IT stocks priced below 500 Rs offer budget-friendly options for investors looking to tap into India’s tech sector growth. These affordable shares provide exposure to the IT industry, allowing investors to diversify their portfolios and benefit from potential gains in the technology market.
The table below shows the Best IT Sector Stocks Below ₹500 based on Market Capitalization.
| Name | Market Cap (Cr) | Close Price (Rs) | 1Y Return % |
| Bharat Electronics Ltd | 1,99,081.83 | 270.05 | 104.66 |
| Firstsource Solutions Ltd | 22,927.14 | 372.55 | 138.51 |
| Bls International Services Ltd | 15,358.91 | 377.65 | 47.87 |
| Railtel Corporation of India Ltd | 12,696.32 | 404.25 | 83.04 |
| Redington Ltd | 12,545.92 | 168.58 | 15.43 |
| Genus Power Infrastructures Ltd | 11,850.39 | 409.1 | 63.22 |
| CMS Info Systems Ltd | 9,432.80 | 499.85 | 35.96 |
| Latent View Analytics Ltd | 9,161.75 | 443.1 | 6.96 |
| Black Box Ltd | 7,563.38 | 454.95 | 80.36 |
| Infibeam Avenues Ltd | 7,291.96 | 27.55 | 51.75 |
Table of Contents
Introduction to List of Best IT Stocks Below ₹500
Bharat Electronics Ltd
Bharat Electronics Ltd (BEL) is a state-owned aerospace and defense company established in 1954. It specializes in manufacturing advanced electronic products for the Indian Armed Forces and civilian applications. BEL is owned by the Government of India and plays a crucial role in national security.
Market Cap: ₹1,99,081.83 Crore
Close Price: ₹270.05
1M Return: -7.46%
6M Return: 14.72%
1Y Return: 104.66%
5Y CAGR: 47.33%
5Y Average Net Profit Margin: 15.94%
Dividend Yield: 0.81%
Sector: Electronic Equipment
Firstsource Solutions Ltd
Firstsource Solutions Ltd, founded in 2001, is a global provider of business process management services. Headquartered in Mumbai, India, it specializes in customer management, revenue cycle management, and analytics solutions across various sectors, including healthcare, telecommunications, and banking.
Market Cap: ₹22,927.14 Crore
Close Price: ₹372.55
1M Return: 4.38%
6M Return: 71.05%
1Y Return: 138.51%
5Y CAGR: 49.4%
5Y Average Net Profit Margin: 8.18%
Dividend Yield: 1.06%
Sector: Outsourced Services
BLS International Services Ltd
BLS International Services Ltd, established in 2005, provides visa and passport services, as well as government-to-citizen services. Based in New Delhi, it operates globally, facilitating services for various governments and embassies, focusing on seamless service delivery and technology integration.
Market Cap: ₹15,358.91 Crore
Close Price: ₹377.65
1M Return: 1.26%
6M Return: 7.92%
1Y Return: 47.87%
5Y CAGR: 83.2%
5Y Average Net Profit Margin: 12.16%
Dividend Yield: 0.27%
Sector: Outsourced Services
Railtel Corporation of India Ltd
Railtel Corporation of India Ltd, founded in 2000, is a public sector undertaking under the Ministry of Railways. It specializes in providing broadband telecom and data services through its extensive fiber optic network across India, enhancing connectivity for both government and private sectors.
Market Cap: ₹12,696.32 Crore
Close Price: ₹404.25
1M Return: -16.07%
6M Return: 1.28%
1Y Return: 83.04%
5Y CAGR: NA
5Y Average Net Profit Margin: 10.92%
Dividend Yield: 0.72%
Sector: Communication & Networking
Redington Ltd
Redington Ltd, established in 1993, is a leading supply chain solutions provider based in Chennai, India. The company specializes in distributing technology products, providing logistics services, and offering IT solutions across various sectors, including telecommunications, enterprise, and consumer electronics.
Market Cap: ₹12,545.92 Crore
Close Price: ₹168.58
1M Return: -14.44%
6M Return: -22.67%
1Y Return: 15.43%
5Y CAGR: 24.13%
5Y Average Net Profit Margin: 1.5%
Dividend Yield: 3.86%
Sector: Technology Hardware
Genus Power Infrastructures Ltd
Genus Power Infrastructures Ltd, founded in 1992, specializes in manufacturing smart meters and power infrastructure solutions. Based in Jaipur, India, the company focuses on providing efficient energy management and metering solutions, supporting utilities and consumers in the energy sector.
Market Cap: ₹11,850.39 Crore
Close Price: ₹409.10
1M Return: -4.19%
6M Return: 34.93%
1Y Return: 63.22%
5Y CAGR: 75.04%
5Y Average Net Profit Margin: 7.05%
Dividend Yield: 0.17%
Sector: Electronic Equipment
CMS Info Systems Ltd
CMS Info Systems Ltd, established in 2008, is a leading cash management and ATM outsourcing services provider in India. The company offers technology-driven solutions for cash logistics and secure cash handling, catering to banks, financial institutions, and retail sectors.
Market Cap: ₹9,432.80 Crore
Close Price: ₹499.85
1M Return: -0.5%
6M Return: 20.39%
1Y Return: 35.96%
5Y CAGR: NA
5Y Average Net Profit Margin: 13.4%
Dividend Yield: 0.99%
Sector: Software Services
Latent View Analytics Ltd
Latent View Analytics Ltd, founded in 2006, is a leading data analytics and insights firm based in India. It specializes in providing analytics solutions, business intelligence, and data engineering services to clients across various industries, helping them make data-driven decisions.
Market Cap: ₹9,161.75 Crore
Close Price: ₹443.10
1M Return: -6.45%
6M Return: -10.67%
1Y Return: 6.96%
5Y CAGR: NA
5Y Average Net Profit Margin: 25.43%
Dividend Yield: NA
Sector: IT Services & Consulting
Black Box Ltd
Black Box Ltd, established in 1976, is a global provider of communication and network solutions. Headquartered in Pennsylvania, USA, it offers a range of products and services, including IT infrastructure, network connectivity, and audio-visual solutions for various sectors.
Market Cap: ₹7,563.38 Crore
Close Price: ₹454.95
1M Return: -11.76%
6M Return: 86.49%
1Y Return: 80.36%
5Y CAGR: 81.34%
5Y Average Net Profit Margin: 0.79%
Dividend Yield: NA
Sector: Software Services
Infibeam Avenues Ltd
Infibeam Avenues Ltd, founded in 2007, is a leading e-commerce and payment solutions provider based in India. It offers a range of services, including e-commerce platforms, payment gateways, and digital marketing, catering to businesses and consumers in the online marketplace.
Market Cap: ₹7,291.96 Crore
Close Price: ₹27.55
1M Return: -6.75%
6M Return: -17.4%
1Y Return: 51.75%
5Y CAGR: 20.35%
5Y Average Net Profit Margin: 8.83%
Dividend Yield: 0.19%
Sector: IT Services & Consulting
What are IT Stocks India?
IT stocks in India refer to shares of companies involved in information technology services, software development, and IT consulting. These companies typically provide technology solutions to various sectors, including banking, healthcare, telecommunications, and government.
The Indian IT sector is a crucial component of the country’s economy, contributing significantly to GDP and employment. It has gained global recognition for its capabilities in software services, business process outsourcing, and IT-enabled services. The sector has seen robust growth due to increasing digital transformation across industries.
Investing in IT stocks offers potential for capital appreciation, driven by the demand for technology solutions and services. Factors such as global market trends, technological advancements, and government policies can influence the performance of IT stocks, making them an attractive option for investors.
Features Of Best IT Stocks Below ₹500
The main features of the best IT stocks below ₹500 include strong growth potential, solid fundamentals, competitive positioning, and attractive valuations. These factors can make such stocks appealing for investors looking for quality investments in the technology sector at affordable price points.
- Strong Growth Potential: Best IT stocks often exhibit a consistent growth trajectory driven by increasing demand for technology solutions. This growth can stem from digital transformation initiatives across industries, leading to higher revenues and market share for these companies.
- Solid Fundamentals: Companies with strong fundamentals demonstrate sound financial health, including good profit margins, manageable debt levels, and robust cash flow. These metrics indicate a company’s ability to sustain operations and invest in future growth opportunities.
- Competitive Positioning: The best IT stocks typically have a competitive edge in their specific markets, whether through unique offerings, proprietary technology, or a strong client base. This positioning helps them stand out in a crowded industry and attract more business.
- Attractive Valuations: IT stocks priced below ₹500 can offer attractive entry points for investors. By analyzing price-to-earnings ratios, price-to-sales ratios, and other valuation metrics, investors can identify undervalued stocks with the potential for significant appreciation.
List of IT Stocks Below 500 Rs Based on 6-Month Return
The table below shows a List of the Best IT Sector Stocks Below ₹500 based on 6 Month Return.
| Name | 6M Return (%) | Close Price (Rs) |
| Black Box Ltd | 86.49 | 454.95 |
| Firstsource Solutions Ltd | 71.05 | 372.55 |
| Blue Cloud Softech Solutions Ltd | 69.83 | 135.9 |
| Moschip Technologies Ltd | 53.31 | 240.15 |
| Avantel Ltd | 45.71 | 167.79 |
| Zaggle Prepaid Ocean Services Ltd | 35.54 | 420.3 |
| Genus Power Infrastructures Ltd | 34.93 | 409.1 |
| CMS Info Systems Ltd | 20.39 | 499.85 |
| Bharat Electronics Ltd | 14.72 | 270.05 |
| Bls International Services Ltd | 7.92 | 377.65 |
Best IT Stocks Below 500 Rs Based on 5 Year Net Profit Margin
The table below shows the Best IT Sector Stocks Below ₹500 based on 5-year Net Profit Margin.
| Name | 5Y Avg Net Profit Margin | Close Price (Rs) |
| Latent View Analytics Ltd | 25.43 | 443.1 |
| Bharat Electronics Ltd | 15.94 | 270.05 |
| CMS Info Systems Ltd | 13.4 | 499.85 |
| Bls International Services Ltd | 12.16 | 377.65 |
| Blue Cloud Softech Solutions Ltd | 11.71 | 135.9 |
| Railtel Corporation of India Ltd | 10.92 | 404.25 |
| Magellanic Cloud Ltd | 9.8 | 77.5 |
| R Systems International Ltd | 9.07 | 483.15 |
| Infibeam Avenues Ltd | 8.83 | 27.55 |
| Firstsource Solutions Ltd | 8.18 | 372.55 |
Top IT Stocks Below 500 Rs Based on 1M Return
The table below shows the Best IT Sector Stocks Below ₹500 Based on 1-Month Return.
| Name | 1M Return (%) | Close Price (Rs) |
| Firstsource Solutions Ltd | 4.38 | 372.55 |
| Bls International Services Ltd | 1.26 | 377.65 |
| R Systems International Ltd | 0.85 | 483.15 |
| CMS Info Systems Ltd | -0.5 | 499.85 |
| Moschip Technologies Ltd | -2.16 | 240.15 |
| Apollo Micro Systems Ltd | -2.17 | 100.32 |
| Exicom Tele-Systems Ltd | -2.3 | 304.9 |
| Genus Power Infrastructures Ltd | -4.19 | 409.1 |
| Latent View Analytics Ltd | -6.45 | 443.1 |
| Infibeam Avenues Ltd | -6.75 | 27.55 |
High Dividend Yield IT Stocks Under 500 Rs
The table below shows the Best IT Sector Stocks Below ₹500 based on Dividend Yield.
| Name | Dividend Yield (%) | Close Price (Rs) |
| Redington Ltd | 3.86 | 168.58 |
| Blue Cloud Softech Solutions Ltd | 1.54 | 135.9 |
| R Systems International Ltd | 1.42 | 483.15 |
| Firstsource Solutions Ltd | 1.06 | 372.55 |
| CMS Info Systems Ltd | 0.99 | 499.85 |
| Bharat Electronics Ltd | 0.81 | 270.05 |
| Railtel Corporation of India Ltd | 0.72 | 404.25 |
| Syrma SGS Technology Ltd | 0.39 | 432.15 |
| Bls International Services Ltd | 0.27 | 377.65 |
| Infibeam Avenues Ltd | 0.19 | 27.55 |
Historical Performance of IT Stocks Below 500 Rs
The table below shows the Historical Performance of Best IT Sector Stocks Below ₹500 based on Market Cap and 5Y Return.
| Name | 5Y CAGR (%) | Market Cap (Cr) | Close Price (Rs) |
| Magellanic Cloud Ltd | 151.35 | 4,654.71 | 77.5 |
| Avantel Ltd | 116.88 | 4,278.14 | 167.79 |
| Bls International Services Ltd | 83.2 | 15,358.91 | 377.65 |
| Black Box Ltd | 81.34 | 7,563.38 | 454.95 |
| Moschip Technologies Ltd | 75.71 | 4,509.05 | 240.15 |
| Genus Power Infrastructures Ltd | 75.04 | 11,850.39 | 409.1 |
| Apollo Micro Systems Ltd | 69.86 | 3,130.18 | 100.32 |
| R Systems International Ltd | 63.74 | 5,669.10 | 483.15 |
| Blue Cloud Softech Solutions Ltd | 62.48 | 2,823.83 | 135.9 |
| Firstsource Solutions Ltd | 49.4 | 22,927.14 | 372.55 |
Factors To Consider When Investing In IT Stocks Below 500 Rs
The main factors to consider when investing in IT stocks below ₹500 include financial performance, market trends, company fundamentals, and risk assessment. Evaluating these aspects can help investors make informed decisions and identify promising opportunities in the competitive IT sector.
- Financial Performance: Analyze key financial metrics such as revenue growth, profit margins, and return on equity. A strong financial track record indicates a company’s ability to generate consistent profits and reinvest in growth, making it a favorable investment option.
- Market Trends: Stay informed about industry trends and technological advancements driving the IT sector. Understanding market dynamics, such as increased demand for cloud computing and digital services, can help identify companies well-positioned for growth in a rapidly evolving landscape.
- Company Fundamentals: Assess the company’s fundamentals, including management quality, competitive advantages, and business model sustainability. Companies with strong leadership and innovative offerings are more likely to succeed and deliver long-term value to shareholders.
- Risk Assessment: Consider the inherent risks associated with investing in IT stocks, such as market volatility, regulatory changes, and competitive pressures. Conducting a thorough risk assessment can help investors mitigate potential downsides and make prudent investment choices.
How To Invest In IT Stocks Under Rs 500?
Listed below are the steps for investing in the best IT Sector Stocks Below ₹500:
- Research and find out the top-performing stocks in the market.
- Evaluate and assess your risk appetite and fix your financial goals.
- Shortlist the stocks based on your fundamental and technical analysis.
- Find reliable stockbrokers like Alice Blue to open a demat account.
- Invest in the shortlisted stocks and monitor them regularly.
Impact of Government Policies on IT Stocks Under 500 Rs
Government policies significantly influence IT stocks under ₹500, particularly through regulations, tax incentives, and investment in technology infrastructure. Favorable policies can enhance the growth prospects of these companies, attracting investor interest and driving stock prices upward.
Conversely, stringent regulations or unfavorable policies can negatively impact the profitability of smaller IT firms. Increased compliance costs or restrictions may hinder their ability to innovate, potentially leading to reduced investor confidence and declining stock values in this segment of the market.
How IT Stocks Below 500 Rs Perform In Economic Downturns?
IT stocks below ₹500 typically experience heightened volatility during economic downturns. As smaller companies often lack robust financial backing, they may struggle to maintain operations and investor confidence, resulting in sharp declines in stock prices and increased market sensitivity.
Additionally, reduced IT spending from businesses during economic downturns can adversely affect the revenues of these companies. With tighter budgets, clients may cut back on technology investments, leading to diminished growth prospects and further impacting stock performance in the sub-₹500 range.
Advantages Of Investing In IT Stocks Below Rs 500?
The main advantages of investing in IT stocks below ₹500 include affordability, high growth potential, diversification opportunities, and accessibility. These factors make such stocks appealing to both new and experienced investors seeking to build a technology-focused portfolio without significant capital outlay.
- Affordability: IT stocks priced below ₹500 provide an accessible entry point for investors with limited budgets. This affordability allows individuals to purchase multiple shares, increasing their investment exposure in the technology sector without committing large sums of money.
- High Growth Potential: Many IT companies exhibit strong growth potential due to increasing digitalization and demand for technology solutions. Investing in these stocks can yield substantial returns as businesses expand their operations and innovate, capitalizing on emerging market opportunities.
- Diversification Opportunities: Investing in IT stocks under ₹500 allows investors to diversify their portfolios across various companies within the sector. This diversification can reduce overall risk, as the performance of individual stocks may vary based on market conditions and company-specific factors.
- Accessibility: Lower-priced IT stocks are often more accessible to retail investors who may not have the resources to invest in larger, more established companies. This accessibility promotes broader participation in the stock market, fostering greater financial literacy and investment engagement.
Risks Of Investing In IT Stocks Below Rs 500?
The main risks of investing in IT stocks below ₹500 include high volatility, limited financial stability, potential for market manipulation, and lack of liquidity. These factors can significantly impact investors’ returns and increase the overall risk associated with these lower-priced stocks.
- High Volatility: IT stocks priced below ₹500 often experience significant price fluctuations, leading to unpredictable investment outcomes. This volatility can result in sharp losses, particularly during market downturns or economic uncertainties, making it crucial for investors to be prepared for sudden changes.
- Limited Financial Stability: Many lower-priced IT companies may lack strong financial foundations or consistent revenue streams. Investing in these companies can be risky, as their ability to weather economic challenges or maintain profitability may be questionable compared to larger, more established firms.
- Potential for Market Manipulation: Lower-priced stocks are often more susceptible to market manipulation due to their smaller market capitalization. This manipulation can lead to inflated prices or false trading volumes, making it difficult for investors to make informed decisions based on genuine market trends.
- Lack of Liquidity: IT stocks below ₹500 may experience lower trading volumes, resulting in limited liquidity. This lack of liquidity can make it challenging to buy or sell shares at desired prices, potentially leading to unfavorable trading conditions and increased transaction costs for investors.
IT Stocks GDP Contribution
IT stocks contribute significantly to GDP by driving innovation and enhancing productivity across various sectors. Their growth fosters job creation and technological advancement, ultimately bolstering economic performance and positioning the country as a global leader in technology services and solutions.
Furthermore, the success of IT companies underpins investments in infrastructure and digital transformation initiatives. This, in turn, encourages foreign direct investment and promotes entrepreneurship, further amplifying their contribution to GDP and establishing a robust economic ecosystem that supports sustainable growth.
Who Should Invest In IT Stocks Below 500 Rs?
Investors looking for high-risk, high-reward opportunities may find IT stocks below ₹500 appealing. These stocks can attract individuals with a higher risk tolerance who are willing to navigate the volatility associated with smaller companies in the technology sector.
Additionally, novice investors seeking to enter the stock market at a lower price point may consider these stocks. Investing in IT stocks below ₹500 allows for diversification within a portfolio without significant capital, making it accessible for those looking to grow their investments over time.
Top IT Stocks Below 500 Rs – FAQs
IT stocks in India represent shares of companies engaged in information technology services, software development, and related sectors. These stocks are crucial drivers of the Indian economy, contributing to innovation, digital transformation, and global competitiveness while offering diverse investment opportunities for stakeholders.
The Top IT Sector Stocks Below 500 Rs # 1: Bharat Electronics Ltd
The Top IT Sector Stocks Below 500 Rs # 2: Firstsource Solutions Ltd
The Top IT Sector Stocks Below 500 Rs # 3: BLS International Services Ltd
The Top IT Sector Stocks Below 500 Rs # 4: Railtel Corporation of India Ltd
The Top IT Sector Stocks Below 500 Rs # 5: Redington Ltd
The Top IT Sector Stocks based on market capitalization.
The Best IT Sector Stocks Below 500 Rs based on 6-month returns include Black Box Ltd, Firstsource Solutions Ltd, Blue Cloud Softech Solutions Ltd, Moschip Technologies Ltd, and Avantel Ltd.
Investing in IT stocks below ₹500 carries inherent risks due to market volatility and company size. While the potential for high returns exists, investors should conduct thorough research and assess their risk tolerance, as smaller stocks may be more susceptible to economic fluctuations.
To invest in IT stocks below ₹500, follow these steps:
Research: Analyze company performance, fundamentals, and industry trends to identify promising stocks.
Choose a Brokerage: Open an account with a reliable stockbroker or trading platform like Alice Blue.
Fund Your Account: Deposit funds into your trading account to buy stocks.
Place Orders: Use the broker’s platform to place buy orders for your chosen IT stocks below ₹500.
Monitor Your Investments: Regularly review your portfolio and market conditions to make informed decisions about buying or selling.
Here are some of the Best Stock Research Articles listed based on Top Sectors (Industries), Market Cap, and Fundamental Analysis Factors:
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.
