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Tata Technologies Vs TCS: Which is Better?

Tata Technologies and TCS are both IT companies under the Tata Group, but their business focus is quite different. On one hand, there is TCS, one of the largest IT companies in the world, offering custom IT solutions to its clients. On the other hand, Tata Technologies is a key player in the field of manufacturing and engineering innovative solutions through extensive R&D.

In this blog, we will discuss how these two companies are different, what their business model is, and their future business plans. If you want to understand what these companies do in detail, then this blog is for you.

Company Overview: Tata Technologies

Tata Technologies was established in 1989 as an engineering division of Tata Motors. Later, in 1994, it started operating as an independent company. Headquartered in Pune (Maharashtra), today the company is known for its presence worldwide, including the US, Europe, China, Japan, Singapore and South-East Asia.

The company’s main focus is on engineering and product development services, especially for the automobile, aerospace, and industrial machinery sectors. Tata Technologies’ mission is – “Engineering a better world” i.e. creating a better world through technology.

Today, the company has more than 12,000 employees globally and is led by Warren Harris, who has been associated with Tata Technologies since 2005. Tata Technologies is considered a leading company providing innovation-driven solutions due to in-depth R&D, furthering the legacy of the Tata Group in shaping the future of various industries.

Business Model – Tata Technologies

Tata Technologies’ business model is divided into two major parts:

Engineering Services : The company provides services such as design, product development, virtual simulation and embedded systems. Its main focus is on the automotive and manufacturing industry.
Technology Solutions : The company works on digital technology, product lifecycle management (PLM) software, smart factory solutions and EV technology platforms. Its key digital tools include in-house developed platforms such as eVMP, TRACE and FactoryMagix.

Tata Technologies helps clients get to market faster by providing end-to-end engineering and digital innovation solutions.

Read Also: Tata Technologies Case Study

Company Overview: TCS

TCS i.e. Tata Consultancy Services was founded in 1968, and today it is considered one of the largest IT service companies not only in India but in the world. It is one of the most valuable companies of the Tata Group, headquartered in Mumbai. TCS started as a simple data processing unit, but over time it has become a leader in providing services like digital transformation, cloud computing, artificial intelligence and consulting. The company is today led by CEO K. Krithivasan, who assumed the role in 2023. TCS has a client base spread across more than 50 countries, and its offices are located in US, Europe and Asia. The company serves almost every major sector such as banking, finance (BFSI), healthcare, retail, telecom and energy.

Business Model – TCS

TCS’ business model is entirely based on IT services and digital solutions:

Core Services : The company offers services such as application development, IT consulting, infrastructure services, and cloud migration.
Digital & Innovation : TCS’ focus on innovation in AI, data analytics, cybersecurity, and IoT keeps it at the forefront of technological changes.
Long-Term Engagements : The company’s revenue model is mostly based on long-term projects and managed services contracts.

TCS enables end-to-end digital transformation for its global clients, making it a trusted technology partner.

Read Also: TCS Case Study

Comparative Analysis: Tata Technologies Vs Tcs

Particulars	Tata Technologies	TCS
Current Price (₹)	700	3,439
Market Cap (₹ Crores)	28,413	12,44,206
52-W High (₹)	1,136	4,592
52-W Low (₹)	595	3,056
FII Holdings as of March 2025	3.10%	12.04%
DII Holdings (as of March 2025)	2.48%	11.56%
Book Value (₹)	88.2	262
PE Ratio	41.9	25.6

(Data as of 26 June 2025)

Financial Statements Analysis

Income Statement Comparison

Particulars	Tata Technologies	TCS
Total Income	5,292	2,59,286
Total Expenses	4,355	1,93,159
EBIT	936	66,127
Net Profit	672	48,797

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

Balance Sheet Comparison

Particulars	Tata Technologies	TCS
Reserves & Surplus	3,498	94,394
Current Liabilities	2,683	53,001
Current Assets	4,672	1,23,012
Other Assets	1,679	13,878

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

Cash Flow Statement Comparison

Particulars	Tata Technologies	TCS
Cash Flow from Operating Activities	699	48,908
Cash Flow from Investing Activities	-88	-2,318
Cash Flow from Financing Activities	-486	-47,438

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

Key Performance Ratios (KPIs)

Particulars	Tata Technologies	TCS
Operating Profit Margin (%)	18.12	25.89
Net Profit Margin (%)	13.01	19.11
ROE (%)	18.91	51.24
ROCE (%)	23.53	62.01
Debt to Equity (x)	0.00	0.00

(Data as of March 2025)

Who is better : Tata Technologies or TCS?

Tata Technologies and TCS, the companies may seem similar, but their focus is different. Tata Technologies focuses on where machines need detailed understanding like cars, airplanes or large factory machines. The company specializes in designing, testing and running things virtually.

On the other hand, TCS is a company that provides IT solutions to companies operating in various industries. Be it banks or hospitals, schools or government offices TCS makes work easier everywhere with its software and technology. Both are strong in their respective fields. Tata Technologies focuses on a few industries but designs customized solutions due to its expertise. On the other hand, TCS touches every sector and is spread across the world.

So it is difficult to say which one is “better”. It completely depends on the future financial performance of these firms, the growth potential of the sectors they are involved in and your risk tolerance.

Future Plans of Tata Technologies

Tata Technologies has sharpened its vision for 2025. The company has strengthened its vision with the tagline “Engineering a Software‑Defined Future” by focusing on client-centric strategies, embedded systems and next-gen vehicle solutions.

Mentoring client-centric teams : For Jaguar Land Rover, Tata Motors and other global automakers, the company has created dedicated leadership teams that will be aligned with each client’s needs.
Focus on Embedded Systems and SDV (Software-Defined Vehicles): The crucial component of their business strategy is SDV i.e. vehicles that operate through software. Tata Technologies aims to deliver customized and comprehensive solutions– that is, everything from architecture to implementation. Innovations like ADAS, automated parking, and smart cockpit design are now part of the company’s core offerings.
Growth in Aerospace and Heavy Machinery : The company is no longer just dependent on the automobile sector; innovation hubs are being created for aerospace and industrial machinery to accelerate design and virtual prototyping.
The power of digital platforms : In-house platforms such as eVMP, TRACE and FactoryMagix are being further strengthened to enable smart factories and digital twins.

Global R&D expansion : New R&D networks are being created in Asia, the US and Europe to provide direct support to local clients. There is also a strong focus on ESG, quality of electric vehicles and sustainable manufacturing.

Future Plans of TCS

In 2025, TCS has accelerated growth by keeping its overall approach digital-first and creating separate directions in AI and cloud.

Launching AI and Cloud as independent verticals : TCS has recently split its AI.Cloud unit into two separate verticals—AI and Cloud—with the aim of focusing more deeply and strategically on each technology area.
“Human + AI” model : Chairman N. Chandrasekaran said that TCS is now training AI agents and humans to work together. This will lead to increased automation, productivity and decision-making without losing the human touch.
Global innovation hubs : TCS has created facilities for AI, IoT and cybersecurity trials by opening new innovation centers in Cincinnati, USA and Paris, France to accelerate cross-border experiments.
BFSI and industry-specific digitalisation : The company is rapidly expanding into new markets especially the UK and India—with SaaS, cloud, AI solutions in the banking and insurance sectors.

Partnerships and skill development : TCS has forged collaborations with major tech partners like AWS, Google Cloud and Xerox. Also, they have provided generative AI training to 3.5 lakh employees.

Conclusion

Tata Technologies and TCS were established for different purposes. One made its mark in developing innovative designing and manufacturing solutions, while the other consolidated its position as a key global IT player. Both have different visions, ways of working and customer base. So instead of comparing, it is more important to understand how each company is adapting to the changing IT landscape. You are advised to consult a financial advisor before investing in any of the companies.

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Frequently Asked Questions (FAQs)

Are Tata Technologies and TCS part of the same group?
Yes, both are Tata Group companies but their areas of work are different.
What is the main difference between Tata Technologies and TCS?
Tata Technologies specializes in engineering and design solutions, while TCS provides IT services and digital solutions.
Which company is larger in terms of global presence?
TCS’s global network and client base is much larger than Tata Technologies.
Do both companies serve the same industries?
No, Tata Technologies mainly provides innovative solutions for the automobile and manufacturing sector, whereas TCS develops IT solutions for almost every industry.
Is one company better than the other?
Both companies are strong players in their respective fields, who is better depends on the future financial performance and your risk tolerance.

June 27, 2025

Multibagger Penny Stocks for 2025

Everyone dreams of discovering the next multibagger stock before it gains everyone’s attention. If that stock happens to be a penny stock, the potential for returns is even greater because you can accumulate more shares with a smaller investment. These are shares of companies that trade at low prices but have the potential to offer multibagger returns if things go right.

In this blog, we will explore some multibagger penny stocks that have generated huge returns in the past few years.

What are Multibagger stocks?

How do Penny Stocks Turn Into Multibaggers?

Penny stocks are those low-priced shares of smaller companies, often trading under ₹50 or ₹100. Some of them have the potential to turn into multibaggers over time. Let us see why this happens

1. Since these stocks trade at low prices, even small improvements in the financial performance of the company can lead to big gains in stock price.

2. If a struggling company with a listed penny stock fixes its problems, like reducing debt or making profits again, the stock price can rise sharply.

3. New products or expanding into new markets often catch investor attention, which can establish a new bullish momentum in its stock price.

4. When promoters increase their stake or big investors such as FII and DII start showing interest, it’s usually a positive sign.

List of Multibagger Penny Stocks

Company	CMP (In INR)	Market Capitalization (In Crores)	52-Week High (In INR)	52-Week Low (In INR)	5 YEARS Return (%)
Integrated Industries	23.2	540	44.9	17.2	77,233.33%
East India Drums & Barrels Manufacturing	75.2	111	75.2	0	39,478.95%
Hazoor Multi Projects	40	860	63.9	32	33,100%
Flomic Global Logistics	69.8	127	80	52	16,519.05%
Sejal Glass	492	497	679	304	3,011.11%
Dolphin Offshore	371	1,485	766	200	2,554.57%

(Data as of 26 June 2025)

Note: The stocks mentioned above were penny stocks 5 years ago; their current prices can be higher.

Overview of Multibagger Penny Stocks in India 2025

An overview of the penny stocks that have delivered multibagger returns in the past 5 years is given below:

1. Integrated Industries

Originally incorporated in August 1995 as Integrated Technologies Limited, the company rebranded to Integrated Industries Limited in July 2023 to align with its broader business focus. Under the leadership of Saurabh Goyal & Sanidhya Garg, the company moved from electronics to manufacturing and trading of organic food, bakery items, and processed foods.

Furthermore, Integrated Industries acquired Nurture Well Foods Pvt. Ltd. in May 2023, including a biscuit manufacturing plant in Neemrana, Rajasthan, that sells products under brands like Richlite, FunTreat, and Canberra.

2. East India Drums & Barrels Manufacturing

Founded in 2013 by Mr. Madhav Valia, East India Drums & Barrels Mfg. Ltd. (EIDB) is a leading manufacturer of industrial drums and barrels, headquartered in Daman. With additional plants in Karjat and Sonipat, it now rolls out over 3 million units a year, employs more than 350 people.

EIDB manufactures a variety of industrial packaging solutions,

Close-Top Drums – Sealed units for liquids and semi-liquids.
Open-Top Drums – Removable lids, ideal for solids and semi-solids.
Gooseneck Drums – Designed for easy loading/unloading.
Composite & Galvanised Drums – For chemical, fragrance, and solvent industries.

3. Hazoor Multi Projects

Founded in 1992 as Hazoor Media & Power Ltd., the company initially focused on real estate and commercial projects in Mumbai. In 2007, it officially rebranded to Hazoor Multi Projects Ltd., suggesting a strategic shift toward broader infrastructure and construction activities.

Over the years, HMPL shifted its focus toward road construction and Infrastructure EPC (Engineering, Procurement & Construction), especially due to contracts from MSRDC on both EPC and HAM models of execution.

4. Flomic Global Logistics

Founded in 1981 as Vinaditya Trading Company Ltd. in Maharashtra, the firm shifted focus over the decades to logistics services. In 2019–20, Flomic Freight Services Pvt. Ltd. was merged into the company, and in September 2020, it rebranded to Flomic Global Logistics Ltd., reflecting its evolved identity. Flomic is now a full-spectrum logistics provider and offers ocean & air freight forwarding, domestic transport via air and rail, and customs services at all major EXIM points, etc.

5. Sejal Glass

Sejal Glass started in 1991 as a small retail outlet in Malad, Mumbai, called “Sejal Glass House,” founded by Amrutbhai S. Gada. It focused on trading and custom-cutting decorative glass for interior and exterior use.

By 1992, they launched their first processing unit, Sejal Glass Craft Pvt Ltd, outfitted with CNC machinery from Italy, to scale up production. Sejal transitioned into a public limited company in March 1999, with commercial production of insulating glass starting in 2000 and toughened glass in 2001.

6. Dolphin Offshore

Dolphin Offshore Enterprises (India) Limited was established in 1979 by Rear Admiral Kirpal Singh and Shavax A. Lal with a vision to offer professional diving and underwater engineering services, primarily supporting India’s offshore oil exploration efforts at Bombay High.

In its initial years, Dolphin partnered with several leading international companies, including Taylor Diving & Salvage (then part of Halliburton) and Global Marine Drilling. These alliances helped the company establish its expertise in accomplishing offshore projects.

Key Performance Indicators

Company	Operating Profit Margin (%)	Net Profit Margin (%)	ROE (in %)	ROCE (in %)	Debt-to-Equity
Integrated Industries	9.07	8.69	21.69	22.58	0
East India Drums & Barrels Manufacturing	4.33	1.32	18.97	26.04	2.65
Hazoor Multi Projects	11.08	6.26	8.73	11.41	0.43
Flomic Global Logistics	3.76	0.73	7.88	17.41	0.79
Sejal Glass	11.44	4.49	28.77	15.51	4.16
Dolphin Offshore	65.89	62.79	17.06	11.15	0.6

(all the figures mentioned above are as of March 2025)

Conclusion

While penny stocks do come with higher risks, they also bring the excitement of discovering hidden gems before the rest of the market notices and make substantial profits. The ones we’ve talked about here have delivered multibagger returns over the past 5 years, and better financial performance in the future could turn them into even bigger winners in the coming years. However, it must be kept in mind that past performance is not indicative of future performance and thus you should analyze these companies thoroughly before investing in these shares.

Investing in penny stocks requires caution, patience, and thorough research. Always diversify your portfolio, focus on businesses with real potential, not just cheap prices, and avoid putting large sums into speculative bets.

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Frequently Asked Questions (FAQs)

Are penny stocks safe to invest in?
They carry higher risks due to low liquidity and business uncertainty. Do thorough research before investing.
How long should I hold penny stocks?
If the company has consistently improved financial performance over the years and is expanding rapidly, then long-term holding can result in multibagger gains.
Can penny stocks make you rich?
Some penny stocks in the past have created massive wealth, but many fail, too. Success depends on choosing the right businesses early.
Do penny stocks pay dividends?
Rarely. Most small companies reinvest profits into business growth instead of paying dividends.
Where can I buy penny stocks?
You can buy them by opening a demat and trading account with stock brokers like Pocketful.

June 26, 2025

Lowest MTF Interest Rate Brokers in India | Top 10 MTF Trading Apps

Imagine being able to buy stocks worth more than the capital you currently hold! MTF is a facility that you can use to magnify your returns using little capital. Consider it as a short-term loan from your stockbroker, where you as an investor will have to pay a small proportion of the total investment amount and the broker helps cover the rest.

However, it is necessary to find brokers that offer MTF at reasonable interest rates as interest charged on the amount availed via MTF can reduce investment returns. In this blog, we will give you a list of brokers that provide MTF at lowest interest rates.

Understanding Margin Trading Facility (MTF)

MTF is a service offered by brokers through which they lend money to investors or traders and charge interest in return. This interest rate associated with the loan taken via MTF is known as MTF interest rate and brokers usually charge a daily fee on the amount funded.

It is crucial to select the broker that offers MTF at a low interest rate as it can impact your profit as well as the losses, if you keep the position open for weeks or months. Low MTF interest rates help reduce trading costs; thereby increasing profitability. Now lets look at the top 10 brokers with the lowest MTF rates in India.

Top 10 Brokers Offering the Lowest MTF Interest Rates in India

Broker	MTF Interest Rates	Per Day charges per Lakh
Pocketful	Starts from 0.0164% per day (5.99% p.a.) for amounts up to ₹1,00,000, varies based on funded amount.	₹16.4
Zerodha	0.04% per day (14.6% p.a.)	₹40
ICICI Direct	0.026% to 0.049% per day (9.69% to 17.99% p.a), varies based on brokerage plans	₹26 to ₹49
Groww	0.041% per day (14.95% p.a.)	₹41
Kotak Securities	0.026% per day (9.75% p.a.), varies based on brokerage plans	₹26
mStock	MTF interest rates are slab based Above ₹5 crores : 0.0192% per day Above ₹25 lakh to ₹5 crore : 0.0274% per day Up to ₹25 lakh : 0.0411% per day	₹41
Paytm Money	0.026% to 0.041% per day (9.75% to 14.99% p.a.) – varies based on slab	₹26
5paisa	0.045% per day (16.425% p.a.)	₹45
Dhan	0.034% to 0.045% per day (12.49% to 16.49% p.a.) varies based on Gross Holdings	₹34
Angel One	0.041% per day (14.99% p.a.)	₹41

Overview of Top 10 Brokers with the Lowest MTF Rates in India

1. Pocketful

Pocketful is an emerging stock broking firm and is a subsidiary of Pace Stock Broking Services. It is a growing and well trusted platform which provides a modern trading experience to the users. It 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.

MTF Interest Rate: Currently, they are offering the lowest MTF rate in the stock market, starting at just 5.99% p.a. which means per day rate of 0.0164% on borrowed funds up to ₹1,00,000. For funded amounts between ₹1,00,001 and ₹25,00,000, the MTF interest rate is 14.60% p.a. (0.040% per day) and for funded amounts above ₹25,00,000, the MTF interest rate is 16% p.a (0.0438% per day)

Check Out – Stocks Available for MTF

2. Zerodha

It is one of the largest discount brokers in India, which charges low brokerage and consists of an advanced trading platform called Kite. Many traders in India begin their stock market journey with Zerodha, which has revolutionized online investing through its easy-to-use platforms.

MTF Interest Rate: Unlike Pocketful, Zerodha charges a daily interest of 0.04% on borrowed funds, i.e. an annual interest rate of 14.6%.

3. ICICI Direct

It is one of the best suited platforms for investors looking for a 3-in-1 account as it provides demat, trading and banking services to the customers. Backed by ICICI Bank it provides secure and comprehensive financial services.

MTF Interest Rate: Borrowing costs or MTF interest rates vary depending upon the brokerage plan. The brokerage plan can cost as low as 9.69% per annum for some plans, while other plans can charge up to 17.99% per annum.

4. Groww

Groww has a user friendly trading app with exceptional user interface, making trading easier for beginners as well as the advanced traders. It has a vast customer base and offers real time market data, advanced charts for you to make informed trading decisions.

MTF Interest Rate: An annual charge of 14.95% per annum is charged that roughly translates to 0.41% per day charge on the funded amount.

5. Kotak Securities

A prominent market player which has been around for many years, backed by the Kotak Mahindra Group. Investors often pick them for their in-depth research reports and personalized advisory services. The platform feels easy-to-use whether you’re a beginner or a seasoned trader.

MTF Interest Rate: Under the Trade Free Pro plan, margin funds cost roughly 9.75% per year, which makes them appealing to anyone who wants to borrow money without giving up too much in interest.

6. mStock

m.Stock is a next-generation stockbroking platform backed by Mirae Asset Financial Group, bringing global financial expertise to Indian investors. Trusted by 22 lakh+ users, it offers a secure and powerful trading ecosystem with equities, IPOs, mutual funds, F&O and ETFs available through advanced web and mobile platforms. Known for competitive pricing and cutting-edge tools, m.Stock has quickly become a leading name in India’s discount brokerage space.

MTF Interest Rate: m.Stock follows a slab based system with 0.0411% per day up to ₹25 lakh, 0.0274% per day for ₹25 lakh to ₹5 crore, and 0.0192% per day above ₹5 crore.

7. Paytm Money

A digital platform to invest and trade, that is an integrated part of the wider Paytm ecosystem. New users like one-click mutual fund purchase and the chat-support built right into the app. Serious investors appreciate seamless trading and investing.

MTF Interest Rate: The broker recently switched to a slab based system, on book sizes up to 1 lakh, the rate is about 9.75% p.a. Borrowings between 1 lakh to 25 lakh range usually see a 14.99% per annum. However, if book size is above 25 lakh, then again the rate will come down to 9.75% p.a.

8. 5paisa

It is a budget-friendly stock broker that lets you trade cost-effectively but still offers a lot of features. It is perfect for active traders who want to keep costs down while putting in orders all day.

MTF Interest Rate: When it comes to Margin Trading Facility (MTF) money, the daily interest charge is 0.045% which roughly translates to 16.425%. It is slightly on the higher side and when you compare this with the Pocketful MTF rate, the difference is huge.

9. Dhan

It is a brokerage platform built using the latest technologies, integrated with advanced tools for traders. This trading ecosystem includes : Dhan mobile app, the web dashboard, and even integration with TradingView for an ultimate trading experience.

MTF Interest Rate: Interest on borrowed capital (MTF) is in 5 brackets. It starts at 12.49% a year, or nearly 0.034% per day, for an amount funded up to ₹5 lakh. From 5 Lakh to 10 Lakh, the interest rate is 13.49% p.a. The rate rises up as the funded amount increases. The highest rate is for the amount funded above 50 Lakh which is 16.49% p.a.

10. Angel One

Angel One has been around long enough to win the trust of traders, yet remains relevant due to continuous technical upgrades. The platform provides an easy to use mobile app and levies standard brokerage charges. On its platforms, one can easily hop between research reports, charts, and executed trades.

MTF Interest Rate: The daily interest charged is around 0.041% which constitutes to 14.99% in a year, which is pretty much on par with the market but definitely much higher than what is offered at Pocketful.

Importance of Low MTF Interest Rates

Borrowing money in the stock market through Margin Trading Facility (MTF) can benefit traders with higher profits. And borrowing money with the lowest interest rate in the market is icing on the cake. Some of the key benefits of using MTF with low interest rate are:

Higher Profit Potential: Lower MTF interest rates can significantly boost your profits as lower interest rates help an investor reduce costs.
Useful in Rangebound Markets: Stock prices can remain rangebound for a long period before moving in your predicted direction. When the cost to borrow is cheap, you aren’t worried about borrowing costs and can patiently wait to realize profits.

MTF: When to Tap the Borrowing Button, When to Hold Back?

Margin Trading Facility (MTF) lets you borrow funds so that you can increase your buying power. That extra firepower can pay off big, yet the same leverage can flip on you faster than you expect. Here are some of the drawbacks:

Risky for Beginners: MTF is not recommended for those new to the stock market. If you have just started trading , it is better to trade only with the money you have. Start with the basics and skip the borrowed cash aka MTF for now. Borrowing makes sense only after you have a good grasp of the risks that tag along.
Volatile Stocks: Using borrowed money to invest in highly volatile or high beta stocks is risky. These are stocks whose prices can swing dramatically both up and down. A sudden price drop could force you to sell at a significant loss, making it difficult for you to repay your MTF loan. Remember when using any kind of leverage, higher potential profits also mean higher potential losses.
Avoid MTF when you’re Uncertain: It is wise not to borrow if you are not fully confident in a company’s future performance, such as its future growth prospect or the success of a new product. In these situations, it’s often better to be patient and wait for more clarity. Also, one can buy using their own funds in such situations instead of using MTF.
Plan to hold for Long term: Margin trading facility, or MTF, probably isn’t your friend if you are a long term investor and want to hold stocks for years. The daily borrowing charges can pile up and reduce your gains.

Use our Margin Trading Facility Calculator

Conclusion

As we all know leverage is like a double-edged sword, the funds borrowed using Margin Trading Facility (MTF) are no different. If used wisely, it has the potential to enhance your returns significantly, whereas if used carelessly can cause you huge losses. However, it is always recommended to select the broker that offers MTF at lowest rates.

Choosing a broker with the lowest MTF fee is crucial as a tiny difference in MTF interest rates can result in big savings down the road. Pocketful offers you MTF at lowest interest rate in the market, starting at just 5.99% p.a. You can open a demat account with Pocketful for free with zero AMC.

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Frequently Asked Questions (FAQs)

How is MTF interest calculated and billed?
Most stock brokers calculate the MTF charges on a daily basis, which adds up until the position is closed. However, the MTF charges are deducted on a weekly basis usually.
What are the main costs associated with MTF besides the interest rate?
Apart from brokerage charges, it is important to check pledge and unpledge charges as the securities bought using MTF are automatically pledged and then unpledged when sold. Also, if your balance dips too low, some brokers automatically liquidate your position and may hit you with margin call penalties.
For how long can I hold shares bought using MTF?
Most brokers in India allow you to hold shares for an unlimited time period.
How Do I Pay Back the MTF Loan?
Repaying your MTF loan is an easy process. When you sell the shares that were bought using MTF, the broker deducts what you owe-plus any interest charges and then deposits the leftover cash into your trading account.
What should the traders do if there is a margin call?
Traders must deposit cash into their trading account quickly as most brokers give you less than a full day to fulfill the margin requirements. If delayed, the broker can start selling your stocks to cover the shortfall along with margin call penalty.

June 25, 2025

Short Straddle: Option Strategy with Examples

Navigating range-bound markets can be challenging, especially when it comes to identifying strategies that generate consistent profits. One such approach tailored for stagnant or sideways price movement is the short straddle. It is a popular strategy among experienced traders who believe a stock or index will not move much in the near future. But while it can generate attractive returns in range bound conditions, it also comes with unlimited risk if the market breaks out of its range.

In this blog, we will break down how a short straddle works, when to use it, what the profit/loss potential looks like, and help you understand it with an easy example.

What is a Short Straddle?

A short straddle is an options trading strategy that is used when you expect the market to stay flat, or not move much in either direction. It is a neutral strategy, meaning you are not betting on the price going up or down; instead, it will stay near the current level.

In a short straddle, you sell one call option and one put option with the same strike price and expiration date. You receive premiums from both short positions, which is your maximum possible profit if the market stays range bound. We will discuss the profit scenarios in a short while but let us first learn about the basic idea behind this strategy.

How does a Short Straddle Work?

The idea is simple – if the stock stays at the strike price until expiry, both options could expire worthless and you get to keep the premiums, which is your maximum gain.

However, if the price moves significantly up or down, the losses can significantly increase. There is no limit on how much you could lose, which makes this a high-risk strategy, best suited for experienced traders who can predict market conditions with some accuracy.

Key Components of Short Straddle

Before jumping into a short straddle, it is important to understand the key parts that make up the strategy. Here is what you need to know,

1. Strike Price

This is the price associated with the call and put options at which the options can be exercised or settled. In a short straddle, both options have the same strike price, ideally close to the current market price of the underlying asset or At the Money (ATM) options.

2. Premium Received

When you sell a call and a put, you collect premiums for both. These premiums are your maximum possible profit, but only if the price of the asset stays near the strike price until expiry.

3. Expiration Date

Both the call and put options in a short straddle must have the same expiry date. The closer you are to expiration, the faster the time value of the options erodes, which benefits the seller.

4. Implied Volatility (IV)

Short straddles work best when IV is high at the time of entry and is expected to fall. A drop in IV usually leads to a drop in option prices, which benefits the seller. But high IV also means higher risk, so timing matters.

Read Also: What Is an Option Contract?

Profit, Loss and Breakeven in a Short Straddle

1. Maximum Profit

Your maximum profit is limited to the total premium you collect from selling the call and the put. This happens only if the underlying asset stays exactly at the strike price on expiry. In that case, both options expire worthless, and you keep the full premium.

2. Maximum Loss

The loss potential is unlimited on the upside, i.e., if the asset price rises sharply and substantial on the downside as asset prices cannot go below 0. Since you have sold both a call and a put, any big move, up or down, can lead to big losses.

3. Breakeven Points

There are two break even points in a short straddle, one on each side of the strike price:

Upper Breakeven = Strike Price + Total Premium Received
Lower Breakeven = Strike Price – Total Premium Received

If the price of the underlying asset stays within this range, you make a profit. If it goes outside, the position starts losing money.

Example of Short Straddle

Suppose ABC stock is trading at ₹100, and you are predicting that it is going to stay around this level for the upcoming days. So, you decide to create a short straddle.

You will need to execute the following trades;

Sell 1 Call Option at ₹100 strike,

Suppose, Premium received = 6 points = ₹600, considering lot size to be 100

Sell 1 Put Option at ₹100 strike,

Premium received = 6 points = ₹600

Total Premium Collected = 6 + 6 = 12 = ₹1,200

Now let us consider three cases,

Case 1 : If the stock closes on ₹100 at expiry : The call and put both expire worthless and you keep the full ₹1,200 premium as profit, which is the maximum profit.

Case 2 : If the stock closes at ₹110 at expiry : Call is in the money and will be worth 10 points (110 – 100) or ₹1,000 at expiry, whereas put will expire worthless.

Call Position = Premium received – intrinsic value of call = ₹600 – ₹1,000 = -₹400
Put Position = Premium received – intrinsic value of put = ₹600 – ₹0 = ₹600
Net P/L = P&L from call + P&L from put = -₹400 + ₹600 = ₹200

Case 3 : If the stock closes at ₹85 at expiry : Put option is in the money and will be worth 15 points (100 – 85) or ₹1,500 at expiry, whereas the call expires worthless.

Call Position = Premium received – intrinsic value of call = ₹600 – ₹0 = ₹600
Put Position = Premium received – intrinsic value of put = ₹600 – ₹1,500 = -₹900
Net P/L = P&L from call + P&L from put = ₹600 – ₹900 = -₹300

When to Use a Short Straddle?

A short straddle is useful in the following conditions:

1. When You Expect Low Volatility

If you believe the price of the stock or index will stay near its current level until expiry, a short straddle can generate good profits.

2. After a Volatility Spike

Selling a straddle when implied volatility (IV) is high and likely to fall can be smart because options premiums are inflated during periods of high IV, and you collect more upfront premium. If volatility drops, option prices fall, which is beneficial for the seller.

Advantages & Risks of Short Straddle

Advantages

1. High Premium Collection

You receive premiums from selling both call and put options. You can generate decent profits using this compared to many other strategies.

2. Profitable in a Range-Bound Market

If the stock stays within a range, especially near the strike price, the short straddle can be very effective. Time decay, which is also known as theta, works in your favour.

3. Simple Setup

It is a simple strategy. Same strike, same expiry, sell one call and one put. No need to manage multiple strikes or legs like that in iron condors or butterflies.

Risks

1. Unlimited Loss Potential

This is the biggest concern because if the stock makes a big move in either direction, losses can be steep. There is no upper limit on how much you could lose.

2. Requires Active Monitoring

You cannot simply create a short straddle and wait till expiry as it may be necessary to adjust the positions or exit the trading position if there is any global event.

3. High Margin Requirement

Because of the risk involved, brokers usually require you to keep a substantial margin amount in your trading account to execute this strategy.

Conclusion

A short straddle is a powerful options strategy when markets are expected to stay quiet, but risky when they are not. It is best used by experienced traders who are comfortable managing trades actively and have a good understanding of market behaviour. The unlimited risk on both sides means you need to be very confident in your market view, keep an eye on your position, and be ready to act if things start moving against you. Remember to always manage risk smartly, because when the market moves, it can move fast. It is advised to consult a financial advisor before trading.

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Frequently Asked Questions (FAQs)

When is a short straddle most profitable?
It is most profitable when the underlying asset closes exactly at the strike price at expiry. In this scenario, both call and put expire worthless and you keep the full premium received at the beginning.
How do I know the breakeven points in a short straddle?
You calculate breakeven by adding (upper breakeven) and subtracting (lower breakeven) the total premium received from the strike price.
Can beginners use the short straddle?
It is generally not recommended for beginners because of the high risk and need for active management.
Can I close the short straddle before expiry?
Yes, you can close your position anytime before expiry to lock in profits or cut losses.
How much margin do I need for a short straddle?
Margins requirements can differ across brokers but tend to be high due to the unlimited risk involved.

June 25, 2025

10+ Best Investment Plan for Monthly Income in India

In today’s uncertain economic environment, rising expenses, lack of job security, and unstable income have become common concerns. In such a situation, a monthly income plan can become a great way to safeguard your financial future.

This blog is for those people who want to diversify their income stream and receive a stable income every month – that too without taking on big risks. Here we will talk about the best investment plans for monthly income in detail.

10+ Best Investment Plans for Monthly Income in India

S.no	Monthly Income Plans
1	Post Office Monthly Income Scheme (POMIS)
2	Monthly Income Mutual Funds (MIPs)
3	Senior Citizen Saving Scheme (SCSS)
4	Corporate Fixed Deposits (with monthly payouts)
5	Government Bonds (with monthly interest option)
6	RBI Floating Rate Savings Bonds
7	Annuity Plans from Insurance Companies
8	SWP (Systematic Withdrawal Plan) from Mutual Funds
9	Real Estate (Rental Income)
10	REITs (Real Estate Investment Trusts)
11	Dividend-Paying Stocks
12	Peer-to-Peer Lending (with monthly EMIs)

Overview of the Top Best Monthly Investment Plan for Monthly Income in India 2025

An overview of all the plans is given below:

1. Post Office Monthly Income Scheme (POMIS)

POMIS is a scheme in which once the money is invested, a fixed interest is received every month. The government guarantee and the reliability of the post office make this scheme special among small investors.

Important points (as of 2025)

Interest rate 7.4% per annum
Interest is paid every month
Single account Maximum investment : ₹9 lakh
Joint account Maximum investment : ₹15 lakh
Scheme term : 5 years
Minimum investment ₹1,000

Who can invest?

Any Indian citizen
Joint account can be opened in the name of two adults
NRIs cannot invest in it

Example of returns : Investing ₹9 lakh gives an income of about ₹5,550 every month.

Advantages	Disadvantages
Guaranteed monthly income	Interest received is taxable
Capital is completely safe	No tax exemption under Section 80C
Investment is simple and easy	Penalty is levied if withdrawn before five years

2. Monthly Income Mutual Funds (MIPs)

Monthly Income Plans (MIPs) are mutual funds designed to provide regular income to investors. Most of the money is invested in debt instruments (such as bonds) and a small portion in equity to get better returns.

How does it work?

This scheme provides income every month through Systematic Withdrawal Plan (SWP)
The return is completely market dependent – there is no fixed rate
If the equity portion is high, both risk and return increase
Most schemes invest 75–90% in debt and 10–25% in equity

For example : If ₹10 lakh is invested and the annual average return is 8%, then an income of about ₹6,000 – ₹6,500 can be withdrawn every month (may vary according to market conditions).

Advantages	Disadvantages
Potential for higher returns than bank FDs	Credit risk of issuer
Monthly income through SWP	Returns not fixed
Provides flexibility for tax planning	NAV may fall if interest rate rises

3. Senior Citizen Savings Scheme (SCSS)

Senior Citizen Savings Scheme (SCSS) is a reliable and safe investment scheme backed by the Government of India, specially designed for senior citizens aged 60 years and above. This scheme is an excellent option to get a regular and fixed income after retirement, in which your capital is completely safe and the interest is paid on time.

How does it work?

Age should be 60 years or above. Those aged 55+ who have opted for VRS are eligible.
Maximum investment limit has been increased to ₹30 lakh in 2025.
Minimum investment starts from ₹1,000.
Interest rate is 8.2% per annum, which is paid quarterly.
The tenure of the scheme is 5 years, which can be extended by 3 years.

Who is it for?

People who are retired and want a steady income every few months.
Those who are focused on capital protection and stable income.

Example: An investment of ₹30 lakh earns approximately ₹61,500 interest every quarter, i.e. approximately ₹20,500 per month.

Advantages and Disadvantages

Advantages	Disadvantages
Government guarantee	Interest is taxable
Tax exemption under 80C section	Quarterly income, not monthly
Fixed interest rate	Lumpsum investment required

4. Corporate Fixed Deposits

Through Corporate FDs, reputed NBFCs and companies raise funds directly from investors. These instruments, when offered by reputed institutions, can be considered as secure as a bank FD with higher interest rates.

Key details for 2025

Interest rate 7.4% to 8.6% p.a. (depending on the issuing company)
Payment frequency : Monthly / quarterly / half-yearly / yearly depending on your choice.
Minimum investment Depends on issuer
Maturity period : Ranges between 12 to 60 months.

Who can invest?

Any Indian citizen
Senior citizens get 0.25–0.40% additional interest

Example: If the interest rate on an FD of ₹5 lakh is 8.3%, then the income can be around ₹3,458 every month

Advantages	Disadvantages
Possibility of higher returns than bank FDs	Slightly higher risk than banks FDs
Regular cash flow due to monthly payout	Risk of capital loss if the issuing company defaults
Option to withdraw before maturity	Interest is fully taxable

5. Government Bonds (with monthly interest option)

These bonds issued by the government are a safe investment in the market. Some government securities offer interest payment options with frequency like monthly or bimonthly, thereby providing a regular source of income.

Key Details (till 2025)

The government issues bonds with different tenures like 3, 5, 7, 10, 15, 30, 40, 50 years
Some bonds offer monthly payment options; others offer interest on a quarterly or a semi-annual basis.
10‑Year G‑Sec Yield is around 6.6% (till May 2025), which is better than other small savings options

Who can invest?

Any Indian citizen, HUF, Institutions
Single or joint holding option
NRIs may be eligible in some cases

Example : Investing ₹10 lakh, at 6.6% rate, the potential income is ~₹66,000 per annum, i.e. around ₹5,500 per month.

Advantages	Disadvantages
Backed by Government of India	Interest is taxable
Can be easily bought and sold	Monthly payouts not applicable for every bond
Better return potential than other small savings schemes/FDs	Returns of bonds may be affected due to changes in interest rates

6. RBI Floating Rate Savings Bonds

This scheme of RBI is for those investors who want their money to be safe and have regular income. It gives better returns than fixed deposit returns as its rate is reset semiannually to NSC (National Savings Certificate) rate + 0.35%

Key Details (2025)

Interest Rate 8.05% p.a. (for Jan–Jun 2025)
Payment Frequency: Every 6 months (1st Jan and 1st Jul)
Minimum Investment : ₹1,000 (in multiples thereafter)
No maximum investment limit
Lock-in period of 6 years for investors aged between 60–70 years and 5 years for investors aged between 70 and 80.

Who can invest?

Any Indian citizen or HUF
Can be a single or joint account
NRIs not eligible

Example of returns : By investing ₹10 lakh, you can get about ₹38,600 interest every six months – that is, about ₹77,200 annually

Advantages	Disadvantages
Fully government backed and secured	Interest is taxable and TDS will be applicable (on interest above ₹10,000)
Rates are NSC based, floating but lucrative (currently 8.05%)	Not fixed, rates may change every 6 month
Periodic income every six months	Premature withdrawal not possible (except in special cases of senior citizens)

7. Annuity Plans from Insurance Companies

Annuity Plans are options offered by insurance companies in which a lump sum amount is deposited and then regular income is received for a fixed period or for life. This scheme is especially for those who want fixed income after retirement. Companies like LIC, HDFC Life, ICICI Prudential, SBI Life offer these plans.

Key points (as of 2025)

Annuity Income starts immediately after investment
Deferred Annuity Income starts after a few years
Interest rate : 5.75% – 7% (depends on age and plan)
Income frequency Monthly, Quarterly, Half-Yearly or Yearly
Minimum investment Starting from ₹1 lakh
Some plans include a ‘Return of Purchase Price’ option, where the invested amount is paid to the nominee after the annuitant’s death.

Who can invest?

Individuals aged between 30 to 85 years
Single or Joint Annuity option
Extra benefits and payout options for Senior Citizens

Example: Investing ₹10 lakh at the age of 60 can generate monthly income of ₹5,500 under immediate annuity option.

Advantages	Disadvantages
Assured income for life	Returns are limited
Capital protection (in some plans)	Does not adjust to inflation
Tax exemption (under Section 80CCC)	Premature withdrawal not possible

8. SWP (Systematic Withdrawal Plan) from Mutual Funds

SWP is a method where you can withdraw a fixed amount every month from your mutual fund investments. In this, your money remains invested in mutual fund schemes and you can get regulated income from it. These schemes are best for investors who want a flexible and tax-efficient way to earn side income.

Key points (as of 2025)

SWP can be started by investing in any mutual fund scheme
Withdrawal amount and frequency (monthly/quarterly) are decided by you
SWP option available in both equity and debt schemes
Equity SWP has the potential for better returns in the long term
Withdrawal is based on NAV of units

Example: ₹10 lakh invested and ₹6,000/month SWP started — investment remains intact and can grow as per the market

Advantages	Disadvantages
Withdraw as much as you want, whenever you want	Market risk remains
Inflation-beating potential (especially equity SWP)	Decline in invested amount can happen if returns are low
Tax-efficient withdrawals (10% tax after LTCG)	Not a guaranteed income

9. Real Estate (Rental Income)

Rental income is a traditional and reliable way to earn passive monthly income. If you own a residential or commercial property, renting it out can generate a steady income every month. This scheme is especially suitable for people who like investing in physical assets and want a stable cash flow.

Key highlights (as of 2025)

Rental income can be earned by investing in properties like residential flats, shops, offices, godowns
The rental yield is 2-3% in metro cities (residential), while in commercial properties it can be up to 6–9%
Rent agreements are usually for 11 months and TDS can be up to 10% (above ₹50,000/month)
Property registration, maintenance, and taxes are the responsibility of the owner

Example: If you have purchased a commercial property worth ₹1 crore and it is getting a rental yield of 7%, then a rental income of around ₹58,000-₹60,000 per month is possible.

Advantages	Disadvantages
Stable monthly income	High investment and maintenance cost
Benefit of property value appreciation	Low liquidity
Tax benefits (interest on home loan under 24b)	Dependency on timely payments by tenants. Legal hassles due to non-payment.

10. REITs (Real Estate Investment Trusts)

\If you want to earn money from real estate but find it difficult to invest lakhs and crores, REITs are a great option. These are investment trusts that invest in large commercial properties such as office buildings, IT parks or malls — and distribute a portion of the rent generated from them to investors. The best part is that REITs can be bought and sold on the stock market, just like any other stock.

Key points (effective in 2025)

The three major listed REITs in India are Embassy Office Parks, Mindspace Business Parks, and Brookfield India REIT.
Up to 90% of the total income is distributed to investors
Rental yield is between 6% and 8% on an average
Regulated by SEBI for transparency and security

Example: If you invest ₹5 lakh in a REIT, and the annual yield is 7%, then a monthly income of around ₹2,900 – ₹3,000 is possible.

Advantages	Disadvantages
Low capital investment than investing in real estate	Dependence on real estate market’s current conditions
Regulated and transparent structure	Returns are not stable and are dependent on market conditions and occupancy
Good liquidity, tradable like shares	Returns earned are taxed

11. Dividend-Paying Stocks

If you want to build wealth in the long term and also need regular income every year, then dividend-paying stocks are a smart choice. These are stocks that pay a part of the company’s profits to investors as dividends – once or twice a year, some companies also pay quarterly. By strategically choosing companies with staggered payout dates, it’s possible to create a consistent monthly income stream. This method requires monitoring dividend yield, payout history, and financial health of the companies to ensure sustainability and stability.

Important points (as of 2025)

It is important to choose companies with high dividend yield
Companies giving good dividends are generally PSUs (eg: Coal India, ONGC) and FMCG (eg: ITC, Hindustan Unilever)
Dividend yield can be from 3% to 7%
Liquidity is good in the stock market, making buying and selling easy.

Example : If ₹10 lakh is invested in a stock like ITC and the yield is 6%, then the annual income can be up to ₹60,000 i.e. ₹5,000/month.

Advantages	Disadvantages
Passive income along with price appreciation over time	Market risk is always there
Inflation-beating returns	Returns are lower than growth stocks
Long-term wealth creation	Long-term wealth creation

12. Peer-to-Peer Lending (with monthly EMIs)

Peer-to-Peer (P2P) lending through a digital platform allows you to give loans directly to individual borrowers and then get the money back from them in the form of EMIs (principal + interest) every month. In this, you become a lender, and the borrowers take personal loans from you.

Key points (as of 2025)

Expected returns: 10%–15% (depends on borrower profile)
You can give loans ranging from ₹500 to ₹50,000 to each borrower
EMI comes monthly, which creates fixed monthly cash flow
Minimum investment starts from ₹5,000
Risk-based investment model: high risk = high return

Example : If you have given a loan of ₹1 lakh at 12% interest, then EMI-based income of about ₹9,000–₹10,000 annually i.e. ₹750–₹830/month can be earned.

Advantages	Disadvantages
Fixed monthly cash flow (through EMI)	Risk of borrower default
Returns are better than FD	Capital is not backed any collateral
Entire process is online and trackable	Legal recovery may take time

Conclusion

If you want a fixed income every month, then today there are many investment options in India that can fit your needs. Some investors prioritize safety, while others are willing to take calculated risks for higher returns. With the right knowledge and planning, you can choose an income plan that aligns with your goals. Be it a post office scheme, mutual fund or any modern investment, with a little planning you can earn a steady monthly income. It is always advised to consult a financial advisor before investing.

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Frequently Asked Questions (FAQs)

What is the safest monthly income scheme in India?
The safest options to earn a monthly income include Senior Citizen Saving Scheme (SCSS), Post Office Monthly Income Scheme (POMIS) and RBI Floating Rate Savings Bonds as these are government-backed schemes.
Can I get ₹10,000 per month from any investment plan?
Yes, it is possible to earn ₹10,000/month income by investing ₹10–15 lakh in multiple investment plans like annuity plans or rental property.
Are mutual fund SWPs taxable?
Yes, money received from SWP is counted as capital gains and is taxed.
What are REITs and how do they pay monthly income?
REITs are companies that invest in commercial properties and distribute rental income as dividends.
Is P2P lending safe for earning a monthly income?
There is risk in P2P lending as borrowers can default, but the returns can be higher than FD.

June 24, 2025

Tata vs Reliance: India’s Top Business Giants Compared

When we talk about India’s biggest business conglomerates, Tata Group and Reliance Group always appear at the top of the list due to their strong market presence in different industries. One is a pioneer in IT, steel and electric vehicles, shaping India’s technology, infrastructure and automobile sector. The other is a powerhouse in energy, telecom, and retail, changing how India shops, connects, and consumes.

Both belong to legendary business families and are building the future in their way. In this blog, we will break down how Tata Group and Reliance Group have evolved over time, how their journeys have been different, what lies ahead, and what it means for India’s economy and for you as an investor or consumer.

Tata Group : An Overview

Tata Group represents an iconic group of companies in India, not just due to its size but also due to the values and vision it brings to all its endeavours. In 1868, Jamsetji Tata laid the foundation of a vision — to build a self-reliant India that would earn respect and recognition on the world stage. It has been close to 150 years now, and that dream is still going strong in most industries. The presence of the Tata brand in our daily lives is more than we can ever imagine.

Here is a glimpse of what they’re into:

Technology – Tata Consultancy Services (TCS) is a global leader in providing software solutions.
Automobiles – Tata Motors makes everything from family cars to trucks and owns luxury brands like Jaguar and Land Rover.
Metal – Tata Steel is one of the top steelmakers in the world.
Consumer Products – From Tata Salt and Tata Tea to Himalayan Water and Tetley, you’ll likely find something related to the Tata brand in your kitchen.
Watches, Fashion & Retail – Titan (watches, jewellery, eyewear) and Trent (Westside, Zudio) bring style to your wardrobe.
Power & Infra – Tata Power and Tata Projects are helping build infrastructure that powers the future.
Hospitality – The Taj Hotels brand, run by IHCL, is all about luxury.
Telecom & Media – Tata Play (formerly Tata Sky) and Tata Communications provide DTH services and keep people connected.

One of the most unique things about the Tata Group is that it’s not just about profits. Around 66% of Tata Sons (the holding company) is owned by charitable trusts, like the Tata Trusts. That means a large chunk of what the company earns goes into health, education, rural development, and social upliftment initiatives. Ethics, trust, and long-term thinking are core to how Tata runs its businesses.

Business Model

1. Decentralised Structure: Each Tata company, like TCS, Tata Motors, Titan, or Tata Steel, operates independently. They have their separate boards, CEOs, and decision-making power. But they are all connected to Tata Sons, the main holding company, which owns significant stakes in most of them and helps guide the overall direction.

2. Diversified Business Portfolio: Tata Group companies are spread across multiple sectors, as already mentioned above, ensuring stable revenues in different economic conditions.

Reliance Group : An Overview

Whenever you think of big business in India, it’s impossible to forget Reliance. Originally a small textile firm in the 1960s, it has now become one of the largest conglomerates in India. It all began with Dhirubhai Ambani, a visionary entrepreneur who transformed a small yarn-trading business into a vast empire. Today, Reliance Industries Limited (RIL), under the leadership of his son Mukesh Ambani, continues to shape India’s telecom, retail, energy, and other key sectors.

Additionally, back in 2005, the Reliance empire was split between the two Ambani brothers:

Mukesh Ambani took charge of Reliance Industries Limited (RIL), the one you hear about the most today. This includes business related to oil and gas to telecom (Jio), retail, media, and green energy sectors.
Anil Ambani formed Reliance ADA Group, with businesses in power, infrastructure, finance, and communication sectors, out of which, many companies have struggled financially over the years.

Business Model

The Reliance Group does not just stick to one business, they build entire ecosystems. That is why you will see Reliance everywhere, from the fuel you put in your car to the internet you use and even the groceries you buy.

Energy & Petrochemicals: Reliance started with oil refining and petrochemicals. Even today, it is a massive part of their business.
Telecom & Digital: They launched Jio to help in the evolution of the telecom industry, and it worked.
Retail: Groceries, fashion, electronics, Reliance Retail sells it all.
Media & Entertainment: Through Network18 and JioCinema, they are also working in this field.
Green Energy: Reliance is now investing billions to establish itself as a leading player in solar, hydrogen, and clean energy solutions.

Furthermore, unlike many other big companies, Reliance prefers to own and control its ventures rather than just being a silent investor. That way, they can shape their business operations how they want.

Comparative Analysis (from Screener, Refer Sample)

Basis	Tata Group	Reliance
Business Focus	A diversified group with interests across different sectors such as IT, steel, automobiles, power, consumer goods, retail, hotels, and more.	A diversified giant with interests in energy, telecom , retail , and now aggressively expanding into green energy.
Growth Strategy	Actively expanding in green energy (Tata Power), electric vehicles (Tata Motors), consumer brands (Titan, Tata Consumer), and digital platforms (Tata Neu).	Expanding aggressively into green energy, 5G, retail dominance, and digital platforms.
Market Position	Known as one of India’s most trusted and respected business groups globally, with strong leadership, governance, and diversified revenue streams.	Known for scale and disruption. Jio changed the telecom game, and Reliance Retail is giving tough competition to global giants like Amazon and Walmart in India.
Leadership Style	Value-driven, conservative, and focused on long-term sustainable growth. Led by N. Chandrasekaran (Tata Sons Chairman) with a reputation for stability and ethics.	Bold, aggressive, and expansion-oriented, led by Mukesh Ambani, India’s richest man, who believes in scale and speed.

Financial Position of Tata vs Reliance Group

To understand how the two groups are doing, we cannot just look at brand names; we need to understand their financial positions. As some of the companies under the two groups are private, it is impossible to determine the accurate financial standing of both groups. However, based on the financial information available of publicly listed companies related to the groups, we can get a good idea about the financial position of both companies.

Tata Group

1. Revenue

Tata Group makes money from all kinds of businesses, including technology, steel, cars, jewellery, tea, you name it. Together, their companies generate over ₹10 lakh crore in revenue annually. TCS, Tata Steel, Tata Motors, Titan, and Tata Consumer Products bring in the most revenues.

2. Profit

Most of the profits come from TCS, the biggest company under the Tata Group. Brands like Titan (watches & jewellery) and Tata Consumer (Tata Salt, Tata Tea, etc.) are also great profit-makers. Some businesses, like Tata Motors and Tata Steel, have their ups and downs but are getting stronger due to increased adoption of EVs and growing infrastructure requirements.

3. Debt

A few Tata companies, especially Tata Steel and Tata Motors, do carry moderate to high debt, mostly because of focus on expansion and big global deals. The good part? TCS is debt-free and helps keep the overall group financially stable. Furthermore, the group has been actively working on reducing debt.

Reliance Group

1. Revenue

Reliance earns money from a wide range of industries — including oil & gas, telecom (Jio), retail (Reliance Retail), digital services, and green energy. Together, these businesses generate annual revenues of over ₹10 lakh crore. The traditional oil-to-chemicals (O2C) business is a major revenue driver, alongside Reliance Retail and Jio.

2. Profit

The bulk of Reliance’s profits still come from its legacy oil-to-chemicals business. However, Jio and Reliance Retail have become highly profitable in recent years, thanks to their massive user base and nationwide presence. The company continues to invest in new sectors like green energy, which could fuel future profits.

3. Debt

Reliance has taken on significant debt in the past, especially while building Jio and expanding retail operations. However, the company made headlines by becoming net debt-free in 2020 after raising capital from global investors. While current expansion in green energy and digital infrastructure may increase liabilities slightly, the group remains financially strong with healthy cash flows and a robust balance sheet.

Future Plans – TATA vs RELIANCE

When it comes to shaping the future of India, Tata Group and Reliance Industries are two of the biggest players. Both are household names and giants in their respective sectors, but their future business plans are different as mentioned below. Let us have a quick glimpse of where these two groups are headed:

1. Green Energy & Sustainability

Tata Group’s company, Tata Power is already involved in developing innovative solutions to harness solar and wind energy, whereas Tata Motors is leading India’s EV revolution (Nexon EV, Tiago EV).

Reliance is also betting big on clean energy through investment in solar plants, green hydrogen, and the massive Giga Complex in Gujarat. Moreover, their aim to be net-zero by 2035 will contribute substantially to sustainability.

2. Retail & Consumer Business

Tata group owns Tata Neu, fashion brands like Westside and electronics stores like Croma.
On the other hand, Reliance is aggressively building India’s largest retail empire through Reliance Retail, JioMart, luxury brands, and quick commerce.

3. Global Footprint

Tata already has global brands like Jaguar, Land Rover, Tetley, and Taj Hotels, focusing on steady, sustainable global growth.
Reliance is actively expanding globally, especially in energy, retail tie-ups, and tech ventures.

Conclusion

Both Tata Group and Reliance Group are powerhouses driving India’s economic growth, each with its distinct approach. Tata stands for legacy, values, and long-term stability, with strong global presence across industries like IT, autos, and consumer goods. Reliance, on the other hand, represents bold ambition and rapid expansion, dominating sectors like telecom, retail, and energy. While their strategies differ, both are innovating, investing in sustainability, and playing a crucial role in shaping India’s future, making them equally important from both an economic and investor perspective.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Tata Motors Vs Ashok Leyland: Which is Better?
2	Tata Power Vs Adani Power: Comparison Of Two Energy Giants
3	SAIL Vs Tata Steel: Which is Better?
4	Tata Motors vs Maruti Suzuki? Analysis of Auto Stocks
5	Tata Steel vs. JSW Steel: A Comparative Analysis Of Two Steel Giants

Frequently Asked Questions(FAQs)

Which group is bigger, Tata or Reliance Industries?
Both groups are huge and it is difficult to specify which group is bigger as some of their companies are private. However, based on market capitalization of listed companies, the Tata Group is much bigger.
When was Tata Motors established?
Tata Motors was established in 1945.
Which one is better for long-term investment?
Investing in Tata Group companies is great if you believe in the growth potential of technology, infrastructure, and EV sectors. Reliance offers a more diversified bet across sectors.
Can I invest in companies of both groups?
Yes, you can! Many investors diversify their investment portfolio by holding shares of both the Tata Group and Reliance Group.
Which company has more profits: Reliance Industries or Tata Motors?
Reliance Industries has more profits than Tata Motors.

June 24, 2025

Top 10 Best Credit Cards in India for 2025

The number of credit cards in India reached 108 million in December 2024, which is more than double the number in 2019. Over the past few years, the number of digital payments has grown 6.7 times and the transaction value 1.6 times, making India one of the fastest growing digital economies in the world . With time, the credit card providers have started providing various features and benefits such as contactless payments, UPI integration, BNPL facilities, and advanced security measures.

In this blog, we’ll explore the top 10 best credit cards in India for 2025 and highlight the key factors you should consider before choosing the right credit card for your financial needs.

Top 10 Best Credit Cards in India 2025

Credit Card Name	Category	Best For	Joining Fee
Axis Bank ACE Credit Card	Cashback & Shopping	Bill, food & recharge discounts	₹499 + GST
Flipkart Axis Bank Credit Card	Cashback & Shopping	Flipkart, Myntra, Cleartrip rewards	₹500 + GST
Amazon Pay ICICI Credit Card	Cashback & Shopping	Amazon shopping, Prime members	0
SBI Cashback Card	Cashback & Shopping	Weekly shopping, groceries, and movies	₹999 + GST
HDFC Regalia Gold Credit Card	Travel & Lounge Access	Frequent domestic/international travel	₹2,500 + GST
Axis Bank ATLAS Credit Card	Travel & Lounge Access	Edge miles, multi-airline travellers	₹5,000 + GST
HDFC Infinia Metal Edition	Travel & Lounge Access	Luxury global travel & concierge	₹12,500 + GST
American Express Platinum Travel Card	Travel & Lounge Access	Travel vouchers & Taj stays	₹5,000 + GST
HPCL IDFC FIRST Power Credit Card	Fuel & Utility	Petrol discounts & utility expenses	₹199 + GST
IndianOil Axis Bank Credit Card	Fuel & Utility	Fuel at IndianOil pumps	₹500 + GST

Overview of the Best Credit Cards in India 2025

An overview of the top 10 credit cards in India is given below:

1. Axis Bank ACE Credit Card

If you want to save money directly from everyday expenses be it bills, food delivery or travel then Axis Bank ACE is the best choice for you. This card offers straight cashback, without any complicated reward points system.

Cashback Highlights

5% cashback on utility bills & mobile‑DTH recharges via Google Pay (up to ₹500 per month)
4% cashback on apps like Swiggy, Zomato, Ola (up to ₹500 per month)
1.5% cashback on all other spends, without any cap

Extra Rewards

4 free domestic lounge visits on spends of ₹50,000 in the last 3 months.
Fuel surcharge waiver: Up to 1% in ₹400–₹4,000 range (₹500/month cap)
Up to 15–20% discount at 4,000+ partner restaurants.

Fees & Waiver :

Joining Fee: ₹499 + GST (First year waiver possible)
Annual Fee: ₹499 + GST from second year onwards, waiver on fees if annual spend is more than ₹2 lakh.

Overall, Axis ACE is a simple and powerful cashback card, helping you earn cashbacks on everyday spends in a smart way.

2. Flipkart Axis Bank Credit Card

For those who buy from platforms like Flipkart, Myntra or Swiggy for their daily needs, this card proves to be a great deal. With guaranteed cashback on every purchase and numerous partner offers, this card makes daily spending rewarding.

Cashback benefits

5% assured cashback on transactions on Flipkart and Cleartrip
4% cashback on brands like Swiggy, Uber, PVR
1.5% cashback on all other spends, without any limit
Upon activation, get a Flipkart voucher of ₹500 and exclusive discounts on Swiggy

Extra rewards on travel and lifestyle

4 complimentary domestic lounge visits on spending ₹50,000 annually
Up to 20% discount at select restaurants, under the Dining Delights program

Fuel and EMI convenience

1% surcharge waiver on fuel transactions from ₹400 to ₹4,000, up to ₹400 per month
1.5% unlimited cashback on transaction value on converting Flipkart merchant transaction to EMI.

Fees and Variants

Joining Fee ₹500 + GST
Annual fee waiver from next year if spending ₹3.5 lakh in a year

For those who shop regularly on e-commerce, this card offers great cashback along with travel and dining benefits. A complete rewards package that gives more value at a low fee.

3. Amazon Pay ICICI Bank Credit Card

If shopping from Amazon has become a habit, then this card opens the way to smart savings with great cashback on every order. The best part – this card is life-time free, i.e. no joining or annual fee is required.

Cashback Benefits :

Prime members get 5% cashback on Amazon
Non-Prime members get 3% cashback
2% cashback on Amazon Pay partners like Swiggy, BookMyShow
1% cashback on all other expenses, directly in Amazon Pay balance

Key points :

No limit on cashback
Completely digital onboarding, without any paperwork
The card can be used instantly by linking it to Amazon account

Fuel surcharge and EMI facility :

1% surcharge waiver on fuel transactions of ₹400 to ₹4,000
Facility to convert any big expense into EMI is also available

Fees and charges :

Zero joining fee and zero annual fee, i.e. completely free
No hidden charges, everything is transparent

Whether you are a Prime member or occasional shopper – Amazon Pay ICICI card gives you the opportunity to save on every transaction, without any hassle. This free card turns every spend into a smart investment.

4. SBI Cashback Card

For those making frequent digital payments, this card is very beneficial. You get assured cashback on every expense, which gets adjusted directly in the next billing cycle – no reward points, no hassle of redemption.

Cashback Highlights :

5% cashback on online partner brands
1% cashback on all other card spends
Cashback gets automatically adjusted in the monthly billing statement
No manual redemption required

Travel & EMI Benefits :

4 complimentary lounge access annually at domestic airports
Facility to convert big spends into EMIs also available

Fuel Waiver & Limitations:

1% surcharge waiver on fuel spends between ₹500 and ₹3,000
No cashback on wallet load, rent, and select utility payments

Fees & Waiver :

Joining & Annual Fee: ₹999 + GST
Full annual fee waived off after spending ₹1 lakh in a year

Cashback SBI Card is the easiest way to get direct cashback — without any technical points system, providing benefits directly in the credit card bill.

5. HDFC Regalia Gold Credit Card

HDFC Regalia Gold is designed for those who want to get something extra from every expense – be it shopping, travel or luxury lifestyle. It offers huge rewards and great travel benefits.

Key Highlights :

Get 20 reward points per ₹150 on spends at Marks & Spencer, Myntra, Reliance Digital and Nykaa
Get 4 reward points per ₹150 on all other spends
Get flight vouchers worth up to ₹10,000 on annual spends of ₹5 lakh and an additional voucher of ₹5,000 on spends of ₹7.5 lakh
₹1,500 vouchers on spending ₹1.5 lakh every quarter

Lounge & Travel Privileges :

12 complimentary lounge access annually in India
6 complimentary accesses through Priority Pass for international travel
Accidental air insurance worth ₹1 crore and overseas hospitalization cover up to ₹15 lakh

Redemption & Flexibility :

Reward points can be redeemed for flights, hotels, luxury gifts and statement balance
From SmartBuy Value on redemption is ₹0.50-₹0.65 per point

Charges & Waiver :

Joining & Annual Fee: ₹2,500 + GST
Fee waiver for next year if you spend ₹4 lakh in a year

HDFC Regalia Gold is a premium card that rewards smart spenders at every level – be it luxe shopping or annual international trips.

6. Axis Bank ATLAS Credit Card

Axis Bank Atlas is designed for those who travel frequently and want to make the most of every international or domestic trip. This card covers your every travel need — from lounge access to airmiles.

Travel-Focused Benefits :

Complimentary lounge access at both domestic and international airports
Silver, Gold and Platinum Tier Status available as per spending
Miles System Earned EDGE Miles can be redeemed across multiple international airline partners.

Milestone & Rewards :

5 EDGE Miles are earned for every ₹100 spent internationally
2 EDGE Miles are earned per ₹100 spent domestically
Platinum Tier benefits are unlocked when you spend ₹7.5 lakh annually
₹5,000 Welcome Voucher (in lieu of ₹5,000 joining fee)

Global Lounge & Insurance :

Up to 12 complimentary international lounge access per year via Priority Pass
Comprehensive Travel Insurance which includes air accident cover and emergency hospitalization

Miles Redemption :

EDGE Miles can be converted into flights, hotels or partner airline miles
1 EDGE Mile can be worth up to ₹1 when redeemed through Axis Bank Travel EDGE platform for flight and hotel bookings.

Charges & Waiver :

Joining/Annual Fee: ₹5,000 + GST

Axis Atlas is perfect for travellers who want to earn rewards from every flight booking, international trip or luxury travel. This card not only gives miles but also access to a premium lifestyle.

7. HDFC Infinia Metal Edition

If you are looking for a card that is the perfect combination of luxury, travel and high-end rewards, then HDFC Infinia Metal Edition is the best option. This card is available on an invite-only basis, and is designed for high-spenders.

Key Highlights :

5 reward points on every ₹150 spent
Unlimited Complimentary Airport Lounge Access – both in India and abroad
Club Marriott membership is available in leading hotel chains, which can save up to 20%
For golf enthusiasts: Unlimited complimentary golf games

Travel & Lifestyle Privileges :

Points redemption value up to ₹1 per point on flights, hotels and premium products
Global lounge network benefits through Diners Club network
Air accident insurance and medical emergency coverage worth ₹1 crore

Rewards & Benefits :

Points have no expiry
Reward Points can be converted into flights, hotels, airmiles or statement credit
10X rewards on select transactions through SmartBuy

Charges & Eligibility :

Joining & Annual Fee: ₹12,500 + GST
Next year’s fee gets waived once you spend ₹10 lakh annually

HDFC Infinia is for those who live a premium lifestyle and want maximum value from every spend. This card is not just a payment tool, but a statement – of luxury and status.

8. American Express Platinum Travel Card

For frequent travellers, this card makes every flight and hotel booking more rewarding. With great reward points and travel vouchers, you get the most out of every spend.

Key Travel Benefits :

Get a Taj Experiences E-Gift card worth ₹10,000.
15,000 membership points on annual spend of ₹1.9 lakh that can be redeemed on Platinum Travel Collection or Amex Travel Online.
Complimentary airport lounge access – 8 domestic visits every year

Reward Program :

1 Membership Reward Point for every ₹50 spent
MR Points can be easily redeemed for flights, hotel bookings and gift vouchers
Milestone-based benefits increase travel rewards every year

Annual Fees & Charges :

Joining Fee: ₹3,500 + GST
Renewal Fee: ₹5,000 + GST
Extra value through Amex Offers and dining privileges

American Express Platinum Travel Card is a perfect choice for those who want to spend more significantly on travel. Travel is a huge part of lifestyle and the more you spend, the greater the travel benefit — that too with a seamless and premium experience.

9. HPCL IDFC FIRST Power Credit Card

The HPCL IDFC FIRST Power Credit Card is designed for individuals who frequently spend on fuel, utility bills, and daily essentials. With impressive fuel savings, UPI compatibility, and added perks like roadside assistance, it’s one of the most value-driven fuel credit cards in India.

Key Benefits :

Up to 5% savings on fuel at HPCL outlets
2.5% savings on grocery, utility bills, and IDFC FASTag recharges
2X Reward Points on all other retail and UPI spends
Complimentary Roadside Assistance up to 4 times a year (worth ₹1,399)

Reward Structure :

15X Reward Points on fuel purchases at HPCL outlets (up to 5% value)
15X Reward Points on grocery, utility, and FASTag recharge (up to 2.5% value)
2X Reward Points on all other UPI and retail spends (up to 2.5% value)
1 Reward Point = ₹0.25 when redeemed

Annual Charges :

Joining Fee: ₹199 + GST
Annual Renewal Fee: ₹199 + GST
Fee Waiver: Annual fee is waived on spends of ₹50,000 or more in a card anniversary year

If your monthly budget includes regular fuel, utility, and UPI spends, the HPCL IDFC FIRST Power Credit Card is a smart, low-fee option. It combines practical benefits with good cashback potential and extra perks like roadside assistance, making it an excellent everyday card.

10. IndianOil Axis Bank Credit Card

If you want to manage your everyday fuel expenses smartly, then IndianOil Axis Bank Credit Card is a practical and rewarding option. Especially for those who use their vehicle daily.

Key Benefits :

Up to 5% benefit at IndianOil petrol pumps (4% value back + 1% surcharge waiver)
20 Reward Points are available on ₹100 spent at IOCL outlets.
1% cashback is available on online shopping
Up to 15% discount on dining – through Axis Bank’s Dining Delights program

Reward Structure :

₹100 fuel spend = 20 RP (₹5 value)
₹100 online spends = 1 RP
₹100 other spends = 1 RP
RP can be converted into cashback or vouchers

Annual Charges :

Joining Fee: ₹500 + GST
Annual Fee: ₹500 (waived off on ₹50,000 annual spend)
Welcome benefit: ₹250 worth fuel vouchers on 1st transaction within 30 days

This card is for people who spend a significant portion of the month on fuel and want a consistent cashback on the same spend. If you want to make your daily commute a little more economical, this is a solid choice.

How to Choose the Best Credit Card in India in 2025

It is crucial that a credit card be chosen wisely as cards with non-exclusive features and hefty fees can become a burden instead of a benefit. Therefore, some checks should be done before getting a card.

Check Joining and Annual Fees : Many credit cards have a joining or annual fee attached to it. If the benefits are less and the fees are high, then that card will not be beneficial.
Understand the Spending Pattern : It is important to know how you spend your money – online shopping, travel or daily use so that the card can be chosen according to your needs.
Credit Limit and EMI facility : Check the limit of the card and whether there is a facility to convert big expenses into EMI – move ahead only after knowing this.
Focus on Lifestyle Benefits : Extra benefits like dining offers, airport lounge access, fuel surcharge waiver add a lot of value in the long run.
Check the Reward Point System : Estimate the number of reward points that can be received based on your average expenditure and check how they can be redeemed.
Understand the Eligibility Criteria : Before choosing any card, make sure to check how easy or difficult its eligibility criteria are as some cards are invite-only.

How to Invest in Credit Card Stocks in India

Direct Investment:
- SBI Cards and Payment Services Ltd. (SBICARD): The only publicly listed pure-play credit card company in India.
- Process: Open a Demat and trading account with a stockbroker (e.g., via apps like Pocketful, INDmoney, Groww). Search for “SBICARD” and place a buy order.
Indirect Investment (via Banks):
- Major Banks: Invest in large banks with significant credit card operations, as this segment contributes to their overall profitability.
- Examples: HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, RBL Bank.
- Process: Similar to SBICARD, buy shares of these banks through your stockbroker.

Conclusion

Choosing a suitable credit card should not be based only on the offers or rewards but also on the user’s lifestyle, spending pattern and the facilities offered. In this blog, we have covered the top credit cards across different categories along with their features, charges and benefits. It is important to carefully understand the rewards structure, fees and eligibility criteria of each card before making a final decision so that the choice is in line with your financial goals.

Frequently Asked Questions (FAQs)

What are Credit Cards?
A credit card allows cardholders to borrow money and repay it, including interest and other agreed-upon charges, either in full by the billing date or over time in the form of EMIs.
Which debit card type is most prevalent in India?
The popularity of Contactless Debit Cards has seen a massive uptrend.
Should I get a credit card?
A credit card helps you manage your finances by allowing you to repay after the billing cycle. While this is a revolutionary invention, people should be cautious and prevent maxing out their credit card limits. So, the decision to opt for a credit card should be taken after careful consideration.
What was the first credit card in India?
The first credit card in India was introduced by the Central Bank of India in collaboration with MasterCard and Visa in the late 1970s. It was known as the “Central Card”.
Can cash be withdrawn from an ATM using a credit card?
Yes, but immediate interest and cash advance charges are levied on it.
How is the credit card limit decided?
It depends on your income, credit score and repayment history.
Is there an annual fee for every card?
Some credit cards are lifetime free while others have annual charges.
What is the impact of delayed credit card payment?
Late payment attracts a late fee and also affects the credit score.
Is it necessary to provide income proof for every credit card?
Yes, income proof or ITR is required for most cards.
What is the most widely accepted type of credit card?
Visa and Mastercard are the most widely accepted credit cards due to their international presence.

June 23, 2025

HCL Vs Infosys: Which is Better?

India’s IT industry has made a strong presence globally, with HCL Technologies and Infosys being the two major players. Infosys today offers its services in 56 countries and its brand value is expected to exceed $16 billion in 2025, making it among the top 3 IT service brands in the world. HCLTech, on the other hand, is active in 60 countries and has more than 200 delivery centers.

In this blog, we will compare various aspects of “HCL vs Infosys” to help investors, analysts, and students understand the position of these companies.

Company Overview: HCL Technologies

HCL Technologies, popularly known as HCLTech, is one of the top IT companies in India. It was started in 1976 by Shiv Nadar and his team. Earlier this company was hardware focused, but in the 90s it entered the software and IT services sector. Today HCLTech is working in more than 60 countries of the world and has 200+ delivery centers and 150 innovation labs. Its clients come from sectors like banking, healthcare, auto, telecom and retail. The chairperson of the company is Roshni Nadar Malhotra and the CEO is C. Vijayakumar, who is leading the global growth of HCL.

Business model

HCL Tech’s business model is quite diverse and this company provides a variety of services in different sectors. It has three main business verticals:

IT and Business Services (ITBS): This includes application development, cloud, digital processing and infrastructure services.
Engineering and R&D Services (ERS): Technology solutions ranging from product design to manufacturing.
HCL Software: Operates solutions acquired from IBM such as AppScan, BigFix and Notes/Domino.

In terms of revenue, the company earns from fixed-price and time-based contracts, as well as sells its products on a subscription model. HCL’s focus is on value-driven and client-need-based service delivery, making it trusted by customers around the world.

Company Overview: Infosys

Infosys was started in 1981 by Narayan Murthy and his team with a capital of just ₹ 10,000, and today it is counted among the most trusted IT companies in India. The company is operating in more than 56 countries and its brand value has crossed $ 16 billion in 2025. Infosys is recognized globally for its digital transformation, AI and cloud solutions.

Its clients include Fortune 500 companies, and it provides technology services in sectors such as BFSI, healthcare, manufacturing, and retail. The CEO and MD of Infosys is Salil Parekh, under whose leadership the company is constantly moving towards innovation and growth.

Business Model

The business model of Infosys is client-centric and technology-driven. The company earns revenue from four main areas:

Digital Services: Which includes cloud, data analytics, and AI based solutions.
Consulting and Outsourcing: Provides services to clients from end-to-end business strategy to IT implementation.
Enterprise Applications: Solutions on platforms like SAP, Oracle.
Managed Services: Long-term support of infrastructure and applications.

Infosys’ model is scalable and globally competitive, in which the ‘Global Delivery Model’ plays a major role. This model helps the company to provide high-quality services at low cost.

Who is Better: HCL Technologies Or Infosys?

In 2025, both HCLTech and Infosys have shown significant progress in their respective fields.

Financial performance : Talking about financial performance, Infosys’ total revenue was around ₹ 1.66 lakh crore, which is far ahead of HCLTech’s around ₹ 1.19 lakh crore. Also, Infosys’ net profit and operating margin are also better than HCLTech, which reflects the company’s operational efficiency and profitability.
Strategic focus : In terms of strategic focus, HCLTech has secured large contracts in cloud migration and AI services, giving it a strong market presence among large enterprise clients. At the same time, Infosys has emphasized on AI-based new products and language model development, thereby playing a leading role in digital transformation.
Global Presence : The global presence of both the companies is almost the same, both are operating in about 60 countries. But Infosys has been slightly better in adding new clients, which has diversified its revenue streams and customer base.
Future plans : Both companies have prioritized balanced growth in their future plans. HCLTech is planning further expansion in the cloud and AI sector, while Infosys is focusing on improving operating margins and responsible use of AI.

Overall, both companies are strong in their respective domains of expertise and are making significant contributions to the IT industry. Saying who is better depends entirely on the investor’s risk profile and analysis of the company’s fundamentals. It is essential for investors to conduct a thorough analysis of both the companies along with management’s track record in delivering results before investing.

Comparative Analysis: HCL Technologies Vs Infosys

Particulars	HCL Technologies	Infosys
Current Price (₹)	1,740	1,623
Market Cap (₹ Crores)	4,72,151	6,74,187
52-W High (₹)	2,012	2,007
52-W Low (₹)	1,303	1,307
FII Holdings as of March 2025	19.14%	29.4%
DII Holdings (as of March 2025)	15.48%	34.46%
Book Value (₹)	257	231
PE Ratio	27.1	25.4

(Data as of 21 June 2025)

Financial Statements Analysis

Income Statement Comparison

Particulars	HCL Technologies	Infosys
Total Income	1,19,540	1,66,590
Total Expenses	95,635	1,28,566
EBIT	23,905	38,024
Net Profit	17,399	26,750

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

Balance Sheet Comparison

Particulars	HCL Technologies	Infosys
Reserves & Surplus	69,112	93,745
Current Liabilities	28,039	42,850
Current Assets	62,109	97,099
Other Assets	28,960	30,135

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

Cash Flow Statement Comparison

Particulars	HCL Technologies	Infosys
Cash Flow from Operating Activities	22,261	35,694
Cash Flow from Investing Activities	-4,914	-1,946
Cash Flow from Financing Activities	-18,561	-24,161

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

Key Performance Ratios (KPIs)

Particulars	HCL Technologies	Infosys
Operating Profit Margin (%)	20.42	23.32
Net Profit Margin (%)	14.86	16.41
ROE (%)	24.96	27.87
ROCE (%)	30.84	35.85
Debt to Equity (x)	0.03	0.00

(Data as of March 2025)

Future plans of HCL Technologies

The future plans of HCL Technologies are mentioned below;

Investing and scaling in Generative AI : HCLTech has further strengthened its AI strategy in FY25. The company has launched platforms such as “AI Force” and “Enterprise AI Foundry”, which optimize the entire lifecycle of software development and product engineering. In the first quarter of FY25, HCLTech has signed 12 new AI-integrated deals, many of which involve developing AI solutions.
Global expansion and partnerships : The company has further expanded its partnership with Google Cloud, under which 25,000 engineers will be trained on Google Gemini. In addition, HCLTech plans to set up a new AI/Cloud lab in Singapore, which will contribute to AI innovation and talent development in collaboration with local institutions.
Employee skilling and training : By the end of FY25, HCLTech aims to train 50,000 employees in generative AI. For this, the company is using platforms such as “AI Force” and “AI Foundry”, which will enable employees to develop and implement AI-based solutions.
Acquisitions and strategic partnerships : HCLTech plans acquisitions to strengthen its portfolio in regions such as Japan and Europe. The company is focused on semiconductor, automotive and platform-based businesses, which can provide stable revenue streams.

Future plans of Infosys

The future plans of Infosys are mentioned below;

Investments in Generative AI and Cloud Services: Infosys forecasts its revenue growth for FY25 to be between 3% and 4%, reflecting the growing demand for AI and cloud services. The company is currently working on over 225 generative AI projects, and has integrated GenAI components across all of its service lines.
Strategic Partnerships and Acquisitions : Infosys has partnered with companies such as “Citizens Financial Group” and “Telstra”, enabling it to drive AI-driven transformation in the financial services and telecommunications sectors. In addition, the company has acquired “InSemi”, a German R&D company, strengthening its chip-to-cloud strategy.
Employee Skilling and Training : Infosys has made significant investments to train its employees in GenAI, and its employees have already built over 3 million lines of code using large language models. The company aims to enable its employees to develop and implement AI-powered solutions.
Responsible AI and Ethics : Infosys has launched the “Responsible AI Toolkit”, which helps ensure the ethical use of AI. This toolkit is helpful in identifying and addressing security risks, privacy violations, biased results, and other related issues.

Conclusion

Both HCLTech and Infosys are major players in the Indian IT sector, which have gained a strong foothold in the market on the basis of their respective strengths and strategies. While Infosys focuses more on digital innovation and operational excellence, HCLTech emphasizes on cloud services and large enterprise contracts. Both have displayed strong financial performance, but their future growth plans are different. Therefore, investment decisions should not be made only on the basis of financial metrics, but keeping in mind the company’s future plans, your individual goals and risk tolerance. It is advised to consult a financial advisor before investing.

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4	IndiGo vs SpiceJet: Which is Better?
5	Tata Motors Vs Ashok Leyland: Which is Better?

Frequently Asked Questions (FAQs)

What is the main difference between HCLTech and Infosys?
HCLTech focuses more on cloud and enterprise services, while Infosys leads in digital innovation and operational excellence.
Which company has better financial performance in 2025?
Infosys revenue and profit margins are better than that of HCLTech.
Are both companies expanding globally?
Yes, both companies are operating in around 60 countries and adding new clients.
Which company is investing more in AI and cloud services?
Both companies are investing in AI and cloud, but HCLTech has recently been more active in securing contracts related to cloud services.
Should I invest in HCLTech or Infosys?
The investment decision depends on your investment strategy and risk tolerance as both companies are strong players in the IT sector.

June 23, 2025

What is Angel Tax?

Once a major problem related to startup funding, called angel tax, is now a thing of the past. In the July 2024 budget, the government decided to completely abolish this tax, which came into effect from April 1, 2025. Earlier this tax was levied when a startup raised funds by selling shares at a price higher than its value.

In this blog, we’re going to explore what the angel tax was, how it impacted startups, and why its complete abolition from April 1, 2025, marks a significant turning point for the Indian startup ecosystem.

What is Angel Tax?

Angel tax is a tax that was levied on unlisted companies (especially startups) when they sell their shares at a price higher than their Fair Market Value (FMV). The excess amount was considered “income from other sources” and was taxed at around 30.9%

Rate of Angel Tax

About 30.9% tax was levied on the amount received above the FMV. Apart from the base tax, it also included cess and surcharge.

Why was it called the “Angel” tax?

Because this tax specifically impacted investors called “angel investors”—people who invested in startups at an early stage.

When did it start?

This initiative was introduced by the Government of India in the 2012 Finance Budget (Finance Act 2012) and was implemented by April 2013

Is it still in effect?

No, its complete abolition was announced in the July 2024 budget, and has been implemented with effect from 1 April 2025.

Why Was Angel Tax Introduced?

The reason behind the introduction of Angel Tax was:

Introduction to curb black money : Angel tax was first introduced in 2012 with the aim of curbing the investment of black money in the name of startups. At that time, many companies used to issue shares at a premium much higher than their real value, which increased the possibility of tax evasion and money laundering.
Legal aspects : To implement this tax, the government added section 56(2)(viib) to the Income Tax Act. This means that if a private company raises money by selling shares at a price higher than their actual value, then that extra amount will be considered as income and will be taxed. According to the government, this was necessary so that those who raise funds through illegal means could be controlled.
Impact on startups : Although its purpose was to increase transparency tax revenues, many genuine startups and angel investors suffered from it. There were obstacles in funding and investors also started hesitating. This was the reason why the government decided to abolish it in 2024.

Who Has to Pay Angel Tax? (Applicability Criteria)

The scope of angel tax was initially quite limited, but it affected all unlisted companies that raised funds by issuing shares at a price higher than their FMV. In most cases, these were startups that raised money from angel investors for initial investment.

If a startup was not recognized by DPIIT, and sold shares at a price higher than FMV, it would have to face this tax. However, recognized startups were exempted from this tax with certain conditions.

Calculation of Angel Tax with Example

Angel tax was calculated based on the difference between the Fair Market Value (FMV) of the shares and the price at which they were actually sold. If a startup sold shares whose FMV was supposed to be ₹100 at ₹150, the difference of ₹50 was considered as “additional income” and was taxed.

Example : Suppose a startup sold 1,000 shares at ₹150 per share while their FMV was ₹100.

Total amount = ₹1,50,000
Value as per FMV = ₹1,00,000
Excess amount = ₹50,000 (taxable)

How was FMV determined?

As per Income Tax Rule 11UA, startups could determine FMV in two valid ways:

NAV (Net Asset Value): The value was determined based on the company’s assets and liabilities.
DCF (Discounted Cash Flow): The company’s estimated future cash flow was discounted to today’s value.

Safe Harbour Rule : Rule 11UA provided that if the premium is up to 10% more than the FMV, the difference will not be considered taxable. This helped avoid tax disputes on small valuation mistakes.

Impact of Angel Tax on Indian Startups

The impact of Angel Tax on Indian startups can be summarized in the following points below:

Raising funding became difficult : When angel tax was implemented, many startups had trouble raising investment. Investors were afraid that if they invested above the Fair Market Value, they might receive a notice from the tax department.
Investors’ hesitation : Angel investors had to bear the risk of tax at the initial stage. Due to this, many people started shying away from investing in new startups, due to which innovative ideas were not able to get the necessary funds.
Some big examples : In 2015–16, the bank accounts of TravelKhana (Duronto Technologies) were frozen and an amount of ₹33 lakh was seized by the tax department. Similarly, a company named Babygogo lost an amount of about ₹72 lakh due to tax disputes. These incidents were an indication that Angel Tax not only stopped funding but also affected the day-to-day financial activities of startups.

Angel tax had inadvertently made the investment environment in India negative, thereby slowing down the startup ecosystem.

Recent Updates on Angel Tax (As of 2025)

Angel Tax to be abolished in Budget 2024‑25 :

On July 23, 2024, Finance Minister Nirmala Sitharaman announced in the Union Budget 2024‑25 that Angel Tax is being abolished for all investors.
It has been fully implemented from April 1, 2025.

What is its effect?

Now DPIIT recognized startups will not face any angel tax for neither domestic nor foreign investors.
This relieved both startups and angel investors of tax hassles and legal uncertainty.
The DPIIT secretary confirmed in January 2025 that the decision had led to a rise in “reverse flipping” startups now setting up headquarters in India rather than overseas.

Angel Tax is gone and this has strengthened India’s startup ecosystem and the investment environment has become even more positive after Budget 2025.

Conclusion

The decision to abolish angel tax in 2025 has proved to be a big positive step for the Indian startup ecosystem. This has not only increased investor confidence but has also made it easier for companies working on new ideas to get funding. The tax uncertainty that startups have been facing for a long time has now been relieved. These changes taken by the government show that India is now more prepared to encourage innovation and startups here will find a strong, stable and reliable environment in the years to come.

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1	Tax Implications of Holding Securities in a Demat Account
2	Mastering Your Finances: Beginner’s Guide To Tax Savings
3	What Is The Difference Between TDS and TCS?
4	What is Non-Tax Revenue – Sources and Components
5	Top 10 Tax Saving Instruments in India

Frequently Asked Questions (FAQs)

Is Angel Tax still applicable in India?
No, Angel Tax is not applicable on DPIIT recognized startups from 1st April 2025.
What was the rate of Angel Tax?
Any amount exceeding the FMV was taxed at approximately 30.9%.
Who was most affected by Angel Tax?
Angel investors and early startups faced the most problems due to this tax.
Why did the government remove Angel Tax in 2025?
The government took this decision to promote startups and improve the investment environment.

June 23, 2025

What Is The Difference Between Large Cap, Mid Cap, And Small Cap Funds?

Before investing in the stock market, it is important to understand what large-cap, mid-cap and small-cap funds are. Every fund has a different risk and return profile, and it is beneficial to choose the right category based on your investment goals. According to SEBI, companies are classified into three categories based on their market capitalisation: large cap, mid cap, and small cap. Mutual funds invest in shares of these companies and based on their investment portfolios, these mutual funds are also categorized as large, mid and small cap funds.

In this blog, we will understand in simple language what the difference is between small cap, mid cap and large cap funds and which one may be better for you.

What is Market Capitalization?

When assessing the size of a company, the first thing that comes to mind is its market capitalization. This actually shows the total market value of that company – that is, how much the company is worth today.

The formula is:

Market Capitalization = Current share price × Total number of outstanding shares

SEBI Classification of Large Cap, Mid Cap, and Small Cap

When it comes to understanding the market size and risk associated with a company, SEBI (Securities and Exchange Board of India) market cap ranking is the most relevant guide. SEBI updates the ranking of companies every six months and divides them into three groups based on their size:

Large Cap: Companies that fall in the top 1 to 100 ranks based on market cap are considered as such. These are usually well-known, strong and stable companies like Reliance Industries, TCS, HDFC Bank, etc.
Mid Cap: These include companies ranked 101 to 250, which are in the growth stage and have the potential to become large caps in the future. Example: Trent, Cummins India, AU Small Finance Bank, etc.
Small Cap: Companies that are ranked lower than 251 can be considered as small cap companies. These have the potential to grow rapidly but also have a higher risk associated with them. Example: IndiaMART, RBL Bank, Happiest Minds, etc.

If we understand the concept of small cap, mid cap and large cap, then it can help investors decide mutual funds to invest in and get a better understanding in which type of companies their money is being invested in.

What Are Large Cap Funds?

Large cap funds are mutual funds that invest in companies with a large market capitalization i.e., companies with ranking between top 1 and 100. These companies are known for their strong business models, stable revenues and long track record. Hence, these funds offer the most stability to investors.

Large cap companies usually have established their name and credibility in the market, making their stocks less volatile. This is why these funds have a lower risk and are suitable for investors who want stable and reliable returns over a long period of time.

Advantages:

Lower price fluctuations
Stable returns with low risk
Suitable for long term investors

Disadvantages:

Lower returns than mid and small cap mutual funds.

What Are Mid Cap Funds?

Mid-cap funds are mutual funds that invest in companies with a market ranking between 101 and 250. These companies are neither too big nor too small, that is, their size is between large and small cap. This is why these funds offer investors a balanced option with a mix of higher returns and safety.

Mid-cap companies are usually in the growth stage, with the potential to become large caps in the future. Hence, their growth prospects are good, but at the same time they are also more volatile.

Advantages:

Possibility of better returns than large caps
Lower risk than small caps
Helpful in maintaining balance in the portfolio

Disadvantages:

Higher volatility than large caps
Impact on returns during recessions

Read Also: Best Midcap IT Stocks List

What Are Small Cap Funds?

Small cap funds are mutual funds that invest in companies that rank 251 and below in the market cap rankings. These companies are relatively new, small and have the potential to grow rapidly. Hence, this fund category attracts investors who are willing to take a little more risk to earn higher returns.

Small cap funds are considered to be the most volatile among all the mutual fund categories, but they also have the highest potential to become multibaggers in the long term.

Advantages:

High growth potential
Possibility of great returns in the long term
Opportunity to earn big returns with small investments

Disadvantages:

High risk and high volatility
First to be affected in a recession or market downturn

Small Cap vs Mid Cap vs Large Cap Funds – Key Differences

Feature	Large Cap Funds	Mid Cap Funds	Small Cap Funds
Risk Level	Low risk, more stability	Moderate risk with some volatility	High risk, highly volatile
Return Potential	Stable but relatively limited returns	Higher return potential than large caps	Highest return potential, but comes with greater risk
Investment Horizon	Long-term (5+ years), suitable for retirement or safety	Medium to long-term (5–7 years)	Long-term (7–10 years), requires patience and risk tolerance
Investor Type	Conservative investors seeking steady growth	Investors willing to take moderate risks	Aggressive investors aiming for high growth
Impact of Market Movements	Least affected during market downturns	Moderate fluctuations during market changes	Most affected during market volatility

Which fund is right for whom?

When it comes to comparing small cap vs mid cap vs large cap, the simple answer depends on the investor’s needs and risk profile:

If one wants stability and does not want to take too much risk, then large cap funds are better.
If you can tolerate a little higher return and a little risk, then mid cap is a balanced option.
And if you are ready for long term growth and are not afraid of short term volatility and higher risks, then small cap funds may be for you.

Which One Should You Choose?

When deciding between large, mid and small cap funds, you should consider the following factors:

Understand the risk appetite : Every investor has a different risk appetite. Some investors are willing to take more risk, while some want safe and stable returns. If you want a safe investment, then large cap funds are a better option. On the other hand, mid cap and small cap funds offer more risk along with higher returns.

Pay attention to the investment horizon : If the investment period is short (3–5 years), then large cap funds are most suitable as they provide stability. On the other hand, better returns can be obtained by investing in mid and small cap funds for a long period (5–10 years or more).

Decide your financial goals : What is your goal? Buying a house, children’s education, retirement planning or wealth creation? If your goal is to keep the capital safe, then a large cap fund is a good option. If your focus is on growth and wealth creation, then mid and small caps can be better options.

Avoid Concentration in One Category : It is not wise to invest all the money in just one fund category. Diversification is important and it is advised to divide the investment in a balanced manner in all three categories (Large, Mid, Small). This not only reduces the risk, but also offers better risk-adjusted returns in different market situations.

Think Long-Term & Be Patient : Mutual fund returns are affected by ups and downs in the market, but there is a possibility of good growth in the long term – especially in mid cap and small cap if you are patient and disciplined.

Conclusion

While investing in the stock market, it is very important to know how large cap, mid cap and small cap funds work and what is the difference between them. Each fund category has its own features – some offer stability, while others offer the opportunity for rapid growth.

If the categories of these funds and their risk profile are understood properly, then investment decisions can be taken more strategically. This understanding not only balances the risk but also gives better returns in the long run. Every investment made with the right information and strategy can bring you one step closer to your financial goal. It is advised to consult a financial advisor before investing.

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3	List of Best Tata Group Small Cap Stocks
4	Best Artificial Intelligence (AI) Smallcap Stocks
5	Best Small Cap Defence Stocks in India

Frequently Asked Questions (FAQs)

What is the main difference between large cap, mid cap, and small cap funds?
The main difference between different types of funds is the size of companies they invest in. Large cap funds invest in established companies, mid cap funds include medium-sized companies, and small cap funds include small companies.
Which type of fund is safer for beginners?
Large cap funds are considered safer for beginner investors as they have greater stability.
Can I invest in all three fund types together?
Yes, investing in all three together keeps the portfolio diversified and the risk is also balanced.
Do small cap funds give better returns than large cap?
Small cap funds can give higher returns in the long term, but they also have higher risk.
How do I decide which fund is right for me?
This depends on your age, risk taking ability and investment period.

June 23, 2025

Blog

Tata Technologies Vs TCS: Which is Better?

Company Overview: Tata Technologies

Business Model – Tata Technologies

Company Overview: TCS

Business Model – TCS

Comparative Analysis: Tata Technologies Vs Tcs

Financial Statements Analysis

Income Statement Comparison

Balance Sheet Comparison

Cash Flow Statement Comparison

Key Performance Ratios (KPIs)

Who is better : Tata Technologies or TCS?

Future Plans of Tata Technologies

Future Plans of TCS

Conclusion

Frequently Asked Questions (FAQs)

Are Tata Technologies and TCS part of the same group?

What is the main difference between Tata Technologies and TCS?

Which company is larger in terms of global presence?

Do both companies serve the same industries?

Is one company better than the other?

Multibagger Penny Stocks for 2025

What are Multibagger stocks?

How do Penny Stocks Turn Into Multibaggers?

List of Multibagger Penny Stocks

Overview of Multibagger Penny Stocks in India 2025

1. Integrated Industries

2. East India Drums & Barrels Manufacturing

3. Hazoor Multi Projects

4. Flomic Global Logistics

5. Sejal Glass

6. Dolphin Offshore

Key Performance Indicators

Conclusion

Frequently Asked Questions (FAQs)

Are penny stocks safe to invest in?

How long should I hold penny stocks?

Can penny stocks make you rich?

Do penny stocks pay dividends?

Where can I buy penny stocks?

Lowest MTF Interest Rate Brokers in India | Top 10 MTF Trading Apps

Understanding Margin Trading Facility (MTF)

Top 10 Brokers Offering the Lowest MTF Interest Rates in India

Overview of Top 10 Brokers with the Lowest MTF Rates in India

1. Pocketful

2. Zerodha

3. ICICI Direct

4. Groww

5. Kotak Securities

6. mStock

7. Paytm Money

8. 5paisa

9. Dhan

10. Angel One

Importance of Low MTF Interest Rates

MTF: When to Tap the Borrowing Button, When to Hold Back?

Conclusion

Frequently Asked Questions (FAQs)

How is MTF interest calculated and billed?

What are the main costs associated with MTF besides the interest rate?

For how long can I hold shares bought using MTF?

How Do I Pay Back the MTF Loan?

What should the traders do if there is a margin call?

Short Straddle: Option Strategy with Examples

What is a Short Straddle?

How does a Short Straddle Work?

Key Components of Short Straddle

1. Strike Price

2. Premium Received

3. Expiration Date

4. Implied Volatility (IV)

Profit, Loss and Breakeven in a Short Straddle

1. Maximum Profit

2. Maximum Loss

3. Breakeven Points

Example of Short Straddle

When to Use a Short Straddle?

Advantages & Risks of Short Straddle

Advantages