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  • List Of Best Battery Stocks in India 2025

    List Of Best Battery Stocks in India 2025

    Batteries have become indispensable for powering our daily lives and providing energy for a wide range of devices and applications. Whether it is our mobile, laptops, or renewable energy systems, batteries play an important role in keeping our world connected. India’s growing economy and focus on clean energy are driving the growth of the battery industry.

    In today’s blog, we will explore the best battery companies in India, the products they offer and the future of the industry.

    Overview of the Battery Industry in India

    The Indian battery market is currently valued at approximately USD 7.2 billion, and it is poised to soar to USD 15.65 billion by 2029, with a remarkable CAGR of 16.80%. The government is focused on developing a domestic manufacturing ecosystem with programs like the Production-Linked Incentive (PLI) scheme.

    Battery Industry in India

    Additionally, the National Program on Advanced Chemistry Cell (ACC) Battery Storage aims to incentivize the establishment of advanced battery production facilities, with a budget of INR 18,100 crore.

    Top Battery Stocks Based on the Market Capitalisation

    The top battery stocks in 2025 are:

    S.No.Battery Stocks
    1Exide Industries Ltd.
    2Amara Raja Energy & Mobility Ltd.
    3HBL Power Systems Ltd.
    4Eveready Industries India Ltd.
    5Indo National Ltd.

    The battery stocks have been listed in descending order based on their market capitalization in the table below:

    CompanyMarket Capitalization (In INR Crores)Current Market Price (In INR)52 Week High52 Week Low
    Exide Industries Ltd.45,968541620242
    Amara Raja Energy & Mobility Ltd.28,7371,5721,776599
    HBL Power Systems Ltd.17,969648685166
    Eveready Industries India Ltd.2,971408442295
    Indo National Ltd.426569858397
    (As of 24 July 2024)

    6 Months & 1 Year Return Of Top Battery Stocks

    Company6-Month Return 1-Year Return 
    Exide Industries Ltd.74.07%115.86%
    Amara Raja Energy & Mobility Ltd.93.2%150.22%
    HBL Power Systems Ltd.32.93%288.03%
    Eveready Industries Ltd.18.84%21.41%
    Indo National Ltd.-13.30%24.26%
    (As of 24 July 2024)

    Read Also: List of Best Electric Vehicle Stocks in India 2025

    Best Battery Stocks in India 2025 Based on Market Capitalization – An Overview

    The best battery stocks in India are given below, along with a brief overview:

    1. Exide Industries Ltd.

    Exide Industries is a household name in India that has been synonymous with dependable batteries for many years. The company’s primary focus is on manufacturing storage batteries and allied products in India.

    Exide Industries Ltd. has a long history that started in the 1880s when W.W. Gibbs, an executive at a gas company, started the Electric Storage Battery Company, which later became Exide Technologies. He bought the patents for Clement Payen, an innovative French inventor who made significant advancements in electrical storage. This was the starting point for Gibbs as he began turning those ideas into reliable commercial products.

    Exide Industries’ core business lies in the manufacturing and selling storage batteries. Lead-acid batteries are dominant in their product portfolio, catering to 2 major segments,

    • Automotive Division (batteries for 2-wheelers, 4-wheelers, 3-wheelers, e-rickshaws, inverter and UPS for homes and businesses)
    • Industrial Division (Telecom, Railways, Mines, Specialized batteries for submarines)

    2. Amara Raja Energy & Mobility Ltd.

    Amar Raja Energy and Mobility Limited, formerly known as Amara Raja Batteries, is a major player in India’s battery industry. It was founded in 1985 by Ramachandra N Galla, a first-generation entrepreneur who wanted to empower people through technology. The first manufacturing facility and office were established in the remote area of Andhra Pradesh.

    The company began with car batteries and expanded to industrial batteries, lithium-ion technologies, and related products.

    The product portfolio of the company is as follows,

    • Automotive batteries for passenger vehicles, commercial vehicles, farm vehicles, etc.
    • Industrial batteries for UPS, telecom, railways, solar applications etc.

    Amara Raja has established a strong presence in the overseas market owing to our excellent quality and performance.

    3. HBL Power Systems Ltd.

    HBL Power Systems Ltd is a prominent company in the Indian battery industry and is known for its diverse range of battery products and power electronics solutions. The company was founded in 1977 with a focus on lead-acid batteries.

    HBL Power’s battery division is the main source of revenue, contributing 70-75% of the company’s total sales and fueling its growth. The batteries are used in several industries such as telecom, railways, aviation, oil and gas, and defense. The company’s battery product line includes lead-acid batteries, nickel-cadmium batteries, lithium batteries, etc.

    The company holds a global presence in North America and Australia. Furthermore, GULF BATTERIES COMPANY LLC is a joint venture collaboration of HBL. It was formed in 2009 in the Eastern province of the Kingdom of Saudi Arabia to manufacture specialized batteries.

    4. Eveready Industries Ltd.

    National Carbon (India) Limited started importing Eveready batteries in 1905. Eveready Industries India Ltd. (EIIL) was incorporated in 1934, and it established its state-of-the-art battery manufacturing plant in Kolkata in 1940. In 1941, Union Batteries was merged with Eveready and the name was changed to National Carbon Company (India) Limited. In 1958, EIIL established a torch factory in Lucknow, which is now one of the biggest in Southeast Asia. In 1958, the company started selling flashlights to its customers, which was a huge success. In 1995, the name of the company was changed to Eveready Industries India Ltd. and came with the famous slogan “Give me Red”.

    The company focuses on offering high-quality products that are reliable and long-lasting. The product portfolio of Eveready is as follows,

    • Batteries – Zinc carbon batteries for toys, remote controls, flashlights, and alkaline batteries for electronic gadgets.
    • Lighting – Consumer and professional lighting solutions
    • Electrical accessories – Extension reels, surge protectors, multi plugs, etc.

    Also, they are a market leader in flashlights. The company has a well-established distribution network, fulfilling the needs of a broad customer base.

    5. Indo National Limited 

    Indo National Limited (INL), the company that makes Nippo Batteries, has been a big part of the Indian battery industry for more than 50 years. It was founded in 1972 by P. Obul Reddy with a vision to provide reliable and affordable batteries to the Indian market. Indo National collaborated with Matsushita Electric Industrial Co. Ltd. (now Panasonic) of Japan to produce Nippo batteries. This partnership brought new technology and knowledge to the Indian market. 

    Indo National is India’s first dry cell battery company to achieve ISO 9001 and ISO 14001 international standards, demonstrating a firm dedication and environmental responsibility.

    The company’s core business involves offering dry cell batteries catering to household and commercial applications and to complement their core business, Indo National has expanded into flashlights, LED lighting products, etc. 

    Key Performance Indicators of Battery Stocks  

    CompanyROE (%)ROCE (%)Debt-to-equityP/EP/B
    Exide Industries Ltd.6.809.820.0552.213.57
    Amara Raja Energy & Mobility Ltd.13.7417.710.0131.94.24
    HBL Power Systems Ltd.23.0131.800.0564.0214.73
    Eveready Industries India Ltd.17.2620.220.7444.57.68
    Indo National Ltd.4.079.080.5944.791.83
    *(all the above data is of year ended March 2024)

    Benefits of Investing in Battery Stocks  

    The benefits of investing in battery stocks are:

    1. High demand: The demand for batteries is set to rise in future due to increased usage of electric vehicles and consumer electronics
    2. Multiple sources of revenue: Batteries are used in various industries such as automotive, industrial, solar, defense, etc.
    3. Government support: The Government of India aims to make India a battery manufacturing hub through Production-Linked Incentive (PLI) schemes. Additionally, a budget of INR 18,100 crore has been allocated to develop advanced battery facilities in India.

    Factors to Consider Before Investing in Battery Stocks

    Factors to Consider Before Investing in Battery Stocks

    Some key factors to consider before you invest in battery stocks are as follows,

    1. Analyze the company’s market share, position within the sector, and target customer segments.
    2. Assess the company’s financial health by examining revenue growth, profitability, debt levels and cash flows. Consider investing in companies with a strong track record and sustainable growth plans.
    3. The battery industry is getting more competitive. Find companies with a strong brand, unique product offerings, and a clear advantage.

    Future of Battery Stocks

    A 2023 report by McKinsey & Co. states that the global battery demand is expected to jump from 700 GWh in 2022 to a whopping 4.7 TWh by 2030. India is working to become a leader in the battery industry. As part of this, India is focusing on improving battery production to meet the growing needs of the sector. Also, the industry is still at its initial stage, and a strong push from the government is necessary for domestic battery production.  

    Read Also: List Of Best PSU Stocks in India 2025

    Conclusion

    The Indian battery sector is on the brink of remarkable growth, fuelled by the EV revolution, government initiatives, and the increasing demand for consumer electronics. As the Indian government continues to promote renewable energy and incentives for electric vehicles, the demand for batteries is expected to surge in the coming years. Additionally, the growing adoption of smartphones, laptops, and other consumer electronics further contributes to the positive outlook for the battery industry in India. However, it is advised to consult a financial advisor before making any investment decision.

    Frequently Asked Questions (FAQs)

    1. What is driving the growth of the Indian battery industry?

      The EV revolution, government initiatives, and rising consumer demand for electronic devices are the key factors driving the growth of the battery industry.

    2. What are the different types of batteries manufactured in India?

      Lead-acid and lithium-ion batteries are the main types of batteries being manufactured in India.

    3. What are the risks of investing in battery stocks?

      Risks include market competition, technological changes, regulatory impacts, raw material price fluctuations, supply chain disruptions, etc.

    4. How can I invest in top battery stocks?

      Identify the top battery stocks through research and understand the risks involved. Also, battery stocks can be volatile; invest according to your risk tolerance and investment horizon.

    5. Is it a good time to invest in battery stocks?

      The industry holds a high growth potential. However, it is essential to carefully analyze the individual companies and risk tolerance before investing.

  • List Of Best Paper Stocks in India 2025

    List Of Best Paper Stocks in India 2025

    Are you thinking about investing in India’s rapidly growing paper sector? The beginning of 2025 has been fantastic for the paper industry, with high demand for both packaging and sustainable paper products.

    If you are interested in the paper industry and want to invest a chunk of your capital and diversify your portfolio, this blog will help you explore the top paper stocks in India and will guide you in understanding the market further. 

    Overview of The Paper Industry

    The best paper stocks in India are the ones that have been on the market for the longest time. The paper industry in India has grown by leaps and bounds, having gone more or less from traditional mills to modern, eco-friendly ones.

    The paper industry in India is valued at roughly INR 80,000 crores, and it is growing annually at a rate of 6 to 7%. The Indian government is actively working to make the brown paper industry sustainable and increase domestic production. 

    Top Paper Stocks in India Based on Market Capitalization

    The best paper stocks based on market capitalization in 2025 are:

    S.No.Paper Stocks
    1JK Paper Ltd.
    2West Coast Paper Mills Ltd.
    3Andhra Paper Ltd.
    4Seshasayee Paper and Boards Ltd.
    5Tamil Nadu Newsprint and Papers Ltd. (TNPL)
    6Orient Paper & Industries Ltd.

    Market Capitalization Table of Best Paper Stocks in India

    The paper stocks have been listed in descending order based on their market capitalization in the table below:

    CompanyMarket Capitalization (In crores)Share Prices (In INR)52 Week High Price (In INR)52-Week Low Price(In INR)
    JK Paper Ltd.8,857523639319
    West Coast Paper Mills Ltd.4,115623815465
    Andhra Paper Ltd.2,216557675407
    Seshasayee Paper and Boards Ltd.2,137339422254
    Tamil Nadu Newsprint and Papers Ltd. (TNPL)1,798260331203
    Orient Paper & Industries Ltd.1,13753.662.240.2
    (As of 25 July 2024)

    6 Months & 1 Year Return Of Top Paper Stocks

    The table below shows the Best Paper Stocks based on 6-month and 1-year returns.

    Company6 Month Return1 Year Return 
    JK Paper Ltd.24.55%60.74%
    West Coast Paper Mills Ltd.-14.31%31.68%
    Andhra Paper Ltd.-6.87%33.16%
    Seshasayee Paper and Boards Ltd.2.30%23.15%
    Tamil Nadu Newsprint and Papers Ltd. (TNPL)-14.54%25.92%
    Orient Paper & Industries Ltd.-3.76%30.67%
    (As of 25 July 2024)

    Read Also: List Of Best Jewelry Stocks in India

    Best Paper Stocks In India 2025 – An Overview

    The best paper stocks in India are given below, along with a brief overview:

    1. JK Papers Ltd.

    In 1962, JK Papers Ltd was established as one of the key players in the paper industry in India. The business model of the company ranges from integrated pulp and paper mills to the finer production of paper. The product basket consists of office papers, packaging boards, and coated papers that cater to market segments such as educational publishing, corporate requirements, and packaging. JK Papers Ltd. has been involved in the Agro-Farm Forestry Initiative and has planted 123 crore saplings till now.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    0.39%48.68%142.18%
    (Data as of 17 February 2025)

    2. West Coast Paper Mills Ltd

    Western India Paper Mills Limited, set up in 1955, is a prominent paper manufacturing company in India. The company’s plant in Dandeli, Karnataka, manufactures products, including office, publication, and packaging paper. The company operates according to its guiding principles to promote sustainable, eco-friendly manufacturing and efficient utilization of resources. The company makes a range of high-quality paper products that are used in publishing, packaging, and writing, confirming its presence across an assortment of industrial sectors with a high level of innovation and environmental awareness.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    0.39%48.68%142.18%
    (Data as of 17 February 2025)

    3. Andhra Paper Ltd.

    Established in 1964, Andhra Paper Ltd. is a prominent Indian paper producer. The company manufactures several paper types, namely writing, printing, and copier papers. With great emphasis on sustainability, Andhra Paper Ltd. strategically incorporates sustainable practices into its operations. The company has developed a business model grounded in quality and innovation to meet varied customer needs. The company offers different products, including premium printing paper products, specialty paper products, and office documentation solutions.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    0.39%48.68%142.18%
    (Data as of 17 February 2025)

    4. Seshasayee Paper and Boards Ltd.

    Seshasayee Paper and Boards Limited (SPB) is a leading paper manufacturer in India that has a portfolio of a wide range of paper products, including printing, writing, and packaging paper. The business model of SPB is based on an emphasis on sustainability, using renewable resources and advanced technology to implement environmentally friendly business practices. The paper manufacturing company caters to industries such as publishing, packaging, and education and is committed to high quality through innovation.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    0.39%48.68%142.18%
    (Data as of 17 February 2025)

    5. Tamil Nadu Newsprint and Papers Ltd. (TNPL)

    Founded in 1979, Tamil Nadu Newsprint and Papers Ltd. (TNPL) is an initiative of the Government of Tamil Nadu. The company exclusively manufactures eco-friendly paper and utilizes bagasse – a sugarcane byproduct for making the paper. TNPL also manages an integrated pulp and paper mill in Karur and a packaging board plant in Trichy. Considering TNPL’s sustainability model of paper production, they mainly concentrate on research and development of green paper and related products. Their sustainable practices include the production of eco-friendly paper, sustainable packaging boards, and renewable energy solutions.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    0.39%48.68%142.18%
    (Data as of 17 February 2025)

    6. Orient Paper & Industries Ltd.

    Established in 1939, Orient Paper & Industries Ltd. is a significant player in the Indian paper industry. As it runs an integrated paper mill in Madhya Pradesh, the business has flourished, manufacturing a variety of paper types. The company principally manufactures high-quality writing, printing, and tissue papers. The company’s sustainable model emphasizes eco-friendly practices and consistently provides the benefit of reducing waste.  Orient Paper promises to deliver high-quality services and a diverse product line.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    0.39%48.68%142.18%
    (Data as of 17 February 2025)

    Read Also: List Of Best Pharma Stocks in India

    Key Performance Indicators of Paper Stocks

    CompanyNet Profit Margin (%)ROCE (%)TTM EPSTTM P/E (x)P/B (x)
    JK Paper Ltd.17.0119.5266.227.911.75
    West Coast Paper Mills Ltd.17.6725.29104.775.941.27
    Andhra Paper Ltd.18.8622.6385.436.571.18
    Seshasayee Paper and Boards Ltd.14.3116.6637.429.071.12
    Tamil Nadu Newsprint and Papers Ltd. (TNPL)4.4315.3330.078.610.86
    Orient Paper & Industries Ltd.0.7%1.94%0.293480.71
    *(all the above data is of year ended March 2024 except P/E and P/B)

    Benefits Of Investing In Paper Stocks

    The benefits of investing in paper stocks are:

    • Stable Demand: Paper industry products have a constant demand in the market because paper products are required for packaging,  printing, and educational purposes. 
    • Sustainability: The inclusion of eco-friendly products has made them sustainable, and investors prefer such companies.
    • Dividend Payment: Many paper industries have good financial results, which means they pay high dividends.

    Factors To Consider Before Investing In Paper Stocks

    Factors To Consider Before Investing In Paper Stocks

    An investor must consider the following factors before investing in paper stocks:

    • Market Demand: The outlook of the paper products market needs to be assessed globally. Rapid digitalization can reduce paper usage, which can cause a decline in the stock performance of paper stocks.
    • Environmental Regulations: Investors must understand the environmental regulations as strict regulations can raise production costs and reduce profitability for the company.
    • Company Financial Health: One has to look at the financial statements and the profit margins. A strong balance sheet and stable earnings are essential for long-term profitability.

    Future Of Paper Industry

    The future of the paper industry depends on the following factors:

    • Sustainability Focus: The paper industry will likely focus more on environmental awareness, including green initiatives such as recycling and sustainable forestry.
    • Innovative Products: To be more specific, companies are likely to modify the already established methods to manufacture crafting and special papers for different uses.
    • Emerging Markets: One of the things that you can consider is the fact that the development of certain countries will create a demand for paper for packaging and even for educational purposes.

    Read Also: List Of Best Healthcare Stocks in India

    Conclusion

    Paper stocks are stocks of companies that manufacture and sell paper products. Some major characteristics of the paper industry are stable demand, sustainable practices, and growth potential. Some of the major advantages of investing in paper stocks are stable dividends, diversification, and inflation hedging. You should consider company fundamentals, market share, and prospects for growth while choosing the best paper stock to invest in. However, it is advised to consult a financial advisor before investing.

    Frequently Asked Questions (FAQs)

    1. What are paper stocks?

      Paper stocks represent the shares of the companies engaged in the manufacturing and distribution of paper products all over India.

    2. What are the features of the paper industry in India?

      Product diversification, increase in domestic consumption, rising eco-friendliness, and improving operational efficiency.

    3. What are some risks of investing in paper stocks?

      Cyclicality in raw material prices, sensitivity to global trends in the economy, and environmental regulations are some risks associated with investing in paper stocks.

    4. What has been the trend of the paper industry in India over the last 5 years?

      Growth in India’s paper industry has been steady in the past five years and has been driven by growing demand in the packaging, education, and publishing industries.

    5. What are some of the advantages associated with an investment in paper stocks?

      Portfolio diversification, capital appreciation, and dividend yield are some advantages of investing in paper stocks.

  • List Of Best FMCG Stocks In India 2025

    List Of Best FMCG Stocks In India 2025

    Have you ever thought about what keeps your daily essentials wardrobe all stocked up? The answer lies in the Fast Moving Consumer Goods industry, a dominant force propelling the Indian economy. From the products you use daily to the delicious snacks you munch on, FMCG brands are intricately woven into the fabric of our daily lives. This multi-billion-dollar giant is experiencing explosive growth, particularly in rural India. For investors, identifying the best FMCG stocks in India can open doors to steady returns and portfolio diversification.

    Today’s blog will explore some of the top FMCG stocks in India, their offerings, factors that should be considered before investing in FMCG stocks, and what the future holds for the entire FMCG sector. 

    Overview of the FMCG Industry

    The FMCG industry refers to the industry that deals with products that are bought and consumed quickly and are priced relatively low. The FMCG market is valued at $615.87 billion by 2027, with a remarkable annual growth rate of 27.9%. The rapid expansion is fuelled by increased disposable income, particularly in rural regions. Household and personal care products account for a huge 50% of sales. Healthcare accounts for 31-32% of total spending, encompassing products such as OTC medicines and personal hygiene items.

    Overview of the FMCG Industry

    Several factors are driving the growth of the FMCG sector, including the rising disposable income in India. As Indian consumers are earning more, their spending on consumer goods is also increasing. Lifestyle changes are also driving a surge in demand for premium products. Additionally, the rise of e-commerce has brought about a revolution in the way consumers shop. Online platforms offer a vast array of choices and unparalleled convenience, especially in rural areas where access to physical stores may be limited.

    Top FMCG Stocks in India Based on Market Capitalization

    The top FMCG stocks in 2025 are:

    S.No.FMCG Stocks
    1Hindustan Unilever Ltd.
    2ITC Ltd.
    3Nestle Ltd.
    4Varun Beverages Ltd.
    5Godrej Consumer Ltd.
    (As of 25th July 2024)

    The FMCG stocks have been listed in descending order based on their market capitalization in the table below:

    CompanyMarket Capitalisation (in INR crore)Current Market Price(in INR)52 Weeks High52 Weeks Low
    Hindustan Unilever Ltd.6,36,5632,7092,8122,170
    ITC Ltd.6,12,048490511399
    Nestle India Ltd.2,39,1502,4802,7712,145
    Varun Beverages Ltd.2,14,5781,6511,674792
    Godrej Consumer Products Ltd.1,51,1061,4771,525960
    (As of 25th July 2024)

    Best FMCG Stocks in India 2025 – An Overview

    The best FMCG stocks in India are given below, along with a brief overview:

    1. Hindustan Unilever Ltd.

    Hindustan Unilever was founded in the late 1980s. The Lever brothers, established by William Hesketh Lever, first entered the Indian market in 1888 with a product known as sunlight soap. However, the soap was marked with the phrase “Made in England by Lever Brothers.”

    Hindustan Vanaspati Manufacturing Company, Unilever’s first Indian affiliate, was founded in 1931. Lever Brothers India Limited followed in 1933, and United Traders Limited followed in 1935. In 1956, these companies amalgamated to establish Hindustan Unilever Limited. The company’s headquarters is located in Mumbai.

    Product Portfolio of the company is as follows,

    • Home care products – Laundry detergents, fabric conditioners, dishwashing liquids, and toilet cleaners. (Surf Excel, Rin, Wheel).
    • Personal care products – Soaps, shampoos, skin care products, hair care products, deodorants, oral care products.
    • Beverages, packaged foods, water purifiers, healthcare products, baby soaps, shampoos, body lotions, cosmetic and beauty products.
    1Y Return (%)3Y Return (%)5Y Return (%)
    -2.11%3.13%3.13%
     (As of 16 February 2025)

    2. Varun Beverages Ltd.

    Varun Beverages Limited was established in 1995 by Ravi Jaipuria, the chairman of RJ Corp. The corporation first set up bottling facilities in India for PepsiCo products. Outside of the United States, VBL is the second-biggest PepsiCo beverage bottling company globally. In 2016, the company conducted its first initial public offering (IPO) to raise funds. 

    The company’s primary activities include bottle manufacture and distribution of PepsiCo’s product line, which includes bottled water, juices, and other non-carbonated drinks and carbonated soft drinks like Pepsi and Mountain Dew. The company and PepsiCo have a franchisee agreement that grants them the authority to manufacture and market PepsiCo beverages within their designated regions. 

    1Y Return (%)3Y Return (%)5Y Return (%)
    -15.18%303.09%566.29%
     (As of 16 February 2025)

    3. ITC Limited 

    ITC Limited is an Indian conglomerate headquartered in Kolkata, India. The company has a diversified presence across several industries, such as FMCG, hotels, packaging, etc. The company is considered a major player in the Indian economy and exports its products to over 90 countries, and is known for its commitment.

    ITC holds a rich history that traces back to 1910 as the Imperial Tobacco Company of India Limited, a subsidiary of British American Tobacco. The company initially focused on tobacco products and established its first cigarette factory in Bangalore in 1913. The name of ITC was later changed to India Tobacco Company in 1970. The company continues to innovate and expand its FMCG portfolio while focusing on sustainability initiatives.

    1Y Return (%)3Y Return (%)5Y Return (%)
    -0.67%85.63%97.24%
     (As of 16 February 2025)

    4. Nestle India Ltd.

    Nestle is the world’s largest food and beverage company, with a rich history dating back to the 1980s. Henri Nestle, a German pharmacist, created ‘Farine Lactee’ to reduce the infant mortality rate, and the American Brothers founded the Anglo-Swiss company in 1866 and developed innovative milk products. Both companies succeeded with innovative milk products, targeting the urban population with changing lifestyles. In 1905, a merger formed the Nestle company we know today.

    The company focuses on providing nutritious and convenient food and beverage products for customers of different ages and backgrounds.  The company’s major products include infant formula, instant coffee, nutritional bars, frozen foods, etc.

    1Y Return (%)3Y Return (%)5Y Return (%)
    -11.99%24.27%33.79%
     (As of 16 February 2025)

    5. Godrej Consumer Products Ltd.

    Godrej Consumer Products Ltd. is a prominent Indian company established in 1897. Ardeshir Godrej started a lock company in 1897, laying the foundation for the Godrej Group for the Godrej Group. The consumer products business became a separate entity in 2001. The company has grown through strategic acquisitions like Keyline Brands (UK) in 2005 and hair care companies in South Africa.

    It offers a wide range of good quality and affordable products across home care, personal care, and hair care segments. GPCL mainly generates revenue by selling FMCG products in different categories.

    1Y Return (%)3Y Return (%)5Y Return (%)
    -12.23%31.21%69.13%
     (As of 16 February 2025)

    Read Also: List of Best Cosmetics Stocks in India

    Top FMCG Stocks Based on 1-year Return

    The top FMCG stocks in 2025 are:

    S.No.FMCG Stocks
    1Varun Beverages Ltd.
    2Colgate Palmolive (India) Ltd.
    3Mrs Bectors Food Specialities Ltd.
    4Zydus Wellness Ltd.
    5Bikaji Foods International Ltd.
    (As of 25th July 2024)

    The FMCG stocks have been listed in descending order based on their 1-year returns in the table below:

    Company1-Year Returns 
    Varun Beverages Ltd.105.72%
    Colgate Palmolive (India) Ltd.65.87%
    Mrs Bectors Food Specialities Ltd.62.41%
    Zydus Wellness Ltd.61.88%
    Bikaji Foods International Ltd.45.65%
    (As of 25th July 2024)

    Best FMCG Stocks in India 2025 based on 1-Year Return – An Overview

    The best FMCG stocks according to 1-year return are given below, along with a brief overview of the services they provide:

    1. Colgate Palmolive

    Colgate Palmolive, known for toothpaste, has a long and interesting history since the early 19th century. William Colgate started a new business in New York in 1806. In the 1870s, the company introduced its first toothpaste. In 1896, Colgate launched the first toothpaste in a tube. It was merged with Palmolive-Peet in 1928. Today, Colgate-Palmolive is a multinational corporation known for its oral care products.

    The company holds some trusted brands like Ajax and Hill’s Science Diet, offering products in oral care, personal care, home care, and pet nutrition. The products are available in over 200 countries. It also invests in research and development to create new products for the ever-changing demands of the consumer. With a presence in over 200 countries, Colgate Palmolive products have become a well-known choice for consumers around the globe.

    1Y Return (%)3Y Return (%)5Y Return (%)
    -4.52%75.44%84.25%
     (As of 16 February 2025)

    2. Mrs Bectors Food Specialities Ltd.

    Mrs Bectors Food Specialities Ltd In the 1970s, Mrs. Rajni Bector started making homemade treats and established Mrs. Bector’s Foods with her husband’s support. Her incredible baking skills quickly earned her a well-deserved local reputation for crafting mouth-watering homemade treats such as ice creams, puddings, cakes, cookies, and buns. Later, her husband set up a small manufacturing unit, marking the beginning of Mrs. Bector’s Food.

    The company manufactures and sells bakery and frozen products like buns, pizzas, kulchas, and cakes to several businesses in India. It also sells products such as ‘Mrs. Bector’s Cremica’ and ‘English Oven’ apart from its domestic biscuits business.

    1Y Return (%)3Y Return (%)5Y Return (%)
    29.77%292.85%171.85%
     (As of 16 February 2025)

    3. Zydus Wellness Ltd.

    Zydus Wellness began its operations in 1988 with the introduction of Sugar-Free, India’s first zero-calorie sugar substitute. This marked the beginning of a transformative journey that would position the company as a leader in consumer wellness. Originally operating as Carnation Nutra-Analogue Foods, the company focused on dairy substitutes and margarine products. The turning point came in 2006 when Cadila Healthcare acquired a significant stake in the company. In 2009, Cadila’s consumer goods business merged with Carnation Nutra Foods to create Zydus Wellness.

    The company holds a strong portfolio that showcases a robust collection of renowned brands such as Sugar-Free, Glucon-D, Complan, Everyuth, and Nycil. These brands have cultivated a profound sense of trust and loyalty among customers.

    1Y Return (%)3Y Return (%)5Y Return (%)
    5.69%13.10%12.42%
     (As of 16 February 2025)

    4. Bikaji Foods International Ltd.

    The history of Bikaji Foods International can be traced back to the late 1980s. It was founded by Shivratan Agarwal. The company was originally named Shivdeep Industries Limited, which was incorporated in 1986. It subsequently changed its name to Bikaji Foods International in 2016.

    Bikaji Foods International Limited is a major Indian snack food company and one of the largest fast-moving consumer goods (FMCG) brands in India. The company manufactures a wide variety of snacks across various categories. Bikaji is the third largest ethnic snacks company in India and the largest manufacturer of Bikaneri Bhujia. Their products are popular in India and are exported to over 25 countries, including North America, Asia Pacific, the Middle East, the European Union, Africa, and the United Kingdom.

    1Y Return (%)3Y Return (%)5Y Return (%)
    9.22%78.98%78.98%
     (As of 16 February 2025)

    Note: The overview of Varun Beverages Ltd. is in the overview section of  FMCG companies based on market capitalization.

    Key Performance Indicators (KPIs) of FMCG Stocks

    CompanyROE (%)ROCE (%)Debt to EquityP/E(x)P/B(x)
    Hindustan Unilever Ltd.20.0621.72061.5612.42
    ITC Ltd.27.4534.76029.938.22
    Nestle India Ltd.117.7182.680.0174.8371.6
    Varun Beverages Ltd.29.6427.260.7599.2330.95
    Godrej Consumer Products Ltd.-4.4423.020.25-270.0912.02
    Colgate Palmolive (India) Ltd.70.6192.26064.7745.70
    Mrs Bectors Food Specialities Ltd.21.1723.380.3466.8313.48
    Zydus Wellness Ltd.4.985.540.0656.782.83
    Bikaji Foods International Ltd.2227.640.0765.6414.53
    (As of 25th July 2024)

    Read Also: List Of Best Textile Stocks in India

    Benefits of Investing in the FMCG Stocks

    The benefits of investing in FMCG stocks are: 

    • FMCG stocks provide portfolio diversification as they are stable businesses.
    • Investors get a consistent dividend income.
    • These stocks are preferred by investors who don’t want to take excessive risks. 

    Factors to Consider Before Investing in FMCG Stocks

    Investing In FMCG Stocks

    Investors must consider the following factors before investing in FMCG stocks:

    • Brand Recognition – Find companies with strong market share and established brands. Recognized brands have loyal customers and can withstand economic downturns.
    • Product Innovation – Assess the company’s product portfolio to ascertain its level of diversity and innovation. Companies that create and launch new products regularly meet changing preferences and stay ahead.
    • Profitability – Examine the company’s profit margins and return on equity (ROE). Consistent growth in these areas shows a financially healthy company.
    • Economic Condition – Consider the overall economic environment. FMCG companies are usually more resilient in economic downturns because consumers still need essential everyday items.

    Future of the FMCG Industry

    The future of the FMCG industry looks bright due to the following factors:

    • Rising Disposable Income – Due to rising incomes, especially in developing markets, will lead to higher demand for a variety of consumer goods.
    • E-commerce Penetration – E-commerce is rapidly growing, which will help FMCG companies increase their customer base and revenues.
    • Sustainability – Consumers prefer companies that prioritize eco-friendly practices, such as using sustainable packaging and production methods.

    Overall, the FMCG sector is poised for growth in the future and is expected to remain a good investment option. However, it is important to analyze the market trends of individual companies before investing your money.

    Read Also: List of Best Cosmetics Stocks in India

    Conclusion

    The FMCG sector presents an exciting opportunity marked by consistent growth, strong brand loyalty, and the potential for significant returns. Investors can find good opportunities by evaluating a company’s strengths, financial performance, and industry trends. Do thorough research or seek advice from a financial advisor before investing.

    Frequently Asked Questions (FAQs)

    1. Why invest in FMCG stocks?

      FMCG stocks are generally considered a defensive investment option because customer’s demand for these goods remains relatively stable even during economic downturns.

    2. What are the risks involved in FMCG stocks?

      Factors like rising input costs, intense competition, and changing consumer preferences can affect the performance of these stocks.

    3. How to select FMCG stocks for investing?

      When choosing FMCG stocks, you can look for factors like market share, product portfolio, and past financial performance. 

    4. Are FMCG stocks good for long-term investment?

      Historically, these stocks have delivered consistent returns over the long term, but it is important to do proper research before investing.

    5. Do FMCG stocks provide dividends?

      Many FMCG companies have a history of paying regular dividends.

  • List of Best Railway Stocks in India 2025

    List of Best Railway Stocks in India 2025

    Indian Railways plays an important role in connecting different parts of the country, facilitating transportation, and contributing to the economic development of the country. It is often regarded as the “Lifeline of the Nation.” 

    In this blog, we will explore the railway sector and discuss services offered by the top railway companies in India operating in the sector.

    The railway sector is considered a monopoly because of the significant entry barriers that make it difficult for other companies to compete. For example, building, running, and maintaining rail services require huge investments. In addition, most railway systems are publicly owned, which further contributes to their monopoly status.

    Overview of the Railway Sector in India

    The railway industry in India is one of the largest and most complex in the world. It was established more than 150 years ago when the first passenger train in India ran from Mumbai to Thane on April 16, 1853. Over the decades, the network expanded significantly. The economic impact of this sector is huge as it generates employment and revenue, which makes it a significant contributor to the GDP.

    Railway Sector in India

    Key services provided by the railway sector are: 

    • Passenger Services: Local Trains, Long Distance Trains and Luxury trains
    • Freight Services: Transportation of commodities like coal, iron ore, cement, grains, etc.

    Top Railway Stocks Based on Market Capitalization

    The top Railway stocks in 2025 are:

    S.No.Railway Stocks
    1Indian Railway Finance Corporation (IRFC)
    2Rail Vikas Nigam (RVNL)
    3Indian Railway Catering and Tourism Corporation (IRCTC)
    4IRCON International Ltd.
    5Titagarh Rail Systems Ltd.
    6BEML Ltd.
    7Rail India Technical and Economic Service (RITES)

    The railway stocks have been listed in descending order based on their market capitalization in the table below:

    CompanyCurrent Market Price (INR)Market Capitalisation (in INR crore)52-Week High52-Week Low
    IRFC1942,53,59422934.5
    RVNL5921,23,465647120
    IRCTC97277,7241,148617
    IRCON International Ltd29427,66135291.6
    Titagarh Rail Systems Ltd.1,62321,8581,897610
    BEML Ltd.4,61519,2165,4891,788
    RITES69316,647826432
    (As of 24 July 2024)

    6 Months & 1 Year Return of Top Railway Stocks

    Company6 Month Return1 Year Return 
    IRFC11.95%448.29%
    RVNL98.26%336.46%
    IRCTC0.56%57.34%
    IRCON International Ltd21.24%215.19%
    Titagarh Rail Systems Ltd.49.20%157.94%
    BEML Ltd.45.65%159.64%
    RITES20.47%43.21%
    (As of 24 July 2024)

    Read Also: List of Best Monopoly Stocks in India

    Best Railway Stocks in India 2025 Based on Market Capitalization – An Overview

    The best railway stocks in India are given below, along with a brief overview of the services they provide:

    1. Indian Railway Finance Corporation (IRFC)

    IRFC was incorporated in 1986, and its main business activity is to raise funds from the financial markets to acquire or manufacture assets, which are then leased out to the Indian Railways as a finance lease. It is under the Government of India, and the Ministry of Railways has administrative control over it. It was listed on the stock exchange on 29 January 2021.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -22.43%432.45%382.73%
    (Data as of 17 February 2025)

    2. Rail Vikas Nigam (RVNL)

    Rail Vikas Nigam is the construction arm of the Ministry of Railways and is involved in various rail infrastructure projects. It was established in 2003 to meet the rising demand for rail infrastructure. It was listed on the stock exchange on 19 April 2019. 

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    33.70%906.19%1,375.05%
    (Data as of 17 February 2025)

    3. Indian Railway Catering and Tourism Corporation (IRCTC)

    IRCTC was incorporated in 1999 and is one of the most important companies operating in the railways sector. It provides ticketing, catering, and tourism services to its customers. IRCTC was listed on the stock exchange on October 14, 2019. 

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -23.25%-13.13%130.30%
    (Data as of 17 February 2025)

    4. IRCON International Ltd.

    IRCON was incorporated in 1976 and is primarily involved in railway infrastructure projects in India and abroad. In addition to the railway projects, it also builds ports and highways. The company has expertise in completing challenging projects. IRCON won the “Navratna” status in 2023 due to its strategic importance. IRCON was listed on the stock exchange on September 28, 2018.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -32.09%254.32%177.36%
    (Data as of 17 February 2025)

    5. Titagarh Rail Systems Ltd.

    Titagarh Rail Systems is a private-sector company that manufactures railway wagons. It was incorporated in 1984 as a rolling stock foundry unit and, in 1997, manufactured its first railway freight wagon. It was formerly known as Titagarh Wagons Limited. Apart from freight coaches, the company also manufactures Metro trains, train electricals, steel castings, etc, for both domestic consumption and export markets.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -24.63%679.38%1,444.85%
    (Data as of 17 February 2025)

    6. BEML Ltd.

    BEML, or Bharat Earth Movers Ltd., manufactures heavy machinery used in Indian Railways, defense forces, Metro, and the construction industry.  It was established on 11 May 1964 and is headquartered in Bangalore. It has manufacturing facilities in Kolar Gold Fields, Mysore, Pallakad, and Bangalore. The Government of India owns 54.03% of BEML and has plans to divest its stake in the future.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -15.16%54.11%186.36%
    (Data as of 17 February 2025)

    7. RITES

    RITES, or Rail India Technical and Economic Service, is a public sector enterprise involved in delivering transport consultancy and engineering services. It was established in 1974 and has its headquarters in Gurgaon, India. RITES is also involved in export activities and has clients in more than 55 countries. In 2023, RITES was given the “Navratna” status by the Ministry of Finance. 

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -45.79%59.60%27.58%
    (Data as of 17 February 2025)

    Key Performance Indicators of Railway Stocks

    CompanyNet Profit Margin (%)ROCE (%)Debt to EquityP/E 
    IRFC24.0653.328.3839.08
    RVNL6.7116.740.6878.64
    IRCTC26.0245.480.0070.14
    IRCON International Ltd7.1613.20.4429.60
    Titagarh Rail Systems Ltd.7.4918.590.0377.20
    BEML Ltd.6.9411.820.0267.92
    RITES19.9622.890.0036.51
    (all the above data is of the year ended March 2024) 

    Benefits of Investing in Railway Stocks

    Benefits of Investing in Railway Stocks

    Indian railway stocks have been experiencing an upward trend for more than a year due to several factors. Here are some of the key factors:

    1. Government focus & Initiatives

    • Infrastructure Development: The government is investing significantly in railway infrastructure, including modernization, electrification, and the development of high-speed rail corridors.
    • Dedicated Freight Corridors (DFCs): Progress on the DFC projects aimed at increasing freight capacity and reducing blockages on existing lines.

    2. Policy Reforms

    • Privatization: Initiatives to involve private players in operations and station redevelopment, hence increasing efficiency and quality of services.
    • Favorable Policies: Reforms and policy changes aimed at improving the operational efficiency and profitability of railway companies.

    3. Financial Performance

    • Strong Earnings: Positive financial results (because of various policy reforms and Government initiatives) from key railway PSUs like IRCTC, IRFC, and RITES.
    • Cost Management: Effective cost management and reduction in operational expenses have resulted in better profit margins.

    4. Increased Demand

    • Passenger Traffic: Revival in passenger traffic post-pandemic, with increasing demand for travel and tourism.
    • Freight Services: Growth in freight volumes driven by economic recovery and increased industrial activity.

    5. Technological Advancements

    • Digital Transformation: Implementation of digital services like online ticketing, real-time tracking, and e-commerce integration.
    • Modernization: Modern technologies in signaling, communication, and rolling stock are adopted to enhance safety and efficiency.

    7. Investors Sentiment: 

    • Investor Sentiment: Positive investor sentiment towards infrastructure and transportation sectors, driven by expectations of sustained economic growth.

    8. Strategic Partnerships and Expansion

    • International Ventures: Companies like RITES and IRCON are expanding their business operations internationally, securing contracts and consultancy projects abroad.
    • Collaborations: Strategic partnerships with global players to enhance technological and operational efficiency.

    Factors to consider before investing in Railway Stocks

    An investor must consider the following factors before investing in railway stocks:

    • Type of Competition: Some companies are monopolistic or have a strong market position in their respective niches.
    • Government policies: Investors must stay updated about recent or upcoming policy changes related to the railway sector.
    • Investment profile of the sector: Continuous government investment and reforms in the railway sector change the dynamics of the industry.
    • Economic indicators: Overall economic conditions and their impact on demand for transportation influence the whole sector.
    • Technological advancements: Adoption of new technologies and modernization efforts makes the sector more accessible and attractive.

    Future of the Railway Industry

    The railway sector is of strategic importance in the Indian economy, and its future growth depends on the following factors:

    • Privatization: Initiatives to involve private players in operations, maintenance, and infrastructure development will increase the quality of service.
    • Sustainability: Focus on green initiatives and sustainable practices.
    • Technological Advancements: The adoption of cutting-edge technology in operations and customer services will increase the operational efficiency of the companies.

    Read Also: List of Best Chemical Stocks in India

    Conclusion

    Indian Railways remains a major part of India’s transportation network, with the government’s focus and ongoing efforts to modernize and improve its services to meet future demands. The combination of government support, financial performance, recovery in demand, and positive economic indicators contribute to the price rise of Indian Railway sector companies. Investors are optimistic about the sector’s future growth and profitability potential, making it an attractive investment opportunity. For those considering investing, exploring all railway stocks can provide a comprehensive view of opportunities in this promising sector., but before investing, it’s always advisable to do thorough research or consult with a financial advisor to understand the risks and potential of these stocks.

    Frequently Asked Questions (FAQs)

    1. How do I invest in railway stocks?

      An investor must analyze the railway industry as a whole and identify the key challenges. Then, key players should be identified, and a thorough financial analysis should be performed before investing.

    2. What is the recent performance of railway stocks?

      Stock prices of companies in the railway sector have increased over the past year due to economic recovery and the government’s focus on this sector.

    3. Why are railway stocks popular among investors?

      Railway stocks are popular due to favorable government policies and increased demand for infrastructural growth.

    4. What is one of the risks of investing in railway stocks?

      An economic downturn is one of the risks with railway stocks as it will reduce the number of passengers and freight volumes.

    5. Where can I find more information about railway stocks?

      It can be found on stock exchanges, company websites, financial news portals, and research reports.

    6. Which railway stock is Penny?

      At present however, there aren’t any pure-play railway sector penny stocks in India.

  • Best Drone Stocks in India 2025

    Best Drone Stocks in India 2025

    In 2025, with rapid technological advancement, one trending industry that you may want to have in your portfolio is the drone industry. These stocks are becoming popular because of their diversified applications across agriculture, defense, and logistics, among others, and strong government support is being given through initiatives like the Production-Linked Incentive (PLI) Scheme.

    In this blog, let’s look at the best drone stocks in India and the reasons to invest in them.

    Overview of the Drone Industry

    Drone stocks in India have showcased a new emerging sector at the juncture of technology, aviation, and industrial applications. Unmanned Aerial Vehicles (UAV) are pioneering ways to move forward in industries like agriculture, infrastructure, logistics, and defense. People who intend to invest in this sector get lured by the disruptive innovative capabilities and the potential of transformation across sectors that are labor-driven or dependent on conventional methods.

    Top 8 Best Drone Stocks in India

    The best drone stocks based on market capitalization in 2025 are:

    S.No.Top Drone Company Stocks in India (as per Market Capitalization)
    1Hindustan Aeronautics Ltd (HAL)
    2Bharat Forge Ltd
    3Zen Technologies Ltd
    4RattanIndia Enterprises
    5Paras Defense & Space Technologies Ltd
    6IdeaForge Technology Ltd
    7DCM Shriram Industries Ltd
    8Droneacharya Aerial Innovations Ltd

    Market Capitalisation Table of Best Drone Stocks in India

    The drone stocks have been listed in descending order based on their market capitalization in the table below:

    CompanyMarket Capitalization (In crores)Share Prices (In INR)52 Week High Price (In INR)52-Week Low Price(In INR)
    Hindustan Aeronautics Ltd (HAL)3,56,4175,3295,6751,768
    Bharat Forge Ltd76,9781,6531,826840
    Zen Technologies Ltd11,3731,3531,487575
    RattanIndia Enterprises 10,84478.494.839.1
    Paras Defence & Space Technologies Ltd5,4421,3951,593604
    Ideaforge Technology Ltd3,6018401,249618
    DCM Shriram Industries Ltd1,957225242100
    Droneacharya Aerial Innovations340142221125
    (As of 15 July 2024) 

    Best Drone Stocks in India 2025 – An Overview

    The best drone stocks in India are given below, along with a brief overview of the services they provide:

    1. Hindustan Aeronautics Ltd (HAL)

    Hindustan Aeronautics Limited is one of the pillars of India’s aerospace industry, with experience in aircraft and helicopter design, manufacturing, repair, upgrade, and related component designing and manufacturing. TAPAS (Tactical Airborne Platform for Aerial Surveillance) is being developed to perform intelligence, surveillance, and reconnaissance roles. Traditionally a partner to major aerospace companies worldwide, HAL has significantly enhanced India’s defense capability.

    2. Bharat Forge Ltd

    Bharat Forge Limited is an Indian MNC that operates in the forging, automotive, energy,  and defense industries. It was founded in 1961 by Nilkantharao A. Kalyani. Kalyani Strategic Systems Limited (KSSL) is a subsidiary of Bharat Forge that recently launched “BHARAT 150” with a maximum take-off weight of 150 kg and a range of up to 200 km. Having its headquarters in Pune, India, the group has managed to build a brand synonymous with engineering excellence and innovation in manufacturing critical components for both automotive and aerospace industries alike.

    3. Zen Technologies Ltd

    Zen Technologies Ltd. was incorporated in 1993 and is one of the leading companies dealing with drones. The company offers counter-drone systems to detect and disrupt the communication system of the enemy drone. Another key offering is combat training solutions for the defense and security forces. It identifies itself as a major contributor in the field of defense and has over 40 products being used all over the globe. Zen Technologies has built strong R&D capabilities and has over 150 patents.

    4. RattanIndia Enterprises 

    RattanIndia Enterprises is contributing to the drone industry via its subsidiary NeoSky. The company plans to offer drones as a service and product to its target audience. NeoSky works on tapping drone technology for various diverse applications, starting from agriculture, infrastructure monitoring, and logistics. With a strong focus on innovation and efficiency, the company aims to use UAVs to solve most modern-day problems across different sectors. It visualizes itself as playing a definitive role in the country’s evolving drone ecosystem.

    5. Paras Defence & Space Technologies Ltd

    Paras Defence & Space Technologies Ltd is amongst the most prominent companies in the defense and space sectors, and it has a basket of hi-tech solutions. Business offerings range from defense electronics, aerospace and space systems, communication systems, electro-optic devices, and defense and space components. Paras Aerospace Pvt. Ltd. is its subsidiary, which is involved in drones, drone services, and associated technologies. It also has a subsidiary named Paras Anti-Drone Technologies Pvt. Ltd., which develops RF & microwave systems and subsystems to counter UAVs and more. With a strong focus on innovation and quality, Paras Defense builds up India’s defense capabilities and makes vital contributions to India’s growing space exploration ventures.

    6. Ideaforge Technology Ltd

    Ideaforge Technology Ltd. is one of the apex companies in the domain of unmanned aerial systems, commonly known as drones in India. This company is known for its rugged and versatile UAV products currently being used in the domains of defense & homeland security and industrial applications. 

    It has been able to build a credible name based on innovation, picking up complex challenges in surveillance and reconnaissance and maintaining a clear lead over others in India’s drone industry.

    7. DCM Shriram Industries Ltd

    DCM Shriram Industries Ltd. was founded in 1990 and has operations in sugar, alcohol, industrial fibers, etc. Recently, the company acquired a 30% stake in Zyrone Dynamics, a Turkish drone company. The company aims to manufacture drones in India. DCM Trishul and DCM Kailash are the two prototypes developed by the company for surveillance and heavy-lifting requirements. 

    8. Droneacharya Aerial Innovations Ltd

    Droneacharya Aerial Innovation Ltd is one of the firms known for bringing drone solutions to India’s fast-emerging UAV Sector. The company provides services with applications in a wide range of industries, from agriculture and infrastructure to surveillance and disaster management. With a strong core philosophy of bringing in innovation and exceptionally strong technological expertise, Droneacharya envisions improving operational efficiencies and safety standards across industries. 

    Comparative Study of Drone Stocks

    Performance of Drone Stocks

    The table below shows the Best Drone Stocks based on 6-month and 1-year returns.

    Company6 Month Return1 Year Return 
    Hindustan Aeronautics Ltd (HAL)69.33%161.02%
    Bharat Forge Ltd32.73%86.48%
    Zen Technologies Ltd83.70%129.90%
    RattanIndia Enterprises -4.64%88.24%
    Paras Defence & Space Technologies Ltd83.05%101.53%
    Ideaforge Technology Ltd6.35%-30.71%
    DCM Shriram Industries Ltd31.13%120.66%
    Droneacharya Aerial Innovations Ltd-27.66%-7.10%
    (As of 15 July 2024) 

    Key Performance Indicators

    CompanyNet Profit Margin (%)ROCE (%)TTM EPSTTM P/E (x)P/B (x)
    Hindustan Aeronautics Ltd (HAL)2524.49113.9646.779.23
    Bharat Forge Ltd5.7613.320.4379.2510.51
    Zen Technologies Ltd29.546.315.2288.9125.36
    RattanIndia Enterprises 7.56363.0825.4715.5
    Paras Defence & Space Technologies Ltd11.869.88.77159.112.19
    Ideaforge Technology Ltd14.419.611.0775.845.43
    DCM Shriram Industries Ltd5.5220.613.2616.962.4
    Droneacharya Aerial Innovations Ltd17.5611.652.5855.794.7
    *(all the above data is of year ended March 2024)

    Benefits of Investing in Drone Stocks

    The benefits of investing in drone stocks are:

    Benefits of Investing in Drone Stocks
    • High Growth Potential: The commercial drone market is expected to experience multifold growth in the next few years.
    • Multiple sources of revenue: With applications in various industries, including defense and agriculture, a boost in logistics and enterprise will mean diversified revenue for companies.
    • Government Support: The Indian government, through a 20-crore PLI incentive, is supporting the drone industry; hence, there is a need to include the factor of Make in India in business initiatives.

    Factors to Consider Before Investing in Drone Stocks 

    An investor must consider the following factors before investing in drone stocks:

    • Regulatory Environment: An investor must know the regulatory frameworks that govern the drone industry in India. This might have a big impact on access to markets and profitability.
    • Market Potential: Growth prospects of sectors that are increasingly adopting the use of drones, such as agriculture, logistics, and surveillance.
    • Competitive Landscape: An investor must understand the competitive environment for drone manufacturers and service providers to understand a company’s relative placement in the markets.
    • Financial Health: Look at the revenue growth, profitability, and leverage levels of drone companies to check the viability of investment decisions.

    Future of Drone Stocks 

    With the support of the government, like the Drone Shakti scheme and performance-linked incentives, the future of India’s drone market remains bright. The INR 80 crore market will likely touch INR 12,000-15,000 crore by 2026. The sectors that are seeing the entry of drones range from agriculture and defense to healthcare and e-commerce. Heavy investments by Reliance and Adani Enterprises convey the potential of the drone industry in India. Based on these factors, India will become a global drone hub by 2030.

    Conclusion 

    The Indian drone industry holds huge potential across various industries because of the rapidly advancing capabilities of UAVs and the expansion of regulatory frameworks. Companies are working on stretching the efficiency of drones in agriculture, infrastructure, surveillance, and many other areas.

    As the investment and adoption take off together, it is predicted that with the further evolution of drone technology, there will be a creation of jobs, modernization of industries, and sustainable development. India’s drone sector does seem promising for investors; however, one should consult a financial advisor before investing.

    Read Also: Best Drone Penny Stocks In India

    Frequently Asked Questions

    1. What are the top drone stocks in India?

      Some of the top drone stocks in India include Hindustan Aeronautics Ltd, Droneacharya Aerial Innovations, and Paras Defense & Space Technologies Ltd.

    2. Why should one consider investment in drone stocks in India?

      The drone industry is rapidly growing, with a lot of support coming from the government and diversified applications.

    3. What should one look at while considering investing in drone stocks?

      Consider looking into financial performance, technology, regulations, market demand, and management expertise.

    4. What are the future prospects of the drone industry in India?

      The drone industry is expected to grow at a CAGR of 22.15% from 2024-2030.

    5. Has the government come up with any specific initiative in favor of the drone industry in India?

      Through the Production-Linked Incentive (PLI) scheme, support is provided for the manufacturing and growth of the drone industry.

  • Best Artificial Intelligence (AI) Stocks In India 2025

    Best Artificial Intelligence (AI) Stocks In India 2025

    Artificial Intelligence (AI) is now a reality and is no longer confined to the realms of science fiction. It is rapidly transforming industries and shaping our daily lives. A good investor always identifies opportunities before others, and artificial intelligence is one industry that can deliver exceptional returns in the future.

    Many Indian companies are driving the AI revolution, and the best part is that the general public can also invest in them through stock markets. In today’s blog, we will explore the best Artificial Intelligence stocks in India based on their market capitalization and their recent returns. We will also discuss the services offered by these companies and the future of the AI industry.

    Overview of AI industry in India

    India’s AI market is expected to reach $17 billion by 2027, with a CAGR of 25% to 35%. India is a major contributor of AI talent worldwide, with 16% of the world’s AI talent coming from India. This ranks India as one of the top three talent markets. The demand for customization and integration of business processes creates a prime opportunity for companies to deliver professional services tailored to integrate them with existing systems and data. AI could greatly contribute to India’s economy. Estimates show it can add $1 trillion by 2035. 

    Additionally, data privacy and security are of utmost importance when adopting AI, and India should have strong regulations to ensure the responsible development of AI.

    Top AI Stocks Based on the Market Capitalisation

    The top AI stocks in 2025 are:

    S.No.AI Stocks
    1Tata Consultancy Services (TCS)
    2Infosys
    3HCL Technologies
    4Wipro
    5Tech Mahindra

    The AI stocks have been listed in descending order based on their market capitalization in the table below:

    CompanyCurrent Market Price (INR)Market Capitalisation (in INR crore)52-Week High52-Week Low
    TCS4,17815,11,8004,2553,311
    Infosys1,7267,16,6611,7381,305
    HCL Tech1,5704,25,923 1,6971,095
    Wipro5602,92,750567375
    Tech Mahindra1,5161,48,267 1,5281,082
    (As of 17 July 2024)

    Best AI Stocks in India Based on Market Capitalization – An Overview

    The best AI stocks in India are given below, along with a brief overview of the services they provide:

    1. Tata Consultancy Services (TCS)

    Tata Consultancy Services is an Indian multinational IT services and consulting company. TCS is headquartered in Mumbai, India. TCS has over 603,305 trained consultants in 55 countries.

    TCS was founded in 1968 when Mr Fakir Chand Kohli brought together a young team of IT professionals. TCS offers a range of IT services in the following domains:

    • Artificial Intelligence
    • Cloud services
    • Consulting
    • Cybersecurity

    2. Infosys

    Infosys is a global IT services and consulting company that offers digital services and consulting. The company was established in 1981 in Pune by seven engineers with a capital of $250. It currently operates with 317,240 employees and has a presence in over 56 countries. It is headquartered in Bangalore, India.

    Initially, the company focused on providing software consulting and development services to US clients. With time, the company pioneered the Global Delivery Model (GDM), which allowed remote execution with cost advantage. The tech giant went public in 1993. Infosys offers a range of IT services in the following domains:

    • Next-Generation Integrated AI Platform
    • Infosys Consulting
    • Cloud-based services
    • Blockchain

    3. HCL Technologies

    Earlier known as Hindustan Computers Limited, it is another key player in the Indian technology industry. The company is headquartered in Noida, India and has an employee strength of over 227,481.

    HCL Technologies offers a range of tech services, which include:

    • Helping clients incorporate AI in their business processes.
    • Digital solutions to increase the efficiency of the client’s business.
    • R&D services to accelerate product development and increase returns.
    • Cloud Services

    4. Wipro

    Wipro is a leading technology services and consulting company that builds innovative solutions that address clients’ most complex digital transformation needs. It has over 225,000 employees.

    The company was founded in 1945 by M.H. Hasham Premji. It initially emphasized selling consumer goods and vegetable oils. In 1981, Wipro diversified its operations into the IT business under the leadership of Azim Premji, who is still a respected figure in the Indian IT industry.

    Wipro offers a range of IT services which includes:

    • Helping businesses migrate to the cloud and leverage its benefits for scalability and efficiency.
    • Providing consulting and implementation services to help companies adapt to the digital age.
    • Creating and maintaining custom software applications for several needs.
    • Developing and implementing AI-powered solutions and integrating robotic automation for advanced functions.
    • Managing and optimizing non-core business processes for cost savings and improved efficiency.

    5. Tech Mahindra

    Tech Mahindra is a part of the Mahindra Group and was founded in 1986. The company employs 138,000 employees and is present in over 90 countries. The company offers innovative and customized information and technology services that help enterprises, associates, etc.

    The company offers a range of services in the following domains:

    • Artificial Intelligence
    • Digital Enterprise applications
    • Cloud & Infrastructure services
    • Strategy & Consulting

    Top AI Stocks Based on 1 Year Return

    The top AI stocks in 2025 are:

    S.No.AI Stocks
    1Oracle Financial Services Software Ltd.
    2Bosch Ltd.
    3Kellton Tech Solutions Ltd.
    4Zensar Technologies Ltd.
    5Cyient Ltd.

    The AI stocks have been listed in descending order based on their 1 year returns in the table below:

    Company1 Year Return 
    Oracle Financial Services Software Ltd182.04%
    Bosch Ltd79.55%
    Kellton Tech Solutions Ltd74.24%
    Zensar Technologies Ltd54.47%
    Cyient Ltd.23.90%
    (As of 17 July 2024)

    Read Also: Best Artificial Intelligence (AI) Smallcap Stocks

    Best AI Stocks in India Based on 1 Year Return – An Overview

    The best AI stocks according to 1 year return are given below, along with a brief overview of the services they provide:

    1. Oracle Financial Services Software Ltd.

    Oracle Financial Services Software Ltd. (OFSS) is a subsidiary of Oracle Corporation and has its headquarters in Mumbai. It helps financial institutions such as banks launch new products and build customer-centric digital solutions with the help of Oracle’s AI-driven applications and cloud services. It has been using machine learning to improve detection, deep learning to find patterns and natural language processing (NLP) to extract data. It offers a range of services listed below:

    • Anti-money laundering & Financial Crime Compliance
    • Cloud Infrastructure
    • Risk and Finance
    • Payments
    • Corporate Banking

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    9.82%143.97%203.28%
    (As of 18th Fenruary 2025)

    2. Bosch Ltd.

    Bosch is a German multinational company headquartered in Gerlingen, Germany. It was established in 1886 and has offices worldwide. It has the largest development center in India outside Germany for the development of engineering and technology solutions. Bosch Center of Artificial Intelligence is an important part of Bosch Research and specializes in deploying AI technologies into products & services. Bosch also offers services in the following areas:

    • Neuro – Symbolic AI
    • Deep Learning
    • Natural Language Processing
    • Probabilistic Modeling
    • Reinforcement Learning

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -5.22%68.77%81.02%
    (As of 18th Fenruary 2025)

    3. Kellton Tech Solutions Ltd.

    Kellton Tech Solutions Ltd. ((KTSL) is an Indian multinational company with its headquarters in Hyderabad, India. It provides AI and ML solutions, which can be used to process data and extract insights at a great pace. It offers Utilitarian AI, which can be used to convert computer vision to text. Other services offered include:

    • Predictive analytics
    • Generative AI
    • Machine Learning
    • NextGen Services

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    16.51%32.86%626.48%
    (As of 18th Fenruary 2025)

    4. Zensar Technologies Ltd.

    Zensar Technologies is a major player in the Indian AI industry and is a subsidiary of the RPG group. It is headquartered in Pune, India and has offices in 33 global locations. Zensar’s AI/ML-driven Smart Advisor enables users to navigate market data with exceptional speed and accuracy. It analyzes market news, interprets positive and negative sentiments and provides a future outlook. It provides great value in incorporating ESG risk scores into decision-making processes. The company also offers services in the following domains:

    • AI engineering buddy
    • Accelerated generative AI
    • Cloud strategy 
    • Automation

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    49.49%116.84%466.15%
    (As of 18th Fenruary 2025)

    5. Cyient Ltd. 

    Cyient Ltd. is an Indian multinational technology company with its headquarters in Hyderabad, India. It was founded in 1991 as Infotech Enterprises Ltd and was later renamed Cyient in 2014. In 2023, Cyient collaborated with Microsoft to make a product named “EnGeneer”, which will help in automating engineering processes. Cyient aims to use the Microsoft Azure OpenAI Service to deliver products in the future. It also provides services in the following domains:

    • Generative AI
    • Cybersecurity
    • Cloud services
    • Asset insights

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -29.74%64.71%226.95%
    (As of 18th Fenruary 2025)

    Key Performance Indicators (KPIs)

    CompanyROE (%)ROCE (%)Debt to EquityP/E P/B
    TCS50.7363.51032.2516.71
    Infosys29.7736.81027.329.59
    HCL Tech2327.920.0327.136.87
    Wipro14.8117.860.1926.53.93
    Tech Mahindra8.8411.70.0662.895.55
    Oracle Financial Services Software Ltd.28.2435.240.0042.2813.95
    Bosch Ltd.20.6619.480.0040.349.41
    Kellton Tech Solutions Ltd.14.4318.30.2921.363.03
    Zensar Technologies Ltd.18.6623.630.0025.486.3
    Cyient Ltd.16.0320.610.1129.756.49
    *(all the above data is of year ended March 2024) 

    Read Also: What is AI Washing? Definition, Tips, Evolutions & Impact

    Benefits of Investing in AI Stocks

    AI stocks can be a valuable addition to the portfolio due to the following benefits:

    • Future Growth: The artificial intelligence industry is expected to grow multifold in the coming years, which will cause a rise in the prices of AI stocks.
    • Diversification: AI stocks provide diversification benefits and protect investor portfolios from market fluctuations.
    • Multiple revenue sources: Artificial intelligence has applications in many industries that provide numerous revenue sources for AI companies.

    Factors to Consider Before Investing in AI Stocks

    Artificial intelligence is a fairly new industry, and there is a lot of uncertainty surrounding it. Investors must be cautious and consider the following factors before investing in AI stocks:

    Factors To Consider Before Investing In AI Stocks
    • Competition: Investors should identify the industry leader as they will benefit from competitive advantage in the future.
    • Financial Health: Investors should analyze financial statements and look for companies with strong fundamentals.
    • Ethical Considerations: AI can also be used for unethical practices, which can damage a company’s reputation. Investors should avoid such companies. 
    • Regulations: Investors should stay informed about the new regulations applicable to the AI industry and judge their impact on the stock price of AI companies.

    Future of the AI Industry

    The future of the AI industry looks bright due to the following factors:

    1. The development of more powerful and affordable computer chips, especially those designed for AI applications, is helping create more effective AI models.
    2. The exponential growth of data is driving the rapid advancement of AI technology. AI algorithms need large amounts of data to learn and enhance their capabilities.
    3. Investments in AI are increasing from both private and public sectors, which helps fund research and development and create new AI applications.
    4. Nowadays, businesses are looking for methods to automate tasks, and AI is considered an important technology for achieving this.

    Read Also: 5 Top Artificial Intelligence Penny Stocks in India

    Conclusion

    The AI industry in India is growing rapidly because of a large talent pool, consistent government support, and expanding digital infrastructure. However, the road ahead has hurdles. The industry needs more skilled workers and stronger regulations because of data privacy concerns. Even though there are certain challenges, the benefits of AI are undeniable, and as far as AI stocks are concerned, they offer a great avenue for investment. It is important to consider several factors, such as market volatility, competition, etc. and consult a financial advisor before making any investment decision.

    Frequently Asked Questions (FAQs)

    1. What is AI?

      Artificial intelligence is a field that uses technology to perform advanced tasks like learning and problem-solving.

    2. Why would AI stocks be a good investment?

      AI stocks are good investment options because of the high demand for AI solutions, the potential for technological breakthroughs and increased government support.

    3. How can we ensure responsible AI development?

      Open discussions, addressing ethical concerns, and strong regulations are important for responsible AI development.

    4. Will AI take away all our jobs?

      While some jobs might be automated, AI is also expected to create new opportunities in different work areas.

    5. What are some other AI stocks in India?

      AI stocks in India are TCS, Infosys, Wipro, etc.

  • What is Contrarian Investing?

    What is Contrarian Investing?

    Investing in financial markets is becoming an increasingly popular way to realize financial objectives. Many investors invest to achieve their retirement goals. But how can an individual achieve returns that significantly exceed the benchmark? An investor needs to think outside the box to beat the benchmark, and contrarian investing strategies are a way to create huge wealth. 

    In today’s blog, we will discuss contrarian investing, different approaches used to do contrarian investing, its implementation challenges, and real-world examples.

    What is Contrarian Investing?

    Contrarian investing is a strategy where investors intentionally go against the prevailing market trends. Investors who follow a contrarian investing strategy are known as contrarians. They follow the basic rule of buying when others are selling and selling when others are buying.

    Contrarian Investor aims to capitalize on mispriced assets by deliberately going against the latest market trends. This approach requires independent thinking, careful analysis, confidence, and a willingness to withstand sudden market fluctuations. 

    Contrarian investing is an active strategy aiming to outperform the market. Contrarian investing consists mostly of long-term investment strategies focusing on overlooked and mispriced opportunities.

    Different Approaches Used to Do Contrarian Investing

    Investors follow different processes mentioned below to do contrarian investing: 

    • Market Sentiment Analysis: Investors analyze the market sentiment through news, social media, economic data releases, etc, to gain valuable insights. By gauging the prevailing sentiment, traders can identify potential turning points in the market and make informed decisions based on sentiment shifts.
    • Value Investing Approach: Contrarian investors constantly search for undervalued assets that the market has overlooked. Investors conduct a detailed fundamental analysis of the asset and gauge its potential for long-term capital appreciation.
    • Distressed Investing: Contrarian investors actively search for companies facing distress, restructuring, or bankruptcy because most market participants do not favor such assets. By carefully analyzing the underlying value and potential recovery, investors try to acquire them at low valuations. Investors make substantial gains once the company’s profitability increases.
    • Event-Based Trading: It involves capitalizing on market reactions to specific events, such as government policy change, central bank policy announcements, budget, regulatory announcements, and company earnings releases. Contrarian traders predict market reactions to these events and position themselves accordingly to profit from market fluctuations.
    • Pattern Recognition: Using chart patterns and technical analysis to identify potential trend reversals can be a powerful tool for contrarian traders. Even the put-call ratio can be used for contrarian investing. These patterns tell about potential shifts in market sentiments, providing opportunities for contrarian trades.

    Read Also: What Is Contract Note and Its Significance

    Challenges of Contrarian Investing

    Challenges Of Contrarian Investing

    Limitations of contrarian investing are as follows:

    • Time-consuming: It needs lots of research to go against the prevailing trend, so it’s a time-consuming practice.
    • Difficult to Time: It’s extremely challenging to accurately time the trades as identifying the exact reversal points is difficult.
    • Patience and long-term focus: Patience is required as the focus is to realize gains from mispriced assets that others haven’t identified at the right time. Investors need to create positions before others identify the opportunity and wait until the majority of the market participants identify it. Once the majority identifies it, the asset’s market price moves in a favorable direction. Therefore, a longer time frame is required to realize substantial gains.
    • Potential for an extended period of underperformance: If market sentiment continuously goes against your view, it can result in portfolio underperformance in the short term.
    • Knowledge of the market and methods is required: One should be well versed in different analysis methods, such as fundamental analysis, technical analysis, etc., to identify mispriced assets ahead of time with confidence. 
    • Limited Liquidity: Contrarian investors also invest in assets that are not widely traded, making it difficult to create and exit the investment position.
    • Lack of information or limited information: Sometimes, contrarian investors may have limited information or wrong information about the asset, which can lead to incorrect analysis and wrong investment decisions.

    Examples of Contrarian Investing

    John Paulson and the Subprime Mortgage Crisis (2007-2008):

    • Case:  When most investors believed the housing market prices would continue to rise, Paulson predicted against popular belief and took a contrarian position. 
    • Strategy: Paulson used credit default swaps (CDS) to bet that mortgage-backed securities would collapse. CDS is a tool through which credit risk is transferred, similar to insurance, where the buyer pays premiums for protection against risk. Hence, the buyer of the CDS gets a set amount if the underlying assets default, go bankrupt, or face credit ratings downgrade.
    • Outcome: When the housing market crashed, Paulson made a fortune of USD 4 billion alone while his firm earned a total of USD 15 billion, which earned him the tag of “a man who made one of the biggest fortunes in Wall Street history.”

    Warren Buffett and Goldman Sachs (2008):

    • Case: At the peak of the Global Financial crisis in 2008, when all the banks in the US were facing a liquidity crisis, Buffett supported Goldman Sachs soon after the fall of the Lehman Brothers.
    • Strategy: Warren Buffett’s Berkshire Hathaway invested USD 5 billion of preferred stock in Goldman Sachs to strengthen the firm’s capitalization and liquidity in turbulent times.
    • Outcome: The preferred stock was redeemed in 2011, which generated a profit of USD 3.7 billion for Berkshire Hathaway, which is approximately 74% of the investment.

    Warren Buffett and Bank of America (2011):

    • Case: During the debt-ceiling crisis of 2011, Bank of America’s stocks lost more than half of its value and fell from $14 to $5 over a year.
    • Strategy: Buffett invested $5 billion in Bank of America through preferred shares and warrants to buy 700 million common stock at a price of $7.14 per share. The preferred shares were redeemable at a 5% premium and paid a 5% annual dividend.
    • Outcome: Bank of America’s stock prices increased over the next few years, and Berkshire Hathaway more than tripled its investment without considering the dividend income.

    George Soros and the British Pound (1992):

    • Case: The British government was trying to keep the pound within the European Exchange Rate Mechanism (ERM) despite economic indicators suggesting it was overvalued.
    • Strategy: Soros created a short position against the pound, betting on its devaluation.
    • Outcome: On 16 September 1992, also known as the Black Wednesday, the pound crashed, and Soros made an estimated USD 1 billion profit, while the British government had to withdraw the pound from the ERM.

    Historical Returns of Contrarian Investing

    Historical Returns of Contrarian Investing

    The return an investor can earn using the contrarian investing approach is enormous, but these abnormal returns require lots of time, effort, knowledge, and patience. However, it’s not a suitable strategy for the short term as a big risk of uncertainty is involved. 

    Historical returns of contrarian investing are beyond imagination. Warren Buffet, Michael Burry, George Soros, John Paulson, etc., earned a fortune through contrarian investing strategy, but they all took calculated risks based on their knowledge and analysis.

    Conclusion

    In summary, while contrarian investing can be lucrative, at the same time, it’s time-consuming, and it requires a deep understanding of market fundamentals, the right timing, confidence, patience, and the ability to withstand potential losses. Investors should carefully consider these factors and should combine contrarian strategies with other investment approaches and tools to achieve balanced and long-term returns.

    The contrarian investing approach requires an in-depth understanding of the financial markets. Therefore, it is important to consult a financial advisor before investing.

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    Frequently Asked Questions (FAQs)

    1. What is a contrarian strategy?

      A contrarian strategy is implemented by creating an opposite position relative to the prevailing market sentiment, i.e., when everyone is buying, the contrarian investor looks to create a short position and vice versa.

    2. Is contrarian investing profitable?

      It can be rewarding, but at the same time, it’s risky as well, as it may go wrong or take time to show desired results.

    3. Who is the famous contrarian investor?

      Warren Buffet is one of the most prominent contrarian investors.

    4. What is one of the limitations of Contrarian investing?

      It may take a significant amount of time before an undervalued asset begins to show desired results.

    5. Can AI be used to execute contrarian strategies?

      Yes, artificial intelligence can be used to identify patterns of herd behavior, and models can be trained on predefined market variables to uncover opportunities to execute contrarian strategies.

  • Business Cycles of a Company

    Business Cycles of a Company

    Businesses operate in a dynamic economic environment, with various economic factors impacting their operations simultaneously. Each company experiences many fluctuations in economic activity over its operational time. 

    Every equity investor in a company is a partial owner of the company due to which investors should understand the business’s current phase and its characteristics to make better investment decisions. In today’s blog, we will discuss various phases of the business cycle and their impact on the company, along with an example.

    What is the Business Cycle?

    A business cycle refers to the fluctuations in a country’s economic activities that a company experiences over time. These fluctuations are part of a cycle of expansion and contraction and are influenced by various external economic factors. Significant factors include market demand and supply, government policies, and global economic conditions. Every company’s business cycle has five phases, which are explained below.

    Read Also: Different Types of Companies in India

    Five Phases of a Company’s Business Cycle

    The five phases of a company’s business cycle are influenced by different factors impacting the business environment in which they operate. Understanding each of these phases can help investors decode the reason behind the company’s performance in a specific year. The five phases of  the company’s business cycle are:

    1. Expansion Phase

    The expansion phase is the initial phase where a company grows in terms of revenues and profits. During this phase, a company experiences growing demand for its products or services, leading to increased sales and revenues. It is a phase of upward economic trends, with high consumer confidence and a favorable market environment. 

    During this phase, companies invest in new projects, increase their workforce, and expand their operations. For example, a tech company might launch new products or expand into new markets as demand for the latest technology grows.

    2. Peak Phase

    The peak phase represents the height of economic activity in a company’s business cycle. During this stage, a company’s growth reaches its maximum limit, where the production, sales, and revenue growth rates are at their peak. However, this phase is generally short-lived as the market becomes saturated. 

    At this point, a company must prepare to transition into the contraction phase. A common example of a company in the peak phase is a retailer selling gifts and sweets during the festival season. The demand for gifts and sweets is at its peak during the festive season.

    3. Contraction or Recession Phase

    Following the peak phase, the economy contracts in the third phase, and two consecutive quarters of contraction are generally considered a recession. It is known as a period where economic activity begins to decline. During this phase, sales decrease, production slows, and the overall economic climate worsens. The decrease in production activities reduces the demand for raw materials and impacts other businesses. This decline can be triggered by market saturation, decreased consumer spending, or broader economic downturns. An extremely severe recession is known as a depression, which generally occurs when the GDP declines more than 10%.

    Companies generally reduce their workforce, cut costs, or halt expansion plans during this period. For example, in this phase, a retailer reduces the number of employees and focuses on high-margin products to maintain cash flow when the number of customers declines.

    4. Trough Phase

    The trough phase represents the lowest point in the business cycle. The economic activities are minimal at this stage, and the growth rate becomes negative. Also, the situations within and around the company are generally negative. However, it is also a crucial time for making critical decisions that affect a company’s future trajectory. Companies often streamline operations to improve efficiency, which includes automating certain processes or consolidating operations to reduce operational costs. 

    The trough phase is a time for reevaluating and possibly overhauling business strategies. Companies might explore new markets or different customer segments to serve. An example of a company in the trough stage is a manufacturing firm optimizing its production lines for efficiency during low-demand periods to reduce operational costs.

    5. Recovery Phase

    The recovery phase signifies the beginning of an upward trend in the company’s business cycle. It shows a gradual increase in consumer confidence, spending, and overall economic activity. During this time, companies start reinvesting in areas scaled back during the contraction and trough stages. These include marketing, new product development, and workforce expansion. As the market recovers, companies expand their operations or enter new markets to capitalize on growing demand. 

    Now, businesses must monitor the market and adapt their strategies as needed. Timely decisions help them capitalize on early recovery-stage opportunities. An example of a company in the recovery stage is an automobile company that begins to increase its production as the market demand grows and the economy recovers.

    Illustration of Different Stages of Business Cycle

    Illustration of Different Stages of Business Cycle

    Decoding the Business Cycle of Reliance JIO Industries

    Reliance Industries can be used as an example to understand the different phases of a company’s business cycle over the years. During the expansion phase, the launch of Reliance Jio in 2016 led to rapid growth and significant market capture in the telecom sector. The peak phase was evident around 2018-2019 when Jio became India’s largest telecom operator, and other business segments thrived. 

    The contraction phase occurred during the COVID-19 pandemic, with reduced demand and operational challenges. In the trough phase, Reliance focused on strategic adjustments and raised capital from major investors like Facebook and Google. Post-pandemic, the company entered a recovery phase, emphasizing digital expansion and retail growth, demonstrating resilience and adaptability.

    Conclusion

    The business cycle of a company conveys the economic environment in which it is operating. Several factors affect the company’s business cycle, including the demand and supply of its products and services, capital availability, inflation, and consumer spending. Understanding these factors helps investors better forecast the phases in the near future and ultimately predict the company’s future performance, but always consult your financial advisor before making any investment decisions.

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    Frequently Asked Questions (FAQs)

    1. Why is it important for equity investors to understand the business cycle?

      Equity investors must understand the business cycle as it helps them anticipate changes in the company’s performance, manage risks, and make informed decisions about buying or selling shares.

    2. How does the expansion phase affect a company’s strategy?

      A company typically experiences increased demand for its products during expansion. It leads to higher sales and revenue. Higher demand prompts the company to invest in new projects, expand operations, and hire more staff to capitalize on favorable market conditions.

    3. What signals the transition from the peak phase to the contraction phase?

      The transition from the peak to the contraction phase is often signalled by market saturation, where the rate of production and sales reaches its maximum and begins to decline. This phase may also start as consumer demand decreases or external economic conditions worsen.

    4. What strategic decisions are critical during the trough stage?

      During the trough stage, companies must make strategic decisions regarding operational efficiency, cost management, and potential market repositioning. This stage is also suitable for reevaluating and possibly overhauling business strategies to prepare for the next growth cycle.

    5. How do companies prepare for the recovery stage?

      Companies prepare for recovery by gradually reinvesting in key areas such as marketing, new product development, and workforce expansion. It is also important for businesses to stay agile, closely monitoring the market and adapting strategies to capitalize on early signs of recovery.

  • Recent Telecom Tariff Hike and its Impact 

    Recent Telecom Tariff Hike and its Impact 

    India is one of the biggest consumers of data, spending approximately 5 hours daily on smartphones. Recently, a tariff hike was announced by the major telecom companies in India. 

    Reliance Jio, Bharti Airtel, and Vodafone Idea have increased their mobile plan prices by up to 25%. Airtel and Jio’s new rates are effective from July 3, while Vodafone Idea’s (VI) new pricing was implemented on July 4.

    In today’s blog, we will discuss the reason behind tariff hikes and the impact of hikes on their stocks. 

    Overview of the Telecommunications Industry

    The Telecommunications industry is divided into sub-sectors like Infrastructure, Equipment, Mobile Virtual Network Operators, White Space Spectrum, 5G, Telephone service providers, and Broadband.  The 5G network has been rolled out in all 28 states and 8 UTs. 

    India is close to becoming the second-largest smartphone market in the world, with around 850 million smartphone users by 2026. This will create a giant customer base using 5G technology and will contribute approximately USD 450 billion to the Indian economy. India ranks 60th as per the Network Readiness Index 2023, signifying the industry’s investment potential.

    Sensing this opportunity, telecom companies have increased their tariffs to increase their average revenue per user (ARPU) and invest in the latest technologies. Other factors resulting in a positive outlook for the telecom industry include:

    • Robust Demand: India is one of the biggest consumers of data worldwide. As per TRAI, the average wireless data usage per wireless data subscriber was 19.47 GB per month in March 2024 compared to 61.66 MB in March 2014. The total volume of wireless data usage increased by more than 10 folds from 4,206 petabytes in Q1, FY18, to 47,629 petabytes in Q2, FY24. In India, the teledensity of rural subscribers reached 59.19% in March 2024. Growing consumption and increasing teledensity together result in a robust demand for telecom services.
    • Attractive Opportunities: 5G subscriptions in India will grow to 350 million by 2026, accounting for 27% of all mobile subscriptions. An increasing number of 5G users will be a huge customer base, which requires companies to invest in 5G technology.
    • Government Support: The Union Cabinet approved a Rs. 12,195 crore production-linked incentive (PLI) scheme for telecom & networking products under the Department of Telecom. As of December 2022, 42 companies have committed an investment of Rs. 4,115 crore (US$ 502.95 million) comprising 28 MSMEs and 14 Non-MSMEs (eight domestic and seven global companies) approved under the PLI Scheme to develop 6G technology.
    • Increased Investments: In the Union Budget 2023-24, the Department of Telecommunications was allocated Rs. 97,579.05 crore. FDI inflow in the telecom sector stood at US$ 39.32 billion between April 2000 and March 2024.

    Reason Behind Tariff Hike

    The telcos have reasoned the price hike to improve the Average Revenue per User (ARPU). The new rates reflect a substantial increase of up to 25 percent, affecting both prepaid and postpaid plans. According to Bharti Airtel, the mobile ARPU was considerably low and needs to be upwards of Rs 300. In terms of ARPU (average revenue per user), Airtel leads the industry with Rs 208, against Jio’s Rs 181.7 and Vodafone Idea’s Rs 145. 

    The March 2024 quarter ARPUs (Average Revenue Per User) for the telecom operators varied between a low Rs.145 for Vodafone Idea and Rs. 208 at the higher end for Bharti Airtel, which is far from the required level and need efforts from telecom companies to improve return on investment.

    Impact on Major Telecom Companies 

    The tariff hike will improve the profits and cash flows that telecom companies will utilize to invest in high-margin fiber broadband and enterprise or data-center offerings and thus would increase their margins going forward.

    The telecom company’s revenues are expected to rise by approximately 15%, resulting in increased profits. The telecom industry has suffered from price wars in the past, but with a positive industry outlook, the market expects a future price hike. Tariff hikes will have a positive impact on the stock prices of telecom companies due to increased revenues and profits. The positive impact has also been confirmed by the brokerage houses that have raised targets for telecom stocks.

    Indus Towers, the country’s largest mobile tower installation company, has been reporting strong results. For the March 2024 quarter, the number of towers increased by 3.8% sequentially and 13.9% year-on-year to nearly 220,000. Indus added nearly 27,000 towers in FY24 compared with 24,000 between FY21 and FY23. Any improvement in the cash flow of telcos will support this trend.

    So, the latest increase in tariffs by Reliance Jio, Bharti Airtel, and Vodafone Idea can be considered a step in the right direction. However, whether these companies will be able to commence another price hike and their timing isn’t known yet. The latest increase was after a gap of almost 2.5 to 3 years. Any adverse effect of such tariff revisions on the subscriber’s data usage pattern will be crucial.  

    Government Intervention

    The government and the telecom regulator have no intention of intervening in the telecom sector’s decision to increase prices, as the tariffs in India are still among the cheapest in the world. However, the government wants the companies to focus on quality of services. There is healthy competition in the telecom sector that may not require the intervention of government authorities. 

    Read Also: List of Best Telecom Stocks in India 2025

    Conclusion

    Tariffs were hiked in the Indian telecom sector recently, resulting in a rise in revenues by nearly 15%. The tariff hike is likely to be absorbed by the market, and the impact will become visible in their Q3 2025, i.e., December quarter financials. The effect may take longer for Reliance Jio since it has a higher percentage of customers on longer-duration packs. 

    The need to invest in the latest technology has forced telecom companies to raise tariffs to increase their ARPU. Revenue and profit increases will have a positive impact on telecom stocks. However, you should consult your financial advisor before investing.

    Frequently Asked Questions (FAQs)

    1. Why are telecom operators increasing tariffs?

      The telecom companies are increasing tariffs to boost the average revenue per user (ARPU) after significant investments in 5G services.

    2. What are the advantages of investing in the Telecom sector?

      The advantage of investing in the telecom sector is that investors can benefit from price appreciation in telecom company stocks due to the constantly increasing consumer base and data consumption.

    3. How much Foreign Direct Investment is allowed in the Telecom Sector?

      100% FDI is allowed in the telecom sector under the automatic rule.

    4. Is the recent Tariff hike good for the industry?

      Yes, as the profitability of the individual companies increases, it will be good for the telecom industry.

    5. Which key players will benefit from the tariff hike?

      Reliance Jio, Bharti Airtel, Vodafone Idea, and other related businesses, like Indus Towers and Tejas Networks, will benefit from the tariff hike.

  • What is Earnings Per Share (EPS)?

    What is Earnings Per Share (EPS)?

    When investing in stocks, you must have heard about the term “Earnings Per Share” or ”EPS”.  The EPS metric is of great importance as it conveys the profitability of a company and the amount shareholders earn for each outstanding common stock. 

    In today’s blog post, we will introduce you to earnings per share, or EPS, and discuss its features, formula types and limitations.

    What is Earnings Per Share (EPS)?

    The amount of profit allotted to each outstanding share of the corporation is known as earnings per Share or EPS. It is a financial metric used to assess a business’s profitability. The company’s EPS value can be used to compare its profitability with its peers. A higher EPS indicates higher profitability. Various factors and metrics other than EPS must be considered to determine whether to purchase or sell this company. 

    Features of Earnings Per Share

    Features of EPS

    EPS offers the following features: 

    1. EPS measures a company’s profitability and conveys the amount earned by each outstanding share of common stock. 

    2. The company’s net earnings are divided by the number of outstanding common shares to calculate EPS. 

    3. It measures the company’s financial health, indicating whether or not it is growing steadily. 

    4. Share repurchases reduce the number of outstanding shares and can raise EPS without a change in income. 

      EPS Formula

      EPS Formula

      The formula to calculate EPS is explained below-

      Earning Per Share = (Net Income – Preferred Dividends)   / Common Shares outstanding at the end of the period.

      The common shares outstanding change over the period of time, and thus, many analysts use weighted average common shares outstanding in the denominator.

      Earning Per Share = (Net Income – Preferred Dividends)   / Weighted Average Common Shares Outstanding during the period

      Net income refers to a company’s earnings after taxes for a given fiscal year. Preferred dividends are the dividends given to preferred shareholders. Outstanding common shares denote the total number of shares currently held by shareholders. 

      To further understand this, let’s use the example of ABC Ltd., which reported earning Rs. 11 lakhs in net income for the previous fiscal year. The business distributed Rs. 1 lakh to preferred shareholders as a dividend. Additionally, there are 5 lakh outstanding common shares in total.

      Now, we can compute ABC Ltd.’s EPS using the formula mentioned above:  

      EPS = (11,00,000-1,00,000)/5,00,000 = Rs. 2

      Hence, in this case, the EPS of the company is Rs. 2 per share, which means that each shareholder earns Rs. 2 for each share held by them.

      Read Also: Top 10 Cable Stocks in India

      Types of Earnings Per Share

      Types of EPS

      The various types of EPS are mentioned below:

      1. Trailing EPS: This metric refers to a company’s earnings per share computed for the previous 12 months. Its calculation is straightforward and consistent. Trailing EPS is one of the most utilized measures. This measure uses actual data and does not depend on assumptions. 

      Trailing EPS = (Net Income of past 12 months – Preferred Dividends) / Weighted average common shares outstanding during the period.

      2. Basic EPS: EPS is calculated by dividing net income by the weighted average common shares outstanding during the period.

      Basic EPS = (Net Income – Preferred Dividends) / Weighted average common shares outstanding during the period

      3. Diluted EPS: The impact of the company’s prospective convertible securities is considered when calculating diluted earnings per share. All convertible securities are assumed to be exercised and converted to common shares. It is the most elaborate method of EPS computation.

      Diluted EPS = (Net Income – Preferred Dividends) / (Weighted average common shares outstanding + Shares from convertible securities)

      4. Adjusted EPS: EPS is determined by removing the one-time income or expenses from the net earnings of the business to get an adjusted income measure.  

      Adjusted EPS =  (Adjusted Net Income – Preferred Dividends) / Weighted average common shares outstanding during the period

      Importance of Earnings Per Share

      The following points highlight the importance of EPS:

      • Through EPS, one can easily measure the profitability of the company.
      • EPS allows you to easily compare the company’s profitability with its peers.
      • A steady increase in EPS over time ensures an investor that the company is managing its resources optimally.
      • Investors look at the company’s EPS growth rate when making investment decisions.

      Limitations of Earnings Per Share

      EPS has the following limitations:

      • Generally, a historically low or high EPS does not mean that the company will perform similarly in future.
      • Profitability can be significantly changed due to various external factors.
      • Cash flows are not included while calculating the EPS. Therefore, it might not represent the exact financial position of the company.
      • EPS can be artificially increased by reducing the number of outstanding shares. Outstanding shares can be reduced using buybacks.

      Read Also: How to Find Winning Penny Stocks? Step by Step Guide

      Conclusion

      To sum up, EPS is a crucial financial metric for assessing the profitability of the business. The profit a shareholder earns for each share they own can be determined using EPS. Earnings per share provide significant insights and can help simplify investment decisions, but it is advised that before investing, a person should speak with their investment advisor. 

      Frequently Asked Questions (FAQs)

      1. What is EPS?

        Earnings per Share, or EPS for short, is a financial metric that shows how much profit is earned by each outstanding share. It is computed by dividing the company’s net income by the total outstanding shares.

      2. Can a company have negative earnings per Share?

        A business with negative income has a negative EPS.

      3. When does the company report the EPS?

        Companies generally report EPS on a quarterly or yearly basis.

      4. What does adjusted EPS mean?

        Any one-time income or expense is subtracted from the company’s earnings to get adjusted net income in the adjusted EPS formula. One-time gains and losses are removed to provide a more accurate net income measure that a company normally earns.

      5. How does the buyback of shares impact the company’s EPS?

        The company’s share repurchase program will directly boost earnings per share (EPS) since it will reduce the number of outstanding shares while net profit remains unchanged.

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