Investing in stocks under Rs 500 offers a low-entry barrier to the stock market and even new investors can invest in the markets easily. Some benefits of investing in Rs 500 stocks are potential high returns, diversification benefits, and the opportunity to invest in emerging companies.
Here is a list of the top 4 companies that are priced below Rs 500 with the potential to increase in the near future:
|
Name
|
Current Market Price
|
P/E
|
Mar Cap(in Rs, Crores)
|
NP Qtr
(in Rs, Crores)
|
Sales per Quarter
|
ROCE %
|
Promoter Holding
|
Debt / Equity
|
|
Indus
Towers Ltd
|
330.1
|
11.79
|
88946.36
|
2223.5
|
7465.3
|
22.08
|
53
|
0.75
|
|
JSW
Infrastructure Ltd
|
304.45
|
51.46
|
63998.86
|
373.73
|
1001.36
|
16.41
|
85.61
|
0.56
|
|
Jupiter
Wagons Ltd
|
424.6
|
49.28
|
18011.53
|
88.62
|
973.63
|
31.67
|
68.11
|
0.16
|
|
Lloyds
Engineering Works Ltd
|
65.98
|
77.74
|
7570.37
|
27.95
|
212.15
|
28.61
|
56.38
|
0.15
|
Indus Towers Limited is a leading provider of telecom tower infrastructure in India and offers shared access to its extensive portfolio of over 211,775 towers and 360,679 co-locations across all 22 telecom circles as of Q3 FY24.
The company caters to major telecom operators like Bharti Airtel, Vodafone Idea, BSNL, MTNL, and Reliance Jio, with Airtel and VIL contributing 80–85% of its revenue in FY23.
Indus Towers also focuses on innovation with lighter tower designs and integrated solar power systems to enhance network performance and reduce costs.
The company also drives sustainability by expanding its renewable energy portfolio and piloting clean energy solutions like Aluminum-Air technology. They currently have a capex of Rs 9,500 crore projected for FY24, fueled by the 5G rollout, and a strong commitment to digital transformation through AI, IoT, and drone-based solutions.
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JSW Infrastructure Limited is a key player in the maritime services sector and offers cargo handling, storage, and logistics solutions. As part of the JSW Group, it is India's second-largest commercial port operator by cargo handling capacity.
It operates nine ports across the country and two terminals in the UAE under O&M agreements with a total capacity of 41 MTPA. The company’s Indian ports have an aggregate capacity of 158.43 MTPA as of June 2023. It also handles cargo of iron ore, thermal coal, liquid bulk, and containers for JSW Group and third-party customers.
They are focussed on expansion through capital investments in projects like LPG terminal upgrades, container terminal enhancements, and dredger installations. They have delivered a profit growth of 34.6% CAGR in the last 5 years.
Jupiter Wagons Ltd specialises in manufacturing metal fabrication products for rail freight wagons, commercial vehicle components, and multimodal mobility solutions.
The company operates in two key verticals:
-
Rail Mobility like wagons, accessories, and track solutions primarily to Indian Railways.
-
Road & Multimodal Mobility, that produces tankers, ISO marine containers, fire engines, e-LCVs, and more.
They have 12 manufacturing facilities and a production capacity of 8,000 wagons annually. Jupiter Wagons serves over 60 clients. Some of the major clients are TATA Motors, Mahindra, and JSW Steel.
Jupiter Wagons also plans to produce up to 10,000 wagons annually and 1 lakh wheelsets by 2027 under the Make in India initiative. They have an order book of Rs 7,028 Cr as of Q1 FY25. Their revenue growth is driven by rail wagon sales leading to total sales of Rs 935 Cr. They have delivered a good profit growth of 80.1% CAGR in the last 5 years
They are into manufacturing and commissioning heavy equipment and machinery for hydrocarbon, oil & gas, steel, power, and nuclear industries. The company offers pressure vessels, heat exchangers, marine loading arms, nuclear plant boilers, and thermal power plant equipment.
It serves a broad client base. To name a few companies- Cochin Shipyard, Bharat Petroleum, GAIL, and Indian Oil are its clients. The company secured fresh orders worth Rs 849.51 crore in FY24, with its order book standing at Rs 904 crore and sectors contributing to its revenue include power (40%) and steel (38%).
Recent technological collaborations with TMW and TB Global Technologies have expanded its product portfolio to include eco-friendly steel pickling technologies and advanced marine equipment.
Lloyds rebranded itself in July 2023 to reflect its broader engineering focus and saw promoter holding increase to 60% as of June 2023.
The company has a 94.2% profit CAGR over five years and paid a dividend of 43.7%.
Conclusion
Investing in stocks priced under Rs 500 can be a strategic move for diversifying your portfolio while keeping entry costs low. These stocks present an accessible pathway for new investors who have limited budgets.
By selecting stocks backed by strong fundamentals and growth potential, you can make the most of this affordable investment avenue and build a solid portfolio over time.
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