Pocketful

Blog

  • List of Best Education Stocks in India 2025

    List of Best Education Stocks in India 2025

    Any nation’s ability to develop depends on its workforce, which can be achieved through education and training. Previously, the only learning options were offline, but as internet services have become more widely available, online learning has taken over the education sector. 

    In this blog post, we’ll give you an overview of the Indian education industry and its top companies.

    Overview of the Education Industry

    Education Industry

    Any nation’s ability to maintain a skilled labor force largely depends on its educational system, and India’s education system is designed to meet the changing demands of the industry. The businesses in this industry benefit from the growing demand for high-quality education delivered through various channels, including online and offline. The companies provide infrastructure for education, online learning platforms, tutorial services, etc. The Indian education industry is estimated to be valued at USD 225 billion by 2025 and USD 313 billion by 2030.

    Top Education Stocks Based on Market Capitalization

    The Top Education Stocks in 2025 are:

    S.No.Education Stocks
    1Veranda Learning Solutions Ltd.
    2NIIT Ltd.
    3Aptech Ltd.
    4Career Point Ltd.
    5Drone Destination Ltd.

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

    CompanyMarket Capitalization (In Crores)Current Market Price (in INR)52-Week High (in INR)52-Week Low (in INR)
    Veranda Learning Solutions Ltd.2,053288337135
    NIIT Ltd.2,37517618379.2
    Aptech Ltd.1,413244322199
    Career Point Ltd.963528570182
    Drone Destination Ltd.710292462112
    (As of 27th August 2024)

    Read Also: Best Drone Stocks in India 2025

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

    A brief overview of the best education stocks in India is given below:

    1. Veranda Learning Solutions Limited

    Kalpathi S. Suresh founded Andromeda Edutech Private Limited in 2018. The business rebranded itself as Veranda Learning Solutions Private Limited in 2020. The company’s primary goal is to offer an educational platform that can meet the demands of students from all backgrounds. The company used to coach students offline, but because of COVID-19, it has changed its focus to online learning. In 2022, the corporation was listed on the Indian Stock Exchange after realizing it needed funds to expand. Classes are available for competitive exams like UPSC, SSC, Banking, etc. The company’s headquarters is in Chennai.

    2. NIIT Limited

    In 1981, Rajendra S. Pawar and Vijay K. Thadani established the company. When the company first started, computer-based education was offered before computers were widely used in India. Later, in 2000, the company started providing training services to large companies to optimize their training budget. The company has many training centers spread across the country. It has its headquarters in Gurgaon. 

    3. Aptech Limited

    The company was started in 1986 as an IT education company. Later, in 1990, the company expanded its offering to multimedia and animation by establishing a new brand named Arena Animation. In 2003, the business became the first company in India to be certified ISO 9001:2000 in the education and support services sector. It has its headquarters in Mumbai. 

    4. Career Point Limited

    The business was founded in 1993 by IIT Delhi alumnus Pramod Maheshwari as a little coaching facility in Kota. Its goal is to assist pupils in passing entrance tests. The business became well-known as a top coaching institute in the 1990s and 2000s by opening numerous coaching centers nationwide. In 2010, the company went public on the Indian Stock Exchange. Its main office is located in Kota, Rajasthan. 

    5. Drone Destination Limited

    The company was established in 2019 to provide drone services and training in India. The DGCA has permitted them to offer drone pilot certification and skill development courses. In addition, they provide drone services to various industries, such as logistics, infrastructure, and agriculture. In October 2022, it partnered with the National Skill Development Corporation (NSDC) as its first Drone Training partner. The company’s main office is located in New Delhi.  

    Read Also: List Of Best Paper Stocks in India 2025

    Top Education Stocks Based on 1-Year Return

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

    S.No.Company1-Year Return
    1LCC Infotech Ltd.387.06 %
    2Career Point Ltd.159.71 %
    3Zee Learn Ltd.128 %
    4Drone Destination Ltd.127.05 %
    5Usha Martin Education & Solutions Ltd.71.03 %
    (As of 27th August 2024)

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

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

    LCC Infotech Ltd.

    The company was founded in 1980 when computer education became popular in India. The company offers a computer training program for those who want to learn computers and gain IT abilities. In 1990, it emerged as a competitor for firms like NIIT and Aptech. The company’s priorities have changed to include new commercial endeavors in the past few years. Its main office is located in Kolkata. 

    Zee Learn Ltd.

    The business was founded in 2010 and is a part of the ESSEL Group. They began their enterprise by opening Kidzee, their first school, which flourished because of its online curriculum. Following this, the business established Mount Litera Zee School, a K–12 school, as a franchisee in several other states. The company’s headquarters is in Mumbai. 

    Usha Martin Education and Solutions Ltd.

    When the business was first established in 1997, it was known as Telecable Industries Limited. In 2000, the business rebranded itself as Usha Martin Infotech Limited. The company entered the education industry in 2008 and changed its name to Usha Martin Education and Solution Limited in 2009. The firm opened several K–12 institutions across the nation. The company’s main office is located in Kolkata. 

    Overviews of the remaining companies have been given above.

    Key Performance Indicators 

    CompanyROE (%)ROCE (%)Debt to Equity (x)P/E P/B
    Veranda Learning Solutions Ltd.-21.14-0.281.20-15.503.27
    NIIT Ltd.3.714.53053.032.25
    Aptech Ltd.11.1718.12054.195.42
    Career Point Ltd.10.7312.660.0715.891.82
    Drone Destination Ltd.11.4915.360.06100.2111.61
    LCC Infotech Ltd.-2161.42-19.351.19-1.9144.43
    Zee Learn Limited89.0916.311.801.921.67
    Usha Martin Education and Solutions Limited1.053.210.12126.331.41
    (All the above data is of the year ended March 2024)

    The Benefits of Investing in Education Stocks

    Investing in Education Stocks

    There are various benefits of investing in education stocks, a few of which are mentioned below- 

    • Growth Potential – The country’s growing population is driving up demand for education and skill development, which can only be met by businesses that offer educational services. 
    • Stability – Due to its resilience during an economic downturn, this industry is regarded as one of the most stable in the whole economy. 
    • Periodic Cash flows – The education sector generates steady cash flows through tuition fees, government grants, and other sources.  

    Factors to Be Considered Before Investing in Education Stocks

    Before making any investment in the education sector, there are various factors to be taken into consideration-

    • Technology – The enterprises in this sector must incorporate new technologies in their teaching methodology and curriculum. 
    • Competitions – In India, this industry is very fragmented, and some regional competitors may impact the earnings of these businesses. 
    • Company’s Financials – One should carefully review the company’s financial reports, including the income statement, balance sheet, and cash flow statements, before purchasing any educational stock to determine whether the business is undervalued. 

    Future of the Education Sector in India

    Globally, there is a growing need for a trained workforce. For a nation to progress, its population must possess a certain level of skill, which is why educational institutions are essential. The internet and globalization have allowed people to receive education across borders, opening up new business opportunities for these companies.  

    Read Also: List of Best Telecom Stocks in India 2025

    Conclusion

    Finally, the country’s growing population presents enormous growth possibilities for the Indian education sector. Both online and offline learning environments are accessible in India. You can take part in this intellectual revolution by investing in the stocks of this industry, but before making any financial decisions, one must carefully weigh all the risk aspects or consult a financial advisor before investing.

    Frequently Asked Questions (FAQs)

    1. Are there any stocks listed in India related to the education sector?

      Veranda Learning Solutions Limited, NIIT Limited, Aptech Limited, Career Point Limited, and Drone Destination Limited are India’s top 5 education firms ranked by market capitalization.

    2. How can I identify the best education stocks to invest in?

      Examining the company’s financial statements and other economic data is necessary to determine which education stocks present the best investment opportunity.

    3. Is it worth investing in the education sector?

      Yes, one can invest in the Indian education sector, given its good growth prospects and government incentives to support it, but only after considering their risk tolerance. 

    4. Which education stock in India has the highest market capitalization?

      Veranda Learning Solutions Limited has the highest market capitalization among the education stocks. 

    5. What are the major risks associated with investing in education sector companies?

      The two main risks facing education businesses are competition from local coaching centers and the ease with which sessions can be accessed online.

  • Broadening Top Chart Pattern

    Broadening Top Chart Pattern

    Broadening Top chart pattern is a complex and one of the most time-consuming patterns in technical analysis. It can give a breakout in either direction and is essentially a volatility play. The Broadening Top chart pattern looks a lot like a megaphone and is thus also popular as the Megaphone Top chart pattern. 

    In this blog, we will discuss the Broadening Top chart pattern, its interpretation, trading setups, advantages, and limitations with the help of examples.

    What is the Broadening Top Chart Pattern?

    A Broadening Top chart pattern, also known as a Megaphone Top chart pattern, is characterized by increasing volatility and a series of higher highs and lower lows. It can act as a reversal pattern, which indicates a change of trend from bullish to bearish because it appears after a strong uptrend. The asset price usually gives a bearish breakout after the uptrend. However, it can also give a bullish breakout, categorizing it as a continuation pattern. 

    Pattern Interpretation

    When interpreting the Broadening Top chart pattern, the following key points must be considered:

    • Formation: The pattern occurs after a strong trend, with volatile price swings. The pattern consists of at least two higher highs and two lower lows.
    • Price Action: Price swings become increasingly volatile, reflecting increasing market indecisiveness.
    • Market Sentiments: It often occurs near the end of a prolonged uptrend, as the market struggles to find direction, indicating uncertainty prevails in the market.
    • Volume: Volumes can also be erratic during the formation of the pattern. However, look for an increase in volume when a breakout occurs for a strong confirmation.
    • Breakout: The pattern can give a breakout in either direction; it is generally considered a bearish reversal pattern when the price breaks below the lower trendline.
    • Risk Management: Proper stop-loss and risk-management strategies are crucial due to volatile price fluctuations.

    Trading Setup  

    A trading setup consists of a precise plan for entry, stop-loss, and target levels, which are discussed as follows:

    • Entry Point: The entry point should be when the price moves above the resistance level or moves below the support level. Traders should also look for an increase in volumes when a breakout occurs.
    • Stop Loss: A stop loss should be placed ideally below the lowest point of the Broadening Top pattern or below the big breaking candle to manage risk.
    • Target: Measure the difference between the highest and lowest points in the Broadening Top chart pattern. Find the breakout point where the price first breaks the resistance or support and add that distance to the breakout price to get the target price.

    Key points to remember while taking entry and setting stop-loss levels are:

    1. Buy/Sell on breakout: Buy the security when the price gives a breakout above the resistance level or sell the security when the price gives a breakout below the support level.
    2. Buy/sell on pullback:  If you are unable to enter the trade when a breakout occurs, wait for a pullback to enter the trade.
    3. Set stop-loss: Stop-loss levels can be set just below the upper trendline in case of a bullish breakout or just above the lower trendline in case of a bearish breakout. However, caution must be taken as stop-loss levels can be hit due to volatile market conditions before the actual trend occurs.

    Example 1: Broadening Top Chart Pattern of Reliance Industries Ltd.

    Broadening Top Chart Pattern of Reliance Industries Ltd

    The above image shows a monthly chart of Reliance Industries, which was in an uptrend for some time before forming a Broadening Top chart pattern. The stock made three consecutive highs starting from August 2018, April 2019, and December 2019 and then made a low of 914 and 787 in October 2018 and March 2020, respectively. 

    Measure the distance between the lowest and highest point of the Broadening Top chart pattern and add it to the breakout price level to get a target price level. The high was 1,637, and the low was 787, which gives a target of 850 points above the breakout point of 1,637, which gives us around 2,487 or 2,500 target levels. We see a bullish breakout with big volumes in June 2020, hit the target in April 2022, and reached a high of 2,593. Its current market price is INR 3,000, which is way above the target. Stop-loss should be trailing, or keep the stop-loss below the big candle that broke the resistance.

    Example 2: Running Example of Broadening Top Chart Pattern of Adani Ports & SEZ Ltd.

    Running Example of Broadening Top Chart Pattern of Adani Ports & SEZ Ltd

    The above image shows a weekly chart of Adani Ports & SEZ Ltd., which has already given a bullish breakout. The stop-loss is set just below the trend line. The high and the low points are 395 and 1,160 in the Broadening Top chart pattern. This gives us a target of 765 points above the breakout point of 1,154, giving us a target level of 1,919. The current market price is INR 1,491, and it would be interesting to see how it will perform in the near future. SL should be below the big candle that broke the resistance. 

    Read Also: Double Bottom Reversal Chart Pattern

    Advantages of Broadening Top Pattern

    The advantages of the Broadening Top chart pattern are:

    • It works in any market, e.g., equity, currency, or commodity markets.
    • It works in any timeframe, but a bigger time frame means a strong trend is about to start.
    • It can be used as a reversal signal indicator.
    • It can be used as a volatility indicator.
    • The pattern can be used to capture large moves.
    • This pattern provides a complete setup for entry, stop loss, and target.
    • This pattern gives quite accurate results if the breakout occurs with huge volumes.

    Limitations of Broadening Top chart pattern

    The limitations of the Broadening Top chart pattern are:

    • It is a complicated pattern, and traders need some experience to use it.
    • The interpretation of signals can be subjective as it is a complex pattern.
    • It is a time-consuming pattern and may take several months or even years to form.
    • The pattern could give a false breakout, which can result in losses.
    • The pattern could be affected by various market factors like volatility, news, policy change, political instability, etc.

    Read Also: What Is the Pennant Chart Pattern?

    Conclusion

    Broadening Top chart pattern is a powerful technical tool for investors and traders alike, although it is risky as volatile price fluctuations occur during its formation. Unexpected price swings occur in both directions, which shows the indecisiveness of the investors, but it offers a potential for significant gains after a breakout. Generally, we get a bearish trend reversal pattern, and bullish breakouts are rare. The Broadening Top chart pattern is a tough pattern to master. Hence, it is very important to understand the pattern’s characteristics, trade setup, and risk management before investing using this pattern. It is always advisable to consult a financial advisor before investing.

    Frequently Asked Questions (FAQs)

    1. Q1. What Does the Broadening Top chart pattern Indicate?

      It indicates an increase in market uncertainty and volatility. It suggests a potential reversal of the prevailing trend in most cases.

    2. What is the success rate of the Broadening Top chart pattern?

      It depends upon the market conditions and time frames; the longer the time frame (Weeks, Months, or Years), the higher the success rate.

    3. Can the Broadening Top chart pattern fail?

      Like any other chart pattern, this pattern can fail, particularly if the breakout is weak with low volumes or market conditions and news contradicts the pattern signal.

    4. How do we calculate the stop loss level for the Broadening Top chart pattern?

      Individuals can consider the stop-loss levels just below the breakout candle in case of a bullish breakout and just above the breakout candle in case of a bearish breakout.

    5. How do we calculate the target price for the Broadening Top chart pattern?

      Individuals can calculate the difference between the high and low points of the Broadening Top chart pattern and add it to the breakout price to get the target price.

  • Double Bottom Reversal Chart Pattern

    Double Bottom Reversal Chart Pattern

    Do you need a reliable technical analysis pattern to identify the market reversals? Consider the double-bottom reversal chart pattern. This classic chart pattern can predict a change from a downtrend to an uptrend, giving valuable insights to traders and investors.

    In this blog, we will explore the Double Bottom reversal chart pattern, its main features, how to recognise it, and its importance for predicting market trends. Whether you are experienced or new to the markets, knowing this pattern can help you immensely in your trading journey. 

    What is a Double Bottom reversal Chart Pattern?

    A Double Bottom reversal chart pattern can be used to predict a possible reversal of a downtrend. It is marked by two low points with nearly the same price, with a higher price point in between. The peak must be higher than the two low points, but it does not have to be a new high. This peak level between two lows represents the neckline or the resistance level.

    Once these low points are identified, the trader can draw a trendline connecting them to create a support level. The support level indicates the levels from where the asset price may trend upwards.

    Additionally, the trading volume should be low during the two low points, which shows that there is not much selling activity occurring. Increased trading volume at the highest point can mean a possible reversal.

    Interpretation of the Pattern

    A Double Bottom chart pattern is a bullish chart pattern that suggests that a downtrend may be coming to an end and can be recognised with the help of,

    • Two Low Points: The price forms two successive bottoms that have approximately equal low points.  
    • Higher Top: Between the two low points, there is a higher top.
    • Support: It is a horizontal line connecting the two low points. If the price doesn’t go below this line, it suggests that the downtrend is about to end.
    • Resistance: The high point formed between the two low points represents a price level that will act as a resistance level.

    How to determine the Target & Stop-Loss?

    One common method to use is the ‘measured move’ technique. Measure the vertical distance from the neckline to the lowest low point. Then, add this distance to the breakout point, which is where the price breaks above the neckline.

    A conservative stop-loss can be placed just below the neckline. This ensures that if the price moves back down below the neckline, the trade is squared off to reduce the losses.

    Alternatively, a stop-loss can also be set just below the most recent low point before the breakout.

    Read Also: Chart Patterns All Traders Should Know

    Example

    The chart above shows the formation of a Double Bottom Chart Pattern for Infosys stock on the daily timeframe. The chart has the following features:

    • A & B are the two low points that are almost at the same price level.
    • AB represents the support level.
    • DE represents the resistance level.
    • C is another point between two distinct low points, which is higher than points A & B.

    Furthermore, we can see that after the breakout above the resistance level DE, the price retested the resistance level and moved upwards by a distance equal to the gap between AB and DE levels.

    Advantages of Double Bottom Reversal Chart Pattern

    The advantages of Double Bottom Reversal chart pattern are:

    • Clear Reversal signal – When the price surpasses the resistance level, it gives a clear signal of a possible change from a downtrend to an uptrend. This can help investors find opportunities to buy stocks.
    • Risk Management – Placing a stop-loss below the resistance level allows traders to effectively minimise losses if the pattern gives false signals.
    • Simple – This pattern is easy to identify and understand, making it easy to use for traders of every level.
    • Universal – The pattern works for different types of assets, like stocks, commodities, currencies, and cryptocurrencies.

    Limitations of Double Bottom Reversal Chart Pattern

    The limitations of Double Bottom Reversal chart pattern are:

    • Subjectivity – Identifying the precise points of the two lows and the peak can be subjective, especially in volatile markets. 
    • False Breakouts – The price might break above the neckline but fail to continue its uptrend, resulting in a false breakout, which can result in losses.
    • Market Conditions – The pattern might not work well in volatile markets due to economic or political events.
    • Timeframe Sensitivity – The pattern’s effectiveness depends on the timeframe used. A double bottom on an hourly chart might not be as accurate as one on a daily, weekly or monthly chart.

    Read Also: Double Top Reversal Chart Pattern

    Conclusion

    To summarise, the double bottom reversal chart pattern is an invaluable tool for identifying potential trend reversals. However, keeping a close eye on other indicators and signals, in addition to the double bottom pattern, can provide a more comprehensive view of the market and help confirm trend reversals because depending solely on one pattern may not yield profits in financial markets. It is always advisable to consult a financial advisor before investing.

    Frequently Asked Questions (FAQ)

    1. What is the importance of the neckline in a Double Bottom chart pattern?

      The neckline acts as a resistance level, and a breakout above the neckline confirms the potential reversal.

    2. What role does volume play in a Double Bottom chart pattern?

      Increased volume during the breakout can strengthen the bullish trend.

    3. Can Double Bottom chart pattern form on any timeframe?

      Yes, the Double Bottom chart pattern can form on any timeframe, from daily to weekly or monthly charts.

    4. Can a Double Bottom chart pattern fail?

      Yes, a Double Bottom chart pattern can fail if the price fails to continue the uptrend after moving above the resistance level.

    5. How can I improve my accuracy in recognising and trading the Double Bottom chart pattern?

      Practising chart analysis, studying historical examples, and using other technical indicators with the Double Bottom chart pattern can help you improve your accuracy.

  • Small Finance Bank Share List in India 2025

    Small Finance Bank Share List in India 2025

    Are you looking to invest in the Indian financial sector? It may be worth putting your money in small finance banks. Such banks operating in untapped areas have identified excellent growth opportunities. They are at the forefront of financial inclusion in the year 2024. 

    This blog revolves around identifying the best small finance banks in India so that one can understand why these might be a value addition to your portfolio. It is time to look at what they are yet to offer and the extent of their development.

    Overview Of the Small Finance Bank (SFB) Industry in India

    India’s small finance banks are quickly taking action by catering to the underserved parts of the economy, including small businesses, low-income households, and micro-entrepreneurs. Since their inception, SFBs have been an essential part of the financial ecosystem, propelled by the government’s financial inclusion initiative. By 2024, these banks had grown aggressively with a CAGR of over 25%, increasing their presence in both urban and rural areas.

    Small Finance Bank (SFB) Industry in India

    Major players like AU Small Finance Bank, Equitas Small Finance Bank, and Ujjivan Small Finance Bank have displayed their strength and agility in serving the niche market by offering a bouquet of uniquely designed financial products. Although SFBs face some challenges related to asset quality risks and regulatory pressures, they still represent a significant growth opportunity. 

    Small Finance Bank Share Based on Market Capitalization

    The top Small Finance Bank stocks in 2025 are:

    S.No.Small Finance Bank Stocks
    1AU Small Finance Bank Ltd.
    2Equitas Small Finance Bank Ltd.
    3Ujjivan Small Finance Bank Ltd.
    4Jana Small Finance Bank Ltd.
    5Utkarsh Small Finance Bank Ltd.
    6ESAF Small Finance Bank Ltd.
    7Suryoday Small Finance Bank Ltd.
    8Capital Small Finance Bank Ltd.

    The best small finance bank stocks have been listed in descending order based on their market capitalization in the table below:

    CompanyMarket Capitalization (In crores)Share Prices (In INR)52 Week High Price (In INR)52-Week Low Price(In INR)
    AU Small Finance Bank Ltd.47,160634813554
    Equitas Small Finance Bank Ltd.9,30781.811674.6
    Ujjivan Small Finance Bank Ltd.8,53744.16340
    Jana Small Finance Bank Ltd.6,172590761365
    Utkarsh Small Finance Bank Ltd.5,49849.968.344.8
    ESAF Small Finance Bank Ltd.2,62150.982.448
    Suryoday Small Finance Bank Ltd.2,088196220142
    Capital Small Finance Bank Ltd.1,365303469290
    (as of 27th August, 2024)

    Read Also: IPO Alert – Capital Small Finance Bank

    Best Small Finance Bank Stocks in India Based on Market Capitalization – An Overview

    A brief overview of the best small finance bank stocks in India is given below:

    1. AU Small Finance Bank Ltd.

    AU Small Finance Bank was established as a NBFC named AU Financiers in 1996 and became a small finance bank in 2017. It is headquartered in Jaipur. It primarily serves the unserved and underserved sections of society. The bank offers various products such as savings and current accounts, fixed deposits, personal and business loans, and insurance. By March 2024, AU Small Finance Bank had over 800 branches across pan-India, serving over 8 million customers, predominantly in critical segments such as MSMEs and rural areas.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -11.12%18.56%10.36%
    (Data as of 17 February 2025)

    2. Equitas Small Finance Bank Ltd.

    Equitas Small Finance Bank was incorporated in 1993 and headquartered in Chennai, India. Started as Equitas Micro Finance Ltd., Equitas became a bank in 2016. It is focused on providing financial services to the unserved and underserved segments of the economy, including micro, small, and medium-sized enterprises (MSMEs) and low-income groups at the household level. The major products of the bank are a variety of deposit schemes, personal loans, vehicle loans, business loans, and insurance. Equitas has grown to have over 850 branches and over 4 million customers as of March 2024.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    43.69%13.57%96.46%
    (Data as of 17 February 2025)

    3. Ujjivan Small Finance Bank Ltd.

    Ujjivan Small Finance Bank was incorporated in 2017 when Ujjivan Financial Services, a microfinance institution set up in 2005, received an in-principle approval from the RBI to set up a small finance bank. This Bengaluru-based bank has been operating with a focus on low-income groups. The bank offers a plethora of products, including savings accounts, fixed deposits, and loans, including microloans, home loans, and SME loans. Ujjivan SFB has over 600 branches across India, serving around 6 million customers, and has assets under management of around ₹18,000 crores as of 2024.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    42.91%75.14%40.70%
    (Data as of 17 February 2025)

    4. Jana Small Finance Bank Ltd.

    Janalakshmi Financial Services, one of the largest microfinance companies, began its journey in 2006. The company was granted the license to establish a small finance bank, and Jana Small Finance Bank commenced its operation in 2018. The bank focuses on financial inclusion through various products like savings accounts, fixed deposits, etc. It also provides multiple loans, including home loans, business loans, and microloans. Currently, Jana Small Finance Bank enjoys a significant presence with over 500 branches across India and a customer base of over 8 million. It manages assets worth over ₹12,000 crores as of 2024.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -8.35%6.67%6.83%
    (Data as of 17 February 2025)

    5. Utkarsh Small Finance Bank Ltd.

    Utkarsh Small Finance Bank was set up in 2017 by Utkarsh Micro Finance, an organization established in 2009. The bank, based in Varanasi, resolves the issue of financial inclusion. It particularly serves the unserved and underserved sections in rural and semi-urban areas. Their products include savings accounts, fixed deposits, and lending. With more than 600 banking outlets and 4 million served customers, the bank manages assets worth about ₹10,000 crores as of 2024, emphasizing sustainable growth.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -56.83%-37.38%-37.38%
    (Data as of 17 February 2025)

    6. ESAF Small Finance Bank Ltd.

    ESAF Small Finance Bank came into existence in 2017. Initially, it was an entity named ESAF Microfinance, which was founded in 1992. Headquartered in Thrissur, Kerala, ESAF Small Finance Bank’s core objective is to deliver appropriate, relevant, and readily available financial services to the underserved sections. With more than 600 branches across the country, ESAF provides several financial products, such as savings accounts, fixed deposit products, microloans, and SME loans. As of 2024, ESAF manages ₹16,000 crores of assets with more than 4 million customers and places high regard on financial inclusion and social responsibility.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -54.58%-58.80%-58.80%
    (Data as of 17 February 2025)

    7. Suryoday Small Finance Bank Ltd.

    Suryoday Small Finance Bank was established in 2017, and its headquarters are in Navi Mumbai. The company focuses on financial inclusion. The products range from savings accounts and fixed deposits to microloans, housing loans, MSME loans, and others. As of 2024, the bank has 550 banking outlets that serve nearly 2 million customers and manage assets worth ₹4,500 crores.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -30.07%-7.64%-58.58%
    (Data as of 17 February 2025)

    8. Capital Small Finance Bank Ltd.

    Formed in 2000, Capital Small Finance Bank was the first small finance bank to be converted from a local area bank. Based in Punjab, it runs more than 160 branches. The bank’s main business focus is retail deposits, microfinance, and MSME loans, and it is eyeing servicing the unserved segments of society. Capital Small Finance Bank provides savings accounts, term deposits, home loans, business loans, customer service, and financial inclusion. It manages over ₹ 6,000 crores of assets as of 2024.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -35.48%-34.46%-34.46%
    (Data as of 17 February 2025)

    Performance of Small Finance Bank Stocks 

    1-year performance of the small finance bank stocks has been given in the table below:

    Company1 Year Return (%)
    AU Small Finance Bank Ltd.-14.01%
    Equitas Small Finance Bank Ltd.-2.03%
    Ujjivan Small Finance Bank Ltd.-10.89%
    Jana Small Finance Bank Ltd.60.27%
    Utkarsh Small Finance Bank Ltd.2.49%
    ESAF Small Finance Bank Ltd.-26.26%
    Suryoday Small Finance Bank Ltd.8.54%
    Capital Small Finance Bank Ltd.-30.21%
    (as of 27th August, 2024)

    Key Performance Indicators 

    CompanyNet Interest Margin (%)ROE (%)Capital Adequacy Ratio (%)TTM P/E (x)P/B (x)
    AU Small Finance Bank Ltd.4.7112.2120.0628.583.74
    Equitas Small Finance Bank Ltd.6.7913.3821.7014.591.55
    Ujjivan Small Finance Bank Ltd.8.4322.8224.696.751.54
    Jana Small Finance Bank Ltd.6.5018.7120.318.231.73
    Utkarsh Small Finance Bank Ltd.7.8816.7322.5710.411.85
    ESAF Small Finance Bank Ltd.9.0817.0723.277.321.06
    Suryoday Small Finance Bank Ltd.7.7711.9628.418.741.16
    Capital Small Finance Bank Ltd.3.719.3127.3912.281.15
    (As of 31st March 2024, except P/E and P/B ratio)

    Benefits of Investing in the Small Finance Bank Stocks

    Investing in Small Finance Bank Stocks

    There are various benefits of investing in small finance bank stocks, a few of which are mentioned below- 

    • High Growth Potential: Small finance banks are targeting the underserved segments of society, which can result in high growth in assets and number of customers, giving them ample growth opportunities.
    • Financial Inclusion: Financial inclusion is one of the core constituents of any government program, and small finance banks are in a perfect position to grow.
    • Tailored Financial Products: SFBs offer customized financial products to their customers, which makes them popular.

    Factors to Consider Before Investing in Small Finance Bank Stocks

    Before making any investment in small finance bank stocks, there are various factors to be taken into consideration-

    • Asset Quality:  Analyze the NPAs and the risk management practices of the SFBs because they will lend more to higher-risk segments, affecting the quality of assets.
    • Regulatory Environment: Investors must be aware of the rules and regulations to check whether the bank adheres to the RBI norms. Illegal activities will have a negative effect on the income and the business of the company.
    • Growth and Profitability: Analyze the bank’s ability to maintain high growth in the face of existing competition and the changing economic environment.
    • Management and Governance: Therefore, other things being equal, good governance supported by effective management is crucial in surmounting challenges in this segment. Management quality and the bank’s corporate governance system determine its future performance.
    • Market Competition: Investors must evaluate competitor SFBs and microfinancing institutions to understand the bank’s market position and growth potential.

    The Future of the Small Finance Bank Industry

    Good future prospects are unfolding for the Small Finance Banks (SFB) industry in India, which is estimated to grow at nearly 18-20% CAGR over the next five years. Finance inclusion is expected to increase as SFBs focus on low-density areas such as Micro, Small, and Medium Enterprises and the rural population. SFBs may hold 5% of the overall banking assets in India by 2028.

    This digital transformation would help small finance banks grow further, enabling them to offer a pleasant customer experience and operational efficiency. However, issues such as asset quality management, competition from other firms, and changing macroeconomic conditions will threaten profitability.

    Read Also: List of Best Banking Stocks in India

    Conclusion

    The small finance banks offer a big investment opportunity in India due to the huge population not being served by the formal banking sector. Key leading performers in the sector, AU Small Finance Bank and Equitas Small Finance Bank, have been performing well, while other indicators point to sustainable growth. However, factors like asset quality, the regulatory environment, management quality, and experience need close inspection before investing. However, it is advisable to consult a financial advisor before investing.

    Frequently Asked Questions (FAQs)

    1. What are small finance banks (SFBs)?

      Small finance banks are financial institutions that provide banking services, especially to underserved and unbanked segments like small businesses, low-income groups, and rural areas.

    2. What are the risks associated with investing in SFB stocks?

      Key risks include asset quality concerns, regulatory challenges, and competition from larger banks and fintech companies.

    3. How do SFBs differ from traditional banks?

      SFBs primarily target niche markets such as MSMEs and rural customers, while traditional banks serve a broader customer base. 

    4. What role does digital banking play in the growth of SFBs?

      Digital banking enhances customer experience and operational efficiency, enabling SFBs to scale and compete effectively.

    5. How do you identify the best small finance bank stocks in India?

      Investors can analyze the regulatory environment, market competition, and financial statements of the banks to identify the best small finance bank stocks in India.

  • HDFC Bank vs Axis Bank: Which is Better?

    HDFC Bank vs Axis Bank: Which is Better?

    You save a lot of money and put in a lot of work, but you need help determining where to keep it. It is only possible to retain some of your hard-earned savings at home; opening a bank account is your only option. You might be surprised to hear that banks where you have accounts allow you to invest in their business.

    This blog post will compare HDFC Bank and Axis Bank. 

    HDFC Bank Overview

    HDFC Bank was established in 1994 as a subsidiary of HDFC Ltd. The Reserve Bank of India granted it a banking license in January 1995. In November 1995, the bank launched its Initial Public Offering (IPO) and became a listed company on the Bombay Stock Exchange and the National Stock Exchange. In 2000, the Times Bank merged with HDFC Bank. HDFC Bank acquired Centurion Bank of Punjab to increase its branch network and clientele. The bank’s business philosophy is based on five core values: Operational Excellence, Customer Focus, Product Leadership, People, and Sustainability.

    HDFC Ltd. or Housing Development Finance Corporation Ltd. was merged with HDFC Bank in 2022 in India’s largest-ever M&A deal. The bank provides a wide range of financial products and services, such as retail banking, wholesale banking, loans, credit cards, savings accounts, current accounts, investment products, etc. The company’s headquarters is in Mumbai.

    Read Also: HDFC Bank Case Study: Business Model, Financial Highlights, and SWOT Analysis

    Axis Bank Overview

    Axis Bank was initially established as UTI Bank by a joint venture between the Life Insurance Corporation of India, the Government of India, and other business houses. UTI Bank’s operations started in 1994 when the first branch in Ahmedabad was opened. In 2007, UTI Bank was renamed “Axis Bank”. It soon became a well-established and recognized bank in the Indian Banking sector. This was a turning point in the history of Axis Bank because it became an aggressive player with a focus on branch expansion and innovation. Additionally, Axis Bank consistently made an effort to diversify its product portfolio. The bank now offers a variety of financial products, including credit cards, savings accounts, current accounts, brokerage facilities, and retail banking.

    Read Also: Axis Bank Case Study: Business Model, Product Portfolio, and SWOT Analysis

    Company’s Comparative Study

    ParticularHDFC BankAxis Bank
    Current Share PriceINR 1,639INR 1,184
    Market Capitalization (in INR Crores)12,48,8543,66,117
    52 Week High Price INR 1,794INR 1,340
    52-Week Low PriceINR 1,363INR 951
    FIIs Holdings (%)47.1753.43
    DIIs Holdings (%)35.4631.63
    Book Value per ShareINR 601INR 509
    PE Ratio (x)18.313.7
    (Data as of 27 August 2024)

    Read Also: HDFC vs SBI?

    Financial Statements Comparison

    Income Statement Comparison (FY 2024)

    ParticularHDFC BankAxis Bank
    Interest Income2,83,6491,12,759
    Total Income4,07,9941,37,989
    Total Expenditure3,06,40798,629
    Net Profit65,44726,427
    (The figures mentioned above are in INR crores unless stated otherwise)

    Balance Sheet Comparison (FY 2024)

    ParticularHDFC BankAxis Bank
    Deposits23,76,88710,67,102
    Total Capital & Liabilities40,30,19415,18,239
    Advances25,65,8919,99,333
    (The figures mentioned above are in INR crores unless stated otherwise)

    Cash Flow Statement Comparison (FY 2024)

    ParticularHDFC BankAxis Bank
    Cash Flow from Operating Activities19,069-5,554
    Cash Flow from Investing Activities5,313-9,088
    Cash Flow from Financing Activities-3,98322,341
    (The figures mentioned above are in INR crores unless stated otherwise)
    HDFC Bank vs Axis Bank Cash Flow Statement Comparison

    Read Also: Best Trading Apps in India

    Key Performance Indicators

    ParticularHDFC BankAxis Bank
    Net Interest Margin (%)3.213.38
    Net Profit Margin (%)23.0723.43
    ROCE (%)2.632.70
    Capital Adequacy Ratios (%)18.8016.63
    (all the above data is of the year ended March 2024)

    Read Also: ICICI Vs HDFC Bank

    Conclusion

    The comparison of India’s biggest private sector banks presented above leads us to conclude that while HDFC Bank has more revenue and profits overall, Axis Bank posts higher net profit margins even with less revenue. Although every bank has something special to offer, we always advise speaking with an investment expert before making investment decisions.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
    1PNB vs SBI
    2Axis Bank vs ICICI Bank
    3PNB vs Bank of Baroda
    4SBI vs ICICI Bank
    5Bank of Baroda vs SBI

    Frequently Asked Questions (FAQs)

    1. Which person oversees HDFC Bank as managing director? 

      The managing director of HDFC Bank at the moment is Mr Sashidhar Jagdishan. 

    2. In India, which private bank has the largest market capitalization? 

      HDFC Bank has the largest market capitalization of all the private banks in India. 

    3. Which bank has a larger market capitalization: Axis Bank or HDFC Bank? 

      Compared to Axis Bank, HDFC Bank has a larger market capitalization. 

    4. Which bank is more profitable: HDFC Bank or Axis Bank? 

      Axis Bank has a slightly higher net profit margin of 23.43% compared to 23.07% for HDFC Bank.

    5. Who is the CEO of Axis Bank?

      Amitabh Chaudhry is the CEO of Axis Bank.

  • Rounding Bottom Chart Pattern

    Rounding Bottom Chart Pattern

    The Rounding Bottom chart pattern, also known as the Saucer Bottom pattern, is a bullish reversal pattern. The Rounding Bottom chart pattern indicates a change of trend from bearish to bullish because it initially forms a downtrend followed by a gradual uptrend. Rounding Bottom is one of the time-consuming patterns in technical analysis, which gives higher statistical accuracy. Let’s dig deeper into it.

    What is the Rounding Bottom Pattern?

    The name Rounding Bottom suggests that security forms a “U” Shape or a bowl shape on a chart. In this pattern, the asset price starts to fall steadily with a gradual decrease in volume. For some time, the asset price remains in a narrow range, and no sharp fall is seen. After remaining in a sideways range, the asset price slowly increases. The Rounding Bottom is considered a bullish reversal pattern as it indicates that the selling pressure is decreasing and the buying pressure is increasing, indicating a potential change in the trend direction. 

    How to Identify the Rounding Bottom Chart Pattern?

    Look for the following characteristics to identify the Rounding Bottom chart pattern:

    • Downtrend: Before the pattern forms, the asset price shows a downtrend.
    • Gradual Decline: Price declines gradually with a slight curve-shaped formation on the chart.
    • Rounded Bottom: The price forms a rounded bottom that indicates the accumulation stage for the security. Investors accumulate security in this stage.
    • Increasing Volume: Price starts rising with an increase in volume, giving a clear indication of buying momentum.
    • Breakout: The breakout happens when an asset price breaks the previous high or resistance level, confirming the trend reversal.

    Trading Setup  

    The Rounding Bottom pattern can be used to develop a trading setup, as shown below. However, trading based on chart patterns can be extremely complex, and investors must consult a financial advisor before investing. A Rounding Bottom chart pattern can be used in determining the following:

    • Entry Point:  An entry point can be determined near the levels where the asset price breaks the resistance levels. Here, the resistance level is the same level from where the stock started falling. Investors can also use volume analysis to get confirmation.
    • Stop Loss:  A stop loss should be placed ideally below the lowest point of the rounding bottom pattern to manage risk and limit losses.
    • Target: Measure the vertical distance from the bottom of the rounding pattern to the resistance level. Find the breakout point where the price first breaks the resistance and add that distance to the breakout price.

    Trading Strategies 

    Here are a few trading strategies based on rounding bottom chart pattern:

    • Buy on breakout: Buy the security when the price first moves above the resistance level, confirming the trend reversal.
    • Buy on pullback:  If you couldn’t buy at breakout, wait for a pullback to the support level, and then enter the trade.
    • Set stop-loss: Set a stop-loss below the lowest level of rounding bottom or after breakout around the nearest support level to limit potential losses.

    Read Also: List of Best Swing Trading Patterns

    Advantages of Rounding Bottom Pattern

    Rounding Bottom chart pattern has the following advantages:

    • Easy to understand and identify.
    • It works in any market, such as equity markets, currency markets, commodity markets, etc.
    • It works in any time frame; a bigger time frame means strong trend reversal is on the cards.
    • This pattern provides information regarding stop-loss and target levels.
    • The pattern allows effective risk management as it gives clear stop-loss levels.
    • According to various studies, this pattern gives quite accurate results.

    Limitations of Rounding Bottom Pattern

    Rounding Bottom chart pattern has the following limitations:

    • The signals given by the pattern can be subjective because, on numerous occasions, complex patterns with multiple lows appear that are far from the ideal pattern.
    • It is a time-consuming pattern.
    • It could give a false breakout signal, which can result in losses.
    • This pattern could be affected by various market factors, such as volatility, news, policy change, political instability, etc.
    • The shape of the pattern could be different from the bookish ideal pattern.

    Example – 1

    Rounding Bottom example of PTC India Ltd.

    Rounding Bottom Pattern Example

    The above image shows the weekly chart of PTC India Ltd. The stock price gave a breakout with huge volumes on the weekly timeframe in November 2023. The stock started moving up and surpassed the highs of 2010, 2017, and 2021 and broke the resistance line joining these highs. In November, it broke the 2021 high of INR 140 and made a new high of INR 254, after which the stock gave sideways movements. The current market price is INR 205. 

    Example – 2

    Running example of Deepak Fertilizers, which could be a potential Rounding Bottom chart pattern candidate.

    The above image shows the monthly chart of Deepak Fertilizers. The stock was in a downtrend for some time, and then it started making a Rounding Bottom chart pattern. From October 2022 to March 2024, the stock price fell from a high of INR 1062 to INR 450. The stock price started rising with big volumes and is about to break the neckline. It will be interesting to watch if it gives a breakout in the near future.

    Read Also: Chart Patterns All Traders Should Know

    Conclusion

    The Rounding Bottom chart pattern is a very powerful technical chart pattern for investors and traders alike. It is a time-consuming pattern but has the potential to offer significant gains. It is a trend reversal pattern that indicates the potential change in the trend direction. Initially, it is characterized by a slow and steady decline in the asset price, followed by a slow and steady increase in the price in a way that forms a rounded bottom. By understanding the pattern’s characteristics, trade setup, strategies, and pros and cons, traders and investors can make informed mid to long-term investment decisions and improve their chances of success in the markets. However, it is advised to consult a financial advisor before investing.

    Frequently Asked Questions (FAQs)

    1. In which market does the Rounding Bottom chart pattern work?

      The rounding bottom pattern works in any market and time frame. 

    2. What is the success rate of the Rounding Bottom chart pattern?

      It depends upon the market conditions and time frames. The longer the time frame (months or years), the higher the success rate.

    3. How is the Rounding Bottom chart pattern different from the Cup and Handle chart pattern?

      Generally, the Rounding Bottom chart pattern makes a smooth, rounded U-shape pattern with no additional formations, but the Cup and Handle pattern makes another smaller formation, which is either downward or sideways consolidation.

    4. Is it easy to identify the Rounding Bottom chart pattern?

      Yes, a rounding bottom pattern can be identified easily. Investors must look for a gradual downtrend followed by a gradual uptrend. Investors can create a long position when an asset price breaks the resistance level.

    5. How can we use the Rounding Bottom chart pattern to determine stop loss?

      Stop loss can be set as the lowest price point of the rounded bottom to prevent huge losses.

  • Mutual Fund vs PMS: Which is Better?

    Mutual Fund vs PMS: Which is Better?

    After putting in a lot of effort, you may have some capital left after paying for all your expenditures. However, one must be cautious when it comes to investing your assets. Nowadays, mutual funds and portfolio management services (PMS) are the most popular investment options available to investors, but do you know how to choose the right one for you?

    In this blog, we provide information about mutual funds and PMS and the approach an investor must take to choose between them.

    Overview of Mutual Fund

    Overview of Mutual Fund

    A mutual fund is a type of financial vehicle that pools the capital of several investors with similar investment goals or objectives. The pooled capital is invested in various asset classes, including equities, bonds, commodities, etc., by the fund managers, who are professionals in this field. After deducting expenses and fees, the investor gets the return on their investment. An asset management company, or AMC, is the organization in charge of this procedure.  

    In India, mutual funds can be categorized based on asset classes, financial goals and structure. There are four types of mutual funds in India based on asset class-

    • Equity Mutual Fund – Due to its vulnerability to fluctuations in the market, this specific mutual fund type is riskier than others because it typically invests in stocks or equities.  
    • Debt Mutual Fund – Investors who invest in these funds are risk-averse because they invest in fixed-income securities such as government bonds, corporate bonds, and other fixed-income securities.  
    • Hybrid Fund – This fund invests in both debt and equity. The portfolio of hybrid funds will have some allocation to debt to deliver stable and predictable returns, along with some equity allocation to achieve capital appreciation.  
    • Money Market Fund – This type of mutual fund invests in low-risk money market instruments, such as treasury bills and commercial paper, with maturities less than a year.  

    Overview of Portfolio Management Services

    Financial institutions offer portfolio management services or PMS. Investors may purchase this product, and a group of experienced fund managers will use their expertise to determine which asset classes to invest in.

    Individuals typically set aside a percentage of their capital for investments, but if they don’t have the investing knowledge, they may not be able to invest it properly. Such investors can invest in portfolio management services (PMS) companies. Investment professionals manage the portfolio according to the client’s risk profile, investment objectives, and preferences. In exchange for these services, investment managers charge fees. 

    Types of portfolio management services are:

    • Discretionary PMS– Under this category of portfolio management services, the portfolio managers make all investment-related decisions on behalf of the client. Fund managers are not required to consult with investors before making investment decisions. Most customers select this kind of service.  
    • Non-discretionary PMS– In this type of service, the fund manager needs the client’s approval before investing. The investment team of PMS provides financial advice to the client, who ultimately chooses whether or not to take it.   

    Difference Between Mutual Funds and PMS 

    ParticularMutual FundPMS
    Minimum Investment AmountIn mutual funds, the minimum investment amount starts from INR 100.As per SEBI, a minimum investment amount of INR 50 Lakhs is required for PMS.
    CustomisationA mutual fund does not allow investors to customize their portfolios.PMS allows investors to customize portfolios according to their preferences.
    Ownership of AssetsInvestors don’t directly own underlying assets.The investor has direct ownership of underlying securities.
    ChargesMutual funds have nominal fees compared to PMS, which generally have higher fees.PMS has higher fees than mutual funds.
    RiskMutual funds are suitable for investors with low-risk profiles.It is typically ideal for high-risk investors.
    TransparencyIn mutual funds, investors can only track the performance of funds.Investors of mutual funds can track and view every trade made in their accounts.

    Factors to Consider Before Investing in Mutual Funds and PMS

    Investing in Mutual Funds and PMS

    The various factors to be considered before investing in mutual funds and PMS are as follows-

    • Risk Profile – The investor’s risk tolerance will determine whether they choose a mutual fund or PMS as their investment option. If investors are ready to take high risks, they should choose PMS. 
    • Capital – If an investor has a substantial amount of money to invest, they may choose to opt for portfolio management services (PMS). Investors with a small capital to invest can choose mutual funds. 
    • Expense Ratio – Mutual funds investments have a relatively lower expense ratio than PMS. 
    • Return Potential – PMS generally offer higher potential returns than mutual funds. Hence, investors seeking better returns may invest in PMS instead of mutual funds. 
    • Liquidity – Generally, PMS have longer lock-in periods than mutual funds. 

    Read Also: Types of Mutual Funds in India

    Conclusion

    In conclusion, there are advantages and disadvantages to investing in PMS and mutual funds. If investors want personalized investment services and have a sizable amount of money to invest, they should choose PMS. Investors should consider mutual funds if they have a lower initial investment amount. Investors should consult a financial advisor before investing.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
    1SIP in Stocks vs SIP in Mutual funds?
    2XIRR Vs CAGR: Investment Return Metrics
    3Liquid Funds Vs Ultra Short Fund
    4Active or Passive Mutual Funds: Which Is Better?
    5ICICI Vs HDFC Bank: Which Has Larger Market Capitalization?

    Frequently Asked Questions (FAQs)

    1. What is the minimum investment amount required to open a PMS account?

      The SEBI guideline states that a minimum investment of INR 50 lakhs is required to open a PMS account.

    2. Which is better: PMS or Mutual Fund?

      Mutual funds are suitable for individuals with a low-risk tolerance and a small amount to invest, while PMS is suitable for investors with a high-risk tolerance who have at least INR 50 lakh to invest. 

    3. Does PMS have exit loads?

      Indeed, exit loads for certain portfolio management service companies typically range from 1% to 3%. 

    4. How are the profits from PMS taxed?

      Profits earned by the PMS are subject to capital gains tax, and the tax rate varies according to the asset’s holding period.

    5. Can an NRI invest in PMS in India?

      NRIs can invest in PMS in India if they follow FEMA regulations and other compliance requirements. 

  • All Share List of Tata Group

    All Share List of Tata Group

    Do you know there is a group that owns and operates more than 100 companies and has been playing a key role in the nation’s development for more than 140 years? Yes, you guessed it right, we’re talking about none other than the Tata group. It is extremely hard to imagine a sector that doesn’t feature a Tata company as one of its major players. Tata Sons Pvt. Ltd. is the parent company of Tata Group and is a major shareholder in the Tata Group of companies.

    In this blog, we will discuss the stocks of Tata Group based on the market capitalization and 1-year returns.  

    Top Tata Companies Share Based on Market Capitalization

    The companies are listed below:

    1. Tata Consultancy Services Ltd.
    2. Tata Motors Ltd.
    3. Titan Company Ltd.
    4. Trent Ltd.
    5. Tata Steel Ltd.

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

    Top Tata Companies
    CompanyMarket Capitalization
    (in INR crore)    		Current Market Price
    (In INR)    		52-Week High
    (In INR)    		52-Week Low
    (In INR)
    Tata Consultancy Services Ltd.16,34,2904,5174,5653,311
    Tata Motors Ltd.4,03,6881,0981,179599
    Titan Company Ltd.3,19,4613,5983,8873,041
    Trent Ltd.2,49,2917,0137,1001,945
    Tata Steel Ltd.1,91,997154185114
    (As of 26 August 2024)

    Read Also: Tata Penny Stocks List – Benefits, and How to Invest?

    Overview of Tata Stocks

    An overview of the companies owned by Tata Group has been given below:

    1. Tata Consultancy Services Ltd.

    TCS was established in 1968, when Mr Fakir Chand Kohli, known as the Father of India’s IT industry, brought together a young team of IT professionals to provide punched card services to its sister company, TISCO (now Tata Steel). TCS also developed an Inter-Branch Reconciliation System for the Central Bank of India. To expand its operation in the IT sector, the company developed the electronic depository and trading system named SECOM for Swiss company SIS SegaInterSettle in 1975. Furthermore, TCS completed the task of automating the Johannesburg Stock Exchange. TCS has expanded its operations beyond India and has a significant presence in countries across America, Europe, Asia Pacific, the Middle East, and Africa, recognizing the growth opportunities in the global market. The company’s headquarters is in Mumbai.

    2. Tata Motors Ltd.

    Tata Motors was established in 1945 to manufacture locomotives. The company got the opportunity to enter the commercial vehicle sector by entering into a joint venture with Daimler-Benz in 1954 and setting up a manufacturing facility for Daimler lorries. Today, Tata Motors is a leading global automobile manufacturer. The company manufactures sports utility vehicles, trucks, buses, and defense vehicles. It has operations in India, the UK, South Korea, South Africa, China, Brazil, Austria, and Slovakia through a strong global network of subsidiaries, associate companies and Joint Ventures (JVs). Its subsidiaries include Jaguar Land Rover in the UK and Tata Daewoo in South Korea. The company’s headquarters is in Mumbai.

    3. Titan Company Ltd.

    Titan was established in 1984 as Titan Watches Limited. The company set up a manufacturing facility in Tamil Nadu to manufacture quartz analog electronic watches. The company entered the digital watch segment when it signed an MoU with Casio in 1986 to manufacture 2 million digital watches annually. Today, Titan has a significant presence in the watches, jewelry, eyewear, and perfume segment. It entered the jewelry segment by launching Tanishq and then launched Titan Eyeplus, an eyewear brand. The company’s headquarters is in Bangalore.

    4. Trent Ltd.

    The company’s history dates back to 1952 when it was originally established as Lakme Limited. The company was initially involved in the cosmetics business. However, in 1998, the company sold the cosmetic business to Hindustan Unilever and created Trent to venture into the fashion and lifestyle segment. The company acquired Littlewoods International (India) Limited to begin selling readymade garments and related merchandise. Today, Trent owns popular brands such as Westside, Zudio, Utsa, etc. The company’s headquarters is in Mumbai.

    5. Tata Steel Ltd.

    Mr Jamsetji Tata established Tata Iron and Steel Company Limited (TISCO) in 1907 and was later renamed Tata Steel Ltd. in 2005. The firm established its first facility and began producing steel in 1912. It also provided steel to the defense sector during the Second World War. Today, it is one of the few companies in the steel sector with fully integrated steel operations, ranging from mining to marketing finished products. Tata Steel acquired Singapore-based NatSteel Holdings in 2004 to broaden its global presence. The company has since completed several domestic and foreign acquisitions. The most recent occurred when it bought Bhushan Steel Limited in 2018. The company’s headquarters are in Mumbai.

    Top Tata Stocks Based on 1-year Returns

    Company1-year returns
    Trent Ltd.245.08%
    Tata Investment Corporation Ltd.153.99%
    Voltas Ltd.104.85%
    Tata Motors Ltd.88.18%
    Tata Power Company Ltd.70.32%
    (As of 26 August 2024)

    Overview of Tata Stocks Based on 1-year Returns

    An overview of the companies owned by Tata Group has been given below:

    Tata Investment Corporation Ltd.

    Tata Investment Corporation Ltd. was established in 1937 and was then known as The Investment Corporation of India Ltd. The company is a non-banking financial corporation that invests in debt, equity, etc. The company was incorporated to help small and medium-sized enterprises and entrepreneurs. Some major companies TICL invested in are SKF Bearings (India) Ltd., Ceat Tyres Ltd., etc. The company was listed on the stock market in 1959. The company generates its income through dividends and profit from the sale of investments. The company’s headquarters is in Mumbai.

    Voltas Ltd.

    Voltas was established in 1954 and is a key player in the home appliances industry. The company started as a collaboration between Tata Sons and Volkart Brothers. Today, the company offers a wide range of products, including air conditioners, air coolers, refrigerators, washing machines, etc. It is the largest air conditioning company in India by market share. Voltas partnered with Ardutch to launch appliances under the brand name “Voltas Beko.” The company has operations in over 100 countries and has undertaken many international projects, including the air conditioning of Burj Khalifa. The company’s headquarters is in Mumbai.

    Tata Power Company Ltd.

    The company was founded as Tata Hydro-Electric Power Supply Company in 1910. In 1915, the company established the Khopoli plant, which was India’s first clean energy station. The company uses conventional and renewable sources for energy generation and can produce 14,707 MW of energy annually, out of which 40% is from renewable sources. The company aims to achieve carbon neutrality by 2045. The company operates in India, Singapore, South Africa, Mauritius, etc. The company’s headquarters is in Mumbai.

    Overviews of the remaining companies have been given above.

    Key Performance Indicators 

    CompanyNet Profit Margin (%)ROCE (%)Debt to EquityP/E P/B
    Tata Consultancy Services Ltd.19.1363.51034.7818.02
    Tata Motors Ltd.7.1019.391.1610.744.28
    Titan Company Ltd.6.8434.891.4093.4034.53
    Trent Ltd.10.9427.400.12145.1460.89
    Tata Steel Ltd.-2.118.130.89-47.022.11
    Tata Investment Corporation Ltd.83.601.07084.041.04
    Voltas Ltd.3.0910.830.12124.409.77
    Tata Power Company Ltd.5.049.031.5336.234.14
    (All the above data is of the year ended March 2024)  

    Read Also: List of Best Tata Group Small Cap Stocks

    Conclusion

    Tata Group is a collection of India’s value-based corporations prioritizing core values over profits. It all began in 1868 when Jamsetji Tata established a trading firm, and today, companies of the Tata Group have a key presence in almost every crucial sector of India’s economy. Tata Trusts holds a 66% equity stake in Tata Sons, and the dividend income from the companies is utilized exclusively to support philanthropic activities. Tata Group employs more than 1 million people and plays a key role in developing the nation.

    Frequently Asked Questions (FAQs)

    1. Who is the Chairman Emeritus of Tata Sons?

      Ratan Naval Tata is the Chairman Emeritus of Tata Sons.

    2. Who is the chairman of Tata Group and Tata Sons?

      Natarajan Chandrasekaran is the chairman of Tata Sons and Tata Group.

    3. What is Titan’s main business?

      Titan Company Ltd. generates revenues by offering watches, jewelry, eyewear, and perfumes to its customers. 

    4. What was Tata Steel previously known as?

      Tata Steel was previously known as Tata Iron and Steel Company Limited (TISCO).

    5. Who is the founder of the Tata Group?

      Jamsetji Nusserwanji Tata is the founder of the Tata Group.

  • Ascending Triangle Chart Pattern

    Ascending Triangle Chart Pattern

    Chart patterns are important for traders using technical analysis to predict market movements and make decisions. Among various chart patterns, the ascending triangle is a reliable chart pattern for identifying possible bullish breakouts. Whether you are an experienced trader or just getting started, grasping the intricacies of the ascending triangle pattern can improve your trading strategy.

    This blog post will discuss the pros and cons of the ascending triangle pattern and how to recognize this pattern. Let us discover how this pattern can assist us in navigating financial markets.

    Ascending Triangle Chart Pattern – An Overview

    An ascending triangle chart pattern is a bullish chart pattern that occurs when a stock’s price is unable to break a resistance level while the asset price consistently makes higher lows. This creates a triangle shape on the chart. When the price goes above the resistance level, it signals a possible bullish trend. Traders often enter long positions at or near the breakout point.

    Ascending triangle chart pattern has the following characteristics:

    • Resistance Level – The horizontal line represents the resistance level the price repeatedly fails to break above.
    • Rising Support – The upward-sloping line shows the rising support level formed by connecting the successive higher lows.
    • Convergence – The resistance and support lines converge as time passes, creating a narrowing triangle shape.
    • Breakout – The price eventually breaks above the resistance level, signaling a bullish trend reversal.

    Additionally, it is important to remember that no technical analysis pattern is 100% accurate. False breakouts can happen, and market conditions can change unexpectedly. The Ascending Triangle chart pattern should be used in combination with other technical indicators and risk management strategies.

    Interpretation

    The triangle signifies a phase of consolidation or accumulation. During this phase, buyers gradually gain control, causing prices to rise. The triangle formation displays strong buying pressure, and the price usually breaks out above the resistance level.

    When the price breaks above the resistance level, it signals a bullish trend. The narrowing triangle suggests there could be a breakout soon. Furthermore, sometimes, the price may break above the resistance level only to reverse direction, resulting in a false breakout.

    Read Also: List of Best Swing Trading Patterns

    How to determine the Target and Stop-Loss?

    A stop-loss order below is set on the recent low point of the support line in the ascending triangle. This helps to limit the losses if the trend reverses and the price moves downwards after a breakout. The risk per trade is determined by the difference between the entry price and the stop-loss level. Traders can change the stop-loss orders according to their risk tolerance and the market conditions.

    A common way to set a target is to measure the triangle’s height and add it to the breakout point. Traders assume the price will move at least equal to the height of the triangle.

    Example   

    Example of Target and Stop-Loss

    The above image shows that the stock entered a consolidation phase in September 2019 and remained in this phase until February 2020, characterized by similar highs and higher lows. The asset price broke out at a price level of INR 75 and made a high of INR 105.80, which was slightly more than the height of the triangle.


    Advantages of Ascending Triangle Chart Pattern

    Ascending Triangle chart pattern has the following advantages:

    • Pre-defined entry and exit points – The pattern gives clear entry signals when the price breaks out above the resistance line. Stop-loss orders should be placed below the rising trendline to exit trades.
    • Reliable – The ascending triangle pattern is quite reliable, especially in strongly trending markets. Confirmation from other technical indicators can increase traders’ confidence.
    • Versatile Usage –The pattern can be used in different time frames, from intraday to weekly or monthly charts.
    • Predictability – Once the triangle forms, it can provide a sense of predictability, allowing traders to anticipate the possible price movements.  

    Limitations of Ascending Triangle Chart Pattern

    Ascending Triangle chart pattern has the following limitations:

    • False Breakouts – One of the main drawbacks of the ascending triangle pattern is the potential false breakouts. Sometimes, the price briefly goes above the resistance level and then falls back, which can lead to losses.
    • Subjectivity – Identifying an ascending triangle pattern can be somewhat subjective. Different traders might draw trendlines differently or may have varying criteria for what constitutes a valid pattern, causing inconsistencies in its application.
    • Not Always Predictive – Although the pattern suggests that the trend will likely continue, it can’t be 100% accurate. Regardless of the pattern, market conditions, news events, or other factors can cause unexpected price movements.

    Read Also: What is the Flag and Pole Pattern?

    Conclusion

    The Ascending Triangle chart pattern is useful for technical analysts as it predicts bullish trends with a fair amount of accuracy. Although the ascending triangle pattern has its own merits, it is important to combine it with other technical indicators and risk management strategies. Unexpected changes in market conditions can lead to false breakouts and result in losses. Therefore, traders should constantly monitor and adapt to any developments or shifts in market dynamics. Individuals can also consult a financial advisor before trading.


    Frequently Asked Questions (FAQs)

    1. Can ascending triangle patterns be used in all market conditions?

      Ascending triangle patterns are most effective when used in uptrend or sideways markets.

    2. Are there other chart patterns similar to ascending triangles?

      Chart patterns that feature a triangle pattern are descending triangles and symmetrical triangles.

    3. How do you recognize an ascending triangle pattern?

      Look for a horizontal resistance line and a series of higher lows forming an upward-sloping support line. If the two trend lines are converging, it can signal that an Ascending Triangle chart pattern is forming.

    4. What does a breakout above the resistance level indicate?

      A breakout above the resistance level indicates a bullish trend continuation.

    5. Can an ascending triangle be a bearish pattern?

      No, ascending triangles are generally considered bullish patterns. 

  • Double Top Reversal Chart Pattern

    Double Top Reversal Chart Pattern

    The financial markets form a vibrant landscape where trends constantly evolve. Understanding these shifts is important for making well-informed trading decisions. One such pattern that is a must-have in a technical analyst’s arsenal is the ‘Double Top Reversal Pattern.’ This pattern provides valuable insights into upcoming market reversals, helping traders recognize possible selling opportunities.

    In this blog, we will discuss the double-top reversal chart pattern with the help of an example. Moreover, we will discuss the advantages and disadvantages of this pattern.

    What is a Double-top Reversal Pattern?

    A double top is a chart pattern used in technical analysis to signal a bearish reversal in an asset’s price. It is formed when the price of an asset reaches a high price twice consecutively, with a moderate decline between the two highs.

    This pattern is often understood as a sign that buyers are losing their momentum and sellers might take control of the market soon. Traders often look for confirmation signals, such as a break below the neckline, to further validate the bearish reversal.

    • Target Price: The price target is the same as the height from the neckline to the highest peak, projected downward from the neckline. An order to book profits can also be placed at the next support level.
    • Stop-Loss Price: A stop-loss order can also be placed above the highest peak or just above the neckline to limit potential losses if the price moves higher. 

    Characteristics of Double Top Reversal Pattern

    The double-top reversal pattern has the following characteristics:

    • M-Shaped Pattern – The price chart forms an ‘M’ shape, with two different peaks at approximately the same price level.
    • Moderate Decline – When the price reaches a high, retraces, and rallies back to a similar high after a minor decline.
    • Confirmation – The pattern is confirmed when the price falls below the support level (neckline). Traders also use volume data to confirm pattern formation.

    Read Also: Bump and Run Reversal Top Chart Pattern

    Example of Double Top Reversal Pattern

    Example of Double Top Reversal Pattern

    The example below shows the daily chart of Gujarat Gas Private Limited showing the Double Top Chart Pattern. The pattern shows the following phases:

    • Upward Trend – The stock price experiences a strong upward trend, reaching a peak (the first top).
    • Pullback – The price retraces slightly, indicating buyers are losing control.
    • Second Peak – The price rallies again, almost reaching the same level as the first peak. (the second top).
    • Support Line or Neckline– A horizontal line is drawn between the two lowest points between the peaks, forming the neckline.
    • Breakdown – The price breaks below the neckline, confirming the double top pattern.
    • Price Target – The height of the pattern, i.e., the distance between the support line and the peak, is projected downwards from the support to estimate the price target.

    This is a simplified example, and real-world analysis considers factors like volume, technical indicators, and fundamental analysis. Not all double-top patterns lead to profitable trades, and individuals must be careful before making trading decisions.

    Advantages of Double Top Reversal Pattern

    A double-top reversal pattern has the following advantages:

    • A clear sign of reversal – The pattern shows a possible change in the direction of the price. Traders can use this to predict a price decline.
    • Definite Entry and Exit Points – The support line provides a clear entry point for short positions once it is broken. An individual can exit the trade if the price reaches the target price or moves upwards after breaking the support level.
    • Risk Management – Patterns are often useful for establishing stop loss and target levels. Place a stop-loss above the highest peak and determine the profit target by projecting the pattern’s height downward from the support line.
    • Objective Analysis – The double top pattern depends on price action and does not need subjective analysis, making it a comparatively objective tool.

    Limitations of Double Top Reversal Pattern

    A double-top reversal pattern has the following disadvantages:

    • False Signals – Like any technical indicator, the double top reversal pattern can give incorrect signals. The price could briefly touch two high points before continuing its upward movement, causing traders who act too soon to lose money.
    • Timing Concerns – Finding the best time to enter and exit a trade can be difficult. If the trader enters or exits too early, he might miss good opportunities or lose money.
    • Confirmation Needed – Relying solely on the double top pattern without confirmation from other technical indicators or fundamental analysis can increase the risk of false signals and wrong entries.
    • Limited Usefulness in Strong Uptrends – In a robust uptrend, the double-top pattern might be less reliable as the overall market momentum can override the pattern’s bearish implications.

    Read Also: Double Bottom Reversal Chart Pattern

    Conclusion

    The Double Top Reversal pattern is a very useful pattern for identifying reversals in the financial market. Once you understand how it is formed and other trading concepts that work with this pattern, you’ll be well-placed to spot a bearish shot!

    The Double Top Reversal pattern is a decent chart pattern with good accuracy but should be used with a stop-loss order to limit losses. An individual must also keep realistic targets to book profits. Nevertheless, always be sure to do plenty of research and perhaps consult with a financial advisor before you make any investment decisions.

    Frequently Asked Questions (FAQs)

    1. How is double top confirmed?

      A double top is confirmed when the price breaks below the support level between the two peaks.

    2. What does the pattern indicate?

      A double top shows a loss of buying momentum and a possible increase in selling pressure.

    3. How can I trade the double-top pattern?

      Traders often short-sell after the price breaks below the support line. A stop-loss can be placed above the highest peak.

    4. Are double-top patterns always accurate?

      No, like any other technical pattern, a double-top reversal pattern can produce false signals. It is important to use it in combination with other indicators like volume.

    5. Can double tops form in any timeframe?

      Yes, the double top reversal pattern can form in any timeframe, from short-term to long-term timeframe. 

    • Open Free Demat Account

    Join Pocketful Now

    You have successfully subscribed to the newsletter

    There was an error while trying to send your request. Please try again.

    Pocketful blog will use the information you provide on this form to be in touch with you and to provide updates and marketing.