Fundamentally Strong Stocks Under 500

The table below shows the Fundamentally Strong Stocks Under 500 based on the Highest Market Capitalization.

What Are Fundamentally Strong Stocks Under 500?

Fundamentally strong stocks under 500 Rs are shares of companies priced below 500 Indian Rupees, exhibiting robust financial health. These companies demonstrate consistent revenue growth, low debt, strong earnings, and positive cash flow. They offer a balance of affordability and stability, making them attractive investment opportunities despite potential market fluctuations.

Features Of Fundamentally Strong Stocks Under Rs 500

The main features of fundamentally strong stocks under Rs 500 are a solid financial foundation and growth potential. First, ensure the stock has a consistent track record of profitability, which signifies a company capable of generating steady earnings over time.

1. Low Debt-to-Equity Ratio: A lower ratio indicates that the company is not excessively reliant on borrowing to finance its operations, reducing financial risk.

2. High Return on Equity (ROE): A high ROE suggests the company is effective at generating profits from shareholders’ investments.

3. Strong Earnings Growth: Look for companies with a history of growing their earnings consistently, indicating robust business performance.

4. Healthy Dividend Yield: A reasonable dividend yield shows the company is willing and able to share profits with shareholders, providing an income stream.

5. Positive Cash Flow: Consistent positive cash flow from operations reflects a company’s ability to maintain liquidity and fund its activities without relying on external financing.

Best Fundamentally Strong Stocks Under ₹500

The table below shows the Best Fundamentally Strong Stocks Under ₹500 based on the highest day Volume.

Top 10 Fundamentally Strong Stocks Under Rs 500

The table below shows the Top 10 Fundamentally Strong Stocks Under Rs 500 based on the PE Ratio. 

Fundamentally Strong Stocks Under 500 List

The table below shows the Fundamentally Strong Stocks Under 500 List based on the 1-year return. 

Factors To Consider When Investing In Fundamentally Strong Stocks Under 500

The factors to consider when investing in fundamentally strong stocks under 500 are various factors to ensure a sound investment. Firstly, evaluate the company’s financial health, including revenue, profit margins, and debt levels, to understand its stability and growth potential.

1. Earnings Growth: Look for consistent earnings growth over the years, indicating a company’s ability to generate profit.

2. Competitive Advantage: Identify whether the company has a unique advantage over its competitors, such as patents, strong brand, or superior technology.

3. Management Quality: Assess the experience and track record of the company’s management team in steering the company towards growth.

4. Valuation Metrics: Examine key valuation ratios like Price-to-Earnings (P/E), Price-to-Book (P/B), and Price-to-Sales (P/S) to determine if the stock is fairly priced.

5. Industry Trends: Consider the overall industry health and future trends to ensure the sector is poised for growth and the company can capitalize on it.

How To Invest In Fundamentally Strong Stocks Under 500?

To invest in fundamentally strong stocks under Rs 500, research companies with solid financials and growth potential. Use a reputable stock broker for access to comprehensive market analysis and low transaction fees. Diversify your portfolio to manage risk, and stay informed about market trends to make educated investment decisions. Regularly review and adjust your investments as needed.

Advantages Of Investing In Fundamentally Strong Stocks Under 500?

The primary advantages of investing in fundamentally strong stocks under 500 Rs can provide substantial growth potential and stability for investors, making it a worthwhile strategy for those seeking robust returns without excessive risk.

1. High Growth Potential: Fundamentally strong stocks often have the capacity for significant growth, leading to potentially higher returns.

2. Lower Risk: These stocks typically exhibit stable financial performance, reducing the investment risk.

3. Valuation Upside: Stocks priced under Rs.500 may be undervalued, presenting opportunities for price appreciation as the market recognizes their true value.

4. Diversification Benefits: Including fundamentally strong yet affordable stocks in a portfolio enhances diversification and reduces overall investment risk.

5. Stable Dividends: Many of these companies pay consistent dividends, providing a reliable income stream alongside capital appreciation.

Risks Of Investing In Fundamentally Strong Stocks Under 500?

The primary risk of investing in fundamentally strong stocks under 500 Rs is the potential for market volatility, where even strong stocks can experience significant price swings due to broader market trends.

1. Limited Liquidity: Stocks under $500 may have lower trading volumes, making it difficult to buy or sell large quantities without affecting the stock price.

2. Concentration Risk: Investing in lower-priced stocks may lead to a lack of diversification, increasing the risk associated with any single stock’s performance.

3. Information Asymmetry: There may be less available information and analysis on these stocks, making it harder to make well-informed investment decisions.

4. Market Sentiment: Stocks under $500 can be more susceptible to market sentiment and speculation, leading to unpredictable price movements.

5. Growth Limitations: These stocks might represent companies with limited growth potential compared to higher-priced, more established firms.

Introduction to Fundamentally Strong Stocks Under 500

NTPC Ltd

The Market Cap of NTPC Ltd is Rs. 359164.51 crores. The stock’s monthly return is -1.62%. Its one-year return is 94.77%. The stock is 5.51% away from its 52-week high.

NTPC Limited is an India-based power-generating company. The Company is primarily involved in the generation and sale of bulk power to State Power Utilities. Its segments include Generation and Others. Its generation segment is engaged in the generation and sale of bulk power to state power utilities. 

The Company’s Other segment is focused on providing consultancy, project management and supervision, energy trading, oil & gas exploration, and coal mining. The Company operates a total of 89 power stations across various Indian states, either independently or through its joint ventures (JVs) and subsidiaries. 

Oil and Natural Gas Corporation Ltd

The Market Cap of Oil and Natural Gas Corporation Ltd is Rs. 345768.97 crores. Its one-year return is 68.99%. The stock is 6.64% away from its 52-week high.

Oil and Natural Gas Corporation Limited is an India-based crude oil and natural gas company. The Company’s business segments include Exploration and Production, and Refining and Marketing. The Company is engaged in the exploration, development, and production of crude oil, natural gas, and value-added products in India and the acquisition of oil and gas acreages outside India for exploration, development and production, pipeline transportation, special economic zone (SEZ) development, and helicopter services. 

The Company’s products and services include crude oil, natural gas, liquid petroleum gas, and other products. Its geographical segments consist of India, which includes offshore and onshore, and Outside India. Its subsidiaries include Mangalore Refinery and Petrochemicals Limited, Hindustan Petroleum Corporation Limited, ONGC Videsh Limited, Petronet MHB Limited, and HPCL Biofuels Limited.

Power Grid Corporation of India Ltd

The Market Cap of Power Grid Corporation of India Ltd is Rs. 307663.97 crore. The stock’s monthly return is -0.17%. Its one-year return is 79.11%. The stock is 4.04% away from its 52-week high.

Power Grid Corporation of India Limited is a power transmission company engaged in the planning, implementation, operation, and maintenance of Inter-State Transmission System (ISTS), telecom, and consultancy services. The Company’s segments include Transmission Services, Consultancy Services, and Telecom Services.
Transmission Services is engaged in the transmission of bulk power across different states of India consisting of extra high voltage/high voltage (EHV/HV) networks. Consultancy Services provides consultancy services in the transmission, distribution, and telecom sectors, including planning design, engineering, load dispatch, optical ground wire (OPGW) on intra-state transmission networks, procurement management, operation and maintenance, financing, and project management.  

Indian Oil Corporation Ltd

The Market Cap of Indian Oil Corporation Ltd is Rs 237660.44 crore. The stock’s monthly return is -0.33%. Its one-year return is 77.53%. The stock is 16.24% away from its 52-week high.

Indian Oil Corporation Limited is an India-based oil company. The Company’s segments include Petroleum Products, Petrochemicals, and Other Business Activities. Its Other Business Activities segment includes the gas, oil and gas exploration activities, explosives and cryogenic business, and windmill and solar power generation. 

Its business interests span the entire hydrocarbon value chain, ranging from refining, pipeline transportation, and marketing, to exploration and production of crude oil and gas, petrochemicals, gas marketing, alternative energy sources, and globalization of downstream operations. It has a network of fuel stations, bulk storage terminals, inland depots, aviation fuel stations, liquefied petroleum gas (LPG) bottling plants, and lube blending plants.  

Bharat Electronics Ltd

The Market Cap of Bharat Electronics Ltd is Rs. 223752.33 crores. The stock’s monthly return is -2.47%. Its one-year return is 154.06%. The stock is 2.70% away from its 52-week high.

Bharat Electronics Limited is an India-based company, which manufactures and supplies electronic equipment and systems for the defense sector as well as for non-defense markets. Its defense products include navigation systems, defense communication products, land-based radars, naval systems, electronic warfare systems, avionics, electro-optics, tank & armored fighting vehicle electronic systems and weapon systems, simulators, and others. 

Its non-defense provides cyber security, e-mobility, railways, e-governance systems, homeland security, civilian radars, turnkey projects, components/devices, and telecom, and broadcast systems. It manufactures electronic products and systems for the army, navy, and air force.  

Vedanta Ltd

The market cap of Vedanta Ltd is Rs. 169882.36 crore. The stock’s monthly return is -0.25%. Its one-year return is 66.74%. The stock is 9.24% away from its 52-week high.

Vedanta Limited is an India-based natural resources company. The Company has operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, nickel, aluminum, power, and glass substrate. The Company’s product portfolio includes aluminum ingots, primary foundry alloys, wire rods, billets, and rolled products, which cater to various industries, such as power, transportation, construction and packaging, renewable, automobile, and aerospace, among others. 

It produces iron ore and pig iron and caters to steelmaking, construction, and infrastructure sectors. It produces a range of copper products, including eight mm copper rod, 11.42 millimeter (mm)/12.45 mm/12.45 mm wax free, copper cathode and copper car bar with housing wires, winding wires, and cables, transformer and electrical profile producers being its primary customers.  

Gail (India) Ltd

The Market Cap of Gail (India) Ltd is Rs. 145749.79 crore. The stock’s monthly return is 4.22%. Its one-year return is 106.76%. The stock is 5.93% away from its 52-week high.

GAIL (India) Limited is an India-based natural gas processing and distribution company. The Company’s segments include Transmission Services, Natural Gas Marketing, Petrochemicals, LPG And Liquid Hydrocarbons, and Other segments. Its Transmission Services segment includes natural gas and liquid petroleum gas (LPG). Its Other segment includes City Gas Distribution (CGD), GAIL Tel, exploration and production (E&P), and power generation.

It has interests in the sourcing and trading of natural gas, production of LPG, liquid hydrocarbons and petrochemicals, and transmission of natural gas and LPG through pipelines. The Company owns and operates a network of approximately 14,500 kilometers (km) of natural gas pipelines. It is also focused on expanding its presence in renewable energy, such as solar, wind, and biofuel.  

Samvardhana Motherson International Ltd

The Market Cap of Samvardhana Motherson International Ltd is Rs. 137534.25 crore. The stock’s monthly return is 31.62%. Its one-year return is 138.68%. The stock is 0.75% away from its 52-week high.

Samvardhana Motherson International Limited is a globally diversified manufacturer. The Company is a full system solutions provider to customers in automotive and other industries. It has a diversified product portfolio, which includes electrical distribution systems, fully assembled vehicle interior and exterior modules, automotive rear vision systems, moulded plastic parts and assemblies, injection moulding tools, moulded and extruded rubber components, lighting systems, electronics, precision metals, and modules, Industrial IT solutions and services and technologies, such as telematics and others. 

Its segments include Wiring harness, Modules and polymer products, and Emerging businesses. Emerging businesses comprise elastomers, lighting & electronics, precision metals & modules, technology & industrial solutions, logistics solutions, aerospace, health & medical, and services operations of the Company. Its wholly owned subsidiary is Samvardhana Motherson Automotive Systems Group B.V.

Rail Vikas Nigam Ltd

The Market Cap of Rail Vikas Nigam Ltd is Rs. 85,694.33 crores. The stock’s monthly return is 0.95%. Its one-year return is 242.47%. The stock is 3.56% away from its 52-week high.

Rail Vikas Nigam Limited (RVNL) is an India-based company that is engaged in the development of rail infrastructure. The Company is in the business of implementing various types of rail infrastructure projects, gauge conversion, new lines, railway electrification, bridges, workshops, and production units. It undertakes and executes the project development, financing, and implementation of projects related to rail infrastructure. 

RVNL executes all types of railway projects including new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, major bridges, construction of cable-stayed bridges, and institutional buildings. It works on a turnkey basis and undertakes the full cycle of project development from conceptualization to commissioning including stages of design, preparation of estimates, calling contracts, project, and contract management. 

Suzlon Energy Ltd

The Market Cap of Suzlon Energy Ltd is Rs. 72,304.08 crore. The stock’s monthly return is 6.06%. Its one-year return is 218.75%. The stock is 4.05% away from its 52-week high.

Suzlon Energy Limited is an India-based renewable energy solutions provider. The Company is engaged in the business of manufacturing wind turbine generators (WTGs) and related components of various capacities. It operates in approximately 17 countries across Asia, Australia, Europe, Africa and the Americas. 

Its products include S144 Wind Turbine Generator, S133 Wind Turbine Generator, and S120 Wind Turbine Generator. These products offer hub heights up to 160 meters (m). The fleet delivers 40-43% higher generation over the S120. 10-12% higher generation over S133. The S133 is extendable up to 3.0 megawatts (MW) depending on the site’s wind conditions.  

Fundamentally Strong Stocks Under 500 – FAQs

We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.