Top Stocks Under Rs 3500: Stocks like MRF often make it hard for retail investors to buy them. This is because one would have to shell out upwards of Rs. 80,000 to buy one share. However, the good news for investors is that there is no shortage of great companies that one can buy for a sum of Rs 3500 per share.
In this article, we will take a look at the top stocks under Rs 3500.
So without further ado, let us jump in.
Top Stocks Under Rs 3500
There are many stocks that are listed in NSE and BSE for the share price of Rs 3500 and below. Let’s check which are those and more.
Top Stocks Under Rs 3500 #1 – Tata Consultancy Services
Tata Consultancy Services (TCS) Ltd. is the crown jewel of the Tata Group. It is the second-largest Indian company after Reliance Industries in terms of market capitalization. It accounts for most of the earnings of Tata Sons, the holding company of the Tata Group.
TCS is an IT services company and earns its revenues from America and Europe chiefly. It provides software services in 5 major industries: banking, finance services & insurance, retail & consumer business, communication, media & technology, and manufacturing.
The IT major offers a broad range of services: analytics & insights, automation & AI, blockchain, cloud, consulting, cyber security, enterprise applications, IoT & digital engineering, quality engineering, and more.
Recently the company has also taken an active role to lead the digital ventures of Tata Group.
For a large-cap company, TCS has generated impressive returns for its shareholders over the last five years. Its stock has appreciated at a CAGR of 19.41% every year during the period.
| CMP | ₹3,143 | Market Cap (Cr.) | ₹1,150,000 |
| EPS | ₹108 | Stock P/E | 29.1 |
| ROCE | 54.9% | ROE | 43.6% |
| Face Value | ₹1.0 | Book Value | ₹266 |
| Promoter Holding | 72.3% | Price to Book Value | 11.8 |
| Debt to Equity | 0.08 | Dividend Yield | 1.36% |
| Net Profit Margin | 20% | Operating Profit Margin | 27.7% |
Top Stocks Under Rs 3500 #2 – Adani Enterprises
Adani Enterprises Ltd. (AEL) is the flagship company of the Adani Group. It was started as a commodity trading company in 1988 by Gautam Adani, a first-generation billionaire, and founder. It got listed in 1994.
Since then Adani Enterprises has grown into an incubator and holding company with diverse business holdings.
AEL is one of the largest Indian conglomerates with operations across multiple industries: airports, data centers, defense & aerospace, edible oil & foods, agro, integrated resources management, mining services, road, metro & rail, solar manufacturing, and water. It has grown organically and inorganically over the years.
Recently, Adani Enterprises entered into a joint venture with EdgeConneX (the world’s largest private data center operator) to build data center facilities of 1GW over the next ten years.
In addition to this, Gautam Adani announced a large investment of $ 100 billion by the Adani Group over the next ten years. Out of it, $ 70 billion is earmarked for an integrated hydrogen-based value chain.
Adani New Industries Ltd., a subsidiary of Adani Enterprises will be implementing green hydrogen projects as part of this large investment.
| CMP | ₹3,273 | Market Cap (Cr.) | ₹373,000 |
| EPS | ₹8.71 | Stock P/E | 385 |
| ROCE | 7.28% | ROE | 4.12% |
| Face Value | ₹1.0 | Book Value | ₹186 |
| Promoter Holding | 72.3% | Price to Book Value | 17.6 |
| Debt to Equity | 2.04 | Dividend Yield | 0.03% |
| Net Profit Margin | 1.13% | Operating Profit Margin | 5.35% |
Top Stocks Under Rs 3500 #3 – Asian Paints
Based out of Mumbai, India, Asian Paints Ltd. is India’s largest, Asia’s 3rd largest, and the world’s 9th largest paint producer. The company was started in the 1940s by four friends.
It has 26 paint manufacturing plants with operations across 15 countries. It offers a broad range of products and services. Its chief offerings include paints, wall coverings, and waterproofing.
Along with this, it also sells wall stickers, adhesives, modular kitchens and wardrobes, bath fittings, sanitaryware, sanitizers, furnishings & lighting services, interior design services, and other products and services.
Decorative business accounts for almost 85% of the group’s revenue. Asian Paints derives 10% of its revenues from international sales.
This makes it India’s largest paint company with a 40% combined market share and 55% in the decorative paint category.
The company has incorporated two 50:50 joint ventures with PPG Inc, an American Fortune 500 company to cater to automotive coatings and industrial coatings demand.
| CMP | ₹3,222 | Market Cap (Cr.) | ₹310,000 |
| EPS | ₹36.30 | Stock P/E | 86.4 |
| ROCE | 29.70% | ROE | 23.20% |
| Face Value | ₹1.0 | Book Value | ₹144 |
| Promoter Holding | 52.6% | Price to Book Value | 22.4 |
| Debt to Equity | 0.11 | Dividend Yield | 0.59% |
| Net Profit Margin | 10.80% | Operating Profit Margin | 16.50% |
Top Stocks Under Rs 3500 #4 – PI Industries
PI Industries was founded in 1946 as Mewar Oil and General Mills Ltd. The company started the formulation and marketing of agrochemicals in 1961. Fast forward to the present date, Gurgaon-headquartered PI Industries produces & sells fertilizers and specialty products.
It also provides various services such as research & development, custom synthesis & manufacturing solutions, distribution services, and more.
It has a workforce of 3,000 employees. Its 5 formulation facilities and 15 multipurpose plants at 5 manufacturing locations provide it with an integrated development process: process synthesis, scaling up, and commercialization.
Its research and development center in Udaipur houses more than 400 scientists and researchers with advanced research and development labs, kilo plants, and pilot plants with NABL certification.
PI Industries earned 76.42% of its revenues in FY22 internationally. India only contributed Rs. 1,197 crores of the total Rs. 5,077 crore revenue for the company. This places the agrochemicals company in a sweet spot as the global demand for fertilizers is expected to improve in the near future.
| CMP | ₹3,090 | Market Cap (Cr.) | ₹47,000 |
| EPS | ₹60.6 | Stock P/E | 51 |
| ROCE | 17.3% | ROE | 14.7% |
| Face Value | ₹1.0 | Book Value | ₹403 |
| Promoter Holding | 46.7% | Price to Book Value | 7.68 |
| Debt to Equity | 0.05 | Dividend Yield | 0.20% |
| Net Profit Margin | 15.9% | Operating Profit Margin | 21.7% |
Top Stocks Under Rs 3500 #5 – Alkem Laboratories
Alkem Laboratories was started almost 4 decades ago in 1973. Over the years, the company has grown to become one of India’s largest generic and specialty pharmaceutical players with a presence in more than 40 countries.
Alkem went public in December 2015, listing its shares on the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited.
It has a strong portfolio of brands such as Clavam, Pan, Pan-D, and Taxim-O. In the last 10 years, its foothold in the anti-infective segment has remained particularly strong. In total, the company has over 800 brands with over 1,300 SKUs for a broad range of therapy segments.
The pharma company has 20 manufacturing sites at multiple locations across India and the USA. It employs more than 17,000 people.
Alkem has a low debt-to-equity ratio of 0.31. The company has an impressive return on equity ratio of 20.7% and a return on capital employed at 18.6%.
| CMP | ₹3,100 | Market Cap (Cr.) | ₹37,000 |
| EPS | ₹109 | Stock P/E | 28.2 |
| ROCE | 18.6% | ROE | 20.7% |
| Face Value | ₹2.0 | Book Value | ₹722 |
| Promoter Holding | 57.1% | Price to Book Value | 4.28 |
| Debt to Equity | 0.31 | Dividend Yield | 1.09% |
| Net Profit Margin | 15.9% | Operating Profit Margin | 19.3% |
List of Top Stocks Under Rs 3500
The table below presents a list of top stocks under Rs 3500 along with their industry, market capitalization and share price.
| Company Name | Industry | CMP (Rs.) | Market Cap (Rs. Cr.) |
|---|---|---|---|
| Tata Consultancy Services | IT Services | 3,143 | 1,150,000 |
| Adani Enterprises | Diversified | 3,273 | 373,000 |
| Adani Transmission | Oil & Gas | 3,183 | 355,000 |
| Adani Total Gas | Gas Distribution | 3,154 | 347,000 |
| Asian Paints | Paints | 3,222 | 310,000 |
| ABB India | Infrastructure | 3,228 | 68,500 |
| Mindtree | IT Services | 3,444 | 57,000 |
| Schaeffler India | Bearings | 3,210 | 50,000 |
| P I Industries | Agrochemicals | 3,090 | 47,000 |
| Alkem Laboratories | Pharmaceuticals | 3,100 | 37,000 |
In Conclusion
Above we looked at some of the top stocks under Rs 3500. It might be a good approach to sort stocks on the basis of their stock price and market capitalization. But it should not be the only parameter investors should keep in mind while making investment decisions.
Additionally, an investor should diversify by including companies from different sectors and of different sizes to protect her downside.
As an investor, what points do you keep in mind while picking stocks? How about you let us in the comments below?
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