​​​​Best Stocks Under Rs 500 in India in 2024
As a new investor in stock market investing, selecting stocks from the extensive list of companies listed on the Indian stock market can be daunting. Most beginners are cautious before investing large sums of money immediately.
Both novice investors and seasoned veterans often look for affordable yet high-quality stocks. To assist you in this endeavour, we have compiled a list of the top 10 stocks priced under Rs 500 for 2024.
Whether you are just starting your investment journey or have years of experience, these stocks offer promising opportunities for a range of investors.
Here is a list of top 10 stocks of the Indian stock market that will likely perform well in the year 2024:
Coal India Ltd
Coal India focuses on coal mining and production, alongside the operation of coal washeries. The company's primary consumers hail from the power and steel sectors, and clients from various industries such as cement, fertilisers, and brick kilns.
Coal India is almost debt-free, making it a stable investment option. It also has a dividend yield of 5.97% and a profit growth of 31.9% CAGR over the past five years.
Bharat Heavy Electricals Ltd
BHEL operates as an integrated power plant equipment manufacturer, specialising in the design, engineering, manufacturing, erection, testing, commissioning, and servicing of a diverse range of products and services.
The company serves vital sectors of the economy like power, transmission, industry, transportation, renewable energy, oil & gas, and defence. Owned and controlled by the Government of India, it stands as the country's flagship engineering and manufacturing entity.
With a dividend payout of 20.1%, BHEL offers attractive returns to its shareholders.
Wipro Ltd
Wipro is a globally renowned information technology, consulting, and business process services (BPS) company, ranking as the 4th largest Indian player in the global IT services industry.
The company primarily operates in the IT services segment, contributing to approximately 97% of its revenues.
NLC India Ltd
NLC India Ltd engages in lignite mining and power generation by using lignite and renewable energy sources. It holds the prestigious Navratna status and operates under the Ministry of Coal, Government of India.
The company maintains a healthy dividend payout of 27.0%.
Salzer Electronics Ltd
Salzer specialises in offering comprehensive and customised electrical solutions in switchgear, wires & cables, and energy management.
Salzer Electronics Ltd has seen an increase in promoter holding by 2.08% over the last quarter.
Jupiter Wagons Ltd
Jupiter Wagons is actively involved in the manufacturing sector, specialising in metal fabrication. The company's primary focus includes the production of load bodies for commercial vehicles, rail freight wagons, and various components.
The company is anticipated to report a strong quarter and has consistently achieved a profit growth of 40.0% CAGR over the last five years.
Castrol India Ltd
Castrol’s core business revolves around the manufacturing and marketing of a wide range of lubricants and related services. Castrol's product portfolio encompasses various oil lubricants and fluids designed for use in cars, motorcycles, industrial machinery, and IT cooling and data centres.
The company maintains a virtually debt-free status and offers a dividend yield of 3.30%. It has a three-year ROE averaging 45.9%. Castrol India Ltd has consistently delivered a healthy dividend payout of 81.3%.
BLS International Services Ltd
BLS International Services is a player in the visa application outsourcing space on a global scale. The company has established itself as a leader in this field with a diverse range of services and a strong global presence.
BLS International Services Ltd also enjoys a virtually debt-free status and is expected to perform well in the upcoming quarter.
Fineotex Chemical Ltd
Fineotex Chemicals began operation in 1979. It specialises in manufacturing auxiliaries and speciality chemicals and caters to textiles, construction, water treatment, fertiliser, leather, and paint industries.
The company has had a profit growth of 31.1% CAGR over the last five years. Fineotex Chemical Ltd has had a three-year ROE averaging 25.5%.
Gujarat Mineral Development Corporation Ltd
GMDC is engaged in two sectors: mining and power. The company's diverse projects include lignite, bauxite, fluorspar, multi-metal, manganese, power generation, and renewable energy sources.
GMDC has achieved a profit growth of 28.5% CAGR over the last five years. ​​​​​​​
Conclusion
Here is the compilation of the top 10 stocks to watch in 2024. These companies have demonstrated strong performance in the past and are on a path for further growth in the upcoming year.
Investing solely based on current trends or low stock prices is not advisable. It's essential to delve into the stock's historical performance, sales figures, returns, fundamental indicators, financial ratios, and other relevant aspects.
Regardless of the amount you intend to invest, having a deep understanding of the company is always a wise approach before entering the market.
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