4 Largecap Stocks Under Rs 500 to Watch for Future Multibagger Potential: LIC, NTPC, Tata Steel and Union Bank

Stocks under Rs 500 to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. LIC, NTPC, Tata Steel and Union Bank meet that test, with market caps from Rs 1.32 lakh crore to Rs 4.98 lakh crore and LIC offering the highest return on equity at 32.53%. Each of these companies has a share price below Rs 500 and a return on equity above 10 per cent, and net profit rose in FY26 and in the latest quarter.

This list covers companies with a share price below Rs 500 and a return on equity above 10 per cent, rising profit in FY26 and the latest quarter, market capitalisation above Rs 1,00,000 crore, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap above Rs 1 lakh crore. Investors screening stocks under Rs 500 usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 23 October 2026 and are drawn from NSE and BSE data and company filings.

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What Are Stocks Under Rs 500 and Why Do They Attract Multibagger Interest?

Stocks under Rs 500 are shares of large companies that trade below Rs 500 each, so a small amount buys a whole share. The four here cover insurance, power generation, steel and public sector banking.

A lower share price says nothing about value on its own, so check the earnings behind it. For stocks under Rs 500, both FY26 and the latest quarter showed growth. A sensible way to study stocks under Rs 500 is to look at profit growth, returns and valuation side by side. Below, each of stocks under Rs 500 gets its own breakdown of growth, returns and valuation. Treat stocks under Rs 500 as a research list, since share prices and rankings change with every earnings season.

Stocks Under Rs 500 at a Glance: Price, Market Cap, PE, ROE and Price to Book

Prices are closing prices as of 23 October 2026. Union Bank has the lowest PE of the group at 6.39, while LIC posts the highest return on equity at 32.53%.

Stock	CMP (Rs)	Market Cap (Rs Cr)	PE	Industry PE	ROE	Price to Book	52-Week Range (Rs)
Life Insurance Corporation of India	381.50	4,98,410	8.30	10.47	32.53%	2.81	360.75 to 468.48
NTPC	298	3,04,475	10.75	21.61	13.31%	1.50	298.00 to 414.40
Tata Steel	167.67	2,20,272	19.56	22.42	10.56%	2.19	160.06 to 224.40
Union Bank of India	178.90	1,31,832	6.39	12.02	15.57%	0.99	135.80 to 205.49

LIC: 93.19% Profit CAGR Since FY22

LIC is India's largest life insurer and one of the biggest institutional investors in the stock market, with a vast agent network across the country. It reported FY26 revenue of Rs 9,90,211.25 crore, up 10.23% year on year, and net profit of Rs 57,453.15 crore, up 18.90%. Net profit has compounded at 93.19% a year since FY22, while revenue has grown 7.96% a year. Operating margin was 5.51% in FY26. The debt-to-equity ratio is 0.00, which keeps interest costs low.

In the June 2026 quarter, revenue rose 6.97% to Rs 2,41,166.45 crore and net profit grew 23.98% to Rs 13,584.25 crore. Domestic institutions raised their holding from 1.36% in September 2025 to 6.17% in September 2026. The stock trades at a PE of 8.30 against an industry PE of 10.47, below the sector average, with a return on equity of 32.53%.

NTPC: Five-Year Gain of 110.40%

NTPC is India's largest power generation company and is growing its renewable energy portfolio. It reported FY26 revenue of Rs 1,89,798.56 crore and net profit of Rs 30,009.98 crore, up 48.19%. Net profit has compounded at 18.01% a year since FY22, while revenue has grown 8.89% a year. Operating margin was 32.45% in FY26.

The stock trades at a PE of 10.75 against an industry PE of 21.61, below the sector average, with a return on equity of 13.31%. The dividend yield is 2.87%. In the June 2026 quarter, revenue rose 6.94% to Rs 51,141.51 crore and net profit grew 12.90% to Rs 6,896.44 crore. The share price has gained 110.40% over five years. Domestic institutions raised their holding from 28.92% in June 2025 to 29.44% in June 2026.

Tata Steel: Market Cap of Rs 2,20,272 Crore

Tata Steel is one of the world's major steel makers, with operations in India, the UK and the Netherlands. It reported FY26 revenue of Rs 2,33,541.72 crore, up 6.12% year on year, and net profit of Rs 10,885.82 crore, up 242.99%. Operating margin was 15.12% in FY26.

In the June 2026 quarter, revenue rose 14.14% to Rs 61,026.97 crore and net profit grew 18.82% to Rs 2,385.24 crore. Domestic institutions raised their holding from 26.25% in June 2025 to 26.62% in June 2026. The stock trades at a PE of 19.56 against an industry PE of 22.42, below the sector average. The dividend yield is 2.27%.

Union Bank: 37.80% Profit CAGR Since FY22

Union Bank of India is a large government-owned bank that serves retail, MSME and corporate customers across India. It reported FY26 total income of Rs 1,28,399.52 crore, up 0.19% year on year, and net profit of Rs 18,780.63 crore, up 4.80%. Net profit has compounded at 37.80% a year since FY22, while total income has grown 11.95% a year.

The stock trades at a PE of 6.39 against an industry PE of 12.02, below the sector average, with a return on equity of 15.57%. The dividend yield is 2.90%. In the June 2026 quarter, total income rose 2.17% to Rs 32,660.24 crore and net profit grew 29.77% to Rs 5,368.17 crore. The share price has gained 249.43% over five years and 23.10% over the past year. Foreign investors raised their holding from 7.70% in June 2025 to 8.63% in June 2026.

Stocks Under Rs 500: Financial Comparison on Growth and Margins

The table compares scale and growth across these stocks under Rs 500. Latest quarter means the most recent reported quarter for each company, and only metrics that are positive for every company are shown.

Stock	Revenue (Rs Cr)	Net Profit (Rs Cr)	Latest Quarter Revenue Growth	Net Profit Growth (YoY)	Latest Quarter Profit Growth
LIC	9,90,211.25	57,453.15	6.97%	18.90%	23.98%
NTPC	1,89,798.56	30,009.98	6.94%	48.19%	12.90%
Tata Steel	2,33,541.72	10,885.82	14.14%	242.99%	18.82%
Union Bank	1,28,399.52	18,780.63	2.17%	4.80%	29.77%

Check the Univest Screener for live data on these stocks under Rs 500

Institutional Holding in LIC, NTPC, Tata Steel and Union Bank

Institutional holding shows who is backing these stocks under Rs 500 alongside the promoter. The table uses the latest reported quarter for each. Tata Steel has the deepest institutional backing, with FII and DII together holding 45.99% as of June 2026. Domestic institutions increased their holding over the past year in LIC (from 1.36% to 6.17%), NTPC (from 28.92% to 29.44%) and Tata Steel (from 26.25% to 26.62%).

Stock	Promoter	FII	DII	Public	Quarter
LIC	90.00%	1.55%	6.17%	2.28%	September 2026
NTPC	51.10%	16.30%	29.44%	3.15%	June 2026
Tata Steel	32.95%	19.37%	26.62%	21.06%	June 2026
Union Bank	74.76%	8.63%	11.98%	4.63%	June 2026

Risks to Weigh in Stocks Under Rs 500

Being careful with stocks under Rs 500 means looking at what can slow the story as well as what can speed it up. Four points matter most:

• Past growth may not repeat.
• Share prices can move sharply in either direction.
• Valuation: A low PE can also reflect slower growth, so compare each PE with the growth rate instead of reading it alone.
• Concentration: Holding all 4 names puts the allocation in one sector, so size each position to match your risk appetite.

How to Choose Between Stocks Under Rs 500

Picking from stocks under Rs 500 comes down to four checks, applied in order.

1. Check balance sheet strength first, and prefer a debt-to-equity ratio below 1 for non-financial companies.
2. Compare each PE with the industry PE (10.47 to 22.42) and ask whether the growth rate justifies any gap.
3. Track net profit growth, the operating margin and the return on equity in every quarterly result.
4. Stagger entries across quarters and review institutional holding every reporting season.

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Conclusion

Among stocks under Rs 500, LIC stands out for the highest return on equity at 32.53%, NTPC for 6.94% revenue growth in the June 2026 quarter, Tata Steel for 6.12% revenue growth in FY26 and Union Bank for the biggest five-year price gain at 249.43%. Which one suits a portfolio depends on how much valuation risk it can carry, so staggering entries and reviewing each quarterly result is a sound habit. Investors comparing stocks under Rs 500 should rank them on growth, financial strength and the price paid, and anyone who wants personalised guidance can consult a SEBI-registered advisor before acting.

Frequently Asked Questions on Stocks Under Rs 500 to Watch

Which are the best stocks under Rs 500 to watch for multibagger potential?

Ans. LIC, NTPC, Tata Steel and Union Bank are the 4 names this list highlights, with market caps of Rs 4,98,410 crore, Rs 3,04,475 crore, Rs 2,20,272 crore and Rs 1,31,832 crore respectively. LIC is notable for the highest return on equity at 32.53%. NTPC stands out for 6.94% revenue growth in the June 2026 quarter. Tata Steel offers 6.12% revenue growth in FY26. Union Bank brings the biggest five-year price gain at 249.43%. These are watchlist names for stocks under Rs 500, not recommendations, so match each one to your own risk profile and time horizon.

Is LIC a good stock for long-term investors?

Ans. LIC has a return on equity of 32.53%, a PE of 8.30 against an industry PE of 10.47 and a market cap of Rs 4,98,410 crore. Net profit has compounded at 93.19% a year since FY22, and FY26 revenue rose 10.23% while June 2026 quarter net profit grew 23.98%. Long-term returns in stocks under Rs 500 depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.

Can Union Bank become a multibagger from here?

Ans. Union Bank has already gained 249.43% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in stocks under Rs 500 requires earnings to keep growing faster than the market for several years. Net profit has compounded at 37.80% a year since FY22, and FY26 revenue rose 0.19%. At a PE of 6.39 against an industry PE of 12.02, valuation should be checked against that growth before investing.

What is the market cap of LIC, NTPC, Tata Steel and Union Bank?

Ans. As of 23 October 2026, LIC has a market cap of Rs 4,98,410 crore, NTPC has a market cap of Rs 3,04,475 crore, Tata Steel has a market cap of Rs 2,20,272 crore and Union Bank has a market cap of Rs 1,31,832 crore. All of them qualify as largecaps. Market cap changes daily with the share price, so check the latest figure on the Univest Screener or on NSE before taking a decision on stocks under Rs 500.

What are the risks of investing in stocks under Rs 500?

Ans. The main risks are market swings, slower growth than expected and valuations that already reflect good news. Companies with strong balance sheets and steady earnings handle these better. Comparing each PE with growth gives a fuller picture than the PE alone.

Is Union Bank trading below its industry PE?

Ans. Union Bank trades at a PE of 6.39 against an industry PE of 12.02. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 37.80% a year since FY22 and FY26 revenue rose 0.19%) and balance sheet strength before drawing a conclusion.

How much do institutions hold in LIC, NTPC, Tata Steel and Union Bank?

Ans. As of the latest reported quarter, FII and DII together hold 7.72% of LIC (1.55% and 6.17%), 45.74% of NTPC (16.30% and 29.44%), 45.99% of Tata Steel (19.37% and 26.62%) and 20.61% of Union Bank (8.63% and 11.98%). Rising institutional holding is a useful signal in stocks under Rs 500, though it should be read with earnings trends rather than on its own.