Best Stocks Under ₹500 in India: 10 Quality Stocks That Passed 7 Strict Financial Filters

Finding a stock under ₹500 is easy. Finding a high-quality stock under ₹500, with strong profits, low debt and steady growth, is much harder.

A low share price does not make a stock cheap. A ₹100 stock with weak profits and heavy debt can be far more expensive than a ₹3,000 stock growing earnings at 25% a year. What matters is what you pay for the earnings, not the price tag.

So instead of hunting for the cheapest stocks under ₹500, this screen looked for quality businesses that happen to trade below ₹500 per share. Pair this list with a proper stock-picking framework before you act on it.

The 7 Filters Used to Find the Best Stocks Under ₹500

Every stock on this list cleared all seven conditions when the screen was run:

• Share price: below ₹500
• Return on Equity (ROE): above 15%
• Return on Capital Employed (ROCE): above 15%
• 5-year average net profit margin: above 15%
• Current ratio: above 1.5
• Debt to equity: below 0.5
• 5-year CAGR: above 8%

These filters weed out firms with weak balance sheets, thin margins or patchy growth. One honest note: ratios move every results season. The screen used five-year average profits, and two names have since slipped below the 15% ROE mark on latest-year numbers. Those cases are flagged below.

Top 10 Stocks Under ₹500: Snapshot

Figures are from the latest reported financials, as of July 14, 2026.

A Closer Look at Each Stock

1. ITC: The Dividend Giant Below ₹300

ITC runs four businesses: cigarettes, other FMCG products, paperboards and packaging, and agri-business. Its hotels arm split off as ITC Hotels in January 2025 and now trades on its own.

The numbers remain elite. ROE stands at 29.3% and ROCE at 38.9%, with debt to equity at just 0.03 and a net profit margin near 27% in FY26. The 5-year price CAGR of 7% is the slowest on this list, and the stock has fallen about 34% over the past year. That weak spell has pushed the dividend yield up, one reason ITC also features among India's top blue chip stocks.

2. Bharat Electronics (BEL): The Defence Compounder

BEL makes radars, weapon systems, military radios and other defence electronics for the armed forces. It has been one of the biggest winners of India's push to build defence gear at home, a theme covered in this guide to top defence stocks in India.

The numbers back the story: ROE of 28%, ROCE of 37%, almost no debt, and a 5-year price CAGR of 47% with profits growing 24% a year over five years. Firms with no debt and this pace of growth are rare.

3. National Aluminium Company (NALCO): The Low-Cost Metal Play

NALCO is a Navratna public sector firm under the Ministry of Mines. It mines bauxite, refines alumina, smelts aluminium and runs its own power plants, and it is one of the world's lowest-cost alumina makers.

Its latest numbers are striking for a metals firm: ROE of 29.4%, ROCE of 39.6%, an FY26 net profit margin of 32.5%, and near-zero debt. The stock has returned about 93% over the past year. But aluminium moves in cycles. Earnings can swing hard when metal prices turn.

4. Goldiam International: The Lab-Grown Diamond Exporter

Goldiam makes and exports diamond and gold jewellery, rings, wedding bands, bridal sets, mostly to overseas retailers, and has ridden the rise of lab-grown diamonds.

It earns an ROE of 18.5% and ROCE of 23.9%, holds a current ratio near 6, keeps debt low at 0.07, and has grown 34% a year over five years.

5. Fineotex Chemical: The ₹36 Stock That Isn't What It Looks Like

At around ₹36, Fineotex is the lowest-priced stock here. That price needs context: in October 2025 the firm did a 1:2 stock split plus a 4:1 bonus issue, which raised the share count five times. Nothing crashed — the price simply adjusted.

The business makes 470-plus speciality chemicals for textiles, water treatment, building and leather, sells in about 70 countries, and holds almost no debt. ROCE is 18.3% and the 5-year CAGR is 30%, though ROE slipped to 13.5% in the latest year, just below the screen's 15% bar.

6. Man Infraconstruction: The Low-Debt Builder Under Pressure

Builders usually carry heavy debt. Man Infraconstruction is the exception. It runs port, housing, office and road projects with debt to equity of just 0.03 and an FY26 net profit margin of 33.5%.

It is also the weakest recent performer here. The stock is down about 43% in a year, and ROE has slipped to near 10% as revenue cooled. It stays on the list for its 5-year record (22% CAGR), but it needs the closest watch of the ten.

7. EIH Associated Hotels: The Luxury Travel Play

EIH Associated Hotels runs luxury hotels under the Oberoi and Trident brands in India's big tourist hubs. It earns an ROE of 15.8% and ROCE of 21.1% with almost no debt. Its FY26 net profit margin of about 23% shows how strongly premium travel has come back.

8. Titan Biotech: The Quiet 4-Bagger

Titan Biotech makes biological ingredients used in pharma, nutrition, food, cosmetic, veterinary and agri products. ROCE stands at 24.1%, the current ratio at 4.46, and debt is close to nil.

The stock has grown 41% a year for five years and is up about 319% in the past year. Runs like that rarely repeat, so fresh buyers should be extra careful about the price they pay.

9. Saint-Gobain Sekurit India: The Auto Glass Specialist

This arm of France's Saint-Gobain makes laminated and toughened glass, windshields, door glasses, backlites, for vehicle makers. It runs with almost no debt, an ROE of 17.8%, and a ROCE of 24%, and gains as India builds more cars.

10. Global Education: The Fastest Grower on the List

Global Education offers skill training and allied services to firms, students, colleges and banks. Its 5-year CAGR of 59% is the highest here, earned with zero debt, an ROE of 21.8% and ROCE of 29.2%.

Two cautions: profit growth was flat in FY26, and tiny stocks like this swing hard both ways. The traits that separate lasting winners from one-time movers are covered in this guide on how to identify multibagger stocks.

Should You Buy These Stocks Under ₹500?

Not blindly. This list is a starting point for research, not a buy call. Even great firms become poor bets at the wrong price. BEL trades at a rich price because defence hopes run high. NALCO's earnings ride metal cycles. Goldiam, Fineotex, Titan Biotech and Global Education are small firms whose prices can swing hard.

Before you buy, check what the market already pays for growth, this PE ratio guide shows how — and match each stock to your risk level and time frame.

Mistakes to Avoid With Low-Priced Stocks

• Buying on price alone. ₹36 or ₹102 is not a bargain; it is just a number.
• Skipping the balance sheet. Debt and cash flow decide who survives — here is how to read a balance sheet.
• Treating a screen as advice. Filters use past data. They cannot see the next quarter.
• Ignoring drift. Ratios shift every results season. Check again before you act, not after.

Data: latest reported company financials and NSE/BSE price data, as of July 14, 2026. This article is for information and education only. It is not investment advice or a recommendation to buy or sell any security. Please consult a SEBI-registered investment adviser before investing.