Best Large Cap Stocks Under Rs 500: Great investors around the world repeatedly emphasize the importance of protecting the principal or the amount invested. Returns are secondary. Along these lines, large-cap stocks should be a preferred choice due to their proven business models and steady growth. In this article, we’ll present you the best large […]
The post Best Large Cap Stocks Under Rs 500 – Complete List & Analysis appeared first on Trade Brains.
Best Large Cap Stocks Under Rs 500: Great investors around the world repeatedly emphasize the importance of protecting the principal or the amount invested. Returns are secondary. Along these lines, large-cap stocks should be a preferred choice due to their proven business models and steady growth. In this article, we’ll present you the best large cap stocks under Rs 500 that you can add to your watchlist.
Best Large Cap Stocks Under Rs 500
For our study of the best large cap stocks under Rs 500, we’ll examine companies across different sectors such as FMCG, IT, automobile, and more studying their businesses and any recent developments. Thus, without further ado, let us jump in.
Best Large Cap Stocks Under Rs 500 #1 – ITC Ltd.
|CMP||₹416||Market Cap (Cr.)||₹517,000|
|Promoter Holding||0.0%||Book Value||₹53|
|Debt to Equity||0.00||Price to Book Value||7.9|
|Net Profit Margin||25.5%||Operating Profit Margin||34.0%|
Founded 113 years ago in 1910, ITC is one of the oldest companies in India. It is a diversified conglomerate with multiple business interests including tobacco, FMCG, paper and paper boards, hotels, IT, and more.
It is the sixth-largest publicly traded Indian company as per market capitalization. It has a large portfolio of over 25 brands which are known worldwide. The company has 200+ production facilities for its different products. As for its hotel business, it operates 113 properties in 70 locations pan-India.
ITC enjoys leadership across multiple product categories under its famous brands such as Aashirvaad atta, Sunfeast cream biscuits, Bingo snacks, Classmate notebooks, Yipee noodles, etc.
Though the company is not marketed as a tobacco business, it controls a whopping 78% organized cigarette market in India making it a monopoly stock. The same gets reflected in the revenue share of the enterprise with tobacco products contributing to a majority of 36% of the gross revenue and 81% of the total profit before interest and taxes.
Furthermore, ITC is a dividend stock with a high dividend payout ratio. For the last three fiscals, its average dividend payout ratio stood at 92%. The company is debt free and has demonstrated consistent topline and bottom-line growth for several years.
Best Large Cap Stocks Under Rs 500 #2 – Wipro Ltd.
|CMP||₹374||Market Cap (Cr.)||₹205,500|
|Promoter Holding||72.9%||Book Value||₹142|
|Debt to Equity||0.22||Price to Book Value||2.7|
|Net Profit Margin||12.6%||Operating Profit Margin||18.6%|
Wipro was started close to 8 decades ago in 1945 by Mohamed Premji, father of Azim Premji who presently serves as the founder-chairman of the company. His son, Rishad Premji took the reins as Chairman of the board.
Over the years, the company has grown into one of the most prominent technology companies in India offering information technology, technology consulting, and business process services. It is the third-largest IT company in India in terms of market capitalization.
Wipro caters to companies from various industries including healthcare & medical devices, consumer goods, retail, transportation & services, communications, media & information services, banking & financial services, and more.
The IT giant offers artificial & augmented intelligence, consulting, cybersecurity, data & analytics, engineering, cloud infrastructure, business solutions, and a variety of other services.
In recent years, Wipro’s FMCG division has continued to receive the focus of the management with the company acquiring brands across different product categories. The segment has grown organically and inorganically (14 acquisitions to date) to clock Rs 10,000 crore in revenue in FY23.
The IT giant reported a drop in FY23 annual net profit to Rs 11,366 crore from Rs 12,243 crore in FY222 even as its revenues grew to Rs 90,488 crore on account of a slowdown in various markets. The promoters hold a majority of 72.92% stake in the company.
Best Large Cap Stocks Under Rs 500 #3 – Tata Motors Ltd.
|CMP||₹482||Market Cap (Cr.)||₹172,500|
|Promoter Holding||46.4%||Book Value||₹79|
|Debt to Equity||5.52||Price to Book Value||6.1|
|Net Profit Margin||-4.0%||Operating Profit Margin||8.9%|
Founded 78 years ago in 1945, Tata Motors Ltd. (TaMo) is the automobile arm of the salt-to-software conglomerate the Tata Group. It manufactures cars, SUVs, trucks, buses, and defense vehicles across various value and price segments.
Tata Motors has a diversified geographical presence with production and sales operations spread across various countries in Africa, Latin America, APAC, and Middle East regions. The auto giant has grown organically and inorganically over the years purchasing well-known companies such as Jaguar Land Rover and Daewoo.
However, the carmaker ran into financial troubles some time back because of overpriced acquisitions, heavy debt obligations, and a decline in sales. But it had a strong comeback with back-to-back hit launches in regular and EV segments both.
As a result, TaMo presently holds a large 80% of the passenger 4-wheelers EV market with its Nexon EV, Tigor EV, and Tiago EV models.
Market experts have projected a decline in the net debt to Rs 23,000 crore by FY25 from the present levels of Rs 57,500. Expanding margins and volumes of premium JLR will likely drive this development.
As this happens, the management has earmarked a large CAPEX of Rs 32,000 crore so that the company can regain its leadership after the recent turnaround. After reporting heavy losses in the last four fiscals, Tata Motors finally turned profitable in Q3FY23 clocking a profit after tax of Rs 3,043 crore on the sales of Rs 88,489 crore.
Best Large Cap Stocks Under Rs 500 #4 – Hindalco Industries Ltd.
|CMP||₹431||Market Cap (Cr.)||₹97,000|
|Promoter Holding||34.6%||Book Value||₹404|
|Debt to Equity||0.74||Price to Book Value||1.1|
|Net Profit Margin||6.9%||Operating Profit Margin||14.3%|
Founded in 1958, Hindalco Industries Ltd. is the flagship company of Kumar Mangalam Birla-led Aditya Birla Group. It is engaged in the business of mining, refining, and smelting of alumina, aluminum, and copper. In addition to this, it also makes downstream aluminum products such as flat-rolled sheets, aluminium foil, windows, and extrusions for various sectors.
Hindalco has a global footprint with its operations spread across 10 nations worldwide. It has more than 40,000 employees and 5 manufacturing plants.
Novelis, a US aluminium company is a key subsidiary of Hindalco which it acquired in 2007. Presently, the subsidiary is the largest aluminum FRP manufacturer and recycler globally. Furthermore, the parent’s domestic operations make it the largest integrated aluminum company in India.
Hindalco has been a pioneer in ESG and sustainability efforts. Along these lines, the management has set the year 2050 as a target for attaining carbon neutral, water positive, and no net loss in bio-diversity statuses.
The aluminum producer posted a record profit of Rs 13,730 crore in FY22 against Rs 3,483 crore it clocked in FY21. Its trailing twelve months profit after tax stood at Rs 11,537 crore after the December 2023 quarter results.
Best Large Cap Stocks Under Rs 500 #5 – Adani Wilmar Ltd.
|CMP||₹402||Market Cap (Cr.)||₹52,500|
|Promoter Holding||87.9%||Book Value||₹61.5|
|Debt to Equity||0.28||Price to Book Value||6.5|
|Net Profit Margin||1.1%||Operating Profit Margin||2.92%|
Adani Wilmar Ltd. (AWL) is India’s leading FMCG company engaged in the processing and sale of a broad range of kitchen essentials such as edible oil, wheat flour, pulses, rice, sugar, and more.
The company is jointly owned by Gautam Adani-led power-to-ports conglomerate the Adani Group and the Wilmar Group, Asia’s prominent agribusiness group. Both promoters hold a 43.97% stake in the company.
AWL employs over 5,500 individuals. It has 23 plants located across 10 Indian states. Along with this, it also has 30 third-party units. As for its retail distribution network, the FMCG giant serves 113 million households through its 7,300 distributors and 1.6 million retail touchpoints. Its brand portfolio includes well-known names such as Fortune, Kohinoor, and many others.
Along with retail FMCG products, the company makes oleochemicals that go into various products like soaps, detergents, polymers, and cosmetics. Furthermore, it also produces castor oil and lecithin.
The edible oil maker posted a net profit of Rs 607 crore on sales of Rs 55,262 crore in FY23. The profit after tax declined from Rs 808 crore in FY22 even though the sales increased from Rs 52,361 crore.
The stock of Adani Wilmar was also severely affected when Hindenburg Research accused the Adani Group of fraud and over-leverage in January 2023. The price corrected heavily falling over 40% in a month. Since then, the fears have subsided and the stock has erased some of its losses and presently trades at a P/E of 85.6.
Complete List of Large Cap Stocks Under Rs 500
|Sl No||Company||Industry||MCap(Cr)||Current Price (Rs)||PE Ratio TTM|
|2||Wipro Ltd.||IT – Software||₹211,025.56||₹384.50||18.59|
|3||Oil & Natural Gas Corporation Ltd.||Oil Exploration||₹210,216.47||₹167.10||4.97|
|4||NTPC Ltd.||Power Generation, Distribution||₹174,006.67||₹179.45||9.82|
|5||Power Grid Corporation Of India Ltd.||Power Generation, Distribution||₹173,409.76||₹248.60||11.10|
|6||Coal India Ltd.||Mining & Minerals||₹145,563.64||₹236.60||5.18|
|7||Tata Steel Ltd.||Steel & Iron Products||₹132,663.96||₹108.55||15.14|
|8||Hindustan Zinc Ltd.||Metal – Non Ferrous||₹132,569.38||₹314.05||12.62|
|9||Indian Oil Corporation Ltd.||Refineries||₹118,604.28||₹83.99||19.29|
|10||DLF Ltd.||Construction – Real Estate||₹107,069.61||₹432.55||57.22|
|11||Vedanta Ltd.||Metal – Non Ferrous||₹104,657.74||₹281.55||7.22|
|12||Hindalco Industries Ltd.||Metal – Non Ferrous||₹94,584.42||₹420.90||8.20|
|13||Adani Power Ltd.||Power Generation, Distribution||₹93,588.62||₹242.65||8.72|
|14||Bank Of Baroda||Bank – Public||₹92,308.81||₹178.50||7.90|
|15||Ambuja Cements Ltd.||Cement & Construction Materials||₹81,828.44||₹412.10||42.52|
|16||Bharat Petroleum Corporation Ltd.||Refineries||₹80,750.43||₹372.25||0.00|
|17||Bharat Electronics Ltd.||Engineering – Industrial Equipments||₹79,384.20||₹108.60||28.80|
|18||GAIL (India) Ltd.||Industrial Gases & Fuels||₹71,832.96||₹109.25||8.52|
|19||Tata Power Company Ltd.||Power Generation, Distribution||₹65,903.88||₹206.25||19.75|
|20||ICICI Prudential Life Insurance Company Ltd.||Insurance||₹64,721.65||₹448.10||79.24|
|21||IDBI Bank Ltd.||Bank – Private||₹57,245.79||₹53.24||15.45|
|22||Canara Bank||Bank – Public||₹54,686.96||₹301.45||4.86|
|24||Punjab National Bank||Bank – Public||₹53,414.44||₹48.51||29.31|
|25||Samvardhana Motherson International Ltd.||Auto Ancillary||₹52,767.99||₹77.87||54.78|
|26||The Indian Hotels Company Ltd.||Hotel, Resort & Restaurants||₹51,922.71||₹365.20||51.74|
|27||Adani Wilmar Ltd.||Edible Oils||₹51,356.80||₹395.15||88.22|
|28||CG Power and Industrial Solutions Ltd.||Electric Equipment||₹49,891.38||₹326.70||51.83|
We learned in our study of the best large cap stocks under Rs 500 that most of them belonged to the leading business groups of the country. Furthermore, they have big brand names and diversified operations spread globally. Except for Adani Wilmar, most of the companies are decades old. All these factors themselves have aided to put these companies at such a high mark.
Do you think large-cap companies can offer impressive returns even as they grow at such a large pace? Should a conservative portfolio be of all large caps? How about you let us know your views on large cap stocks in the comments below?
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The post Best Large Cap Stocks Under Rs 500 – Complete List & Analysis appeared first on Trade Brains.