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How AI and Machine Learning Are Changing Investment Strategies

Making informed decisions based on available information has always been at the core of investing. Traditionally, investors relied on charts, financial statements, and intuition to guide their choices. However, with advancements in artificial intelligence (AI) and machine learning (ML), investors now have tools that can process massive volumes of data, uncover hidden patterns, and support faster, more precise decision-making.

AI is no longer a distant concept. From robo-advisors that build personalized portfolios to algorithms capable of forecasting market trends in real time, these technologies are already transforming how both institutions and individual investors approach the market.

In this blog, we will take a closer look at how AI and ML are reshaping investment strategies and examine whether these technologies have the potential to outperform human judgment.

AI & Machine Learning in Finance – An Overview

In finance, artificial intelligence (AI) refers to computers that have the ability to “think” just like people. AI is faster than humans at analyzing huge volumes of financial data, and identifying patterns that humans might overlook.

Machine learning (ML) is a key subset of AI. It is the mechanism through which these systems learn and improve. By evaluating historical data, machine learning (ML) teaches computers to get more accurate on their own without needing to stick to strict guidelines. Their ability to make predictions and provide useful insight improves with the amount of data they see.

Example

Robo-advisors that make investment portfolio recommendations according to your objectives.
Smart algorithms that try to predict changes in stock prices.
Systems that identify fraudulent activity on your account.

How AI Changes Investment Strategies

Investing has changed over time. The majority of strategies were based largely on human judgment, hours of research, and a little intuition. AI has emerged as a powerful assistant in the modern era, helping investors make quicker, wiser, and more sensible choices.

This is how it is having an impact:

1. Using Big Data for Better Understanding

These days, markets are more than just numbers. AI is able to identify signals that humans might miss by filtering through content such as news headlines, social media buzz, and even satellite photos. It is comparable to having a super-analyst who is constantly alert.

2. High-frequency trading

Trades can be completed in a matter of seconds because of AI-driven algorithms that can identify patterns and respond immediately. Real-time, automated processes that once required whole teams of analysts are now possible.

3. Tailored Portfolios

AI is now able to create an investment plan that truly fits your objectives, risk tolerance, and time horizon by using robo-advisors. What is the best part? Without you having to do anything, it continuously adjusts and rebalances.

4. Intelligent Risk Control

Although markets can be unpredictable, artificial intelligence (AI) can help by identifying early indicators of volatility or unusual activity. This allows investors more time to respond and safeguard their capital.

5. Removing Emotion from Investing

As we all know, emotions can cause us to follow the herd, panic sell, or chase after short-term gains. AI is emotionless. Analyzing investor behavior keeps strategies grounded and logical.

Using AI to Predict Market Trends

Identifying market trends before they become evident is one of the most intriguing ways that AI is transforming investing. AI is capable of looking into huge amounts of data, making connections, and pointing out potential directions rather than merely examining charts and historical performance.

This is how it operates:

Examining Past Information: AI examines years, even decades, of changes in interest rates, prices, and business performance. It can make predictions about how markets might act in similar scenarios by identifying trends.
Evaluation of the Market’s Attitude: To determine investor sentiment, AI tools look at analyst reports, news headlines, and even posts on social media. AI is able to detect excessive optimism or fear before it manifests itself in stock prices.
Identifying Unobserved Signals: Stock charts sometimes miss the most crucial signals. This “alternative data” is gathered by AI, which then uses it to make predictions.
Adjustments in Real Time: Like markets, AI is subject to sudden shifts. AI can adapt in real time, responding immediately to fresh data, in contrast to traditional models that may update monthly or quarterly.

Why Human Oversight Still Matters

Although AI is intelligent, it is not perfect. No machine is capable of accurately capturing the human, emotional, and unforeseen factors that drive markets. This explains why investing still largely depends on human expertise.

We cannot yet give everything to the machines for the following reasons:

AI Is Not Always Correct: Predictions will not be accurate if the incoming data isn’t. Humans can help by verifying, challenging, and adding common sense in this situation.
Markets Are More Than Just Data: Numbers do matter. However, events like sudden political decisions, international conflicts, or even a change in public sentiment can influence markets in ways that artificial intelligence may not be able to comprehend. Investors with experience are able to see beyond what is apparent.
Morality Is Important: AI follows patterns without considering accountability. Human oversight ensures decisions remain not only profitable but also ethical and compliant with regulations.
Experience Is Worth It: Although AI is faster than humans at scanning data, it does not have an idea about human sense and life lessons from previous market ups and downs. It is difficult to replace the human standpoint.

The Future of AI in Investments

Although AI has already begun to alter how we invest, the most captivating part is yet to come. The technology will become more involved into daily financial decisions as it becomes advanced and widely available.

Here is a glance at what the future may hold,

Portfolios that are genuinely personal: No more formulaic approaches. AI has the potential to build portfolios that feel customized, taking into account not only your objectives and income but also your spending patterns and risk tolerance.
Constant Financial Planning: AI could instantly modify your investments in response to market movements, removing the need for a quarterly review. Consider it a dynamic plan that changes in real time to fit into the surroundings.
Smart Ethical Investing: AI may be able to analyse vast datasets, such as labour practices or climate reports, to assist investors in businesses that align with their values and have positive social impacts.
Consultants powered by AI: Giving financial advisors superpowers is the goal, not replacing them. Advisors can spend more time advising and establishing human connections with clients while AI handles the data processing.
AI That Goes Beyond Analysis: Beyond just crunching numbers, generative AI may be able to write readable reports, run “what-if” scenarios, and even make simple strategy recommendations.

Conclusion

While AI and machine learning cannot guarantee flawless results, they provide powerful tools that enhance the speed, depth, and intelligence of investment decisions. The key lies in finding the right balance, i.e. leveraging AI’s ability to process vast datasets while still relying on human judgment, experience, and strategic thinking.

Looking ahead, the future of investing will likely be defined by collaboration between machine intelligence and human insight. For investors who are open to adapting, this synergy has the potential to unlock new opportunities and shape more resilient strategies.

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6	Best AI-Based Trading Strategies Explained

Frequently Asked Questions (FAQs)

Is it possible for AI to correctly predict the stock market?
Nobody can do it perfectly. However, AI can identify patterns and trends more quickly than humans.
What distinguishes machine learning from artificial intelligence in the financial industry?
While machine learning (ML) is the process by which machines “learn” from data to get better over time, artificial intelligence (AI) is the general concept of machines acting logically.
Is it safe to use robo-advisors?
Yes, the majority are subject to strict regulations. However, it is a good idea to look into their fees and history.
Will AI take the place of human financial advisors?
Not completely. While AI manages the data, humans continue to contribute their expertise, knowledge, and compassion.
How does AI lower the risk of investments?
Investors can take less time by using it to identify early indicators of fraud, volatility, or unusual market activity.

August 28, 2025

What is Derivatives?

Most people are familiar with investing in stocks, but the world of finance offers many other options, such as mutual funds, commodities, ETFs, and derivatives. Among these, derivatives often remain a mystery for many investors and traders.

In simple terms, a derivative is a financial contract and its value is based on an underlying asset. This asset could be a stock, currency, commodity, interest rate, or even an index. Because of this link to other assets, derivatives are considered a powerful trading instrument.

But if you are planning to trade in derivatives, it is important to understand them properly. In this guide, we’ll take a closer look at derivatives and explain everything you need to know.

What are Derivatives?

Derivatives are financial instruments whose value is derived from another asset. This underlying asset can be a stock, bond, commodity, currency, interest rate, or even a market index.

To understand this, here is a simple example.

Suppose you believe the price of crude oil will rise in the next month. Instead of purchasing crude oil physically, you can invest in a derivative contract linked to crude oil prices. This way, you’re speculating on market trends and potentially profiting from the price movement without owning the actual commodity.

Derivatives allow investors to gain exposure to underlying assets at a lower upfront cost. Because of this, they are commonly used by both institutional and retail investors as part of advanced trading and hedging strategies.

Features of Derivatives

Derivatives offer various features that make them unique and profitable to use. These include:

1. Value Based on Underlying Asset

A derivative does not have value on its own. Its price is directly linked to the value of another asset. This makes derivatives dependent instruments. This means they fluctuate only when the price of the underlying asset changes.

2. Future Settlement Date

Derivatives are contracts that involve a future date for execution. When you enter a derivative trade, you agree on a price today, but the actual transaction happens later. This allows investors to speculate on future price movements or lock in prices in advance.

3. No Ownership of Asset

In derivative trading, you do not own the actual underlying asset. You are only agreeing to buy or sell it in the future or profit from its price changes. This makes it easier to access markets. Also, you do not need the full capital for the asset itself.

4. Leverage

Derivatives offer the advantage of leverage. This allows you to control large market positions with even smaller investments. This increases the potential for return, but the risk is also high. This is because even small movements can impact your position.

5. Risk Management and Hedging

This is one of the primary features of the derivatives. It helps you hedge against the potential losses by safeguarding your position. If you lock the prices today and then there is a fluctuation, the profits from the future price fluctuations stay safe.

6. High Market Liquidity

Many derivatives enjoy high liquidity. This means they can be easily bought or sold in the market. This allows the investors to enter or exit positions quickly without significant price impact.

Types of Derivatives

Derivatives meaning in finance is simple. These are the financial tools that help you earn with hedging and speculation. Based on structure, here are the types to know.

1. Forward Contracts

A forward contract is a private agreement. It is drafted between two parties to buy or sell an asset at a fixed price on a specific future date. These contracts are customized. You can trade them over-the-counter only. These are not traded on formal exchanges. These types of contracts offer flexibility. But they do carry a higher risk due to the lack of regulation and standardization.

2. Futures Contracts

Futures are similar to forwards. The main difference is that these are standardized and traded on recognized exchanges. They involve an obligation to buy or sell. This means the underlying asset is traded at a predetermined price on a set future date. This makes them more transparent and less risky in nature.

3. Options Contracts

Options provide the holder with the right. In these, there is no obligation to perform the underlying act at a specific price within a defined time frame. There are two types of contracts here, which are:

Call option – to buy
Put option – to sell

These are widely used for hedging and speculative purposes. The options offer more flexibility than forwards or futures.

4. Swaps

Swaps are contracts. Under these, the two parties exchange financial obligations or cash flows. Common types include interest rate swaps and currency swaps. For instance, a company might swap a fixed interest rate for a floating one to better manage its loan repayments. Swaps are customized contracts and are typically used by institutions.

How to Trade Derivatives

Getting started with derivatives involves a few key steps. While the instruments might sound complicated to you, investing in them is not. So here are the steps to follow:

1. Open a Trading and Demat Account

Choose a SEBI-registered broker that offers derivatives. You’ll need both a trading and a Demat account to begin.

2. Complete KYC and Enable Derivatives Segment

Submit your KYC documents and request activation for the derivatives segment. Some brokers may assess your income or experience before approval.

3. Understand Margin Requirements

Derivatives need only a margin payment, which is a fraction of the full contract value. Check the margin terms with your broker before placing trades.

4. Select Your Contract

Pick a futures or options contract based on the asset you want to trade. It can be stocks, indices, or commodities. Once done, choose your expiry.

5. Place and Monitor Your Trade

Use your broker’s platform to place buy or sell orders. Keep track of your position and exit before expiry, or let it settle automatically.

Read Also: Index Derivatives in India

Pros and Cons of Derivatives

Derivatives are a great option, but these do have their own pros and cons. Knowing them will help you make the right investment decision without delay. So, here are the ones to know:

Pros of Derivatives

1. Risk Management

Every investor looks for an option that can reduce risk. This is where derivatives are great. They help with hedging and help manage risks better. This is mainly because of the flexible nature.

2. Leverage

You can take large positions with a smaller amount of capital, thanks to margin trading. This makes derivatives cost-effective. This is impactful for traders seeking higher exposure.

3. Portfolio Diversification

Derivatives allow you to gain access to assets or markets. These are the ones that might be difficult to invest in directly. These help you spread your investment risks.

4. Price Discovery

The prices are based on the future value expectations. This helps in finding the fair market value as well. This improves transparency and helps in determining fair market value.

Cons of Derivatives

1. High Risk

Even small price movements can impact your profit and losses greatly. This means the leverage that offers benefits can be risky, too. Hence, managing it accurately is very crucial.

2. Complexity

Derivatives are not beginner-friendly. These come with complex terms and a pricing mechanism. This is why you would need better strategies to invest in them. Hence, if market understanding is lacking, your investment will be impacted.

3. Time-Bound Contracts

Most derivatives have an expiry date. If the market doesn’t move in your favor within that time, you may lose your entire investment.

4. Counterparty Risk

In over-the-counter derivatives like forwards or swaps, there’s always a chance the other party may default on their agreement, especially in volatile market conditions.

Read Also: What is Swaps Derivatives?

Conclusion

For many investors, derivatives may seem complex and intimidating. Their very nature often creates uncertainty. However, with the right knowledge, careful evaluation, and proper strategy, derivatives can be a valuable way to generate positive returns.

At the same time, it is essential to align every trade with your financial goals. Doing so ensures that your investments serve a clear purpose and work toward the results you seek. So, are you ready to explore derivative trading with the right platform and advanced technical features?

Start your journey on Pocketful, a platform designed to make trading smarter, simpler, and more accessible.

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5	What is Intraday Trading?

Frequently Asked Questions (FAQs)

What makes derivatives riskier than regular stocks?
Derivatives are time-bound and often involve leverage. Even small price changes can cause large losses, unlike stocks, which you can hold indefinitely. Timing and margin requirements make them more volatile and complex.
Can I trade derivatives without prior experience?
Technically, yes, but it’s not advised. Derivatives require a deeper understanding of markets, pricing, and risk. Beginners should first learn through demo accounts or low-risk strategies. Once done, you can go ahead with the real money.
Are derivatives only for short-term trading?
Mostly yes. Since they come with expiry dates, derivatives are best suited for short- to medium-term strategies. Long-term investors typically prefer cash market instruments like stocks or mutual funds.
How do I know if I’m eligible for derivative trading?
You must complete full KYC and request activation of the derivatives segment with your broker. Some platforms may also check your income, trading experience, or risk profile before enabling access.
Can derivatives be used during volatile markets?
Yes, and that’s where they shine. Derivatives are often used during volatility to hedge risks or take advantage of sharp price movements. However, higher volatility also increases the chances of loss if not managed carefully.

August 28, 2025

Best Multibagger PSU Stocks in India for 2025

Historically, PSU stocks, or shares of government-owned companies, were largely overlooked by investors due to slow growth, political interference, and modest returns. However, these stocks have made remarkable comebacks in recent times. Several multibagger PSU stocks even delivered returns exceeding 200%, restoring the confidence of long-term investors.

In this article, we will highlight 10 such PSU stocks that have generated impressive profits and are expected to continue performing well in the coming years.

What Makes a PSU Stock a Multibagger ?

A PSU stock qualifies as a multibagger when its robust financial fundamentals, consistent profitability, and strategic market opportunities result in its stock price appreciating several times over the initial investment. Such growth is typically influenced by factors like strong earnings growth, government support, sectoral tailwinds, and operational efficiency. Lets look at these factors in detail.

Government reforms and policies : The government is now providing professional management to private-like PSUs. Disinvestment, delisting and better governance are increasing the growth and profitability of companies.
Sector support : There is huge government spending in sectors like defense, railways, energy and infrastructure. Stocks like HAL, BEL, IRFC are benefiting from this.
Strong balance sheet and high dividend : Most PSU companies are debt-free and give large dividends as returns – like Coal India or NTPC. This gives investors a double benefit in returns.
Growth hidden in valuations : Many PSU stocks are available at cheap valuations due to being ignored for a long time. As soon as the company shows improvement, investors’ confidence returns and the share price rises rapidly.
Long-term perspective : It takes time to become a multibagger. Investors who have been patient have earned multifold returns even in PSUs.

10 Multibagger PSU Stocks Based on Market Capitalisation

Company	Current Market Price (in ₹)	Market Capitalisation (in ₹ crore)	52-Week High (in ₹)	52-Week Low (in ₹)
Hindustan Aeronautics Ltd (HAL)	4,409	2,94,863	5,166	3,046
Bharat Electronics Ltd (BEL)	367	2,68,013	436	240
Coal India Ltd	375	2,31,287	542	349
Indian Railway Finance Corp (IRFC)	122	1,59,893	183	108
Power Finance Corporation (PFC)	393	1,29,562	566	357
Mazagon Dock Shipbuilders	2,710	1,09,334	3,778	1,918
NHPC Ltd	79.9	80,220	100	71
BEML Ltd	3,884	16,173	4,875	2,346
Engineers India Ltd (EIL)	195	10,949	255	142
Shipping Corporation of India	212	9,882	277	138

(Data as of 26th August, 2025)

Read Also: Multibagger Penny Stocks

Overview of the 10 Multibagger PSU Stocks in India

A brief overview of the Multibagger PSU Stocks in India is given below:

1. Hindustan Aeronautics Ltd (HAL)

Hindustan Aeronautics Ltd i.e. HAL is the name of India’s air power which has been the backbone of our fighter planes and helicopters for decades. This company not only manufactures modern fighter jets like Tejas, but also specializes in aircraft maintenance, upgrades and support systems. HAL’s network is spread across the country and it is also continuously promoting defense exports. Under ‘Make in India’, HAL has emphasized on indigenous aircrafts and technologies, which has strengthened both India’s strategic power and self-reliance.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-8.26	287.18	647.52

(Data as of 26th August, 2025)

2. Bharat Electronics Ltd (BEL)

Bharat Electronics Ltd i.e. BEL is a strong name in the country’s defense technology. This company manufactures radar systems, missile guidance, and communication devices for the army. The special thing is that BEL is no longer limited to just the defense sector – it is also working on civil projects such as smart city solutions, medical devices and election systems (such as EVM). The company is constantly researching new technologies and strengthening ‘Make in India’. Today BEL has become an important link in the direction of India’s technological self-reliance.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
19.54	259.95	883.1

(Data as of 26th August, 2025)

3. Coal India

Coal India is not just a company, it is the backbone of the country’s energy needs. This is the same name that has been continuously supplying coal to thermal power plants and large industries in India for years. It has many units spread across the country which handle work from mining to transportation. Today, when the country talks about energy security, Coal India is at the forefront. The company has improved mining methods in the last few years, has also taken care of the environment and has made the work better by adopting technology.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-30.17	63.4	164.73

(Data as of 26th August, 2025)

4. Indian Railway Finance Corporation (IRFC)

IRFC is the financial backbone of Indian Railways. This company works to raise and manage funds for railway projects. Whether it is the purchase of new trains, expansion of infrastructure or financing of mega projects IRFC is engaged in strengthening the railways silently. It comes under the Ministry of Railways and is a fully government-owned company. In 2025, when the modernization of railways is gaining momentum, the role of IRFC has become even more important as it is making this growth possible economically.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-32.45	475.53	392.15

(Data as of 26th August, 2025)

5. Power Finance Corporation (PFC)

Power Finance Corporation is an important financing company for India’s power sector. This company provides long-term loans and financial assistance to power projects, increasing the capacity of power distribution and generation across the country. PFC is playing an active role in turning the government’s ’24×7 electricity’ mission into ground reality. The company’s network is spread across the country and it has access to large power developers. By 2025, PFC is also increasing investment in areas like green energy, renewable sources and grid upgrades.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-23.6	307.23	396.34

(Data as of 26th August, 2025)

6. Mazagon Dock Shipbuilders

Mazagon Dock Shipbuilders is India’s leading government shipbuilding company, which builds warships and submarines especially for the Navy. Many state-of-the-art ships are built in this yard located in Mumbai, which increases the strength of the Indian Navy. Mazagon Dock is not limited to just construction, but is also fully capable of design, testing and maintenance. In recent years, the company has focused on indigenous technology and self-reliant defense projects. By 2025, Mazagon Dock has established itself as a strategic and futuristic PSU.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
25.73	1,430.98	3,030.64

(Data as of 26th August, 2025)

7. NHPC Ltd

NHPC i.e. National Hydroelectric Power Corporation is India’s largest hydro power company. This company is running large hydroelectric projects in the hilly and river-dominated areas of the country. NHPC’s work is not limited to power generation only, but it also focuses on sustainable use of water sources and environmental balance. In 2025, NHPC has emerged as a leading PSU in clean energy and environment-sensitive power generation, a strong partner towards making India energy self-reliant.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-16.87	125.77	260.72

(Data as of 26th August, 2025)

8. BEML Ltd

BEML i.e. Bharat Earth Movers Limited, is a multi-sector PSU that manufactures heavy machinery for defense, mining and railway sectors. From tanks to railway coaches and metros BEML’s products are being used in every corner of the country. The company is headquartered in Bengaluru and focuses on indigenous manufacturing and technological self-reliance. In 2025, BEML has proven itself as a fast-growing PSU with new contracts and export orders in the defense and infrastructure sectors.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-0.84	165.53	595.42

(Data as of 26th August, 2025)

9. Engineers India Ltd (EIL)

Engineers India Ltd is a government company that provides engineering, design and consultancy services for oil-gas and infrastructure projects. Be it a refinery or a petrochemical plant, a pipeline project or a city gas network — EIL’s expertise is visible everywhere. The company is taking up projects not only domestically but also internationally. By 2025, EIL has also started working on green energy and climate-sensitive projects, further strengthening its identity as a modern, responsible and technology-enabled PSU.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-8.92	186.98	178.57

(Data as of 27th August, 2025)

10. Shipping Corporation of India (SCI)

Shipping Corporation of India i.e. SCI is India’s leading merchant navy company providing marine freight, tanker service and offshore support services. Its services are spread across the country as well as internationally. SCI is playing an important role in increasing India’s maritime trade capacity. In recent years, the company has upgraded its fleet and adopted digital technology. By 2025, SCI is taking itself in a new direction by moving from public to private transition and better management.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-22.65	83.42	237.95

(Data as of 27th August, 2025)

Key Performance Indicators (KPIs)

The key performance metrics of Multibagger PSU Stocks are mentioned below:

Company	Operating Margin (%)	Net Profit Margin (%)	ROE (%)	ROCE (%)	Debt to Equity
Hindustan Aeronautics Ltd (HAL)	34.95	26.86	23.91	17.41	0.00
Bharat Electronics Ltd (BEL)	29.90	22.24	26.64	33.72	0.00
Coal India Ltd	33.05	24.30	35.67	24.24	0.09
Indian Railway Finance Corp (IRFC)	99.42	23.94	12.34	49.98	7.83
Power Finance Corporation (PFC)	96.99	28.65	19.52	65.86	8.25
Mazagon Dock Shipbuilders	26.82	19.92	30.39	34.5	0.00
NHPC Ltd	54.68	32.84	7.57	6.21	0.99
BEML Ltd	11.38	7.27	10.13	11.43	0.08
Engineers India Ltd (EIL)	20.49	15.28	21.72	23.44	0.00
Shipping Corporation of India	17.97	14.50	10.14	10.00	0.23

(Data as of March, 2025)

Read Also: List Of Best PSU Stocks in India

Factors to be Considered Before Investing in PSU stocks

The opportunity to invest in Multibagger PSU stocks is definitely big, but every opportunity also comes with some risk and requires prudence. Paying attention to the points given below is the mark of a smart investor:

Understand the role of the company and the situation of the sector : Every PSU works in a different sector – like energy, defense, infrastructure or finance. Before investing, it is important to understand what is the policy support of that sector and what is the growth potential in it in the coming years.
Do not take a decision just by looking at past returns : PSU stocks have performed well in recent years, but investing just by looking at old charts can be wrong. It is important that you see whether the company has a solid basis to move forward or not – like new order book, project pipeline and policy support.
Government involvement and disinvestment policy : PSU companies have a government stake, which can sometimes lead to political decisions rather than commercial ones. While the disinvestment policy has proved beneficial for many companies — it is important to be clear about its timing and impact.
Check valuations properly : PSU stocks may look cheap, but their valuations may also be down due to poor business outlook or fundamentals. Invest keeping in mind the PE ratio, book value and future earnings.
Policy and regulatory risks : Public companies are often affected quickly by policy changes — such as tax policies, licensing or environmental regulations. Therefore, it is important that you also evaluate the company’s business model from the perspective of these risks.
Understand the dividend and return structure : PSU stocks often pay high dividends, which is good for long-term income. But sometimes companies only pay dividend-based income and growth is low. Understand this balance of returns before investing.
Have a long-term perspective : Multibagger PSU stocks are not created overnight. They take time — sometimes up to 2–4 years. So if you are expecting quick returns, this strategy is not for you. Only patience and understanding can yield true profits.

Conclusion

Investing in PSU stocks can be rewarding if approached with thorough research and a disciplined, long-term strategy. Public sector companies are becoming increasingly attractive due to strong order books, improved corporate governance, and government policy support. However, each stock should be evaluated carefully based on its sector performance, valuation metrics, and growth potential. For investors with a long-term perspective, PSU stocks have the potential to generate substantial returns. It is advised to consult a financial advisor before investing.

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Frequently Asked Questions (FAQs)

What are multibagger PSU stocks?
These are the stocks of government companies that have the potential to give multifold returns over time.
Are PSU stocks safe for beginners?
Yes, but it is important to understand the company’s position and sector well before investing.
How long should I hold a multibagger PSU stock?
It is better to have a 3 to 5 year perspective in such stocks.
Do PSU stocks give good dividends?
Yes, most PSU companies pay regular and high dividends.
What risks are involved in PSU stock investment?
Risks may include policy changes, political interference and disinvestment.

August 27, 2025

Vikran Engineering Ltd. IPO Day 1: GMP & Subscription Status

Vikran Engineering Ltd.’s IPO is a book-built issue worth ₹772 crore, comprising a fresh issue of ₹721 crore and an offer-for-sale of ₹51 crore. The price band is set at ₹92–₹97 per share. Bidding opens on August 26, 2025, and closes on August 29, 2025. The shares are expected to be listed on BSE & NSE on September 3, 2025.

Vikran Engineering IPO – Day 1 Subscription Status

Vikran Engineering IPO was subscribed 2.51× on Day 1. The public issue received 2.44× subscription in the Retail Individual Investors (RII) category, 0.43× in Qualified Institutional Buyers, and 5.43× in the Non-Institutional Investors (NII) category as of Day 1, i.e., August 26, 2025.

Investors Category	Subscription (×)
Qualified Institutional Buyers (QIB)	0.43
Non-Institutional Investors (NII)	5.43
bNII (above ₹10 lakh)	5.76
sNII (less than ₹10 lakh)	4.78
Retail Individual Investors (RII)	2.44
Total Subscriptions	2.51

Total Applications: 3,91,425
Total Bid Amount: ₹1,356 Cr.

Objective of the Vikran Engineering IPO

Vikran Engineering plans to channel the IPO proceeds towards strengthening its working capital, giving the company the financial flexibility to power daily operations and future growth, while also setting aside funds for general corporate purposes.

Objects of the Issue	Expected Amount (₹ in crores)
Funding working capital requirements of the Company	541.00
General corporate purposes	–

Vikran Engineering IPO GMP – Day 1 Update

Date	GMP	Est. Listing Price	Gain
August 26, 2025 (Day 1)	₹12	₹109	12.37%

Disclaimer: The above GMP (Grey Market Premium) is just unofficial market information, which is not officially confirmed. These figures are shared for informational purposes only and investment decisions based on these should be based on the investor’s own research and discretion. We do not conduct, recommend or support any kind of transaction in the grey market.

Vikran Engineering Ltd. IPO – Key Details

Particulars	Details
IPO Opening Date	August 26, 2025
IPO Closing Date	August 29, 2025
Price Band	₹92–₹97 per share
Total Issue Size	₹772 crore (Fresh: ₹721 Cr; OFS: ₹51 Cr)
Lot Size	148 shares
Listing Platform	BSE & NSE
Registrar	Bigshare Services Pvt. Ltd.

Important Dates for Vikran Engineering IPO Allotment

Event	Date
Tentative Allotment	September 1, 2025
Initiation of Refunds	September 2, 2025
Credit of Shares to Demat	September 2, 2025
Listing Date on BSE & NSE	September 3, 2025

Vikran Engineering Ltd. Overview

Vikran Engineering Ltd., incorporated in 2008, is a growing EPC company with expertise in power, water, railways, and solar projects. It has completed 45 projects across 14 states and is executing 44 ongoing projects worth over ₹51,202 million. Key clients include NTPC, Power Grid Corporation, and various state utilities. With a diversified order book of ₹24,424 million and 761 employees, the company ensures quality and timely delivery. Financially, it reported 17% revenue growth and 4% PAT rise in FY25.

Easy Steps to Apply for Vikran Engineering IPO via Pocketful

Step 1: Install the Pocketful app from Play Store or App Store.
Step 2: Complete your KYC process.
Step 3: Go to the IPO section on the app.
Step 4: Find “Vikran Engineering” in the IPO list.
Step 5: Tap Apply and enter your bid details.

Frequently Asked Questions (FAQs)

What are the opening and closing dates of Vikran Engineering IPO?
Opens August 26, 2025, and closes August 29, 2025.
What is the price band for the IPO?
Price range is ₹92–₹97 per share.
What is the total issue size of the IPO?
Total issue size is ₹772 crore (Fresh: ₹721 Cr; OFS: ₹51 Cr).
When will the shares be listed?
Listing expected on September 3, 2025, on BSE & NSE.
What are the IPO objectives?
Proceeds will fund working capital and general corporate needs.

August 27, 2025

Anondita Medicare Ltd. IPO Allotment Status: Check Latest GMP, Steps to Verify Status

Anondita Medicare Ltd. is launching its IPO as a fresh issue of approximately ₹69.50 crore, offering up to 47.93 lakh equity shares at a price band of ₹137–₹145 per share. The IPO opened on August 22, 2025, and will close on August 26, 2025. The shares are slated to list on the NSE SME platform on September 1, 2025.

Anondita Medicare IPO – Day 3 Subscription Status

On Day 3, the Anondita Medicare IPO was subscribed 300.89× overall. Among investor categories, Qualified Institutional Buyers (QIBs) saw a subscription of 153.03×, Non-Institutional Investors (NII) were subscribed 531.82×, and Retail Individual Investors (RII) recorded 286.20×, reflecting strong demand from both NII and RII segments.

Investors Category	Subscription (×)
Qualified Institutional Buyers (QIB)	153.03
Non-Institutional Investors (NII)	531.82
bNII (above ₹10 lakh)	641.02
sNII (less than ₹10 lakh)	313.43
Retail Individual Investors (RII)	286.20
Total Subscriptions	300.89

Total Applications: 2,88,034
Total Bid Amount: ₹13,843 Cr.

How to Check Anondita Medicare IPO Allotment Status

Anondita Medicare IPO allotment can be easily checked online in two ways: from the Registrar’s website and from the NSE website. This IPO will be listed on NSE SME.

Method 1: Registrar’s website (Maashitla Securities Pvt.Ltd.)

The most reliable way is to check the allotment from Maashitla Securities Pvt.Ltd.’s website.

How to do:

Visit Maashitla Securities’s official website
Select “Anondita Medicare Ltd.” from the IPO list
Enter your details PAN number, Application number, or DP/Client ID
Click on Submit
You will see the allotment status on the screen.

Method 2: Check from NSE’s website

If there is more traffic on the registrar’s website, allotment status can also be checked from the NSE website.

How to do:

Visit NSE’s official website
Select ‘Equity’ segment
Select “Anondita Medicare Ltd.” from the IPO list
Enter PAN number and Application number
Click on Search

Objective of the Anondita Medicare IPO

The primary objectives include funding capital expenditure for new equipment and machinery, meeting working capital requirements to ensure smooth business operations, and allocating funds for potential acquisitions and other general corporate purposes.

Objects of the Issue	Expected Amount (in Millions)
Funding capital expenditure requirements for the purchase of equipment/machineries	60
Funding the Working Capital requirement	350
Unidentified Acquisition and General Corporate Purposes	–

Anondita Medicare IPO GMP – Day 3 Update

On August 26, 2025, the IPO recorded a Grey Market Premium (GMP) of ₹80, leading to an estimated listing price of ₹225. This indicators a strong listing gain of 55.17%, reflecting high investor enthusiasm.

Date	GMP	Estimated Listing Price	Gain
August 26, 2025 (Day 3)	₹80	₹225	55.17%

Important Dates for Anondita Medicare IPO Allotment

Event	Date
Tentative Allotment	August 28, 2025
Initiation of Refunds	August 29, 2025
Credit of Shares to Demat	August 29, 2025
Listing Date on NSE SME	September 1, 2025

Anondita Medicare IPO – Key Details

Particulars	Details
IPO Opening Date	August 22, 2025
IPO Closing Date	August 26, 2025
Price Band	₹137–₹145 per share
Total Issue Size	₹69.50 crore (Fresh Issue)
Lot Size	1,000 shares
Listing Platform	NSE SME

Anondita Medicare Ltd. Overview

Anondita Medicare Ltd., incorporated in March 2024, is a Noida-based manufacturer of flavored male condoms under the brand “COBRA”, with a production capacity of 562 million pieces annually. Serving domestic and export markets (Southeast Asia, Africa, Middle East), the company demonstrated robust growth with revenue rising from ₹46.56 crore in FY24 to ₹77.13 crore in FY25, and PAT surging from ₹3.84 crore to ₹16.42 crore.

Frequently Asked Questions (FAQs)

What are the opening and closing dates of the Anondita Medicare IPO?
The IPO opened on August 22, 2025, and closes on August 26, 2025.
What is the price band of the IPO?
The price range is ₹137–₹145 per share.
What is the total size of the IPO?
The issue comprises a fresh issue of ₹69.50 crore.
When will Anondita Medicare shares be listed?
Listing is expected on September 1, 2025, on NSE SME.
What is the Day 3 subscription status?
The IPO has seen 300.89× overall subscription.

August 26, 2025

Shivashrit Foods Ltd. Allotment Status: Check Latest GMP, Steps to Verify Status

Shivashrit Foods Ltd. has launched its SME IPO on August 22, 2025, with an issue size of ₹70.03 crore, comprising a fresh issue of ₹61.29 crore and an offer-for-sale of ₹8.75 crore. The IPO closed for subscription on August 26, 2025, and the shares are scheduled to list on the NSE SME (Emerge) platform on September 1, 2025.

Shivashrit Foods IPO – Day 3 Subscription Status

On Day 3 of the Shivashrit Foods IPO, the issue received a total subscription of 2.89×. Among investor categories, Qualified Institutional Buyers (QIBs) were subscribed 1.59×, Non-Institutional Investors (NII) received 5.16×, and Retail Individual Investors (RII) recorded a subscription of 2.65×.

Investor Category	Subscription (×)
Qualified Institutional Buyers (QIB)	1.59
Non-Institutional Investors (NII)	5.16
bNII (above ₹10 lakh)	6.38
sNII (less than ₹10 lakh)	2.73
Retail Individual Investors (RII)	2.65
Total Subscriptions	2.89

Total Applications: 2,577
Total Bid Amount: ₹134 Cr.

How to Check Shivashrit Foods IPO Allotment Status

Shivashrit Foods IPO allotment can be easily checked online in two ways: from the Registrar’s website and from the NSE website. This IPO will be listed on NSE SME.

Method 1: Registrar’s website (Maashitla Securities Pvt.Ltd.)

The most reliable way is to check the allotment from Maashitla Securities Pvt.Ltd.’s website.

How to do:

Visit Maashitla Securities’s official website
Select “Shivashrit Foods Ltd.” from the IPO list
Enter your details PAN number, Application number, or DP/Client ID
Click on Submit
You will see the allotment status on the screen.

Method 2: Check from NSE’s website

If there is more traffic on the registrar’s website, allotment status can also be checked from the NSE website.

How to do:

Visit NSE’s official website
Select ‘Equity’ segment
Select “Shivashrit Foods Ltd.” from the IPO list
Enter PAN number and Application number
Click on Search

Objective of the Shivashrit Foods IPO

The funds raised will be used to finance expansion projects, strengthen working capital, and support general corporate needs, enabling the company to scale its operations efficiently.

Objects of the Issue	Expected Amount (in Millions)
Capital Expenditure (“Expansion Project”)	263
Working Capital Requirement for Expansion Project	190
General Corporate Purpose	–

Shivashrit Foods IPO GMP – Day 3 Update

At the end of its third day, the IPO had a Grey Market Premium (GMP) of ₹1, resulting in an estimated listing price of ₹143. This translated to a negligible listing gain of 0.70%.

Date	GMP (₹)	Estimated Listing Price (₹)	Gain (%)
August 26, 2025 (Day 3)	₹1	₹143	0.70%

Shivashrit Foods Ltd. IPO – Key Details

Particulars	Details
IPO Opening Date	August 22, 2025
IPO Closing Date	August 26, 2025
Price Band	₹135–₹142 per share
Total Issue Size	₹70.03 crore (Fresh: ₹61.29 Cr; OFS: ₹8.75 Cr)
Lot Size	1,000 shares
Listing Platform	NSE SME
Registrar	Maashitla Securities Pvt. Ltd.

Important Dates for Shivashrit Foods IPO Allotment

Event	Date
Tentative Allotment	August 28, 2025
Refunds Initiation	August 29, 2025
Credit of Shares to Demat	August 29, 2025
Listing Date on NSE SME	September 1, 2025

Shivashrit Foods Ltd. Overview

Incorporated in 2017 and headquartered in Aligarh, Uttar Pradesh, Shivashrit Foods Ltd. is engaged in the production, supply, and export of premium potato flakes used in ready-to-eat meals, snacks, and processed foods. Its processing facility holds multiple certifications including FSSAI, ISO 22000, HALAL, BRCGS, and USFDA, ensuring global standards of quality. The company markets its products both domestically and internationally, catering to rising demand in the food processing sector.

Financially, Shivashrit Foods has demonstrated strong growth momentum, with revenue increasing from ₹77.55 crore in FY2024 to ₹105.85 crore in FY2025, while PAT rose from ₹11.61 crore to ₹12.06 crore during the same period.

Frequently Asked Questions (FAQs)

When does the Shivashrit Foods IPO open and close?
The IPO opens on August 22, 2025, and closes on August 26, 2025.
What is the price band?
Price band for the IPO is set at ₹135 to ₹142 per share.
What is the issue size and structure?
Total size is ₹70.03 crore, comprising a fresh issue of ₹61.29 crore and OFS of ₹8.75 crore.
When will the listing happen?
Shares of Shivashrit Foods will list on September 1, 2025, on NSE SME.
What are the IPO objectives?
Funds will be used for expansion capital expenditure, working capital needs, and general corporate purposes.

August 26, 2025

Classic Electrodes Allotment Status: Check Latest GMP, Steps to Verify Status

Classic Electrodes (India) Ltd.’s IPO is a fresh issue of ₹41.51 crore, with a price band of ₹82–₹87 per share. Bidding opens on August 22, 2025, and closes on August 26, 2025. The shares will be listed on NSE SME on September 1, 2025.

Classic Electrodes IPO – Day 3 Subscription Status

On Day 3 of the Classic Electrodes IPO, the issue received a total subscription of 179.97×. Among investor categories, Qualified Institutional Buyers (QIBs) were subscribed 84.88×, Non-Institutional Investors (NII) received 356.75×, and Retail Individual Investors (RII) recorded a subscription of 158.44×.

Investors Category	Subscription (×)
Qualified Institutional Buyers (QIB)	84.88
Non-Institutional Investors (NII)	356.75
bNII (above ₹10 lakh)	421.54
sNII (less than ₹10 lakh)	227.62
Retail Individual Investors (RII)	158.44
Total Subscriptions	179.97

Total Applications: 1,01,973
Total Bid Amount: ₹4,927 Cr.

How to Check Classic Electrodes IPO Allotment Status

Classic Electrodes IPO allotment can be easily checked online in two ways: from the Registrar’s website and from the NSE website. This IPO will be listed on NSE SME.

Method 1: Registrar’s website (MUFG Intime India Pvt. Ltd.)

The most reliable way is to check allotment from MUFG Intime India Private Limited’s website.

How to do:

Visit MUFG Intime’s official website
Select “Classic Electrodes” from the IPO list
Enter your details PAN number, Application number, or DP/Client ID
Click on Submit
You will see the allotment status on the screen.

Method 2: Check from NSE’s website

If there is more traffic on the registrar’s website, allotment status can also be checked on the NSE.

How to do:

Visit NSE’s official website
Select ‘Equity’ segment
Select “Classic Electrodes” from the IPO list
Enter PAN number and Application number
Click on Search

Objective of the Classic Electrodes IPO

The primary objectives of the IPO are to fund capital expenditures, repay outstanding borrowings, meet working capital requirements, and support general corporate purposes.

Objects of the Issue	Expected Amount (in Millions)
Funding capital expenditure of our company to purchase Plant and Machinery	100
Repayment of a portion of certain outstanding borrowing availed by the company	100
Funding the working capital requirements of the company	166
General Corporate Purposes	–

Classic Electrodes IPO GMP – Day 3 Update

On August 26, 2025, the IPO showed a Grey Market Premium (GMP) of ₹17, translating to an estimated listing price of ₹104. This resulted in a healthy listing gain of 19.54% for investors, signaling strong market enthusiasm for the IPO.

Date	GMP	Est. Listing Price	Gain
August 26, 2025 (Day 3)	₹17	₹104	19.54%

Classic Electrodes (India) Ltd. IPO – Key Details

Particulars	Details
IPO Opening Date	August 22, 2025
IPO Closing Date	August 26, 2025
Price Band	₹82–₹87 per share
Total Issue Size	₹41.51 crore (Fresh Issue)
Lot Size	1,600 shares
Listing Platform	NSE SME
Registrar	MUFG Intime India Pvt. Ltd.

Important Dates for Classic Electrodes IPO Allotment

Event	Date
Tentative Allotment	Thu, Aug 28, 2025
Initiation of Refunds	Thu, Aug 28, 2025
Credit of Shares to Demat	Fri, Aug 29, 2025
Listing Date on NSE SME	September 1, 2025

Classic Electrodes (India) Ltd. Overview

Established in 1997 and headquartered in Kolkata, West Bengal, Classic Electrodes (India) Limited is a leading manufacturer of welding consumables, including electrodes and MIG wires, catering to both domestic and international markets. The company offers a wide range of products such as mild steel, stainless steel, cast iron, deep penetration electrodes, and MIG wires for varied industrial applications. With two manufacturing units located in Dhulagarh, West Bengal, and Jhajjar, Haryana, it ensures strong regional coverage and efficient logistics, while the earlier Bahadurgarh unit was closed in FY 2023–24 as part of restructuring.

Frequently Asked Questions (FAQs)

What are the opening and closing dates of Classic Electrodes IPO?
The IPO opened on August 22, 2025, and closed on August 26, 2025.
What is the price band for the IPO?
The price band is set between ₹82 and ₹87 per share.
What is the issue size of the IPO?
The IPO size is ₹41.51 crore (fresh issue only).
When will the shares be listed?
Shares are expected to be listed on NSE SME on September 1, 2025.
What is the GMP of Classic Electrodes IPO on Day 3?
The GMP at the close of Classic Electrodes IPO on Day 3 was ₹17.

August 26, 2025

Rapido Case Study: Business Model, Marketing Strategy, Financial, and SWOT Analysis

Rapido is a leading Indian two-wheeler ride-hailing service that launched in 2015 and is now active in over 100 cities. The platform offers services like bike-taxi, auto-rickshaw, parcel delivery and operates on an asset-light model.

In this Rapido case study, we will try to understand the Rapido Business Model, marketing strategy of Rapido, financial analysis of Rapido and SWOT analysis of Rapido in detail.

Rapido: An Overview

Rapido was launched in October 2015 when three youngsters Aravind Sanka, Pavan Guntupalli, and SR Rishikesh previously ran a logistics platform, the Karrier. While this option was stable, scaling was difficult. They realised that two-wheelers (motorcycles) account for nearly 75% of vehicles in India, and could make for a much faster, cheaper option. This insight led them to launch ‘Rapido’ a bike‑taxi platform.

Market Context : At the time, India was dominated by big players like Ola and Uber, but these were focused on four-wheelers. The country had traffic jams, expensive travel, and insufficient public transport. Rapido has introduced an asset‑light, two-wheeler-based, last‑mile solution to provide affordable and faster travel, especially in Tier‑2, Tier‑3 cities.

Rapido has achieved several key milestones:

Expansion across cities: Rolls out to 100+ cities by 2022
Unicorn status: Becomes a Unicorn with a $200 million Series E funding round in September 2024; valuation recorded at $1.1 billion
Financial progress: Revenues rise to ₹648 crore in FY24 (₹443 crore in FY23), and losses narrow to ₹370 crore (₹675 crore in FY23)

Some of the key metrics of Rapido are shown in the table below:

Metric	Data
Revenue (FY24)	₹648 crore (increased from ₹443 crore FY23)
Losses (FY24)	₹370 crore (decreased from ₹675 crore)
Gross Order Value (GOV) FY24	₹4,257 crore (from ₹2,419 crore FY23)
Ride Orders (FY24)	Around 44.50 crores rides (increased from 30.7 crores FY23)
Cities of Operation	100+ cities

Rapido Business Model

Rapido is a bike taxi aggregator that is rapidly transforming local transportation in India’s urban and semi-urban areas. Its model is based on a tech-enabled, asset-light, two-sided marketplace – where there are customers (riders) on one side and bike drivers (Captains) on the other. Rapido connects the two through a seamless mobile app.

Aggregator Platform – No vehicle, just technology : Rapido does not own any bike. It is a platform-based aggregator that provides services through other people’s bikes. Captains register on the app with their documents and bikes and then accept on-demand rides. The entire system is managed by the app and GPS tracking.
Asset-Light Model Low Cost, High Scale : Rapido’s business model is based on an asset-light structure, i.e. the company does not buy any bikes itself. This keeps its fixed cost very low and it can start its operations in new cities very quickly.
Hyperlocal Market Focus Small cities, big scope : Rapido’s strategy is not limited to metro cities only. It has also launched its service in small and medium cities, where there is a demand for local transport but there is a lack of organized solutions. With this hyperlocal penetration, Rapido has gained early-mover advantage in markets with less competition.

Rapido Earns – How does revenue come about?

Rapido makes money from multiple sources:

Per Ride Commission : Rapido takes a commission of around 15% to 20% on every ride. The rest of the money goes to the driver’s account.
Surge Pricing : When demand is high (peak hours, festivals), the price of the ride increases, which gives more revenue to the company.
Rapido Local & Delivery : Rapido has now added delivery services to its platform, such as sending parcels, groceries or office documents. This has added a new revenue stream.
Subscription Plans : Monthly subscription plans have also been introduced for frequent users in some metro cities, which gives discounts to the users and assured income to the company.
Brand Collaborations & Ads : Rapido also earns through in-app advertising and promotional campaigns in collaboration with other brands on its app.

Marketing Strategy of Rapido

1. Brand Positioning & Messaging

Rapido has positioned itself as “India’s Bike-Taxi Disruptor” with a focus on affordability, faster service, and local connect. Their tagline “Bike Wali Taxi, Sabse Asaan” with simple messaging assures users that getting a ride is now easy and affordable.

Social Campaigns: Rapido ran campaigns like #GoRapido and #NoStressSawari that presented real-life problems of daily commute in a relatable way.
Influencer Marketing: Collaborated with regional content creators to increase reach to local audiences.
App Optimization: App store optimization, push notifications, and personalized deals were used to drive user engagement and retention.

3. Celebrity Branding

In 2023, Ranveer Singh was made the brand ambassador. Catchy ads like “Smart ho toh Rapido” were launched with him which especially appeal to the youth. In 2024-25, campaigns were made more relatable by adding local actors and influencers from small cities.

4. On-ground Strategy

Focus on small cities : Rapido initially chose those cities where bike usage was already high. The youth and delivery agents there were made “Captains”.
Referral Bonus : People who had already joined were given a bonus for bringing their friends this increased both trust and network rapidly.
Local Branding : On-ground branding at places like railway stations, petrol pumps and local markets made the brand familiar in the eyes of the people.

5. Go-To-Market Plan for Food Delivery

One App, Two Jobs : Rapido integrated ride as well as food delivery in the same app so that users do not have to open separate apps.
Low Commission Strategy : While Zomato/Swiggy charge a hefty commission, Rapido charged only half the amount from restaurants. This helped more vendors to join.
Tier-2/3 Cities Onboarding : In small cities, local dhabas and restaurants were onboarded as quickly as possible by offering zero commission or ₹25 fixed delivery charge.

Rapido did not limit itself to just one bike-taxi app. They collaborated with big entities like DMRC and ONDC to create pickup/drop zones at metro stations and also introduced features like metro ticket booking.

Financials Analysis of Rapido

Financial Metrics

Financial Metrics	FY 2024	Q2 FY25
Revenue (₹ in crores)	₹648 crore (46% YoY growth)	—
Net Loss (₹ in crores)	₹370 crore (down by around 45%)	₹17 crore (drop from ₹74 crore)
GOV (Gross Order Value)	₹4,257 crore	₹2,461 crore (2.5x of Q2 FY24)

Rapido has shown rapid growth in the past years. The company’s total revenue in FY24 was ₹ 648 crores, which is about 46% more than last year (₹ 443 crores). During the same period, the company has also reduced its losses, the loss was ₹ 675 crores in FY23 which reduced to ₹ 370 crores in FY24.

Rapido’s Gross Order Value (GOV) also doubled to ₹ 4,257 crores in FY24. The main reason for this GOV growth was the increasing demand for the company’s services and expansion in tier-2/tier-3 cities.

SWOT Analysis of Rapido

Strengths

Low-cost mobility solution: Rapido offers an affordable option for two-wheeler riding, which is a better option for users troubled by traffic in metros and big cities. Its rides are much cheaper than taxis or autos.
Strong network in big cities: Rapido has made its presence felt in 100+ cities in India, including metro cities like Delhi, Bangalore, Hyderabad and Chennai. Its driver network is also constantly growing.
Ideal for quick pickups and short distance rides: Rapido is a fast, convenient and reliable medium for short distance trips. The bike easily passes through the traffic, which saves time.
Partner-centric model: Rapido offers flexible timings, good incentives and an easy joining process to its captains (drivers), which helps it attract more riders to the platform.

Weaknesses

Safety concerns: Bike rides have less safety than taxis, especially for women or in bad weather. This makes many users reluctant to book a ride.
Regulatory challenges: Many states do not have clear rules regarding bike taxis or they are banned. This affects the company’s growth.
Limited earnings for drivers: Due to excessive competition and cheap rates, the earnings of drivers are limited, which can make it difficult for them to remain associated with the platform.

Opportunities

Opportunity to expand in smaller cities: Rapido can now enter tier 2 and tier 3 cities where there is a lack of public transport and there is a demand for cheap rides.
Last mile delivery service: Rapido can also quickly enter the last mile delivery market through its logistics service “Rapido Local”.
Technology upgrades and AI-based features: Using AI and data analytics, Rapido can perform route optimization, user personalization and safety enhancement.

Threats

Increasing competition: Increasing competition from Ola, Uber and new local startups can affect Rapido’s market share.
Changes in government policies: If state governments ban bike taxis, Rapido’s operation capacity may decrease.
Lack of customer trust: Many users consider bike taxis to be less safe, which makes it difficult to build brand trust.

Conclusion

Rapido has changed the way of commuting in cities with less cost, less time and less hassle. This has become a big relief especially for the middle class and students. However, obstacles like legal policy and regulation still stand in its way. But the way the company has grown rapidly, focused on technology and won the trust of the people shows that it has the strength to run for the long haul. If it gets policy support, Rapido can become a big name in India’s mobility sector.

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Frequently Asked Questions (FAQs)

Who is the CEO of Rapido?
The CEO of Rapido is Aravind Sanka, who is also the co-founder of the company.
Who owns Rapido?
Rapido is owned by its three founders Aravind Sanka, Rishikesh SR and Pavan Guntupalli and some investors.
Who invested in Rapido?
Rapido has investments from several major investors, such as WestBridge Capital, Nexus Venture Partners, and Swiggy has also made strategic investments.
Can anyone become a Rapido rider?
Yes, if you have a bike, valid license and required documents then you can register.
What makes Rapido different from Ola or Uber?
Rapido primarily provides bike riding service, which is fast, affordable and convenient in traffic.

August 26, 2025

Trump Tariffs on India: Trade vs Russian Oil

A new crisis has erupted in India–US relations after the Trump administration imposed tariffs on Indian exports linked to India’s purchases of Russian crude. Meanwhile, India is set to meet about 36-40% of its total crude oil imports from Russian oil in 2024-25, leading to huge energy savings and keeping domestic prices in check.

Now the question is: Will India give up its cheap energy and prioritize the US market, or will it maintain energy security by losing trade benefits?

Why India Relies on Russian Oil

After the Western sanctions on Ukraine, India increased its imports of Russian oil. Now, by January-June 2025, India is meeting about 34% of its total crude oil consumption from Russia, which was less than 2% earlier. In the entire financial year 2024–25, the share of Russian oil in India’s total oil imports reached about 36%, while the share of the Middle East (OPEC) declined to 48.5%.

Heavy dependence on oil: India imports more than 85% of its total crude oil needs, making the country dependent on global markets for energy security.
Discount is a big reason for the shift towards Russian crude: After the Ukraine crisis in 2022, Russia sold oil at a huge discount amid Western sanctions. On this occasion, India increased its inclination towards Russian oil. Earlier this share was only less than 2%, but now it has reached about 40%.

Year-on-year savings :

Year	Part of Russia	Savings (estimated)
FY22–23	23%	$5.1 billion
FY23–24	35%	$7.9 billion

Resorting to long-term contracts and diversification strategies: Many refiners are ensuring supplies, especially from government term deals (barter annual/long-term contracts) to mitigate any volatility or sudden cuts from Russia. It is not easy to stop such contracts suddenly, so private companies like Reliance, Nayara Energy are continuing to buy.
Direction of change: Looking for alternative sources: Government refiners like BPCL are now increasing supplies from the Middle East (such as Omani oil), especially in January to make up for the shortage of Russian oil. In addition, the country has started buying oil from 39 countries, earlier this number was 27, ensuring energy security and diversity of options.

Chronology of the Tariff Escalation

The recent tariff dispute between the US and India is not just a trade dispute, but an issue deeply intertwined with geopolitical tensions and energy policy. In July–August 2025, the Trump administration put direct pressure on many of India’s export sectors by raising tariffs in two phases.

1. First blow – 25% “reciprocal” tariff (July 30, 2025) : In an executive order issued from the White House on July 30, 2025, the US administration announced the imposition of a 25% reciprocal tariff. Its rationale was that this duty is being imposed in response to the tariffs imposed by India on some products coming from the US.

Affected sectors: Categories such as textiles, gems and jewellery, chemicals, pharmaceuticals and shrimp.
Effective date: From August 1, 2025.

2. Second blow – Additional 25% “penalty” (August 6, 2025) : Another order was issued on August 6, 2025, adding an additional 25% penalty tariff. This was directly linked to India’s continued imports of Russian crude oil, which the Trump administration viewed as “financial support to Russia’s war machine.” The total tariff after this penalty became 50%.

Effective date : 21 days after the August 6 order, i.e. from August 27, 2025.

3. Exemption for goods in transit : The US made a provision that if the shipment was in transit before the order was issued and arrived on time, it would be exempt from the new tariff.

Date	Action	Outcome
July 30, 2025	25%	First set of punitive duties imposed on India
6 August 2025	Additional 25% penalty (on Russian oil)	Total tariff rate increased to 50%
27 August 2025 (Estimated)	Inclusion of shipments already in transit	Full-scale implementation of tariffs

Comparative Impact: Oil Savings vs Trade Losses

India currently faces a balancing challenge on the one hand, the savings from cheap oil from Russia, and on the other, the threat of nearly 50% tariffs from the US that could hit its key export sectors.

What do the facts and figures say?

The scale of oil savings : According to an ICRA report, India saved about $5.1 billion by buying discounted crude from Russia in FY23. Another projection suggests that the discounts have enabled annual savings of $7.9 billion in 11 months of FY24.
The chilling effect of the 50% tariff :Recent reports suggest that the tariffs imposed by Trump could threaten India’s US exports worth about $87 billion. Textiles, jewellery, pharma and petrochemicals critical exports are constantly at risk.
Oil Import Reduction and 25% tariff hit : Even if India reduces Russian oil imports and only the 25% tariff stays in place, trade losses of up to $8–15 billion are expected.

Impact on US-India trade relations

In early 2025, PM Modi and President Trump set a trade goal called “Mission 500”, seeking to take bilateral trade to $500 billion by 2030. But the Trump administration’s displeasure over India’s oil purchases from Russia brought a wave of tariffs instead a dampener on India-US trade.

1. Tariff policy benefits domestic industry

Tariffs have another side: adding to domestic industries.

The PHD Chamber report shows that 25% tariffs would impact exports worth about $8.1 billion, but the impact on overall GDP would be just 0.19% and on global exports 1.87%, as India’s economy is diversified. In response, the chamber has laid out four-fold strategies:

Bundle pricing agreements with global retailers (e.g. Walmart, Amazon)
Development of premium product options
Expanding trade to new markets (EU, Canada, Latin America)
Increasing production in the US through on-shore partnerships.

2. India’s strategic positioning in the global market

The tariff dispute has brought about several changes in India’s foreign policy.According to the Financial Times, while the two countries have started off on a positive note in 2025, the trade dispute has dented the Indo-Pacific strategy Quad meetings are in jeopardy, and India’s ties with China-Russia appear to be strengthening. At the same time, a July report by NITI Aayog shows that the tariff structure in the US has given India an advantage over American competitors in 22 key export categories such as electronics and automobiles. Furthermore, while taking over the Chairmanship of BRICS, Prime Minister Modi has proposed to redefine the organization as “Resilience and Innovation”, which brings out India’s multi-pronged strategic strength.

Impact of cheap Russian crude on India and investors

India has imported record-low crude oil from Russia, which has reduced the country’s oil import bill. This is giving the government the benefit of revenue savings and helping in controlling fuel inflation. Its indirect effect for investors is that if petrol and diesel prices remain stable, the operating costs of transport, FMCG and manufacturing companies may reduce. This may lead to margin improvement in the stocks of these sectors and potential growth in stock prices. Brokerage houses are also monitoring this trend so that correct sector-based investment advice can be given to clients.

Conclusion

Buying cheap crude from Russia has been a profitable deal for India. This has kept fuel prices under control and the government’s import bill has also come down. This has reflected in the stock market, especially on oil, gas and shipping companies. But the way forward is not completely clear. International conditions, sanctions and price fluctuations can change the situation. It is wise for investors to think long-term and assess the current global conditions before taking a decision.

Frequently Asked Questions (FAQs)

What are the “Trump Tariffs on India”?
The Trump administration imposed tariffs in two phases: a 25% reciprocal duty and an additional 25% penalty tied to Russian oil, raising total tariffs to 50%.
How much of India’s crude now comes from Russia?
As of 2025, Russia supplies roughly 34 percent of India’s crude oil imports.
Will India cut Russian oil now?
The government has indicated that Russian oil imports will continue in the near term, supported by existing term contracts and diversification through alternative suppliers for energy security.
What should Indian exporters do right now?
Look at alternative markets, tune pricing/FX-hedging, and keep supply-chain/finishing flexible.
What’s the potential GDP impact for India?
Analysts estimate that if tariffs continue for a long time, GDP growth could be reduced by 0.3-0.4%.

August 26, 2025

Understanding Futures Pricing Formula

Why does the futures price of a stock or commodity often differ from the spot price? Is this just the effect of demand-supply or is there some mathematical logic behind it? Actually, futures pricing is based on a specific calculation, which is called the futures pricing formula.

In this blog, we will understand in simple language how futures contracts are priced, what are the factors behind it, and how this formula can help you understand the market better.

What Are Futures Contracts?

Futures contracts are an agreement in which two parties (buyer and seller) agree to buy or sell an asset at a fixed price on a fixed date in the future. This asset can be anything such as gold, crude oil, stocks, index or currency.

Example: Suppose a coffee importer needs a large quantity of coffee after 3 months. He wants to fix the price of coffee today itself so that even if the price increases in the future, his expenses do not increase. For this he makes a futures contract.

Who uses futures contracts?

Mainly two types of people are involved in it:

Hedgers: Those who want to protect themselves from price risk.
Speculators: Those who want to earn profit from price movement.

Types of Futures:

Commodities Futures (like gold, silver, coffee)
Stock Index Futures (like Nifty, Bank Nifty)
Currency Futures (USD/INR, EUR/INR)
Interest Rate Futures (based on government bonds)

All of these use the futures pricing formula, which decides what the future price of an asset should be.

The Basics of Futures Pricing

Futures contract prices often differ from spot prices, and the main reason for this is the Cost of Carry Model. This model shows that the cost (or benefit) of buying an asset today and holding it in the future affects futures pricing. It consists of three key elements:

Risk-Free Interest Rate (r): The interest that would be earned on the amount of money if it were invested in a safe investment.
Storage and Insurance Cost: These have a big impact, especially in commodities (e.g. gold, crude oil).
Income Yield (d): Some assets, such as stocks or indices, provide dividends or yields over the holding period, which pull the price down.

All of these factors combine to determine whether the futures price will be at a premium (above) or a discount (below) the spot price.

No-Arbitrage Pricing Principle : The most important principle governing futures pricing in modern financial markets is the No Arbitrage Principle. Accordingly, if the difference between the futures price and the spot price is so great that a trader can make a profit without any risk, they immediately adopt an arbitrage strategy. The result is that the imbalance in pricing is quickly eliminated and the futures come closer to its theoretical value.

For example, if the futures price is too high, traders will buy the asset today and sell it in futures — which will increase demand and balance the price.

Futures Pricing Formula

In the Indian markets, futures contracts are priced using a discrete compounding formula, not the exponential version often used in global finance.

F = S * [1 + (rf * (x/365)) − d]

Where:

F = Futures Price
S = Spot Price
rf = Risk-Free Interest Rate (e.g., RBI Treasury Bill rates)
d = Dividend Yield (if any)
x = Number of days till expiry

This formula applies specifically to index futures and stock futures. In commodity futures, storage and logistics costs are also added to it. This futures pricing formula helps to keep the prices in the market fair, logical and prediction-based.

Real-World Examples of Futures Pricing

Now we will understand how to apply the futures pricing formula practically with data.

Suppose in July 2025:

Spot price of XYZ Corp = ₹2,380.5
Risk-free rate (r_f) = 8.3528% per annum
Days to expiry = 7
Dividend (d) = 0

F = 2380.5 * [1 + (0.083528 * (7/365)) − 0]

F = 2380.5 * [1+0.0016] ≈ ₹2,384.06

So, the fair value of the futures contract after 7 days is ₹2,384.06.

When the Futures Pricing Formula Breaks Down?

Market inefficiency : The futures pricing formula does not work well when there is low liquidity or sudden news-driven volatility in the market. In such a situation, prices may look different from the formula due to demand–supply mismatch.
Expectation-based pricing : Many times traders price futures contracts based on what they think the future spot price will be rather than the pure cost of carry. This also leads to deviation from the formula.
Margin requirements and Sentiment : Market sentiment and changes in margins by brokers also affect the pricing of futures. Panic selling or bullish speculation can cause prices to deviate significantly from the theoretical value.

Example: During the 2020 crash, Nifty futures prices were often trading 150-200 points below the actual spot. During extreme events, like the 2020 crash, Nifty futures often traded 150–200 points below spot. In such times, liquidity stress and sentiment temporarily overpower the cost-of-carry logic. This makes it clear that sometimes emotions and market conditions prove to be more effective than formula.

Applications of the Futures Pricing Formula

Used in Hedging : Large corporates and exporters use this formula to determine how expensive or cheap it will be for them to hedge an asset in the future. This reduces their risk and makes budgeting easier.
Arbitrage Trading : When the futures price is above or below its theoretical value, professional traders immediately catch the arbitrage opportunity. Even a small difference between the spot and futures price can become an opportunity to profit in lakhs.
Valuation and Estimation : Analysts use this formula to estimate how the market is looking at interest rates, currency rates or stock movements in the next few months. Futures price in a way shows a forward-looking perspective of the market.
Unique Insight : Professional traders compare the theoretical futures price and the actual traded price all the time. As the difference increases, they either hedge or create an arbitrage position — this edge sets them apart from the rest.

Common Myths Around Futures

Futures prices predict the future : People often believe that futures prices indicate the future value of an asset. In reality, the futures pricing formula simply adds the cost of carry to the spot price to give a logical price—it is not a prediction.
A premium in futures means the market is bullish : If the futures price is higher than the spot, it is not considered a bullish signal. This difference is often just due to interest rates, dividends, or holding costs.
Expensive futures mean you should avoid : If the futures price is high, it does not necessarily mean that it is overvalued. This may include things like hedge demand, liquidity, or supply constraints.
Futures should always be equal to or cheaper than the spot : There is often the belief that futures should trade around the spot, but it is normal for them to vary due to cost of carry, volatility, and demand/supply in different assets.
Futures are only for speculative traders : Although speculation does occur, futures are primarily used for hedging and price discovery. Institutions and businesses use them to actively manage risk.

Conclusion

Futures pricing can be understood clearly through the cost of carry model. The fair value of a futures contract is determined by the spot price adjusted for interest rates, dividends or yields, and the time remaining to expiry. By applying this formula, traders and investors can evaluate whether a futures contract is trading at fair value, a premium, or a discount. This understanding is critical for making informed decisions in hedging, arbitrage, and speculation. It is advised to consult a financial advisor before trading in futures contracts.

Frequently Asked Questions (FAQs)

What is the formula for futures pricing?
The basic formula for calculating futures price is: F = S * [1 + (rf * (x/365)) − d], where, S = Spot Price , r = Risk-Free Interest Rate , x = Number of days till expiry and d = Dividend Yield .
Why does the futures price differ from the spot price?
Futures price is different from spot price because of factors like interest cost, storage, and time left to expiry.
Does futures pricing apply to all asset classes?
Yes, this formula applies to commodities, indices, currencies and other instruments — only the cost of carry may vary.
Can futures prices be lower than spot prices?
Yes, if the market is in backwardation, then futures prices can be lower than spot prices.
Is futures pricing important for retail traders?
Absolutely, this helps you identify overvalued or undervalued contracts and make better decisions.

August 25, 2025

Blog

AI & Machine Learning in Finance – An Overview

Example

How AI Changes Investment Strategies

1. Using Big Data for Better Understanding

2. High-frequency trading

3. Tailored Portfolios

4. Intelligent Risk Control

5. Removing Emotion from Investing

Using AI to Predict Market Trends

Why Human Oversight Still Matters

The Future of AI in Investments

Conclusion

Frequently Asked Questions (FAQs)

Is it possible for AI to correctly predict the stock market?

What distinguishes machine learning from artificial intelligence in the financial industry?

Is it safe to use robo-advisors?

Will AI take the place of human financial advisors?

How does AI lower the risk of investments?

What are Derivatives?

Features of Derivatives

1. Value Based on Underlying Asset

2. Future Settlement Date

3. No Ownership of Asset

4. Leverage

5. Risk Management and Hedging

6. High Market Liquidity

Types of Derivatives

1. Forward Contracts

2. Futures Contracts

3. Options Contracts

4. Swaps

How to Trade Derivatives

1. Open a Trading and Demat Account

2. Complete KYC and Enable Derivatives Segment

3. Understand Margin Requirements

4. Select Your Contract

5. Place and Monitor Your Trade

Pros and Cons of Derivatives

Pros of Derivatives

Cons of Derivatives

Conclusion

Frequently Asked Questions (FAQs)

What makes derivatives riskier than regular stocks?

Can I trade derivatives without prior experience?

Are derivatives only for short-term trading?

How do I know if I’m eligible for derivative trading?

Can derivatives be used during volatile markets?

What Makes a PSU Stock a Multibagger ?

10 Multibagger PSU Stocks Based on Market Capitalisation

Overview of the 10 Multibagger PSU Stocks in India

1. Hindustan Aeronautics Ltd (HAL)

2. Bharat Electronics Ltd (BEL)

3. Coal India

4. Indian Railway Finance Corporation (IRFC)

5. Power Finance Corporation (PFC)

6. Mazagon Dock Shipbuilders

7. NHPC Ltd

8. BEML Ltd

9. Engineers India Ltd (EIL)

10. Shipping Corporation of India (SCI)

Key Performance Indicators (KPIs)

Factors to be Considered Before Investing in PSU stocks

Conclusion

Frequently Asked Questions (FAQs)

What are multibagger PSU stocks?

Are PSU stocks safe for beginners?

How long should I hold a multibagger PSU stock?

Do PSU stocks give good dividends?

What risks are involved in PSU stock investment?

Vikran Engineering IPO – Day 1 Subscription Status

Objective of the Vikran Engineering IPO

Vikran Engineering IPO GMP – Day 1 Update

Vikran Engineering Ltd. IPO – Key Details

Important Dates for Vikran Engineering IPO Allotment

Vikran Engineering Ltd. Overview

Easy Steps to Apply for Vikran Engineering IPO via Pocketful

Frequently Asked Questions (FAQs)

What are the opening and closing dates of Vikran Engineering IPO?

What is the price band for the IPO?