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Best 5G Stocks in India to Invest 2025

You have probably heard the word 5G a lot: faster internet, smarter gadgets, better everything. But here is something you might not have thought about: 5G is not just exciting for technology enthusiasts; it is also opening up some interesting opportunities for investors.

As more companies jump into building and supporting this new technology, 5G stocks are starting to grab attention. But like any new opportunity, they come with their own mix of potential and risk. In this blog, we will be discussing 5G stocks, why they matter, and what you should know if you are thinking of investing in them.

What are 5G Stocks?

Shares in 5G stocks include companies that build, support or benefit from 5G wireless technology. It is expected that 5G will boost growth in industries like IoT, autonomous vehicles, smart cities, AR/VR and cloud gaming. These companies may be involved in telecom infrastructure, semiconductors and chipmaking, telecom service providers, network equipment manufacturing, software and cloud services supporting 5G applications. Such companies could enjoy high demand for their products in the coming years.

List of the Best 5G Stocks

Company	Stock Price (In ₹)	Market Capitalization (In ₹ Crores)	52-Week High (In INR)	52-Week Low (In INR)
Reliance Industries	1,462	19,78,379	1,609	1,115
Bharti Airtel	1,859	11,14,835	1,917	1,373
Tech Mahindra	1,629	1,59,532	1,808	1,209
Indus Towers	390	1,05,049	461	311
Vodafone Idea	7.03	76,165	19.2	6.46
ITI	330	31,752	593	210
HFCL	93.1	13,426	171	71.5
Tejas Networks	719	12,696	1,495	647
Sterlite Technologies	77	3,759	113	52.2
Mahanagar Telephone Nigam	54.1	3,409	102	37.4

(Data as of 11 June 2025)

Overview of the Top 10 5G stocks in India

An overview of the top 10 5G stocks in India are:

1. Reliance Industries

Reliance Industries began its journey in 1966 with Dhirubhai Ambani’s big dreams as a small textile business. What started as a modest venture has grown into one of India’s most influential companies, with business operations in everything from oil and petrochemicals to retail, telecom, and digital services. Under Mukesh Ambani’s leadership today, Reliance isn’t just about scale; it is about changing how people in India shop, connect, and live. From its humble beginnings to reaching global heights, the story of Reliance is one of ambition, bold thinking, and a vision that keeps growing with the times.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-1.29%	9.60%	85.19%

(Data as of 11 June 2025)

2. Bharti Airtel

Bharti Airtel started its journey in 1995 when Sunil Bharti Mittal started making mobile phones something every Indian could access. Back then, it had just a few thousand users in Delhi. Today, it is one of the biggest telecom players in the world. Whether it is mobile services, broadband, DTH, or business solutions, Airtel is now a part of daily life for millions across India and even in parts of Asia and Africa. Known for its reliable network and focus on people, Airtel’s story is one of grit, constant innovation, and growing with the digital times.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
30.50%	181.99%	231.77%

(Data as of 11 June 2025)

3. Tech Mahindra

Tech Mahindra, part of the Mahindra Group, started in 1986 as a tech outsourcing company and has grown into a global leader in IT and digital services. Initially, the company focused on serving British Telecom, and later it expanded rapidly into software, consulting, and digital transformation across industries. Headquartered in Pune, it now operates in over 90 countries, helping businesses with everything from AI and cloud solutions to cybersecurity and customer experience. Tech Mahindra combines technology and innovation to drive meaningful change in the digital age, while staying connected to its people-first values.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
21.25%	51.27%	176.73%

(Data as of 11 June 2025)

4. Indus Towers

Indus Towers started operations in 2007 following a joint venture agreement between Bharti Airtel, Vodafone India and Idea Cellular to collaborate on sharing towers. Based in Gurugram, it has become a leading global telecom tower company, operating over 190,000 towers across India today. Towers are essential for supporting mobile networks and making sure that people living in cities or far-reaching areas can always connect. By emphasising sustainability and new technologies, Indus Towers is helping to establish a robust digital network for India, while also supporting the advancement of 4G and 5G.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
10.67%	90.47%	67.18%

(Data as of 11 June 2025)

5. Vodafone Idea

Vodafone Idea, now called Vi, came into existence in 2018 when Vodafone India and Idea Cellular joined hands. The goal was simple and that was to build a stronger, more reliable network across the country. With offices in Mumbai and Gandhinagar, Vi serves millions of people in cities and small towns alike, offering mobile and broadband services. Even though the telecom market is highly competitive and has its challenges, Vi keeps working hard to improve its network and help more people stay connected in today’s digital world.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-56.43%	-22.78%	-37.21%

(Data as of 11 June 2025)

6. ITI

ITI Limited, short for Indian Telephone Industries, has been operating since 1948, making it India’s first telecom company in the public sector. Earlier, it helped set up the country’s telephone network by making switches and phones when telecom was just starting off. Based in Bengaluru, ITI has come a long way and now works on things like smart cards, secure networks, and even technology for defence. The company had its ups and downs, but ITI is steadily bouncing back by trying to embrace new-age tech and playing a part in India’s digital growth story.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
10.59%	264.43%	280.74%

(Data as of 11 June 2025)

7. HFCL

Himachal Futuristic Communications Limited, known as HFCL, was established in 1987 with the hope of supporting India’s telecom industry. Since its inception, it has grown to play a key role in producing optical fibre cables, telecom equipment and network solutions. HFCL, based in Delhi, has contributed to major projects, among them BharatNet, which is working to ensure fast internet in Indian villages. Now, the company is expanding into areas such as 5G, IoT and smart cities. HFCL’s main goal is to drive innovation and ensure India remains ready for the future.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-7.03%	46.02%	520.34%

(Data as of 11 June 2025)

8. Tejas Networks

Tejas Networks started back in 2000 in Bengaluru, built by a group of technology enthusiasts who wanted to create top-quality telecom gear in India. Since then, it’s come a long way; its products now power networks in over 75 countries. From optical fibre systems to 4G and 5G solutions, Tejas makes the technology that helps us stay connected, stream videos, and build smart cities. Now part of the Tata Group, the company continues to focus on homegrown innovation while helping expand digital access across India and beyond.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-44.72%	61.81%	1,194.94%

(Data as of 11 June 2025)

9. Sterlite Technologies

In 1988, Sterlite Technologies Limited (STL) was launched under Sterlite Industries and focused on manufacturing telecom cables. In 2000, the company became independent and in 2007, the name was officially changed to Sterlite Technologies Limited. The headquarters of the company are in Pune, and thanks to its optical and digital products, it has expanded to operate in more than 150 countries. The company manufactures fibre-optic cables and handles network services and software. STL has participated in important projects like BharatNet, which aims to improve digital access in rural parts of India. STL’s emphasis on new ideas and sustainability helps drive India’s progress in the digital world.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-41.73%	-53.45%	-28.27%

(Data as of 11 June 2025)

10. Mahanagar Telephone Nigam

In 1882, Bombay got its first telephone exchange, and in 1986, the government founded MTNL to upgrade telecom services in Mumbai and Delhi. Ever since, MTNL has constantly introduced new ideas such as 3G, broadband and IPTV, leaving many others behind. Even though MTNL has faced various challenges due to new competition and advances in technology, it remains a major provider of landlines, telephones and internet access. Recently, it has collaborated with BSNL and made fibre networks a priority, thus keeping itself relevant in India’s developing telecom industry.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
40.92%	159.52%	479.78%

(Data as of 11 June 2025)

Key Performance Indicators (KPIs)

Company	Net Profit Margin (in %)	ROE (in %)	ROCE (in %)
Reliance Industries	8.37	8.25	8.7	0.41
Bharti Airtel	19.52	29.52	14.72	1.3
Tech Mahindra	8.01	15.53	18.74	0.02
Indus Towers	32.97	30.56	27.7	0.07
Vodafone Idea	-62.85	0	-1.98	-2.79
ITI	-6.44	-13.22	-2.3	0.91
HFCL	4.25	4.3	8.61	0.33
Tejas Networks	5	11.6	22.44	0.85
Sterlite Technologies	-3.07	-6.18	4.5	0.91
Mahanagar Telephone Nigam	-476.99	0	14.88	-1.2

(Data as of March 2025)

Benefits of Investing in the Best 5G Stocks

The benefits of investing in the best 5G stocks are:

High Growth Possibilities: 5G is expected to play a crucial part in achieving initiatives such as smart homes and self-driving cars to virtual reality and remote healthcare. Companies building or supporting 5G could see huge growth in the years to come.
Early Mover Advantage: We’re still in the early days of 5 G. Investing now means you could benefit as the technology rolls out more widely across cities, towns, and even rural areas.
Infrastructure Boom: Rolling out 5G takes a lot of equipment, towers, fibre cables, and data centres. Companies that are involved in this sector are seeing a rise in revenues, which is great for investors.

Risks of Investing in the Best 5G Stocks

The risks of investing in the best 5G stocks are:

Mass Rollout will take Time: 5G rollout isn’t happening overnight. It’s a gradual process that depends on present infrastructure, regulation, and market readiness. This means returns might be slower than expected.
High Capital Costs: Building 5G networks is expensive and companies investing heavily in 5G tech may take on a lot of debt, which can hurt profits in the short term if things don’t go as planned.
Intense Competition: The telecom and technology sectors are highly competitive. Even strong 5G players face pressure on pricing, market share, and margins, especially from global companies.

Conclusion

5G is not just about faster downloads, it is about big changes in the way we live and connect. From smarter cities to connected cars, the possibilities are exciting, and so are the opportunities for investors. However, it is not a guaranteed win as like any investment, 5G stocks come with their share of advantages and disadvantages. But if you are someone who likes being part of something that might revolutionize the future, 5G could be a smart space to explore. Take your time analyzing these companies and see if it fits in your portfolio. It is advised to consult a financial advisor before investing.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
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5	List of Best Liquor Stocks in India

Frequently Asked Questions

Is it a good time to invest in 5G?
If you’re looking to invest for the long term then you should definitely consider investing in 5G stocks. Consult a financial advisor before investing.
Are 5G stocks risky?
Like investing in any other stock, there are some risks involved due to which thorough analysis is necessary before investing.
How do these companies make money?
Companies involved in 5G technologies make money by providing telecom services, building network infrastructure, manufacturing hardware, or powering the tech behind 5G.
Are there 5G mutual funds or ETFs?
Globally, yes. In India, options are still limited, but you can build your own portfolio by considering the stocks mentioned above.
Why should I consider 5G stocks for investment?
Because 5G is shaping the future, and being part of that shift can be both exciting and rewarding.

June 11, 2025

GST on Gold Purchase in India 2025

Ever looked at the price tag of that beautiful gold necklace and wondered why it costs so much more than the “per gram” rate you see online? It’s not just the making charges, it is the GST on gold purchase that’s quietly increasing the price tag.

For Indian families planning weddings or looking to invest, understanding GST on gold purchase in India 2025 isn’t just general knowledge; it’s essential financial wisdom. The government keeps tweaking these rates, leaving jewellers scrambling and buyers confused. Remember when GST first hit the gold market? The chaos was real.

In this blog, we will discuss the GST applicable on Gold purchase in India in 2025.

What is GST & Why does it apply to Gold?

GST stands for Goods and Services Tax. It’s a single, nationwide tax that replaced all the complicated old taxes like VAT, excise duty, and service tax back in July 2017. The idea behind GST is simple, and instead of having different taxes at every step, we now have one clear tax rate applicable across the country on most goods and services, including gold.

When you buy gold, whether it’s jewellery, coins, or even digital gold, you’re making a purchase, and purchases are taxable.

Here’s why GST applies to gold:

Just like clothes or electronics, gold is a physical item you’re buying, so it falls under GST.
The amount you pay for the design and craftsmanship of jewellery (called making charges) is considered a service, and services are also taxed under GST.
Before GST, different states had different taxes on gold. Now, it’s the same across India, which makes things a lot simpler for buyers. It brings transparency, i.e., with a uniform tax rate, it’s easier to understand what you’re paying for, and harder for sellers to hide extra charges.

So in short, GST helps bring clarity, fairness, and consistency to gold purchases — whether you’re buying a simple gold coin or a wedding necklace.

GST Rate on Gold

The GST rate on gold in India is currently set at 3% on the value of gold purchased.

1.5% Central GST (CGST)
1.5% State GST (SGST)

For interstate transactions, a 3% Integrated GST (IGST) applies instead of the CGST and SGST combination.

1. Additional GST on Making Charges

Making Charges are defined as charges that are applied to the labour cost charged by jewellers for crafting the gold into jewellery

Besides the basic rate on gold value, there is an additional GST on making charges:

5% GST is applicable on making charges for gold jewellery

2.Total GST Calculation Formula

To calculate the total GST amount on your gold purchase:

Calculate GST on the gold value:
Gold Value × 3% = GST on Gold Value
Calculate GST on making charges:
Making Charges × 5% = GST on Making Charges
Determine the total GST amount:
Total GST = GST on Gold Value + GST on Making Charges
Calculate final purchase price:
Final Price = Gold Value + Making Charges + Total GST

For Example

You want to buy gold worth ₹50,000 with INR 3,000 as making charges.

Now, let us calculate the total amount payable by Mr. A when purchasing Gold.

Total value of Gold = ₹50,000

GST Payable = 3% * ₹50,000 = ₹1,500

GST Payable on Making Charges = 5% of 3,000 = ₹150

Amount Payable = ₹50,000 + ₹1,500 + ₹150

= ₹51,650

Factors Affecting GST Calculation

Several factors influence the final GST amount:

Purity of Gold: Higher karat gold generally means higher gold value and consequently higher GST.
Weight of the Gold: More weight equals more value and higher GST.
Complexity of Design: Intricate designs lead to higher making charges and thus higher GST on those charges.

Understanding how GST is calculated helps consumers make informed decisions when purchasing gold and enables better financial planning for significant gold investments.

GST On 24 Carat Gold Rate in India 2025

24 carat gold represents the purest form of gold available in the market, with 99.9% purity. As we enter 2025, the GST structure for this premium quality gold remains consistent with the unified tax framework implemented across India.

For 24-carat gold purchases in 2025, the GST rate continues to be 3% on the value of gold purchased. This rate applies uniformly across all states in India, ensuring consistency in pricing nationwide.

Special Considerations for 24 Carat Gold

Pure 24-carat gold has some distinct considerations under GST:

Gold bars and coins – Standard 3% GST applies to all forms of 24 carat gold, whether coins, bars, or bullion.
Digital gold – When purchasing 24-carat gold in digital form, the same 3% GST applies at the time of allocation.
Import implications – Imported 24-carat gold attracts customs duty in addition to the 3% GST, affecting the final price.

The consistent application of the 3% GST rate on 24-carat gold provides clarity for investors and consumers alike, making tax calculation straightforward regardless of where the purchase is made within India.

22 Carat Gold GST Rate in India in 2025

The GST rate for 22 carat gold in India follows the same tax structure as other gold purities, with a combined rate of 3% GST. This rate applies uniformly across the country, ensuring consistency in gold pricing regardless in which state you purchase gold.

1. GST Breakdown for 22 Carat Gold

For 22 carat gold, which contains 91.6% pure gold (22 parts gold out of 24), the GST is applied as follows:

Basic GST rate: 3% (comprising 1.5% CGST and 1.5% SGST)
GST on Making charges : 5% of making charges

2. GST On 18 Carat Gold Purchase

When you buy 18-carat gold, you’re usually purchasing it in the form of jewellery, often mixed with diamonds, gemstones, or modern designs. Since it contains less pure gold than 22K or 24K, it’s more affordable, but GST is still applied.

Here is how GST is charged on 18K Gold Jewellery,

3% GST on the gold value and 5% GST on making charges

GST on Digital Gold and Gold ETFs in India

With more people turning to online platforms to invest in gold, digital gold and Gold ETFs have become popular alternatives to physical jewellery. But what about taxes? Let’s break it down in simple terms:

What is Digital Gold?

Digital gold is actual gold purchased online and stored safely in a vault by the company offering digital gold. You can start with as little as ₹100 worth of gold.

Is GST Applicable on Digital Gold?

Yes, GST is charged on digital gold just like on physical gold.

3% GST is added at the time of purchase.
This tax is on the gold’s value, not on the service or platform fee.
Even though you’re buying it online, it’s still physical gold being stored for you, so the same GST rules apply.

So, if you buy ₹1,000 worth of digital gold, you’ll be paying ₹1,030 (₹1,000 + ₹30 GST).

What About Gold ETFs?

Now, here’s where things are different: investment gold products like ETFs and bonds are treated more like financial assets than physical goods.

Gold ETFs (Exchange Traded Funds):

No GST is charged when you buy or sell Gold ETFs.
You may pay brokerage charges and Securities Transaction Tax (STT), but not GST.
However, when Gold ETFs are redeemed for physical gold, 3% GST applies on the actual gold delivered.

To summarise,

Type	Description	GST Rate
24 Carat Gold	Pure gold (like coins or biscuits)	3%
22 Carat Gold	Commonly used in traditional jewellery	3%
18 Carat Gold	Popular in fashion and diamond jewellery	3%
Digital Gold	Becoming increasingly popular among younger investors.	3%
Gold ETF	Gold ETF units are stored in demat account	Nil
Making Charges	Design, labour, and processing fees for jewellery	5%

Conclusion

Gold never goes out of style, but how we purchase or invest in it has evolved, mainly because of GST. Knowing how GST works helps you plan your purchase and prevents surprises when you get your bill. If you understand the applicable taxes, you will have a better idea of how to make the most of your shopping budget. However, it is advised to consult a tax professional for more information about how GST is charged on gold purchases.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur

Frequently Asked Questions(FAQs)

What is the GST rate on gold in India?
3% GST is charged on the value of gold purchased.
Is GST charged on making charges for gold jewellery?
Yes, 5% GST is charged on making charges.
Is GST the same for 18K, 22K, and 24K gold?
Yes, all are taxed at 3% on gold value, regardless of purity.
Can I avoid GST when buying gold?
No, GST is mandatory and included in all legal gold purchases.
Is GST refundable on gold purchases?
No, GST paid on personal gold purchases is not refundable.

June 10, 2025

Call and Put Options: Meaning, Types, Difference & Examples

Option trading begins with two important terms, Call and Put. These terms may seem technical at first, but these instruments are crucial in designing trading strategies to take advantage of different market situations.

In this blog, we will analyze both these options in detail along with their meaning, differences and examples.

What is Call Option?

A call option is a contract that gives a holder the right to buy an underlying asset in the future at a predetermined price (called the strike price). It is important to note here that this is a “right”, not an “obligation” – that is, you can buy it if you want, and you can leave it if you don’t want it.

Suppose the price of a stock is ₹100 right now, and it is expected that it will rise to ₹120 until option contract expiry. In such a situation, buying a call option with a strike price of ₹100 gives the buyer the right to buy the stock for ₹ 100 – even if its market price increases to ₹120.

Traders usually buy a call option when they expect that the price of a stock will increase in the future. This creates the possibility of more profit with less investment.

What is a Put Option?

Put Option is a contract that gives the holder the right to sell an underlying asset in the future at a fixed price (called strike price). It means the holder can choose to exercise the option if it is profitable or let it expire worthless.

Suppose the price of a stock is currently ₹150, but it is estimated that it may fall to ₹120 in until the option contract expiry. In such a situation, buying a put option with a strike price of ₹150 gives the investor the right to sell that stock for ₹150, no matter how much the market price goes down.

Put options are especially useful when the market is moving towards recession or there is a fear of a stock price decline. By buying puts, the investor can protect his portfolio or make profit from falling prices.

In simple words, a put option is a means of both portfolio protection and potentially profit from falling prices.

Read Also: What is Put-Call Ratio?

Key Terms to Know About Call and Put Options

To be successful in option trading, it is important to understand certain terms. These terms strengthen the basic understanding of trading :

Strike Price : The price at which the option holder gets the right to buy or sell shares.
Premium: The amount paid to buy the option, which is the maximum amount of loss that can be incurred.
Expiry Date: The date on which the option expires.
Intrinsic Value: The difference between strike price and the underlying asset’s price at expiry.
Time Decay or Theta: The decrease in the value of the option due to time.

Call and Put Options with Examples

Call Option Example: When the market is expected to rise

Scenario : Nifty is currently trading at 24,700 and it is expected that it may move higher in a few days.

Trade : Call Option with strike price of 24,900 bought at a premium of 100 points.

Case 1 – Profit on Expiry

If Nifty reaches 25,200 by expiry, then the option is termed as ITM and it would be profitable to exercise it:

Intrinsic Value = 25,200 – 24,900 = 300 points
Net Profit = ₹300 – ₹100 (premium) = 200 points per lot
One point = ₹75 ; therefore, Net Profit = 200 * 75 = ₹15,000

Case 2 – Loss on Expiry

If Nifty declines or remains flat, the option will expire worthless.

Loss = 100 points (Premium)
Net Loss = 100 * 75 = ₹7,500

Put Option Example: When the market is expected to fall

Scenario: Nifty is currently at 24,700, but it seems like it will fall.

Trade : Put Option with strike price of 24,500 bought at a premium of 90 points.

Case 1 – Profit on Expiry

If Nifty falls to 24,100

Intrinsic Value = 24,500 – 24,100 = 400 points per lot
Net Profit = 400 – 90 = 310 per lot
One point = ₹75 ; therefore, Net Profit = 310 * 75 = ₹23,250

Case 2 – Loss on Expiry

If Nifty moves higher or remains flat, the option expires worthless.

Loss = 90 points (premium)
Net Loss = 90 * 75 = ₹6,750

In Call and Put Options, the maximum loss is predetermined (limited to the premium), but if the market moves in the right direction, the returns can be manifold. This is also the biggest feature of option trading.

ITM, ATM and OTM Call and Put Options

In option trading, just buying a call or a put is not enough. It is also important to understand the status of the option at that time – In-the-Money (ITM), At-the-Money (ATM) or Out-of-the-Money (OTM), as explained below:

1. In-the-Money (ITM)

A Call Option is ITM when the stock price is above the strike price. A Put Option is ITM when the price goes below the strike price.

In Call Option : If the strike price is 24,500 and Nifty is currently trading at ₹24,700 Then the Call Option is ITM as it will give a profit if exercised immediately.
In Put Option : If the strike price is ₹24,900 and Nifty is trading at 24,500 , then the Put Option is ITM as the market price is lower than strike price and exercising the put option will give a profit.

2. At-the-Money (ATM)

When the current price and the strike price are approximately equal, the option is called an ATM.

For example:

Strike Price = 24,500
Nifty = 24,500 or around

In this case the intrinsic value of the option is almost zero. But the premium can be high as the asset price can move considerably till expiry. Both risk and opportunity are balanced in ATM options.

3. Out-of-the-Money (OTM)

A Call Option is OTM when the current asset price is below the strike price, and a Put Option is OTM when the asset price is above the strike price.

In Call Option: Strike price is 24,500 and Nifty is currently at 24,000.
In Put Option: Strike price is 24,500 but Nifty is at 24,900.

Read Also: What is Spread Trading?

American vs European Options

In option trading, there are two types of options based on the exercise conditions:

American Options : These types of options can be exercised on any day before expiry.
European Options : Can be exercised only on the expiry day but can be traded on exchanges before expiry. In India, options are of European type.

The value, risk and profit of each option depends on whether it is ITM, ATM or OTM, and whether it is American or European. Choosing the correct option at the right time is the most important skill for a trader.

Key Differences Between Call and Put Options

Basis	Call Option	Put Option
Right	Right to purchase underlying asset at strike price	Right to sell underlying asset at a strike price
Buyer’s Expectation	The market price will go up	The market price will go down
Maximum Profit	Theoretically unlimited	Limited as asset price can fall to zero
Maximum Loss	The amount of premium (money paid to buy the option)	The amount of premium (money paid to buy the option)

Read Also: What are Option Greeks?

Advantages & Risks of Options Trading

Benefits of option trading

Hedging: A strategy that uses options to protect against potential losses in bearish market conditions.
Flexibility: Traders can profit from both bullish as well as bearish price movements using call and put options.
Less capital required: Options trading require less capital than buying or selling an equivalent quantity of underlying asset.

Risks of option trading

Loss of capital: The maximum loss is the premium paid for the option buyer, which can be lost completely. In case of option sellers, the losses can be significant.
Time Decay: The value of the option decreases over time, which can lead to losses even if the market doesn’t move against your position.
Complexity: It is not easy to understand the technical aspects of options, making them unsuitable for beginners.
Market volatility: During periods of high volatility, the option premiums can fluctuate sharply.
Timing: In option buying, losses occur if your judgement regarding market movement or timing is wrong, i.e. the expected movement must occur before expiry.

Understanding risk and reward is important

Proper knowledge, timing, and strategy are very important for success in option trading.
Trading without complete information can lead to financial losses.
One should always learn ways to manage one’s risk so that losses can be limited.
With the right research and learning, superior returns can be expected from option trading.

Read Also: Best Trading Apps in India

Pro Tips for Beginners in Options Trading

You can follow the below-mentioned tips to trade options profitably:

Option Trading Tips for Beginners : To be successful in option trading, some basic but important things should be kept in mind. In the beginning, it is important to do paper trading to understand the market fluctuations. This helps in understanding the trading process, developing profitable strategies without investing real money.

Importance of Risk Management : There is always a risk in option trading, so it is very important to learn risk management. Proper risk management helps avoid major losses.

Use of options for hedging : Call and put options can be used for hedging. This means protecting your portfolio from the uncertainties of the market, so that sudden decline in portfolio value can be avoided.

By following these tips, the initial path of trading becomes easier and better decisions can be taken with experience.

Conclusion

Understanding call and put options before trading them is very important for any trader. Knowing the basics of these options and understanding their advantages and disadvantages is the key to success. It is very important to have technical knowledge and the right trading strategy before stepping into option trading. Only by mastering the basics, does the probability of earning profits in options trading increase. It is advised to consult a financial advisor before trading options.

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2	MCX Trading: What is it? MCX Meaning, Features & More
3	Silver Futures Trading – Meaning, Benefits and Risks
4	What is Crude Oil Trading and How Does it Work?
5	What Is Day Trading and How to Start With It?

FAQs

What is a call option?
A call option is a contract that gives the buyer the right, but not the obligation, to buy an asset at strike price.
What is a put option?
A put option is a contract that gives the buyer the right, but not the obligation, to sell an asset at a specified price.
How does a call option work in the share market?
When the stock price moves above the strike price at expiry, the buyer of the call option can exercise the option and buy at a lower price and sell the asset immediately at the higher current market price.
What is the main difference between call and put options?
A call option gives the right to buy, while a put option gives the right to sell.
What is premium in options?
The premium is the price that has to be paid to buy the option.
Is options trading risky?
Yes, options trading involves considerable risks, so knowledge about the options concepts, trading strategies and caution is required.

June 10, 2025

Tata Motors Vs Ashok Leyland: Which is Better?

When you think of moving cars and trucks on Indian roads, two names instantly pop up: Tata Motors and Ashok Leyland. From the car you drive to the bus you hop on every morning, chances are it rolled out of a factory owned by one of these giants. But while both have become household names, they’ve taken very different routes to become a key player in the Indian automobile sector.

Tata Motors is a bit of a jack-of-all-trades as you’ll find their name on practically everything, from compact city cars and rugged SUVs to commercial trucks and other electric vehicles. They’ve got their foot in almost every segment of the automobile world. Ashok Leyland, on the other hand, has carved out its niche by building tough, reliable trucks and buses that keep India moving.

In this blog, we’ll learn about what sets them apart and help you decide who’s driving ahead in the areas that matter most to you.

Tata Motors – An Overview

For decades, Tata Motors has been more than just a name on Indian roads. Established in 1945 under the wing of the legendary Tata Group, the company first started by building locomotives. But it wasn’t long before they set their eyes on something bigger and hit the road.

In 1954, Tata Motors Ltd unveiled its first commercial vehicle as a result of its partnership with Germany’s Daimler-Benz. That was just the beginning and over the years, they’ve built everything from trucks and buses to stylish passenger cars and modern electric vehicles.

One of their biggest achievements was in 1998 with the launch of the Tata Indica, the first car designed and built entirely in India. It was a game-changer and of course, who could forget the Tata Nano? It turned heads worldwide as the most affordable car on the planet.

Then came 2008, as Tata Motors acquired not one but two legendary car brands: Jaguar and Land Rover from Ford Motor Company. With that bold move, they weren’t just playing in the big leagues, they were announcing themselves on the global stage.

Fast forward to today, Tata Motors is steering into the future as it’s no longer just about building vehicles, it’s about reimagining mobility itself. From electric cars and connected tech to cleaner, smarter public transport, they’re focused on moving India, and the world, forward, one innovative step at a time.

Ashok Leyland – An Overview

The company’s name, Ashok Leyland Ltd, has been synonymous with commercial vehicles for a long time, visible to anyone who ever caught a glimpse of a bus or a big truck passing by. Ashok Leyland was established in 1948, and as soon as India gained independence, it was known as Ashok Motors. Soon after, Ashok Motors partnered up with Leyland Motors, and this led to the formation of the brand we know today as Ashok Leyland.

From the early days of assembling Austin cars to becoming one of the top commercial vehicle manufacturers in India, it’s been quite a journey. Over the decades, Ashok Leyland has built everything from buses that carry millions of people daily to powerful trucks that move goods across the country. They’re even behind some of the vehicles used by the Indian Army.

What makes Ashok Leyland special is its forward-thinking and constant efforts to align its products with the needs of the customers. They’ve led the way in adopting cleaner and more efficient technologies, and are also pushing the frontiers in electric mobility and alternative fuels. Ashok Leyland, in the past few years, has become an international brand as well as it serves more than 50 countries across the world.

Comparative Study – Tata Motors vs. Ashok Leyland

PARTICULARS	TATA MOTORS	ASHOK LEYLAND
Current Price (₹)	718	243
Market Cap (₹ Crore)	2,64,255	71,369
52-W High (₹)	1,179	265
52-W Low (₹)	536	190
FII Holdings as of March 2025	17.84%	23.32%
DII Holdings as of March 2025	17.20%	14.03%
Book Value (₹)	315	41.6
PE Ratio (₹)	9.35	23

(Data as of 10 June 2025)

Financial Statements Comparison

PROFIT & LOSS STATEMENT

Particulars	TATA MOTORS	ASHOK LEYLAND
Total Income	4,45,939	48,893
Expenses	4,07,363	40,398
Net Profit	27,862	3,351

(All values are in INR crores and the data is as of March 2025)

BALANCE SHEET

Particulars	TATA MOTORS	ASHOK LEYLAND
Current Liabilities	1,66,684	26,551
Other Liabilities	93,350	42,931
Fixed Assets	1,80,608	8,078
Current Assets	1,60,325	34,240
Reserves & Surplus	1,15,408	11,938

(All values are in INR crores and the data is as of March 2025)

CASH FLOW STATEMENTS

Particulars	TATA MOTORS	ASHOK LEYLAND
Cash Flow from Operating Activities	63,102	128
Cash Flow from Investing Activities	-47,594	-5,758
Cash Flow from Financing Activities	-18,786	6,957

(All values are in INR crores and the data is as of March 2025)

Key Performance Indicators (KPIs)

Particulars	TATA MOTORS	ASHOK LEYLAND
Basic EPS (₹)	78.8	10.58
Operating Profit Margin (%)	8.89	17.47
Net Profit Margin (%)	6.33	6.90
Return on Equity (%)	23.96	25.39
Return on Capital Employed (%)	18.45	15.37
Debt-to-Equity (x)	0.54	4.08

(Data as of March 2025)

Which Company is Better?

It depends on what you are looking for,

If you want a company that manufactures everything such as cars, trucks, electric vehicles, and owns even luxury brands like Jaguar and Land Rover, Tata Motors is the winner. It’s bigger, has a global presence, and is leading the way in electric mobility too.

But if you’re focused only on investing in companies involved in manufacturing of commercial vehicles like trucks and buses, Ashok Leyland can be a good investment option. It’s more specialised and reliable in the commercial vehicle segment.

However, it is necessary to conduct thorough research before investing in any of them. It is always recommended to consult a financial advisor before investing.

Conclusion

Tata Motors and Ashok Leyland have both created their unique brand image in both the Indian and global automotive industry. Tata Motors is known for its diverse product range, from ordinary cars to high-end electric models, while Ashok Leyland continues to stick to its core competencies, i.e. manufacturing trustworthy and reliable trucks and buses. Regardless of whether you focus on R&D capabilities, a global presence, or consistent financial performance; both companies have something to offer. It’s not about which is better overall, it’s about which one fits your investment objectives best. You are advised to consult a financial advisor before investing.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Apollo Tyres Ltd. vs Ceat Ltd. – Which is better?
2	BHEL vs BEL -Best Defence and Manufacturing Sector Stocks
3	Asian Paints vs Berger Paints – Which is Better?
4	Maruti Suzuki India Vs Hyundai: Which Car Stock is Better?
5	Devyani International Vs Sapphire Foods – Which is Better?

Frequently Asked Questions (FAQs)

Which company is older, Tata Motors or Ashok Leyland?
Tata Motors was founded in 1945, while Ashok Leyland started in 1948.
Does Tata Motors make trucks too?
Yes! Tata Motors offers a full range of commercial vehicles, including trucks and buses.
Does Ashok Leyland make passenger cars?
Ashok Leyland focuses only on commercial vehicles like trucks, buses, and defence vehicles.
Who owns Ashok Leyland?
Ashok Leyland is part of the Hinduja Group.
Is Tata Motors an Indian company?
Yes, it is an Indian company and part of the Tata Group.

June 10, 2025

Best Trading Apps in India 2025

In recent years, there has been a substantial increase in the number of individuals participating in online trading in India. When it comes to trading, picking the best trading app in India can set you on the path to success. There has been a surge in the number of discount brokers in recent years and a multitude of them claim to have the best trading app in India. But the question remains: ‘Which app is best for trading?’ or ‘Which one is best suited for you?’

In this blog, we are going to give you an overview of the best trading apps in India and factors to consider to select the best trading app according to your needs.

What are the Best Trading Apps in India 2025?

Trading applications are mobile-based platforms that facilitate the buying and selling of stocks, commodities, mutual funds, and other investment products through smartphones and tablets. In India, these apps are provided by registered brokers and financial institutions.

With the advancement of technology, the best trading apps in India have incorporated useful innovations and offered the following features such as:

No or very little commission fees
Quick stock market updates
Instant order execution
Intuitive apps that are easy to navigate
Technical analysis tools

Now, if you’ve ever wondered, “Which app is best for trading?” stay with us while we unveil the best choices for 2025.

Broker	Account Opening Fees	AMC	Futures	Options
Pocketful	Free	Free	₹20 per executed order or 0.03% of turnover, whichever is lower	₹20 per executed order
Zerodha Kite	Free	₹300 + GST	0.03% or ₹20, whichever lower	₹20 per executed order
Upstox Pro	Free	Free for first year, ₹300 + GST from second year	0.05% or ₹20, whichever lower	₹20 per executed order
Angel One	Free	₹60 + GST per quarter	₹20 per executed order	₹20 per executed order
5Paisa	Free	₹25 + 18% GST per month	₹20 per executed order	₹20 per executed order
ICICI Direct	Free	Free for first year, ₹700 + GST from second year. ₹300 + GST for iValue clients	₹20 per executed order	₹20 per executed order
Groww	Free	Free	₹20 per executed order	₹20 per executed order
Paytm Money	₹200	Free	₹20 per executed order	₹20 per executed order
Dhan	Free	Free	₹ 20 or 0.03% per executed order whichever is lower	₹20 per executed order
Kotak Securities	Free for Trade Free Plan, ₹99 for Trade Free Youth Plan	₹50 + GST per month for Trade Free Plan. Free for Trade Free Youth Plan	₹10 per executed order	₹10 per executed order

Read Also: Best Demat Account in India

Best Trading Apps in India 2025 Overview

1. Pocketful

Pocketful is an emerging stock broking firm and is a subsidiary of Pace Stock Broking Services. Pocketful has been developed by professionals with more than 27 years of experience and offers free equity delivery and zero account opening fees, making it the best option for both traders and investors.

Features

Advanced features for technical analysis
Zero account opening charges and zero AMC
Pockets feature to invest in a specific theme
All-in-one platform for both novice and seasoned traders

Advantages

Advanced Option Chain: Helps you trade quickly and efficiently.
Innovative Features: Includes Pockets, Superstar Portfolios, and daily and weekly Paper to track stock market events.
Free Trading APIs: Enables automated execution of custom strategies at no extra cost.

Disadvantages

New Market Entrant: Still building trust and brand recognition.
Limited Research Reports: Fewer analysis reports and insights compared to more established brokers.

2. Zerodha Kite

Kite by Zerodha is considered one of the top trading apps in India. Zerodha’s low-cost brokerage model combined with Kite’s exceptional reliability make it an ideal choice for novices and seasoned investors. Zerodha supports investing and trading in equity, commodity, F&O, and currency segments. Kite’s sleek and fast interface with advanced charts and real-time data makes it easier for traders to make informed trading decisions.

Features
• No brokerage charges on equity delivery
• ₹20/order for intraday and F&O
• Zerodha trading app Kite can be linked with Coin (mutual funds app)
• In-app charting with more than 100 indicators

Advantages

Affordable Brokerage Fees: Intraday and F&O trades attract a flat fee of ₹20 per executed order, while equity delivery trades for Zerodha attracts no brokerage at all.
Intuitive Design: Simple and easy to use interface
Technical Analysis Tools: More than 100 indicators available for advanced chart analysis.
Complete Investment Experience: Coin for investing in mutual funds, Kite for trading and Console for generating in depth reports and analytics.

Disadvantages

Limited Customer Support: Customer support teams may take longer than expected to resolve issues.
Relative High Fees: It charges high fees for call & trade services and auto square off making it costly for some traders.

3. Upstox Pro

Upstox is among the top 10 stock trading apps in India because of its quick trading platform and low pricing. It allows trading in stocks, commodities, mutual funds, and IPOs and is backed by Tata Group. Upstox is best suited for active traders due to its advanced order types and charting tools.

Features
• ₹20/order flat brokerage
• Margin trading facility
• Live market data and alerts
• Customizable watchlists

Advantages

Affordable Pricing: No commission charges on equity delivery trades; additionally, ₹20 per order for intraday, F&O, and commodity trades.
Advanced Charting: Offers TradingView and ChartIQ charting facilities, containing over 100 technical indicators.
Quick Account Opening: Users can open accounts digitally and effortlessly through KYC.

Disadvantages

Technical Glitches: Mobile App might experience technical glitches during peak market volatility.
Limited Customer Support: Responding to customer’s issues promptly has been flagged as an area the business does poorly in.
No Personalized Advisory: The absence of investment advisory reports.

4. Groww

Groww has a user-focused trading app that lets investors buy stocks, mutual funds, IPO, etc. It is an easy to use app where opening a Demat account and trading account is online and paperless, also comes with zero maintenance fee making it one of the prominent trading apps in the Indian market. It offers real time market data, advanced chart for you to make informed trading decisions.

Features

No account opening charges
Simple mutual fund and SIP investment
Free delivery trades
Blogs and vlog educational content

Advantages

User-Friendly Interface: Design blueprint aiding stock market novices by lowering entry barriers.
Cost-Effective Trading: A flat fee of ₹20 is charged per trade, while mutual fund services are offered without fees.
KYC-verified Account Opening: Integrated KYC process allowing for quick account creation.

Disadvantages

Technical Problems: Users experience app crashes and sluggishness during peak volatility periods.
Lack of Commodities and Currency Trading: Has no trading options in commodities and currencies.

5. ICICI Direct Markets

ICICI Direct needs no introduction as it is a well-established brand across the finance domain. Its app is best suited for existing ICICI customers, but its functionality is sophisticated and dependable.

Features

Seamless integration with ICICI Bank
One-click IPO applications
Research backed investment ideas
Margin funding options

Even though the brokerage is higher, the service and research tools offered makes it worth it for serious investors.

Advantages

Complete account offering for clients: Provides 3 in 1 account comprising banking, trading and Demat for ICICI Bank customers.
Advisory and Research Services: Provides detailed research and recommended stocks to advise.

Disadvantages

Increased Brokerage Charges: ICICI Direct charges higher brokerage fees. With this full-service broker, these fees are much higher than those of discount brokers.
Complex Fee Structure: New investors may find the differing tier leveled fees structure much more complex than other discount brokers.
Restricted Clientele: Only for existing account holders of ICICI bank.

6. 5paisa

5paisa offers competitive brokerage prices complemented by smart tools. The company was launched as a subsidiary of the IIFL Group and was later demerged and listed on the stock exchange. It offers online trading, mutual funds, insurance, and loans all in one app.

Features

For every order, there will be a flat fee of ₹20
Offers robo-advisory services for beginners
Provides auto investor packs
Offers multiple plans for professional users

Advantages

Very Low Brokerage Cost: Charges are lower than average and set as a flat rate of ₹20 per executed order in all segments.
Multiple Types of Investment Products: Provides investment options in equities, derivatives, commodities, currencies, mutual funds and IPOs.
Superior Trading Options: Other than standard trading options, 5paisa allows algo trading through trading APIs and offers real-time market information.

Disadvantages

Freezing Issues on the App: Users face issues such as unresponsive and sluggish order execution while submitting orders or navigate through the app during busy periods or high market volatility.
Needs Better Customer Support: Replies via email and chat take a long time especially during volatile market hours.

7. Paytm Money

As a branch of the well-known Paytm app, Paytm Money is simple to use and combines several services like banking, mutual funds, and stock trading.

Features

User-friendly registration process
Allows direct mutual fund purchases
Easy portfolio tracking

Advantages

Low Brokerage Costs: Has ₹20 per executed order in charges for options trading that is affordable for traders.
Choice of Investments: Supports investments in stocks, derivatives, mutual funds, ETFs, IPOs, NPS and digital gold from a single application.
App Interface: Clean and easy-to-use interface that accommodates those who have just started and is fluid across trading in different investment products.

Disadvantages

Limited features: Doesn’t have advanced charts and analytics compared to other trading applications.
Occasional App Crashes: There appear to be reports of the app crashing, slower response time, login issues from some users particularly in volatile markets.

8. Dhan

Dhan is a brand new company but has gotten popular very quickly due to its order execution speed and simple user interface. Catering to today’s investors, Dhan allows trading in equities, F&O, ETFs, etc.

Features:

Flat fee of ₹20
Allows advanced options for trading
API is available for traders
Can trade directly on charts
A fast rising star which is worth monitoring.

Advantages:

Zero account opening : Dhan provides free account opening and zero annual maintenance charges.
Feature loaded : Comprehensive features like advanced trading view chart, basket and iceberg orders, instant pledge/unpledge options, and a quick platform for options trading.
Low cost : Dhan charges no brokerage for investing in mutual funds and equity delivery, also it only costs Rs.20/executed order for F&O and Intraday trades.

Disadvantages:

Not ideal for beginners : It does not have easy to understand mobile application tutorials, making it challenging for beginners.
Improper customer support : Users criticize the application for unresponsiveness during peak market volatility.

9. Angel One (Previously Angel Broking)

Angel One started as a full service broker and has also been offering discount brokering services from quite some time through its easy to use mobile application. It also offers ARQ Prime, an AI-powered advisory tool, which makes it a combination of traditional and discount broking services.

Features

Flat ₹20 brokerage
ARQ Prime recommendations
Smart API integration
Real time notifications

Advantages

Wide Range of Investment Opportunities : Offers equities, derivatives, commodities, mutual funds, and IPOs.
No Charge for Equity Delivery : No brokerage charge for delivery of equity trades.
AI-driven recommendations : Features like ARQ Prime that provides customized investment recommendations using big data analytics.

Disadvantages

Customer Support : Long waiting time or delayed responses is one of its disadvantages.
Annual Maintenance Charges (AMC): Loses appeal to traders who do not actively trade as the account attracts AMC meant for account upkeep.

10. Kotak Neo

Kotak Neo is an app from Kotak securities with modern trading features like stock investing, buying mutual funds or IPOs making it easier for everyone to use. A simple to use platform that provides real time market data, charting tools, simple interface etc, catering both beginner and advanced traders.

Key Features :

Good for stock/ETF investments
Unlimited multi-asset trading
AI-driven insights and investment options
Cutting-edge technology and tools
Great app if you want to trade as a day trader

Advantages :

Strong fundamentals : The app is backed by trusted Kotak Mahindra brand
Advance tools : Powerful tools and AI-driven insights help beginners with decision making.

Disadvantages :

Hidden charges : Complicated pricing structure
App Issues : Its platform can experience occasional glitches.
Technical Usage : More suitable for tech-savvy users; some beginners may feel difficulty in getting used to its interface.

Factors To Keep In Mind Before Looking Into Indian Trading Apps 2025

Before using any trading apps, here are some considerations you want to look into:

Pricing: Trading apps such as Pocketful, Zerodha, Upstox, etc. have a simplified fee structure, whereas brokers such as ICICI, Kotak, etc. have a complicated pricing structure.
App: One should look for a trading app that is easy to use, fast, and user friendly as you will spend all your trading time on these apps.

Available Investment Options: Not all assets are supported by each trading application. Check whether you can invest in the assets which interest you: shares, mutual funds, and commodities.
Research Tools and Alerts: Some applications provide advanced investment insights and technical charts which make decision-making easier. Make sure your application provides analysis and updates in real-time.
Customer Support: Customer support can help you resolve your issues promptly. Prefer those trading apps which offer 24×7 customer support or live chat bots.
Security: Always select brokers that are SEBI registered and have powerful encryption along with biometric login and other safety features.
Speed of Execution: Every second counts for intraday or F&O traders. Real-time execution with very minimal lag is indispensable.
Reviews and Ratings: Always consider user feedback and ratings on the Play Store or App Store. Feedback from users can help you judge the trading application appropriately.

Conclusion

Selecting the best trading app in India in 2025 depends on personal requirements, past experience, and financial objectives. Various new age brokers such as Pocketful, Groww, Upstox, etc. have built user-friendly mobile apps that enable even beginners to start their trading journey effortlessly. These features include zero brokerage on equity delivery, latest market information, an intuitive interface, and flat brokerage on F&O orders. Answering the question of which is the best app is simple. It’s the one that resonates with your investment strategy and financial goals.

Frequently Asked Questions

Which is the No.1 trading app in India in 2025?
The definition of the no.1 trading app in India varies across users due to different trading styles. For example, people doing delivery trading may not be concerned with F&O charges. However, in general, the trading app should be easy to use and have a competitive pricing structure to be categorized as the no. 1 trading platform.
Which is the best app for beginners?
For novice users, Pocketful is a top recommendation due to its simple interface, zero AMC, zero account opening fees, and competitive brokerage charges.
Are these apps safe to use?
Definitely, as all these apps are provided by SEBI-registered brokers which have advanced security measures like encryption, authentication protocols, etc.
Can I open a Demat account through these apps?
Yes, you can open a Demat account using these apps. All of them offer the option to open Demat accounts online.
Which app is best for intraday trading?
Pocketful is the best for intraday trading due to high-speed execution, flat brokerage rates and zero AMC.

June 9, 2025

Apollo Tyres Ltd. vs Ceat Ltd. – Which is better?

Along with the automobile industry in India, the tyre sector is also growing rapidly, especially as the demand for electric vehicles and smart mobility solutions is increasing. In such a situation, it becomes important for investors to know which tyre company can prove to be a good investment in the long run.

Apollo Tyres Ltd. and Ceat Ltd. are both well-known companies in the Indian market, whose business operations are spread across the country and abroad. Their different business strategies, focus on technology and future direction make them different from each other.

In this blog, we will analyze both these companies in-depth including their business model, financial health, expansion plans and market performance to help you understand which company is a better investment option.

Company Overview – Apollo Tyres Ltd

Apollo Tyres Ltd. was established in 1972 and today it is counted among the leading tyre companies in India. The company’s headquarters is located in Gurugram, Haryana. Over the past five decades, Apollo has established a strong presence in the domestic market as well as the global market. Its growth can be gauged from the fact that its products are now sold in more than 100 countries.

Manufacturing and International Network : Apollo has several modern manufacturing facilities in India, such as plants located in Chennai, Limbda (Gujarat), and Andhra Pradesh. Apart from this, the company also has manufacturing units in the Netherlands and Hungary. Thus, this Indian company has now become a global tyre manufacturer. The company’s strong supply chain and technology innovation help it in its global competitiveness.

Product Portfolio and Segments : Apollo Tyres manufactures tyres for passenger cars, SUVs, trucks, buses, light commercial vehicles and two-wheelers. In India, it operates under the brand name “Apollo”, while in Europe it has its presence under the name “Vredestein”. The company maintains a balanced focus on mileage, performance, and safety.

Business Model and Partnerships : Apollo Tyres’ business model is based on three major channels – OEM (such as Tata, Mahindra, and Ashok Leyland), replacement market, and international exports. The company is also continuously working on tyres for EVs and high performance vehicles.

Apollo Tyres Ltd. has established itself as an innovative and globally competitive brand in the Indian automobile industry. Its strong manufacturing capabilities, international expansion, and product diversity allow it to grow even stronger in the years to come.

Company Overview – Ceat Ltd.

Ceat Ltd. was founded in 1958 with roots in Italy but was later established in India and is now part of the RPG Group. The company initially manufactured tyres for commercial vehicles but over time also started manufacturing tyres for two-wheelers, passenger vehicles, agricultural and industrial vehicles. Today, Ceat is among the top tyre companies in India and is constantly expanding its portfolio.

Global Positioning and Production Capacity : Ceat tyres operations are no longer limited to India. The company exports its products to over 110 countries. Its major manufacturing plants in India are located in Nashik, Halol, Nagpur and Chennai. In recent years, the company has prioritised EV tyre manufacturing at the Nagpur unit, reflecting its future-focused vision.

Key Businesses and Services : Ceat manufactures tyres across various segments such as two-wheelers, cars, SUVs, trucks, buses and three-wheelers. Apart from this, the company also designs tyres for farm equipment and off-road vehicles. The brand identity is based on the balance of mileage, safety and performance. The company actively operates in both OEM and replacement markets.

Business Model and Market Approach : Ceat sells its tyres through three main channels: OEM (to auto companies), replacement (to customers), and export. It is also a supplier to prominent automobile companies like Bajaj Auto, Hero MotoCorp, Tata Motors and Mahindra. The company is now focusing on tyre technology for EV vehicles as well.

Ceat Ltd. has built an image of a trusted tyre brand keeping in mind the needs of Indian roads and consumers. Its production capacity, investment in technology and diversified product range make it ready for future demands.

Comparative Analysis: Apollo Tyres Ltd. vs Ceat Ltd

Particulars	Apollo Tyres Ltd	Ceat Ltd
Current Price (₹)	470	3,792
Market Cap (₹ Crores)	29,850	15,339
52-W High (₹)	585	4,044
52-W Low (₹)	368	2,322
FII Holdings as of March 2025	13.43%	15.27%
DII Holdings (as of March 2025)	28.09%	21.52%
Book Value (₹)	232	1,080
PE Ratio	24	31.1

(Data as of 9 June 2025)

Financial Statements Analysis

Income Statement Comparison

Particulars	Apollo Tyres Ltd	Ceat Ltd
Total Income	26,211	13,235
Total Expenses	24,218	12,336
EBIT	1,992	899
Net Profit	1,120	449

(All values are in INR crores and the data is as of March 2025)

Balance Sheet Comparison

Particulars	Apollo Tyres Ltd	Ceat Ltd
Current Liabilities	7,360	5,164
Current Assets	9,815	3,432
Reserves & Surplus	14,702	4,328

(All values are in INR crores and the data is as of March 2025)

Cash Flow Statement Comparison

Particulars	Apollo Tyres Ltd	Ceat Ltd
Cash Flow from Operating Activities	1,823	1,091
Cash Flow from Investing Activities	-202	-922
Cash Flow from Financing Activities	-1,646	-176

(All values are in INR crores and the data is as of March 2025)

Key Performance Ratios (KPIs)

Particulars	Apollo Tyres Ltd	Ceat Ltd
Operating Profit Margin (%)	8.27	7.02
Net Profit Margin (%)	4.28	3.40
ROE (%)	7.59	10.81
ROCE (%)	10.83	15.36
Debt to Equity (x)	0.23	0.44

(Data as of March 2025)

Future Plans – Apollo Tyres Ltd. vs Ceat Ltd.

Apollo Tyres Ltd.

Target of $5 billion revenue and 15%+ EBITDA margin by FY26 : Apollo Tyres aims to achieve $5 billion (approximately ₹41,500 crores) revenue and over 15% EBITDA margin by FY 2025-26. For this, the company has focused on five key areas: sustainable growth, digitalization, technology innovation, human resource development, and brand building.
Target to use 40% sustainable materials by 2030 : Apollo Tyres has set a target to use 40% sustainable materials in its tyres by 2030. The company has recently developed tyres made from 75% sustainable materials, which are now in the testing phase.
Improving production efficiency through digital innovation centers : Apollo Tyres has set up digital innovation centers in Hyderabad and London, which are improving production efficiency using technologies such as AI, machine learning, IoT, and cloud computing.
Targeting $500 million sales in the US : Apollo Tyres is currently doing sales of $120-130 million in the US and plans to increase this to $500 million.

Ceat Ltd.

Target to double export revenue to ₹4,000 crore by FY26 : Ceat Ltd. aims to double its export revenue to ₹4,000 crore by FY 2025-26, with a special focus on expansion in the car and truck tyre segment.
Leading position in the EV two-wheeler tyre segment : Ceat Ltd. has partnered with companies like Ather Energy in the EV two-wheeler tyre segment, giving it a strong presence in EV segment.
Capital expenditure of ₹1,000 crore in FY25 : Ceat Ltd. has set aside ₹1,000 crore for capital expenditure in FY 25, focused on capacity expansion at its Chennai and Ambarnath plants.
₹72.67 crore investment for EPR compliance in FY24 : Ceat Ltd. has invested ₹72.67 crore in FY 2023-24 under EPR (Extended Producer Responsibility) compliance and introduced eco-friendly tyres.

Who is better: Apollo Tyres or Ceat Ltd.?

Apollo Tyres and Ceat Ltd.both have their own strengths. Apollo is currently focused on innovation, sustainability and international growth. The company is working rapidly on strengthening its foothold in the US and adopting the latest technology.

On the other hand, Ceat is focused on the EV tyre segment, where it is already a leading supplier to EV manufacturers Ather. Also, the company is preparing to double its exports and is also increasing production capacity.

Both companies are moving in slightly different directions, and are adopting different strategies to solidify their market position. It is hard to say which one is better and you must thoroughly analyze both companies or consult a financial advisor before investing.

Conclusion

Apollo Tyres and Ceat Ltd. have both established themselves as a strong player in the tyre industry in their own ways. Apollo is expanding itself in the international market, while Ceat is focusing on electric vehicles and exports. Each company has a different business strategy, however both are trying to gain a better foothold in the tyre market. It is advised to consult a financial advisor before investing.

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Frequently Asked Questions (FAQs)

Which company is older: Apollo Tyres or Ceat Ltd.?
Ceat Ltd. was established in 1958 while Apollo Tyres was started in 1972.
Is Apollo Tyres a global brand?
Yes, Apollo Tyres products are present in many countries including Europe and the USA.
Does Ceat make tyres for electric vehicles?
Yes, Ceat manufactures tyres especially designed for EV two-wheelers and supplies to many big companies.
Which company has a higher export focus?
Both the companies have export operations, but currently Ceat has set an ambitious target to double its export revenues.
Is Apollo Tyres investing in sustainability?
Yes, Apollo plans to use 40% sustainable materials in its tyres by 2030.

June 9, 2025

RBI Monetary Policy of June 2025 – What are the key points?

Amid a shifting global economic landscape and geopolitical uncertainties, the RBI’s June 2025 monetary policy offers crucial insights into India’s financial direction. RBI released its new monetary policy on 6 June 2025, in which an attempt has been made to support economic growth by reducing interest rates.

Here’s a quick breakdown of key decisions shaping growth, interest rates, and market sentiment.

Key Decisions

Key decisions	Description
Repo Rate	Cut by 0.50%, new rate at 5.5%
Cash Reserve Ratio (CRR)	Reduced from 4% to 3%
Policy Stance	Now “Neutral”
FY26 GDP Growth Estimate	6.5%
FY26 Inflation Forecast	3.7%

Its Effects

Relief in EMI: Due to the reduction in interest rates, home loans and car loans will become cheaper.
Market boom: Positive sentiment seen in the banking and real estate sector.
Boosting economic momentum: Lower interest rates are expected to boost investment and spending.

Impact of RBI’s monetary policy on different sectors

RBI’s new policy affects every sector. Let’s see which sectors will benefit this time and why:

Banking and NBFC sector: When interest rates are low, banks get cheap money. This means that they will be able to give out more loans. NBFCs i.e. non-banking finance companies will also have access to cheap credit, making it easier for common people to take loans.
Real estate sector: This is good news for home buyers because the interest rates on home loans will be low, which will also reduce EMI (installment). This will encourage people more interested in buying a house, resulting in higher real estate prices.
Automobile sector: Buying cars and bikes will also become cheaper. Due to low interest rates, financing will be easy, encouraging more people to buy vehicles, especially during festivals.
Consumer goods and retail sector: When interest is low, people spend more. This benefits the FMCG and retail sectors selling everyday items as the number of buyers increases.
Stock market and capital market: A reduction in interest rates reduces the bond yield, which is a good sign for the stock market. This increases investor participation in equity markets and leads to a boom in the equity markets.

In this way, this policy decision of the RBI will strengthen the country’s economy as well as bring positive changes in various sectors.

Reasons behind RBI’s policy decision (June 2025)

The reasons behind the RBI’s decision regarding the rate cut have been explained below:

Balance of inflation and economic growth: Inflation rate (CPI) in India stood at around 3.16% in April 2025, which is lower than RBI’s target of 4%. This means that prices have not increased much. Therefore, interest rates were reduced to boost economic growth. Also, GDP growth has been estimated at 6.5% for the financial year 2025-26, which shows that the economy is growing at a good pace.
Global economic environment and challenges: Oil prices remain between $60 and $65 per barrel, down from a high of $80 per barrel in January 2025. Reduction in oil prices increases profit margins of companies. Apart from this, the Russia-Ukraine war and other political instabilities are also slowing down the economic recovery a bit.
Liquidity in the banking system: RBI has decreased the Credit Reserve Ratio (CRR) to 3% to increase the availability of cash. This means that banks will have more money, so that they can give more loans and this will accelerate economic activities.

Updated GDP and Inflation Rate Projections for FY26 As per June 2025 RBI Policy

1. GDP growth forecast for FY26 (Unchanged)

Quarterly	Earlier Estimate	Updated Estimate (June 2025)
Q1 FY26	6.5%	6.5%
Q2 FY26	6.7%	6.7%
Q3 FY26	6.6%	6.6%
Q4 FY26	6.3%	6.3%
Total FY26	6.5%	6.5% (Unchanged)

2. FY26 Inflation (CPI) Forecast – Revised Downward

Quarterly	Earlier Estimate (%)	Updated Estimate (June 2025) (%)
Q1 FY26	3.6%	2.9%
Q2 FY26	3.9%	3.4%
Q3 FY26	3.8%	3.5%
Q4 FY26	4.4%	4.4%
Total FY26	4.0%	3.7% (Revised Down)

Expectations for the coming months

RBI’s next monetary policy review will be in August 2025. This time the focus will be on inflation trends. At present, the inflation estimate for FY26 is 3.7%, but if this inflation increases more than expected due to a substantial rate cut, then RBI may have to change its strategy. Also, the monsoon situation will also be important because a good monsoon keeps the prices of food items under control and demand remains stable.

The world’s big central banks like the Fed of America and the ECB of Europe are now moving towards keeping interest rates stable or reducing them slightly. Due to this, RBI may also have to show some leniency in its decision. But at the same time, it will also keep a close eye on risks like credit growth and rupee volatility.

In short, the RBI will try to promote economic growth in the coming times as evidenced by the substantial rate cut of 50 basis points in June 2025. Its priority will be to maintain a balance between promoting economic growth and controlling inflation.

Conclusion

RBI’s monetary policy of June 2025 focused on maintaining a balance between inflation control and economic growth. In view of the global and domestic economic conditions, RBI has given priority to financial stability and economic growth. In the coming months also, RBI’s policies will affect the key economic sectors and equity markets. This is the time for investors and the general public to move forward with caution.

Frequently Asked Questions (FAQs)

What is the current inflation forecast by RBI for FY26?
RBI has projected inflation for FY26 at 3.7%, lower than the earlier estimate of 4%.
Has RBI changed the GDP growth estimate for FY26?
No, RBI has retained its GDP growth forecast for FY26 at 6.5%.
How will global economic conditions affect RBI’s policy?
Global economic conditions, especially the policies of the US and European central banks, influence RBI policy, thereby impacting India’s economic stability.
What should borrowers expect after the June 2025 RBI policy?
RBI’s policy is balanced, so a sudden big change in interest rates is less likely, but it is important to keep an eye on the market situation.
How does RBI plan to manage inflation and growth simultaneously?
RBI will continue to implement policy measures such as interest rate changes, open market operations, etc. to promote growth while keeping inflation under control.

June 6, 2025

Bajaj Finserv and Bajaj Finance: Which is Better?

You may have come across Bajaj Finance and Bajaj Finserv if you have searched for loans, insurance or investment options on the internet. They both seem alike, belong to the same group and are commonly found in similar web searches, but they aren’t the same.

So what exactly is the difference, and if you’re a customer or an investor, which one should you be looking at?

In this blog, we’ll explain everything in a simple way about each company and which one might be a better fit for your portfolio. Whether you’re trying to understand whom to approach for a loan or deciding which stock to invest in, this guide is here to make it easy.

Bajaj Finserv – Company Overview

Bajaj Finserv Limited is one of India’s leading financial services companies. It operates across a wide range of financial segments, including:

Consumer finance (like personal loans, home loans, EMI cards offered through subsidiaries)
Insurance (life and general)
Asset management
Wealth management
Mutual funds
Digital payments and more

It’s known for its quick loan approvals, flexible EMIs, and strong digital presence that makes borrowing or investing super convenient for individuals and businesses alike.

The company has its headquarters in Pune, Maharashtra and was founded in 2007 and is currently headed by chairman, Sanjiv Bajaj. The parent group is the Bajaj Group, which was founded by Jamnalal Bajaj in 1926.

Important Milestones

From 2008 to 2012: Bajaj Finance grew rapidly by offering consumer durable loans on easy EMIs, one of the first of its kind in India.
From 2013 to 2017: Expanded into personal loans, business loans, and housing finance.
2018: Bajaj Finserv crossed major growth thresholds as loan disbursements increased substantially and the assets under management crossed ₹1 lakh crore, with a combined customer base of 25 million.
2020–2022: Entered the digital payments space and launched Bajaj Finserv Wallet, Bajaj Finserv Health, and focused on building a digital ecosystem.
2023: Announced foray into mutual funds under the Bajaj Finserv Mutual Fund brand.

Bajaj Finance – Company Overview

Bajaj Finance Limited is one of India’s top non-banking financial companies (NBFCs). It offers a wide range of financial products and services, including:

Consumer durable loans (like TVs, mobiles, appliances on EMI)
Personal loans
Home loans
Business loans
Credit cards
Fixed deposits and investment products

The brand is recognised for offering No Cost EMI on various products, including gadgets, furniture, travel, etc., which is readily available at many partner stores and online platforms.

The business is headquartered in Pune, Maharashtra and started operations as Bajaj Auto Finance Limited in 1987. Interestingly, Bajaj Finance is a subsidiary of Bajaj Finserv.

Important Milestones

In 2007, Bajaj Auto underwent a corporate demerger. Its financial services arm became a separate entity, Bajaj Finserv Limited, and Bajaj Auto Finance was rebranded as Bajaj Finance Limited.
Rajeev Jain was the CEO, marking the beginning of a significant transformation.
Focus shifted from just auto finance to consumer lending, SME lending, and commercial lending.

From 2010 to 2020

Introduced EMI cards, allowing customers to shop for electronics, furniture, and appliances on easy instalments.
Rapidly expanded into digital lending, e-commerce finance, and partnerships with retailers and brands.
Built a wide offline and online network, facilitating extremely fast and hassle-free loan disbursals.

From 2020–Present

Launched the Bajaj Finserv App for digital financial solutions.
Stepped into the digital payments ecosystem with digital wallets and co-branded credit cards.
Leveraged AI, data analytics, and cloud technology for personalised financial services.
Despite market challenges like COVID-19, it bounced back strongly with innovative financial products and digital-first strategies.

Comparative Study of Bajaj Finserv and Bajaj Finance

PARTICULARS	BAJAJ FINSERV	BAJAJ FINANCE
Current Price (₹)	1,956	8,945
Market Cap (₹ Crore)	3,12,532	5,55,868
52-W High (₹)	2,135	9,710
52-W Low (₹)	1,511	6,425
FII Holdings as of March 2025	7.19%	18.91%
DII Holdings as of March 2025	9.34%	17.42%
Book Value (₹)	453	1,556
PE Ratio (₹)	35.2	33.4

As of 6 June 2025

Financial Statements Comparison

PROFIT & LOSS STATEMENT

Particulars	BAJAJ FINSERV	BAJAJ FINANCE
Total Income	1,33,821	69,724
Expenses	85,782	22,892
Net Profit	17,539	16,761

(All values are in INR crores and the data is as of March 2025)

BALANCE SHEET

Particulars	BAJAJ FINSERV	BAJAJ FINANCE
Current Liabilities	5,16,745	3,66,042
Current Assets	6,41,639	4,60,437
Reserves & Surplus	72,235	96,568

(All values are in INR crores and the data is as of March 2025)

CASH FLOW STATEMENTS

Particulars	BAJAJ FINSERV	BAJAJ FINANCE
Cash Flow from Operating Activities	-62,113	-68,154
Cash Flow from Investing Activities	-7,986	-2,765
Cash Flow from Financing Activities	70,191	70,527

(All values are in INR crores and the data is as of March 2025)

Inference

Bajaj Finserv has about ₹1.3 Lakh crore in revenues, which also includes revenues from its stake in Bajaj Finance. This approach reduces dependence on lending alone and promotes a more balanced portfolio. On the contrary, Bajaj Finance reported an impressive profit of ₹16,761 crore. Additionally, the company’s AUM surged past ₹3 lakh crore.

Key Performance Indicators (KPIs)

Particulars	BAJAJ FINSERV	BAJAJ FINANCE
Basic EPS (₹)	55.60	268.94
Operating Profit Margin (%)	35.89	67.20
Net Profit Margin (%)	13.10	24.05
Return on Capital Employed (%)	35.45	46.79
Return on Equity (%)	12.25	17.20
Debt-to-Equity (x)	1.82	3.74

(Data as of March 2025)

Which Company Is Better?

You can base your investment decision based on the following points:

If you want to invest specifically in the lending business, go for Bajaj Finance.
If you want diversified exposure (loans, insurance, mutual funds, etc.), then Bajaj Finserv is a better long-term pick.

However, it is advised to analyse the company’s financial statements and future business plans before investing. You should also consult a financial advisor to make an informed investment decision.

Conclusion

Ultimately, Bajaj Finance and Bajaj Finserv are two sides of the same coin, closely connected, but established for different purposes. If you’re a customer looking for loans, EMIs, credit cards, or fixed deposits, Bajaj Finance is the brand you’ll be dealing with. It’s fast, efficient, and focused on direct financial services. But if you’re an investor thinking long-term and want a slice of the entire financial services, from lending to insurance to digital solutions, then Bajaj Finserv gives you a more diversified exposure as the parent company. So, the “better” company depends on what you’re looking for. Whichever company you choose, one thing’s for sure that both companies have established a strong reputation in India’s financial services industry.

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Frequently Asked Questions (FAQs)

Are Bajaj Finance and Bajaj Finserv the same company?
No, they’re not the same, but they’re related. Bajaj Finance is a subsidiary of Bajaj Finserv.
Which company gives loans, Bajaj Finance or Bajaj Finserv?
Bajaj Finance offers loans, EMIs, credit cards, and deposits. Bajaj Finserv does not directly give loans.
Is Bajaj Finance safe for FDs?
Yes, Bajaj Finance has high credit ratings (CRISIL AAA/Stable & ICRA AAA/Stable), making it a reliable FD option.Q4. Which company has more profits?
Which company has more profits?
Bajaj Finserv has marginally higher profits than Bajaj Finance, but it must be taken into consideration that Bajaj Finance is the subsidiary of Bajaj Finserv due to which a proportion of profits earned by Bajaj Finance is also reflected in profits of Bajaj Finserv.
Is Bajaj Finserv a bank?
No! It’s a non-banking financial holding company. It owns stakes in other businesses dealing in finance, insurance, and wealth management.

June 6, 2025

Why Does a Company Go Public & Launch IPO?

This question comes to the mind of every person who is interested in the stock market. When a private company offers its shares to the public for the first time to raise capital, it is called an Initial Public Offering (IPO). Its main objective is to raise funds from investors for expansion, reducing debt, and other purposes.

In this blog, we will discuss the various reasons due to which the company goes public and launch an IPO in detail.

Understanding IPOs

When a private company offers its shares to the general public for the first time, it is called Initial Public Offering (IPO). After this process, the company gets listed on the stock exchange and anyone with a trading and demat account can buy its shares. The advantage of this is that the company can raise funds quickly and can act quickly on its business plans.

Becoming a Public Company : After bringing an IPO, the company is identified as a public entity. Now it has to make its financial information public every quarter and must comply with regulatory frameworks set by bodies like SEBI and stock exchanges. This gives transparency to investors and also increases the brand value of the company.

Latest scenario of IPO in India : The IPO market in India performed tremendously in the financial year 2024-25. During this period, companies raised a total capital of ₹3.71 lakh crore — which is 92% more than last year. In 2024 alone, the companies raised ₹1.67 lakh crore through IPOs, which is the highest in Asia.

Global Comparison: India now ranks first in terms of number of IPOs. While the US and China saw 205 and 130 IPOs getting launched in 2024, India’s count stood at 332.

Read Also: What is the IPO Allotment Process?

Reasons Companies Go Public

Various reasons due to which the companies go public are listed below:

Access to Capital : Every business needs funds to expand whether it is to open a new manufacturing plant, invest in technology or repay old debts. By bringing an IPO, companies can raise large amounts of money directly from the general public. These funds help them to act on the business plans quickly, without the tension of repaying loan or interest payments.

Increasing Brand Value and Public Profile : When a company is listed in the stock market, its brand identity and credibility automatically increases. Its image becomes strong among investors, media and industry due to high regulatory requirements of SEBI. This also easily helps in getting new partnerships and clients and builds trust.

Exit option for Early Investors : Before bringing an IPO, the shares of the company are owned by a few sophisticated investors and founders. But through IPO, they get a chance to sell their shares. This process gives them liquidity, which is not easily available in private companies.

Attracting and retaining talent : In today’s competitive world, retaining talent is very important. After becoming a public company, employees with vested ESOPs can easily sell their shares as per the company’s ESOP (Employee Stock Ownership Plan) policies. After the IPO, the shares are traded and if the company’s share performs well, the trust of the employees in the company’s future increases and they are more inclined to stay with the company.

For all these reasons, bringing an IPO is not just a significant event in a company’s journey, but a strategic decision which can take the company on the path of long-term success.

Advantages of Going Public

When a company goes public by launching an IPO, it not only receives funds but also many strategic and long-term benefits. Let us understand these at a glance:

Benefit	Description
Capital Acquisition	The company gets significant capital from the public, which it can use for various purposes.
Market Visibility	Listed companies receive more attention from the media and investors, which increases brand visibility and credibility.
Share Liquidity	After the IPO, shares can be easily bought and sold, providing liquidity to old investors and employees.
Market-Driven Valuation	The stock market participants play a key role in determining the value of a company, which becomes a benchmark for future deals and investments.
Employee Incentives	Plans like stock options and ESOPs make it easier to attract and retain talent.
Better Borrowing Power	It is easier for public companies to get loans from banks on better terms as their financial information is publicly available.
Transparency	Strict regulatory rules improve the governance and trustworthiness of the company.

Disadvantages and Challenges

There are many benefits of a company going public, but there are some challenges and disadvantages associated with it as well. Let us know the major disadvantages and difficulties that a public company has to face:

Regulatory Compliance : A public company has to follow strict rules of SEBI and other regulatory bodies. This includes regular financial reporting, audits and providing comprehensive financial information, which can be time-consuming and expensive.

Market Pressure : The expectations of investors and the market increase a lot. The company’s management may feel the pressure to show good results every quarter, which can sometimes affect long-term business plans.

Loss of Control : Depending on shareholding structure, founders may experience dilution of control and increased accountability to public shareholders. They have to consider the interests of other investors, which complicates decision making.

High Costs : Advisors, investment banks and lawyers have to be paid in the IPO process. Apart from this, regular reporting and other corporate expenses also increase after becoming a public company.

The IPO Process: A Step-by-Step Guide

Let us know the main steps a company follows to launch an IPO:

Step	Description
Selection of Underwriters	The company first selects the investment banks or firms that will manage the IPO. These underwriters help with pricing, marketing, and other due diligence required in the IPO.
Due Diligence	The financial, legal and operational status of the company is thoroughly examined to ensure that investors get accurate information.
Regulatory Filings	The company submits a Draft Red Herring Prospectus (DRHP) to SEBI. After review and incorporating changes based on SEBI’s comments, the final RHP (Red Herring Prospectus) is filed for public subscription.
Pricing the IPO	The initial price of the share is determined by looking at the market conditions, value of the company and demand among investors.
Marketing	Company’s representatives meet investors, explain the company’s strengths and plans to increase investor interest.
Going public and listing	Once the IPO opens, the retail investors can apply for the shares. After the IPO subscription period is over, the shares are allotted to the general public and the company gets listed on the stock exchange (like NSE or BSE) and are then traded.

Conclusion

Going public is a big decision for a company, which has many benefits and challenges. IPO helps companies raise funds and also increases its brand recognition, but with this the regulatory requirements and responsibilities towards stakeholders also increases. Therefore, it is important that the company takes this step thoughtfully.

Going public is not just a way to raise money, but is part of the long journey of the company. With the right timing and planning, it helps in moving the company forward. Therefore, the decision of IPO should always be taken wisely and strategically.

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FAQs

Why does a company go public?
A company goes public so that it can get capital for executing its future business plans.
What is an IPO?
IPO means Initial Public Offering and it marks the event when the company sells its shares to the public for the first time.
How does an IPO help a company?
The company raises money in exchange for equity from launching an IPO, so that it can expand its business, reduce debts, and other purposes.
Are there any risks in going public?
Yes, after going public the company has to follow strict rules related to reporting and may face pressure from market expectations.
How does going public affect control over the company?
After going public, the founders and management lose some control over the company’s decisions as they also have to listen to other shareholders.

June 5, 2025

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

CRED didn’t enter the fintech space with a product. It entered with the idea that good financial behavior deserves recognition. Launched in 2018, CRED quickly gained a reputation for being the best fintech platform for India’s top credit card users. It wasn’t just about paying bills, but about being part of a trusted community.

This CRED case study looks beyond the surface to understand what made a credit card payment app feel premium. With exclusive rewards and a members-only customer base, CRED built both loyalty and intrigue.

But how sustainable is it? What powers the CRED Business Model, and how does a rewards-first app justify its massive valuation? Let’s unpack the brand that turned financial discipline into social currency.

About CRED

CRED is a Bengaluru-based fintech platform founded by Kunal Shah in 2018. It is a platform that allows individuals with high-credit scores to get registered and make payments while earning rewards. The various services offered by CRED include:

CRED Cash+ (short-term credit against mutual funds)
CRED Pay (payments using CRED coin or saved credit cards)
CRED Mint (peer-to-peer lending)
Rent payments
Curated e-commerce section called CRED Store

The platform utilizes an AI-backed system to assess user’s credit behavior, verify eligibility, and tailor customized experiences. This technology enables CRED to maintain its premium user base. The platform also offers personalized suggestions, real-time tracking, and many more features.

With a strong focus on design, exclusivity, and community, CRED has become one of India’s most distinctive fintech brands. Its app offers not just utility, but an elevated financial experience for credit-savvy users who value rewards, simplicity, and trust.

CRED Valuation

In May 2025, CRED raised $75 million in a Series G funding round. Existing investors, including GIC, Sofina, and RTP Global led it. This round brought the company’s total funding to over $1 billion across nine rounds.

The current valuation is approximately $3.5 billion, a sharp drop from $6.4 billion in 2022. Additionally, the company plans to launch an initial public offering (IPO) in the near future.

CRED Key Statistics (As of FY 24)

Metric	Data
Revenue	₹2,473 crore
User Base	13 Million
Monthly Transacting Users (MTU)	11.5 Million, an increase of 34%
Total Payment Value (TPV)	₹6.87 lakh crore, which is a rise of 55%
Operating Losses	A fall of 41% to ₹609 crore
Customer Acquisition Cost (CAC)	Reduction of 40% approx.

Currently, the company continues to focus on expanding its user base and enhancing monetization strategies. This is why it is essential to understand the company’s performance; a complete SWOT analysis of CRED is essential.

Business Model of CRED

CRED primarily follows a Business-to-Consumer (B2C) model. This model targets individuals with high credit scores who use credit cards. The platform incentivizes responsible financial behavior, such as when the user pays bills on time and earns rewards. To drive engagement, it focuses on gamification and personalized experiences.

Recently, CRED has expanded into some Business-to-Business (B2B) services. These are primarily focused on corporate expense management through its Happay platform, which CRED acquired in 2021 for $180 million. But still, its core revenue stream and growth comes from B2C only.

How Does CRED Work?

CRED functions as an invite-only platform. Typically, a 750 credit score is needed to get accepted. Once the app is downloaded, the credit score is checked at the backend. If the same is found satisfactory, the user is onboarded.

After onboarding, users can:

Pay Credit Card Bills: This is the primary feature. Users earn CRED coins on transactions.
Redeem Rewards: CRED coins can be used to claim exclusive offers and discounts on products from the CRED Store.
Access Financial Services: Users can access CRED Cash for instant credit, use CRED Mint for lending, and even pay rent via credit cards.
Monitor Your Credit Health: The app provides insights into your payment history. You can keep an eye on your credit card payments. CRED’s AI features help you track spend patterns and other card usage statistics with due date reminders on each payment.

The system is designed to reward responsible financial behavior while offering access to curated financial tools and premium benefits.

How Does CRED Earn?

CRED’s business model is designed to generate revenue from multiple sources. While the app is free for users, its monetization comes from options like:

Financial services
Brand partnerships
Platform-based tools
Others

If we dig in deeper, then here are the detailed revenue streams that CRED operates on:

1. Lending and Interest-Based Products

CRED earns revenue through CRED Cash, which offers short-term credit to users. It also facilitates peer-to-peer lending through CRED Mint, taking a service fee on interest earned.

2. Transaction and Processing Fees

Through features like RentPay, CRED allows users to pay rent using credit cards. A small convenience fee is charged on each transaction. Similarly, CRED Pay earns a merchant commission per successful order.

3. Brand Collaborations and Sponsored Content

Brands listed on the CRED Store pay for visibility through listing fees or commission on sales. Sponsored offers and reward placements also generate ad revenue.

4. Subscription Revenue from Businesses

After acquiring Happay, CRED now earns revenue by providing corporate expense management solutions for enterprises.

These revenue streams together fuel CRED’s long-term monetization strategy.

Marketing Strategy of CRED

CRED aims to position itself as not just a fintech platform, but one that helps people maintain good credit discipline. This is one of the reasons that its marketing strategies focus on keeping messaging simple, engaging, and interactive. Some of the notable marketing strategies of CRED are as follows:

1. Exclusivity & Premium Positioning

CRED targets high-credit-score individuals. It positions itself as an exclusive, aspirational platform. The brand’s slogan is “Not Everyone Gets It.” This reinforces a sense of privilege, making membership feel special and desirable.

2. Creative & Viral Advertising

The advertisements or creatives are mostly quirky. These ads are designed to entertain, spark conversation, and become cultural moments. This helps the brand stand out in a crowded fintech market. Additionally, it enables people to connect with the brand.

The brand collabs with celebrities, comedians, and influencers to amplify reach and credibility. Witty, on-trend content on platforms like Instagram, Twitter, and YouTube helps the CRED stay relevant among its user base.

4. Event-Based Campaigns

CRED runs major promotional campaigns. This is mainly during high-visibility events like the IPL. It uses contests and giveaways to drive user engagement and app downloads.

5. Gamification & Rewards

The CRED Coins rewards program incentivizes users to pay credit card bills through the app. This empowers repeated usage and loyalty with exclusive offers at times.

6. Educational Content

CRED also educates its niche audience about financial management through engaging content. This builds trust and positions CRED as a leader in personal finance applications.

Here are some notable advertisements by CRED that captured audience attention greatly.

Rahul Dravid – “Indiranagar ka Gunda” (IPL 2021)

This ad became a cultural phenomenon. It featured the usually calm cricketer Rahul Dravid losing his temper in traffic and declaring himself “Indiranagar ka Gunda.” This unexpected portrayal instantly went viral, sparking widespread discussion on social media.

Bollywood Auditions (2020)

This was an ad featuring celebrities like Anil Kapoor, Madhuri Dixit, and Govinda. All of them were auditioning for a CRED commercial. The theme was poking fun at themselves and the idea of celebrity endorsements. The self-deprecating humor and unexpected scenarios resonated with viewers. This helps in setting CRED apart from conventional fintech advertising.

Financial Analysis of CRED

Financial Metrics	FY 2024	FY 2023	FY 2022
Revenue (₹ Crores)	2,473	1,484	422
Net Profit/Loss (₹ Crores)	-1,644	-1,347	-1,279

User Growth and Engagement

CRED’s monthly active user (MAU) base reached 13 million in November 2022. It has maintained a steady customer base of 13 million for 16 consecutive months, up to early 2024.
By FY24, some reports estimated the total user base at 16 million. This reflects a year-on-year growth of about 58%. However, new user growth has remained stagnant for a while now.
The average monthly transacting user performs around 20 sessions per month.
CRED’s share in UPI transaction volume doubled from 0.5% to 1% between April 2023 and March 2024. Its share by value increased from 1.5% to 2.3% in the same period.
As of March 2025, CRED processed 144 million UPI transactions. These transactions are worth ₹55,000 crore. It is now ranking seventh in UPI transaction volume in India.

Financial Performance

Revenue rose sharply from ₹422 crore in FY22 to approximately ₹1,500 crore in FY23. It further increased to ₹2,473 crore in FY24.
Operating losses went from ₹1,024 crore in FY23 to ₹609 crore in FY24. This was mainly due to reduced marketing and customer acquisition costs.
Net losses increased modestly, from ₹1,347 crore in FY23 to ₹1,644 crore in FY24.
CRED reduced its customer acquisition cost by approximately 80% over 4 years. It also achieved a 27% reduction in marketing expenses in FY23.
Cash reserves stood at around ₹2,050 crore in FY23. This provides a runway for continued operations and growth.

Other Key Metrics

The average value of UPI transactions on CRED declined from ₹13,000 in January 2022 to ₹3,400 in March 2024. This is mainly due to the platform diversifying into smaller merchant and utility payments.
CRED’s product expansion has increased cross-selling opportunities, although the core user base remains stable.

Major Achievements of CRED

CRED has been able to stand out due to its persistent efforts and strategic approach. Some of the major achievements of CRED that you must know are as follows:

Rapid Revenue Growth: CRED’s revenue surged by 66% to ₹2,473 crore in FY24. It is estimated to reach around ₹3,000 crore in FY25, reflecting strong financial momentum.

Large and Engaged User Base: By June 2024, CRED reported 13 million monthly active users and processed 144 million UPI transactions worth ₹55,000 crore in March 2025. This makes it the seventh-largest UPI payment app in India.

Product Diversification: CRED evolved from a credit card bill payment platform into a financial super app. It is now offering UPI payments, utility billing, vehicle management, travel, wealth management, and loans against mutual funds.

Strategic Acquisitions: The company expanded its portfolio by acquiring platforms like Happay (expense management), CreditVidya (lending), Spenny (investments), and Kuvera (wealth management).

Strong Funding and Valuation Milestones: CRED became a unicorn within three years. It has raised over $1 billion from global investors. Also, despite a recent valuation reset to $3.5–$4 billion, it remains one of India’s most valuable fintech startups.

SWOT Analysis of CRED

Now that you have all the basic details for CRED, let us complete a detailed SWOT analysis for better understanding. So, here are the things that you must know:

Strengths

Unique value proposition: CRED incentivizes timely credit card bill payments with rewards. This fosters financial discipline and strong user engagement through gamification and exclusive offers.
Strong brand identity and reputation: CRED is a premium and aspirational brand and is recognized for its innovative marketing strategies. It has created partnerships with leading brands.
Loyal and affluent user base: The platform attracts high-credit-score users. This makes it appealing for premium partnerships and targeted financial products.

Weaknesses

Limited user base: CRED primarily serves credit card holders. This excludes a large segment of the Indian population that doesn’t use credit cards.
High dependence on rewards: User engagement is heavily tied to the attractiveness of rewards. So, if these diminish, user retention could suffer.
Profitability challenges: Despite strong revenue growth, CRED remains loss-making, with high operational and marketing costs.

Opportunities

Service and market expansion: CRED can diversify into personal loans, insurance, investments, and target non-credit card users (e.g., UPI, debit card holders).
Data-driven personalization: Leveraging big data analytics and AI can enhance user experience and retention.
Partnerships and international expansion: It can collaborate with e-commerce platforms and explore new geographies, unlocking new growth avenues.

Threats

Intense competition: The fintech landscape is crowded, with new entrants and established players constantly trying to increase their market share.
Regulatory risks: Changes in digital payments or credit card regulations could impact operations and growth.
User fatigue: Over-reliance on rewards and gamification can lead to declining engagement as the novelty wears off.

Conclusion

CRED has transformed how creditworthy users manage their finances in India. By blending design, exclusivity, and financial tools, it has built a brand that feels aspirational yet useful. Its journey from bill payments to a full-fledged fintech platform reflects smart product offerings and bold marketing.

While profitability remains a challenge, strong revenue growth and product expansion indicate long-term promise. With IPO plans ahead, CRED’s next phase will test its ability to scale sustainably. Its story offers a clear example of how user trust, community, and consistency can shape success in the fintech space.

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FAQs

What is CRED?
CRED is a fintech company that rewards users for paying credit card bills and offers lending, investment, and premium financial services.
Who can join CRED?
Only users with a credit score above 750 can join CRED, making it an exclusive platform for financially responsible individuals.
How does CRED make money?
CRED earns from lending, transaction fees, brand listings, financial product commissions, and B2B services.
Is CRED profitable?
Not yet. CRED has reduced losses and increased revenue. Yet, it is still working toward long-term profitability and financial stability.
What makes CRED different from other fintech apps?
CRED offers exclusive rewards and financial tools to users with high-credit scores, thereby promoting responsible financial behavior, making it different from other apps that promote discretionary spending.

June 4, 2025

Blog

What are 5G Stocks?

List of the Best 5G Stocks

Overview of the Top 10 5G stocks in India

1. Reliance Industries

2. Bharti Airtel

3. Tech Mahindra

4. Indus Towers

5. Vodafone Idea

6. ITI

7. HFCL

8. Tejas Networks

9. Sterlite Technologies

10. Mahanagar Telephone Nigam

Key Performance Indicators (KPIs)

Benefits of Investing in the Best 5G Stocks

Risks of Investing in the Best 5G Stocks

Conclusion

Frequently Asked Questions

Is it a good time to invest in 5G?

Are 5G stocks risky?

How do these companies make money?

Are there 5G mutual funds or ETFs?

Why should I consider 5G stocks for investment?

What is GST & Why does it apply to Gold?

GST Rate on Gold

1. Additional GST on Making Charges

2.Total GST Calculation Formula

Factors Affecting GST Calculation

GST On 24 Carat Gold Rate in India 2025

Special Considerations for 24 Carat Gold

22 Carat Gold GST Rate in India in 2025

1. GST Breakdown for 22 Carat Gold

2. GST On 18 Carat Gold Purchase

GST on Digital Gold and Gold ETFs in India

What is Digital Gold?

Is GST Applicable on Digital Gold?

What About Gold ETFs?

Conclusion

Frequently Asked Questions(FAQs)

What is the GST rate on gold in India?

Is GST charged on making charges for gold jewellery?

Is GST the same for 18K, 22K, and 24K gold?

Can I avoid GST when buying gold?

Is GST refundable on gold purchases?

What is Call Option?

What is a Put Option?

Key Terms to Know About Call and Put Options

Call and Put Options with Examples

Case 1 – Profit on Expiry

Case 2 – Loss on Expiry

Case 1 – Profit on Expiry

Case 2 – Loss on Expiry

ITM, ATM and OTM Call and Put Options

1. In-the-Money (ITM)

2. At-the-Money (ATM)

3. Out-of-the-Money (OTM)

American vs European Options

Key Differences Between Call and Put Options

Advantages & Risks of Options Trading

Benefits of option trading

Risks of option trading

Understanding risk and reward is important

Pro Tips for Beginners in Options Trading

Conclusion

FAQs

What is a call option?

What is a put option?

How does a call option work in the share market?

What is the main difference between call and put options?

What is premium in options?

Is options trading risky?

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Comparative Study – Tata Motors vs. Ashok Leyland

Financial Statements Comparison

PROFIT & LOSS STATEMENT

BALANCE SHEET

CASH FLOW STATEMENTS

Key Performance Indicators (KPIs)