Selecting stocks from thousands of companies listed in the Indian Stock market is never an easy task, especially when you're a beginner. As a beginner, we don't want to invest much money as we don't have much experience in the stock market. I am pretty sure nobody going to buy the MRF or Nestle stocks in the beginning. Everybody wants to have some experience before buying these types of stocks having high prices. But the problem which occurs with almost every beginner is that how to find the stocks available at low prices with quality as well. So, we are here with the list of 15 best stocks under Rs.500 you can buy in 2021 whether you're a beginner or a regular investor.
15 Stocks to buy under Rs.500 for beginners in India in 2021
1. Tata Motors (449.60)
pic credit; CNBC TV18
The list of best stocks under Rs.500 will be incomplete without including this stock. Tata is able to keep people's trust for decades, not only Tata salt but Tata is dominating in many sectors and has a pretty good market share in the motor sector as well. It has more than 8% market share in the motor sector.
Tata Nexon, Tata Harrier, Tata Tiago, and Tata Tigor are the few models of this manufacturer which are dominating the market and it has a heavy market share of the commercial vehicle also.
In 2008, Tata Motors acquired Jaguar Landrover, the manufacturer of the Jaguar and Landrover from Ford Motor company.
Tata Motor's stock is currently trading at a price of Rs.449.60 and its current market capitalization is Rs.1,57,984 crores. The stock has generated a massive return of 51.46% in the last one year.
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2. ITC Ltd. ( 303.05 )
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ITC is a large-cap company with a market capitalization of Rs. 3,75,521 crores and it has a large variety of products that are dominating the market and it is also the third-largest FMCG company in India. ITC products portfolio includes Sunfeast cookies, Bingo, Yipee, B natural beverages, candyman, Fiama, Vivel, Engage perfumes, Savlon, Classmate, Paperkraft, these are the big brands of ITC which are dominating the market. Apart from that, ITC is also running their business in the hotel sector as ITC hotels, tobacco sector ( Gold flake, classic, India Kings), and in the agriculture sector as well.
Calculating the market share of the company is quite a difficult task due to the diversified business of the company. If we talk about the FMCG sector then, ITC has a 10% market share in India. It has an 80% market share in the cigarette sector.
ITC's stock is currently trading at a price of Rs.303.05. The returns profile will make you amazed as it has generated returns at a
CAGR of 46.19% in last one year but the company is also giving regular to give a dividend to their shareholders with the dividend yield of 3.77%.
CAGR of 46.19% in last one year but the company is also giving regular to give a dividend to their shareholders with the dividend yield of 3.77%.
3. Dabur India Ltd. (584.10)
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With a market capitalization of Rs.1,01,466 crores, Dabur India is a large-cap company and it comes at third place in our list of best stocks to buy under Rs.500. If you are the one don't want to take high risks and only want to play safe, then this stock will be best suited for you.
Amla, Real juice, Dabur chyawanprash, Dabur honey, Odomos, Hajmola are a few of the products that are dominating the FMCG sector for decades
.
But you have to increase your budget a bit if you want to be a shareholder of this company. Dabur's stock is currently trading at a price of Rs.584.10 and its market share in the FMCG sector in India is 2%. The stock has generated a satisfying return 88.42% in the last five year.
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4. Marico Ltd (518.00)
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Marico Ltd. comes at 4th place in our list of best stocks under 500 with a market capitalization of Rs.66,446 crore. Marico India is one of the leading consumer companies in India and it is operating its business in more than 25 countries. Its products are basically in the category of health foods, skincare, haircare, edible oils, male grooming, etc.
It is also a low-risk stock, if you want to play safely in the stock market, then this stock will play the best role in your portfolio. Marico's stock is currently trading at a price of Rs.518.00 and it has a 5% market share in the FMCG sector in India.
If we talk about the financials of the company, it has reported a 13.21% rise in the company's consolidated net profit in the Jan-March quarter of 2o22 on a year-on-year basis and the stock has generated a return of 54.77% in the last five year.
5. Indraprasth Gas Ltd. (346.35)
Pic credit; The Asian age
The stock at fifth place in the list of best stocks under 500 comes from the gas sector with a market capitalization of Rs.24,185 crores, indicating that it is a mid-cap company. The company operates its business in Delhi only.
It is also a low-risk stock but has a high potential for high capital growth. The stock will give stability to your portfolio and can also generate good returns if you can hold this for the long term. IGL's stock is currently trading at a price of Rs.346.35 and it has generated returns of 46.87% in the last one year.
6. Ashok Leyland Ltd. (149.00)
pic credit; Hinduja group
Another stock comes from motor sector in our list of best stocks to buy under Rs.500 with a market capitalization of Rs.42,726, Ashok Leyland is a midcap company ranked at 113. They are dominating in commercial vehicles in the motor sector for many years.
This is a moderate-risk stock and has the ability to compound your money with good returns if you can hold the stock for the long term. Ashok Leyland's stock is currently trading at a price of Rs.149.00 and it has generated returns of 36.07% in the last five years.
Ashok Leyland has a dominating market share of 25% in heavy passenger-carrying buses and a 47% market share in heavy commercial vehicles.
7. Biocon Ltd. (307.20)
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Biocon Ltd. comes from the pharma sector in 7th place in our list of best stocks under Rs.500 to buy with a market capitalization of Rs.36,558 crores, indicating that it is a large-cap company and ranked at 89th place. Some of the Biocon key brands in India include Insugen, Basalog, Blisto, Canmab, etc. They are selling their products in over 120 countries including the United States and European markets.
It is the low-risk stock that can give your portfolio stability in between high-risk stocks and can also compound your money with good returns if you can hold the stock for the long run. Biocon stock's price is currently trading at a price of Rs.307.20.
The profile returns in the last one year are not satisfying as it has given a negative return at a CAGR of -21.23% but if you have a look at the 5 years return then the percentage calculated is 59.71%.
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8. ICICI prudential life (553.60)
pic credit; The financial express
The stock at 8th place comes from the insurance sector, ICICI prudential life Insurance Company Ltd. is a large-cap company with a market capitalization of Rs.76,187 crores. The life insurance industry is growing rapidly in India, between 2019-2023, it is expected a rise of 5.3% CAGR in life insurance industry. So, Insurance stocks can be a good investment in the future.
It is also a low-risk stock but can compound your money in an unexpected way due to the increasing demand for life insurance but but but...if you want to add this stock to your portfolio you have to increase your budget a little bit as the stock is currently trading at Rs.553.60. The stock has generated a return of 86.05% from the date of listing and it was listed in Oct''2016.
If we have a look at the financials of the company the outcome is not good as the company has reported a 3% rise in the profit in the Jan-March quarter of 2022. The main reason behind this massive fall is the covid pandemic, it has affected the insurance industry in a very bad way. We hope the sector will be bounced back when the situation will be under control.
9. Samvardhana Motherson international limited (127.30)
pic credit; moneycontrol.com
The 9th stock comes from the automotive industry in the list of best stocks under Rs.500, is a large-cap stock with a market capitalization of Rs.58,006 crores, Samvardhana Motherson international Ltd. The product range of the company includes an electrical distribution system, rearview mirrors, bumpers, dashboards, and many more auto parts.
It is a moderate-risk stock currently trading at a price of Rs.127.30.
10. Hindalco (415.05)
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We placed Hindalco industries limited a subsidiary of Aditya Birla Group of Industries, at 10th place in the list of best stocks to buy under Rs.500. Hindalco comes from the metal sector with a market capitalization of Rs.87,923 crores and it's a large-cap company. It is the giant manufacturer of aluminum and copper and the company has annual sales of US $15 billion.
It is a moderate-risk stock that can generate good returns for you if you hold it for the long run. Hindalco's stock is currently trading at a price of Rs.415.05 and it has compounded its shareholder's money at a return 88.96% in the last five years.
In terms of the financials of the company, Hindalco has reported a massive jump of 218% in net profit in the quarter of Jan-March 2022.
11. Bharti Airtel (677.95)
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With the huge market capitalization of Rs.3,77,301 crores, we placed Bharti Airtel at 11 in our list of best stocks to buy under Rs.500 in 2021. Obviously, the market capitalization of the company indicates that it is a giant large-cap company. Along with India, It is operating in 17 more countries having 2g, 3g, 4g LTE, and 4g+ in its services portfolio. It is the second-largest mobile network operator in the world with a subscriber base of over 457.96 million.
The stock can give stability to your portfolio as it has very low risk due to the fewer fluctuations in the stock price. But you have to increase your budget a bit if you want to be a shareholder of Bharti Airtel as the current stock price is trading at Rs.667.95. Bharti Airtel's stock has given a posivtive returns in the last one year at a CAGR of 22.21% but the stock has a good potential to compound your money. Make sure to consult with your financial advisor before investing.
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12. Hindustan ZinC (269.70)
pic credit; Theprint.in
Hindustan Zinc Ltd. is the world's second-largest zinc producer comes at 12th in the list of best stocks to buy under 500 in India. The market capitalization of the company is Rs. 1,11,759 crores, indicating that it is a large-cap company. It operates its business in mining and smelting.
The stock has a moderate risk if you want to buy this stock you have to pay Rs.326.65 for a single share. Hindustan Zinc's stock has generated returns of 88.76% CAGR in the last one year.
If we talk about the financials of the company, then it has reported a massive jump of 85% rise in net profit on a year-on-year basis.
13. Bharat Petroleum Corporation Ltd (BPCL) (336.40)
pic credit; IndiaTV
With a market capitalization of Rs.72,743 crores, BPCL is a large-cap company that comes at 13 in our list of best stocks to buy under 500 in 2021. BPCL is India's 2nd largest downstream oil company. It has a refinery business of oils in various states.
The company's stock has a moderate risk and can give you good returns if you hold the stocks for the long term. BPCL's stock is currently trading at a price of Rs.336.40.
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14. Ambuja Cements Ltd (382.65)
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The second last stock in the list of best stocks to buy under 500 comes from the cement sector, Ambuja Cements Ltd. is a large-cap company, is the second-largest cement producer in India in terms of turnover, and has a market capitalization of Rs.75,980 crores. It has ambuja cement, ambuja cool wall, ambuja kawach, ambuja plus, and many more products in its products basket.
You can invest in this stock with low risk as the fluctuations in the stock price are very less. Ambuja cement's stock is currently trading at a price of Rs.382.65 and it has generated 36.91 returns in the last five years. Over the last five years, the market share of the company has been increased from 7.07% to 10.24%.
15. Bandhan Bank (274.10)
pic credit; businessworld.in
Last but not the least, stock comes from the banking sector with a market capitalization of Rs.44,151 crores, indicating that Bandhan Bank is a large-cap company. They provide products and services like saving accounts, current accounts, credit cards, debit cards, loans, and many other banking-related services.
The stock comes in the segment of moderate risk due to the high fluctuations in the stock price. So, this stock will not be an investment for you if you are the one who can't face the fluctuations. Bandhan Bank's stock is currently trading at a price of Rs.274.10.
In the financial segment, the bank has reported a massive rise of 1747% in the net profit in the quarter of Jan-March 2022 on yearly basis.
Also read;
- 10 Best stocks to buy under Rs. 100 in India.
- 8 Best Banking stocks to buy in India 2021!
- 4 Best Insurance Company's stocks to buy in India 2021
- 8 Best IT stocks to buy now in India 2021
- 10 Best quality stocks to buy under Rs. 1000 in India.
- 6 Best companies of Adani group listed in the stock market you can invest in!
- 10 Most expensive stocks in India.
Disclaimer
Above all the stock prices and the market capitalizations are as of 8th of august, 2022. These parameters can be changed with the change of stock prices in the future. The author is just sharing his own opinions about the stocks meanwhile he is not giving you any stock advice to invest. Please consult with your financial advisor or do thorough research before invest.
So let's end the list of stocks under Rs.500 to buy in 2021 here with these 15 quality stocks. If any stock is missing from the list please drop down the name and please feel free to share opinions. If you liked the article, make sure to share it with your friends and your loved ones. Goodbye and Happy Investing! ✌✌
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