently achieve stable earnings growth across different business cycles. The company demonstrates solid profitability ratios, with a Return on Capital Employed (ROCE) of 39.1 % and a Return on Equity (ROE) of 21.9%. Additionally, it boasts a Dividend Yield of 2.92 %.
The company has achieved a commendable profit growth of 12% CAGR over the past five years, and 7% in the last three years. Over the last one year, ITC share price is up by 61.3% and over the last 5 years, the stock has demonstrated a Compound Annual Growth Rate (CAGR) of 10% in its price.
Redington Ltd
Current Price: ₹ 188 | Market capitalization: 144.831BINR
The company’s healthy balance sheet is evidenced by its modest debt-to-equity ratio of 1%. Furthermore, it boasts impressive profitability ratios, including a ROCE of 25.0% and ROE of 21.9%. Additionally, investors can benefit from a robust dividend yield of 3.83%.
The company has achieved a commendable profit growth of 23.8% CAGR over the past five years and a remarkable 39% in the last three years. The share price has increased by 44.7% over the past year and by 64% over the last three.
JK Paper Ltd
Current Price: ₹ 326 | Market capitalization: 54.531BINR
The third stock in the list of best stocks under Rs. 500 is JK Paper Ltd. This firm has an exceptional yearly revenue growth of 61% and an EPS rank of 94, while having a somewhat higher debt to equity ratio of 53%. These strong numbers call for a closer look at the stock. With a ROCE of 29.3% and a ROE of 34.4%, the stock also exhibits outstanding profitability and is consistently delivering a generous dividend payout of 18.9%.
Over the past five years, the company has achieved impressive profit growth with a CAGR of 37.0%, and 39% over the past three years. Although the JK PAPER share price has declined by 4.3% in the last year, it has shown significant growth of 50% over the past three years.
Coal India Ltd
Current Price: ₹ 229 | Market capitalization: 1.403TINR
The next stock in the list of best stocks under Rs. 500 is Coal India. The firm has a sound balance sheet with a manageable debt to equity ratio of 7%, and its EPS rank of 81 indicates a favourable result. Additionally, the ROCE of 71.5% and ROE of 56.0% show outstanding profitability. The firm also maintains a strong dividend payout ratio of 70.2% while providing a respectable dividend yield of 8.84%.
The firm has shown excellent profit development over the past five years with a CAGR of 32.0%, and 19% during the previous three years. Additionally, the share price of COAL INDIA has increased favourably by 15.3% over the last year and by a promising 19% over the past three years.
Ashok Leyland Ltd
Current Price: ₹ 154 | Market capitalization: 447.172BINR
The stock followed in the list of best stocks under Rs. 500 is Ashok Leyland. Although the company’s high debt to equity ratio of 230% may be cause for concern, its yearly revenue growth rate of 59% and EPS rank of 80 make it a stock worth studying further. With a ROCE of 12.1% and ROE of 15.3%, the company showcases profitability, complemented by a generous dividend payout of 61.57% and a dividend yield of 1.7%.
Furthermore, the company has displayed robust profit growth, boasting a 3-year CAGR of 51% and a 1-year CAGR of 16.38%. Additionally, the share price of ASHOK LEYLAND has experienced a substantial increase of 43% over the past three years, while demonstrating a respectable growth of 11.4% over the course of the past year.
Bottom Line
In conclusion, by meticulously evaluating the financial performance, growth potential, and market indicators of each stock, investors can make informed decisions when considering the best stocks under 500. Consequently, conducting comprehensive research and analysis enables investors to seize the opportunities presented by these affordable stocks.
Disclaimer
The blog is meant for informational purposes and serves the general analysis of the stocks. Contents provided here are based on careful research and analysis utilizing the fundamental and technical indicators over a period of time. The post does not consist any direct recommendation about Investing or trading in the securities market. Thorough research and careful consideration are necessary for individuals to fulfill their personal responsibility in making financial decisions. Seeking professional advice before making any financial decisions is always advisable.
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Good recommendation 👍 👌