Investing in the stock market doesn’t require a fortune. For beginners or budget-conscious investors in India, there are quality stocks available under ₹500 that offer strong fundamentals, growth potential, and long-term wealth creation opportunities. Here is a curated list of the best stocks under ₹500 for long-term investment in 2025, along with their financial highlights, market cap, and reasons for being good picks.
1. HDFC Asset Management Company (HDFC AMC)
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Current Price: ₹490 (approx.)
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Market Cap: ₹110,000+ Cr
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P/E Ratio: ~32
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Investment Duration: Long Term (5+ years)
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Why Buy: Strong brand, high profit margins, consistent AUM growth, rising mutual fund awareness.
2. Canara Bank
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Current Price: ₹360 (approx.)
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Market Cap: ₹64,000+ Cr
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P/E Ratio: ~6
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Investment Duration: Long Term (5–7 years)
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Why Buy: Strong PSU bank, improved asset quality, digital expansion, rising net profit YoY.
3. Cochin Shipyard
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Current Price: ₹400 (approx.)
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Market Cap: ₹32,000+ Cr
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P/E Ratio: ~16
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Investment Duration: Long Term (5+ years)
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Why Buy: Strong order book, defence contracts, Make in India boost, consistent earnings.
4. IRCON International Ltd.
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Current Price: ₹145 (approx.)
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Market Cap: ₹13,700+ Cr
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P/E Ratio: ~11
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Investment Duration: Long Term (5+ years)
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Why Buy: Railway infra boom, government orders, strong balance sheet, dividend-paying.
5. Federal Bank
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Current Price: ₹160 (approx.)
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Market Cap: ₹34,000+ Cr
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P/E Ratio: ~7.5
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Investment Duration: 5–7 years
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Why Buy: Consistent profit growth, efficient digital services, expanding retail loan book.
6. Rail Vikas Nigam Ltd. (RVNL)
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Current Price: ₹165 (approx.)
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Market Cap: ₹33,000+ Cr
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P/E Ratio: ~21
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Investment Duration: Long Term (5–7 years)
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Why Buy: Government-backed railway infra projects, strong revenue visibility, PSU advantage.
7. Ashok Leyland
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Current Price: ₹155 (approx.)
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Market Cap: ₹45,000+ Cr
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P/E Ratio: ~25
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Investment Duration: 5–10 years
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Why Buy: CV industry recovery, strong export potential, product innovation, EV push.
8. HUDCO (Housing and Urban Development Corporation)
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Current Price: ₹125 (approx.)
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Market Cap: ₹25,000+ Cr
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P/E Ratio: ~7
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Investment Duration: Long Term (5–7 years)
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Why Buy: Government focus on affordable housing, stable loan book, dividend yield.
9. SAIL (Steel Authority of India)
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Current Price: ₹120 (approx.)
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Market Cap: ₹49,000+ Cr
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P/E Ratio: ~6.5
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Investment Duration: 5+ years
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Why Buy: Demand for steel in infra growth, debt reduction, improving EBITDA margins.
10. Bharat Electronics Ltd. (BEL)
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Current Price: ₹400 (approx.)
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Market Cap: ₹100,000+ Cr
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P/E Ratio: ~30
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Investment Duration: 5–10 years
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Why Buy: Defence manufacturing leader, rising order inflow, strong government support.
