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List Of Best Healthcare Stocks in India 2025

With its emphasis on disease prevention, illness diagnosis, treatment, and injury management, healthcare plays an important role in human civilization. The objective of healthcare is to improve the health and well-being of individuals. India’s healthcare sector is rapidly growing, driven by factors such as increasing disposable income, rising healthcare expenses, and a growing elderly population. This surge has made the healthcare industry a fascinating investment option.

Today’s blog explores the best health care stocks in India that an investor can watch out for, their recent returns, and how the healthcare industry is poised for growth in the future.

Overview of the Healthcare Industry in India

The healthcare industry has emerged as one of the biggest contributors to India’s economy in terms of income and job creation. The Healthcare industry was valued at $372 billion in 2023 and employs around 7.5 million individuals. The Indian Government has introduced comprehensive changes to fortify the healthcare industry and launched favorable policies to attract Foreign Direct Investment (FDI). The Aatmanirbhar Bharat Abhiyaan initiatives include several immediate and long-term strategies for the healthcare sector, like PLI programs aimed at enhancing the production of pharmaceuticals and medical equipment domestically. The healthcare sector in India is witnessing interest from investors worldwide and within the country. Furthermore, the COVID-19 pandemic has highlighted the challenges facing the healthcare industry, and the companies are investing huge amounts to tackle them.

Top Healthcare Stocks in India Based on Market Capitalization

List of Top Healthcare stocks based on the Market Capitalisation

S.no.	Healthcare Stocks
1	Apollo Hospitals Enterprise Ltd.
2	Max Healthcare Institute Ltd.
3	Fortis Healthcare Ltd.
4	Global Health Ltd.
5	Krishna Institute of Medical Sciences Ltd.

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

Company	Market Cap	Current Market Price	52-week High	52-Week Low
Apollo Hospitals Enterprise Ltd.	96,451	6,708	6,900	4,726
Max Healthcare Institute Ltd.	88,969	915	980	508
Fortis Healthcare Ltd.	38,167	506	532	308
Global Health Ltd.	32,471	1,209	1,514	615
Krishna Institute of Medical Sciences Ltd.	17,018	2,126	2,357	1,625

(Data as of 2 August 2024)

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

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

1. Apollo Hospitals Enterprise Limited

Apollo Hospitals Enterprise Limited is India’s largest private healthcare provider and a global leader in integrated healthcare services. Dr. Prathap C. Reddy founded it in 1983, and it has led India’s healthcare revolution. The group provides a comprehensive range of services through a network of 73 hospitals across India and abroad, Apollo Pharmacy chains, primary care and diagnostic clinics, remote healthcare consultations, etc.

They introduced several groundbreaking medical procedures in India, such as coronary artery bypass surgery, organ transplantation, and telemedicine.

1Y Return (%)	3Y Return (%)	5Y Return (%)
-7.10%	38.42%	263.09%

(As of 16 February 2025)

2. Max Healthcare Institute Limited

Max Healthcare Institute Limited is a major private healthcare organization in India. It runs hospitals, diagnostic centers, and home healthcare services in several Indian states. The company is recognized for its emphasis on quality care, medical innovation, and patient-centered approach. It was started as a small medical center in Panchsheel Park, South Delhi, in 2000 and since then the organization’s growth trajectory has been remarkable.

Max offers a wide range of services, including medicine delivery, diagnostic centers, home healthcare, etc. The company is a leader in medical advancements and always focuses on improving its services.

1Y Return (%)	3Y Return (%)	5Y Return (%)
13.93%	180.35%	842.84%

(As of 16 February 2025)

3. Fortis Healthcare Limited

Fortis Healthcare Limited is one of the top healthcare services providers in India. It has many hospitals, clinics, and diagnostic centers in the country and abroad. The company is well-known for its wide range of medical services, advanced technology and commitment to patient care. It was established in 1996 with the opening of the first Fortis Hospital in Mohali, Punjab. The acquisition of the healthcare division of the Escorts Group was a pivotal moment in Fortis’s growth. This move expanded its presence and strengthened its position in the healthcare market in India. The healthcare brand also has a presence in countries like UAE, Nepal, and Sri Lanka. Fortis offers various medical services like cardiology, oncology, orthopedics, neurosciences etc.

1Y Return (%)	3Y Return (%)	5Y Return (%)
41.22%	129.34%	284.62%

(As of 16 February 2025)

4. Global Health Limited (Medanta)

Global Health Limited is a leading tertiary and quaternary healthcare provider focused on dealing with complicated cases. It operates four hospitals under the “Medanta” brand name.

It was founded in 2009. Over the years, the company has continuously evolved and enhanced its healthcare software solutions to meet the evolving needs of the industry. Its focus on under-served areas with dense populations helps it achieve strong operational and financial performance.

1Y Return (%)	3Y Return (%)	5Y Return (%)
-16.83%	176.86%	176.86%

(As of 16 February 2025)

5. Krishna Institute of Medical Sciences Ltd.

Krishna Institute of Medical Sciences Ltd., or KIMS Hospital Group, is a well-known healthcare provider in Telangana. Founded by Dr. Bhaskar Rao Bollineni, a well-known cardiac surgeon, KIMS has established a healthcare empire, providing an extensive array of medical services across various specialities. It has grown rapidly through both organic growth and strategic acquisitions. It has achieved a major milestone by building a main hospital in Secunderabad, Telangana. The group provides affordable and integrated healthcare services focused on tertiary and quaternary healthcare in more than 40 fields.

1Y Return (%)	3Y Return (%)	5Y Return (%)
33.69%	118.72%	188.08%

(As of 16 February 2025)

Top Healthcare Stocks Based on 1-year Return

The top healthcare stocks in India are:

S.no.	Healthcare Stocks
1	Sharma East India Hospitals and Medical Research Ltd.
2	Indraprastha Medical Corporation Ltd.
3	Artemis Medicare Services Ltd.
4	Global Health Ltd.

The healthcare stocks have been listed in descending order based on their 1-Year return in the table below:

Company	1-Year Return
Sharma East India Hospitals and Medical Research Ltd.	218.63%
Indraprastha Medical Corporation Ltd.	115.01%
Artemis Medicare Services Ltd.	113.33%
Global Health Ltd.	80.38%

(As of 16 February 2025)

Best Healthcare Stocks Based on 1-year Return – An Overview

The best healthcare stocks according to 1-year return are given below, along with a brief overview:

1. Sharma East India Hospitals and Medical Research Limited

Sharma East India Hospitals and Medical Research Limited is a publicly listed company dedicated to providing medical and healthcare services. Its main project is the Jaipur Hospital, located in Rajasthan. The hospital has focused on providing healthcare services to the people of Rajasthan since it started in 1989. The Jaipur Hospital’s primary quality has been providing multi-speciality medical care and health facilities to the local community.

1Y Return (%)	3Y Return (%)	5Y Return (%)
388.22%	388.22%	388.22%

(As of 16 February 2025)

2. Indraprastha Medical Corporation Limited

Indraprastha Medical Corporation (IMC) is a public limited company that was established in 1988 as a Public Private Partnership (PPP) project. It is a joint venture between the Delhi government and Apollo Hospitals Group. The company mainly offers top-notch healthcare services through its main hospital, Indraprastha Apollo Hospitals, in Sarita Vihar, New Delhi. The hospital has become one of India’s top healthcare institutions, providing various advanced medical treatments. It is the first in India to do successful pediatric and adult liver transplants and is accredited by the Joint Commission International, indicating high standards of healthcare quality.

1Y Return (%)	3Y Return (%)	5Y Return (%)
101.74%	442.72%	824.09%

(As of 16 February 2025)

3. Artemis Medicare Services Limited

Artemis Medicare Services Limited (ASML), commonly known as Artemis Hospitals, is a prominent private healthcare provider in India, widely recognized for its flagship hospital in Gurgaon, Haryana. The hospital is well-known for its modern facilities, advanced medical technology, and skilled medical staff. Founded in 2007 by the visionaries of the Apollo Tyres Group, Artemis Hospital swiftly emerged as a leading healthcare hub in India. In 2013, it was the first hospital in Gurgaon to be accredited by the Joint Commission International. AMSL specializes in orthopedics, oncology, cardiovascular, neurosciences, and bariatric & minimally invasive Surgery. AMSL has also diversified its presence through Artemis Daffodil, Artemis Lite, Artemis Cardiac Care and Artemis Solace models.

An overview of Global Health Ltd. has been given above.

1Y Return (%)	3Y Return (%)	5Y Return (%)
49.17%	521.55%	1,111.37%

(As of 16 February 2025)

Key Performance Indicators (KPIs)

Company	ROE (%)	ROCE (%)	Debt-to-Equity	P/E (x)	P/B (x)
Apollo Hospitals Enterprise Ltd.	12.95	14.97	0.46	107.36	13.92
Max Healthcare Institute Ltd.	12.57	13.25	0.15	84.22	10.6
Fortis Healthcare Ltd.	7.81	9.52	0.11	63.77	4.99
Global Health Ltd.	16.45	19.01	0.14	90.03	11.41
Krishna Institute of Medical Sciences Ltd.	16.96	14.91	0.74	72.28	9.12
Sharma East India Hospitals and Medical Research Ltd.	5.9	15.38	0.45	37.26	2.39
Indraprastha Medical Corporation Ltd.	25.94	30.5	0	19.78	5.14
Artemis Medicare Services Ltd.	12.91	12.67	0.67	74.34	8.15

*(all the above data is of year ended March 2024)

Benefits of Investing in Healthcare Stocks

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

High Growth Potential – The global population is aging, causing an increased demand for healthcare services and products. The rising prevalence of chronic diseases creates an opportunity for healthcare companies.
Diversification – Healthcare stocks help the investor achieve portfolio diversification.
Social Impact – Investing in healthcare can align with personal values of contributing to global health.
Defensive Characteristics – Healthcare is considered a defensive sector as people need healthcare regardless of economic conditions.

Factors to Consider before investing in Healthcare stocks

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

Regulatory Environment – Changes in healthcare regulations can significantly impact the industry.
Clinical Trials Results – Successful clinical trials can boost a company’s stock price, while failures can have a negative impact.

Future of the Healthcare Industry

The healthcare industry is experiencing a swift transformation driven by technological advancements and changing population demographics. Artificial Intelligence is revolutionizing drug discovery, medical imaging and patient diagnosis. Remote healthcare delivery is becoming increasingly common, thereby improving access to healthcare. Furthermore, there will be a focus on managing chronic conditions like diabetes and heart disease. Overall, the healthcare industry offers great opportunities for innovation and growth in the coming years.

Read Also: List Of Best FMCG Stocks In India

Conclusion

To sum it up, we have explored several healthcare companies in India. These organizations have been crucial in shaping the Indian healthcare landscape. India’s healthcare sector has grown, with more private companies entering the market. Public-private partnerships have been very important in improving healthcare access and quality. Healthcare stocks can potentially deliver phenomenal returns in the future, and investors need to keep track of them. However, it is advised to consult a financial advisor before investing.

Frequently Asked Questions (FAQs).

What are the benefits of investing in healthcare stocks?
The benefits of investing in healthcare stocks are high growth potential, diversification, and resilience during economic downturns.
Are healthcare stocks a good option for long-term investment?
Yes, because of the increasing global population and rising healthcare needs, the healthcare sector is becoming an attractive investment option among investors.
What is the role of technology in healthcare investing?
Technological advancements result in better medical equipment, which helps in better diagnostics and improving the efficiency of healthcare services.
How can I reduce risk while investing in healthcare stocks?
You can diversify your portfolio by investing in different stocks in the healthcare sector.
How can I keep myself updated on healthcare industry trends?
An investor can follow the latest developments in the healthcare industry by reading medical research reports and following news related to the companies involved in the healthcare sector.

August 5, 2024

Bandhan Bank Case Study: Business Model, Financial Statement, SWOT Analysis

In a country where achieving financial inclusion remains a challenge, Bandhan Bank has brought hope to millions. From its humble beginnings as a microfinance initiative, it has grown into a fully-fledged universal bank, catering to the unbanked sections of India with great dedication.

Today’s blog presents a case study on Bandhan Bank from its grassroots beginnings, business model, and SWOT analysis to understand the factors driving its growth.

Company Overview and History

Bandhan Bank is an Indian commercial bank that mainly caters to underpenetrated markets. It started as a not-for-profit entity, grew to become India’s biggest microfinance institution, and now it is one of the fastest-growing banks in the country.

In 2001, the journey began as a society dedicated to promoting financial inclusion and women’s empowerment by creating sustainable livelihood in rural Bengal. Bandhan Bank recognized the opportunity to reach more people and acquired an NBFC in 2006. This allowed them to grow their operations and reach more customers. In 2010, Bandhan became the largest microfinance institution in India. In a historic move, Bandhan secured a banking license from the Reserve Bank of India in 2015. The company changed from a microfinance organization to a universal bank. This allowed it to provide a broader selection of financial products and services to its customers.

Business Model of Bandhan Bank

The bank now serves more than 3.50 crore customers across India through more than 6,250 banking outlets. Bandhan Bank believes in building trust and long-term relationships with customers through personalized service. It tries to reach out to underserved populations through a strong branch network.

Product Portfolio of Bandhan Bank

The bank provides numerous services, which include the following:

Digital banking – The bank offers feature-rich internet banking services to customers to help them meet their everyday banking needs.
Housing Finance – The Bank offers individuals home and property loans, including loans for the purchase, construction, repair, renovation, or extension of dwelling units. It also provides Loan Against Property (LAP) on self-occupied residential property and loans against rent receivables on commercial property.
Retail Liabilities & Retail Assets – This segment offers gold loans, personal loans, auto loans, etc.

Agri-Business Loan – Under this segment, the bank offers a wide range of credit for agricultural activities to all consumers involved in the agri value-chain system.
MSME Lending – It offers an array of loan products at competitive interest rates to cater to the needs of micro, small, and medium enterprises (MSMEs).
Commercial LAP – Catering to various entities such as proprietorships, partnerships, private limited and non‑listed public limited companies, and individual borrowers for loans against property (LAP).
Third-Party Products – This segment covers insurance products, mutual funds, etc.

Market Data of Bandhan Bank

Current Market Price	INR 212
Market Capitalization	INR 34,112 crores
52 Week High	INR 263
52 Week Low	INR 169

(As of 2 August 2024)

Financial Statements of Bandhan Bank

Income Statement

Key Metrics	FY 2024	FY 2023	FY 2022
Total Income	21,034	18,373	16,693
Total Expenditure	18,804	16,178	16,568
Net profit	2,230	2,195	126

(The figures mentioned above are in INR crores unless mentioned otherwise)

Balance Sheet

Key Metrics	FY 2024	FY 2023	FY 2022
Loans & Advances	1,21,136	1,04,756	93,974
Total Assets	1,77,841	1,55,769	1,38,866
Deposits	1,35,201	1,08,069	96,330
Total Shareholders Funds	21,609	19,584	17,381

(The figures mentioned above are in INR crores unless mentioned otherwise)

Cash Flow Statement

Key Metrics	FY 2024	FY 2023	FY 2022
Net Cash flow from Operating Activities	14,808	-4,244	902
Net Cash flow from Investing Activities	1,690	-1,617	-611.83
Net Cash flows from Financing Activities	-8,578	4,791	2,802

(The figures mentioned above are in INR crores unless mentioned otherwise)

Key Performance Indicators (KPIs)

Key Metrics	FY 2023-24	FY 2022-23	FY 2022-21
ROCE (%)	3.83	4.65	5.99
Net Interest Margin (%)	5.80	5.94	6.27
Net NPA (in %)	1.11	1.17	1.66

SWOT Analysis of Bandhan Bank

The Bandhan Bank SWOT Analysis highlights its strengths, weaknesses, opportunities, and threats, showcasing its market position and growth potential.

Strengths

Bandhan Bank has a strong brand image and is committed to bringing financial services to rural and semi-urban areas.
It has many branches, which helps it reach a wide customer base and understand the needs and preferences of its target market.
The bank is led by experienced professionals with a proven track record in the microfinance and banking industry.

Weaknesses

The bank has trouble managing its assets, especially in its microfinance portfolio.
Relying too much on microfinance can limit growth and expose the bank to risks specific to that sector.
Many of Bandhan Bank’s branches are rented, which could affect profits and long-term sustainability.

Opportunities

Expanding its presence in the untapped markets can increase the customer base and help mitigate risks of geographical concentration.
The bank can offer more products to serve customers, including individuals and businesses.
Acquiring other companies can help the business grow faster, increase its market share, and reach new customer groups.

Threats

Economic recessions can cause increased loan defaults, lower asset quality, and reduced consumer spending.
Intense competition from both the traditional and new-age banks can erode market share and profitability.
Operational failures, like system breakdowns or cyber-attacks, can harm the bank’s reputation and cause financial losses.

Conclusion

Bandhan Bank has made great progress in the Indian banking industry, especially in terms of financial inclusion. Its focus on microfinance and its move into universal banking makes it a major player in the market. However, challenges such as asset quality and technological adoption need to be addressed to ensure sustained growth. Bandhan Bank must focus on its strengths and address its weaknesses to succeed in the competitive banking industry. The bank can further fortify its market position by capitalizing on opportunities such as digital banking and geographical expansion.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Yes Bank Case Study: Business Model, Financial Statement, SWOT Analysis
2	Asian Paints Case Study: Business Segments, KPIs, Financials, and SWOT Analysis
3	Bikaji Foods Case Study – Product Portfolio, Financial Statements, & Swot Analysis
4	Bajaj Housing Finance IPO Case Study: Products, Financials, And SWOT Analysis
5	Voltas Case Study: Business Model And Key Insights

Frequently Asked Questions (FAQs)

When was Bandhan Bank founded?
Bandhan Bank’s roots trace back to 2001, when it started as a non-profit microfinance organization. It received its banking license and commenced operations as a bank in 2015.
Is Bandhan Bank listed on the Indian stock exchanges?
Yes, it is listed on the NSE and BSE.
What is Bandhan Bank’s current market price and market capitalization?
The market price of the Bandhan Bank stands at INR 212, and the market capitalization is INR 34,201 crores on 2 August 2024.
How has Bandhan Bank performed financially?
Bandhan Bank has shown decent growth in recent years, expanding its branch network and customer base.
Is Bandhan Bank a good investment option?
Investing in banks needs a long-term outlook because of market fluctuations and economic cycles. Like any other bank, Bandhan Bank carries inherent risks, and investors should analyze their risk appetite before investing.

August 5, 2024

List Of Best IT Stocks in India 2025

Do you know what makes it possible for everything to be at your fingertips in today’s society, including ordering groceries or your favorite food from the comfort of your home? New and inventive technology developed by the IT companies is the reason behind all this.

In this blog, we will discuss the Indian IT industry and the top 5 stocks based on market capitalization and one-year performance.

Overview of the IT Industry in India

India grew at a rate of 8.2% in the last quarter of FY 2024, which makes it one of the fastest-growing economies in the world. One of the major reasons behind the expansion of the economy is attributed to the IT industry. Technological advancements and a skilled workforce are making India a major player in the IT sector globally. Companies in this industry offer a wide range of services, such as BPO, system integration, software development and maintenance, and more.

Top IT Stocks Based on Market Capitalization

The Top IT Stocks in 2025 are:

S.No.	IT Stocks
1	Tata Consultancy Services Ltd.
2	Infosys Ltd.
3	HCL Technologies Ltd.
4	Wipro Ltd.
5	LTIMindtree Ltd.

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

Company	Market Capitalisation (in INR crore)	Current Market Price (INR)	52-Week High	52-Week Low
Tata Consultancy Services Ltd.	15,88,340	4,390	4,431	3,311
Infosys Ltd.	7,76,512	1,870	1,903	1,348
HCL Technologies Ltd.	4,44,132	1,637	1,697	1,115
Wipro Ltd.	2,73,005	522	580	375
LTIMindtree Ltd.	1,68,843	5,701	6,443	4,514

(As of 31 July 2024)

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

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

1. Tata Consultancy Services (TCS)

In 1968, Tata Sons Limited established the business to supply punch card services to Tata Steel, a sibling firm. TCS established India’s first software research and development center in Pune in 1981. The company went public on the Indian Stock Exchange in 2004. The company’s Mumbai headquarters are located there. The corporation offers services in cloud computing, artificial intelligence, etc.

1Y Return (%)	3Y Return (%)	5Y Return (%)
-4.68%	3.93%	79.11%

(As of 16 February 2025)

2. Infosys

Mr. N.R. Narayana Murthy established Infosys in 1981. Bengaluru became the nation’s IT hub after the corporation relocated its headquarters there. In 1993, the company decided to go public and got listed on the Indian stock market. Infosys was the first Indian company to debut on the NASDAQ Stock Exchange in 1999. The business serves more than 500 clients, some of which are included in the Fortune 500.

1Y Return (%)	3Y Return (%)	5Y Return (%)
10.70%	9.26%	134.90%

(As of 16 February 2025)

3. HCL Technologies Ltd.

In 1976, Shiv Nadar and a handful of other engineers formed HCL Tech. The company started by making and selling personal computers before expanding its operations into software development in 1986. In 1991, the business established HCL Technologies Ltd. as a distinct legal entity. The firm was listed on the Indian Stock markets in 1999. The company’s main office is in Noida, Uttar Pradesh.

1Y Return (%)	3Y Return (%)	5Y Return (%)
1.98%	48.35%	174.68%

(As of 16 February 2025)

4. Wipro

M.H. Hasham Premji established Western India Vegetable Products Limited in 1945 with the primary goal of producing cooking oil initially. Following the demise of Hasham Premji, his son Azim Premji assumed responsibility for the family business. In 1980, he decided to enter the IT industry and is now one of the leading Indian tech companies that offers services in cloud computing, artificial intelligence, robotics, etc.

1Y Return (%)	3Y Return (%)	5Y Return (%)
19.20%	12.94%	153.68%

(As of 16 February 2025)

5. LTIMindtree

L&T Infotech merged with Mindtree to form LTIMindtree in 2022. In 2016, L&T Infotech, a subsidiary of Larsen and Toubro, was listed on the Indian stock market. On the other hand, ten IT specialists founded Mindtree in 1999. The goal of the merger was to boost efficiency, and it was completed in 2022. The company has a workforce of 81,650 employees, and its headquarters is located in Mumbai.

1Y Return (%)	3Y Return (%)	5Y Return (%)
-1.15%	-7.76%	171.51%

(As of 16 February 2025)

Read Also: List Of Best PSU Stocks in India

Top IT Stocks Based on 1-Year Return

The Top IT Stocks based on 1-year returns are:

S.No.	IT Stocks
1	Persistent Systems Ltd.
2	HCL Technologies Ltd.
3	Infosys Ltd.
4	Coforge
5	Tech Mahindra

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

Company	1-Year Return
Persistent Systems Ltd.	107.28%
HCL Technologies Ltd.	46.73%
Tech Mahindra Ltd.	39.11%
Infosys Ltd.	37.89%
Coforge Ltd.	35%

(As of 30 July 2024)

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

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

Persistent Systems

The company was founded in 1990 by Dr. Anand Deshpande. Initially, the company was focused on software development. The company offers services in cloud computing, internet of things, big data analytics, etc. Intel Capital bought a 3.5% stake in the company for $1 million in 2000. The business generates over $1.2 billion in sales annually and employs more than 23,000 employees. The company’s headquarters is located in Pune.

1Y Return (%)	3Y Return (%)	5Y Return (%)
28.47%	179.53%	1,502.74%

(As of 16 February 2025)

Tech Mahindra

Tech Mahindra was formed in 1986 as a consequence of a joint venture between two distinct entities, Mahindra and Mahindra, and British Telecom, a British telecom company. In 2006, the company was listed on the stock exchange. It expanded its services and clientele after acquiring a significant stake in Satyam Computer Services, another Indian IT firm that collapsed due to a corporate scandal. The company has formed strategic partnerships with several foreign companies, such as Microsoft and AWS, to offer innovative IT solutions. The company’s headquarters are located in Pune.

1Y Return (%)	3Y Return (%)	5Y Return (%)
27.16%	18.17%	98.47%

(As of 16 February 2025)

Coforge

Rajendra S. Pawar and Vijay K. Thandai created NIIT Technologies Ltd. in 1992. In 1999, the corporation established its operational units in the United States, Europe, and other Asia Pacific areas. The company primarily offers IT solutions for financial services, insurance companies, and banks. In 2020, the business rebranded itself as Coforge Limited. The business is also working on machine learning, AI solutions, etc. Its main office is located in Noida, Uttar Pradesh.

1Y Return (%)	3Y Return (%)	5Y Return (%)
18.26%	77.53%	322.07%

(As of 16 February 2025)

An overview of the remaining companies is mentioned above.

Key Performance Indicators (KPIs)

Company	ROE (%)	ROCE (%)	Debt to Equity	P/E	P/B
Tata Consultancy Services Ltd.	50.73	63.51	0	33.9	17.57
Infosys Ltd.	29.77	36.81	0	29.09	8.80
HCL Technologies Ltd.	23	27.92	0.03	27.05	6.51
Wipro Ltd.	14.81	17.86	0.19	24.36	3.66
LTIMindtree Ltd.	22.89	28.73	0	36.77	8.38
Persistent Systems Ltd.	22.05	28.79	0.04	64.21	15.17
Tech Mahindra Ltd.	8.84	11.70	0.06	60.17	5.67
Coforge Ltd.	22.27	25.32	0.12	54.02	11.64

(All the above data is of the year ended March 2024)

The Benefit of Investing in IT Stocks

IT stocks can be a valuable addition to your portfolio due to the reasons mentioned below:

Futuristic Approach – These businesses are mostly involved in developing cutting-edge technologies like cloud computing and artificial intelligence.
Diversified Portfolio – IT companies typically offer services to a variety of industries, such as healthcare, finance, and pharmaceuticals, protecting them against any downturns in specific industries.
Revenue Model – The typical revenue strategy in this sector is subscription-based, giving them a reliable and consistent stream of income.
Global Exposure – IT companies usually operate globally and have clients in many countries.

Factors to be Considered Before Investing in IT Stocks

There are multiple factors one should consider before investing in IT stocks:

Innovations – Investors should consider organizations that make significant investments in the research and development of new products and services, as these will be the ones that stay ahead of the competition and continue to innovate in the technology space.
Financial Performance – Analyzing the company’s financial reports will assist you in making an informed investment decision.
Clients – Investors should consider companies with a diversified source of revenues so that it doesn’t depend on a few big clients.
Global Economic Conditions – Due to the global operations, the profitability of the company can be impacted by any global event. Currency exchange rates also impact the IT business.

Future of IT Sector in India

In the Indian economy, the IT sector forms a significant part of the GDP. In 2020, this sector made up about 7.7% of the nation’s GDP; by 2025, this contribution is expected to reach 10%. According to a recent NASSCOM analysis, this industry is predicted to generate $250 billion in sales in FY 2024. As a result, this industry has a bright future in India, and the businesses operating in the IT sector are playing a crucial part in the nation’s digital transformation.

Conclusion

In summary, the Indian IT sector plays a major role in the growth of the country’s gross domestic product. This industry has a lot of growth potential, but it also has considerable risks. Due to the constant evolution of the technology industry, businesses operating in this field must continue to innovate and achieve strong performance. However, it is advised to always consult a financial advisor before investing.

Frequently Asked Questions (FAQs)

Should I invest in IT Stocks?
Investing in stocks from the IT sector can provide significant returns because this industry provides a wide range of services globally. As people become increasingly dependent on technology, the industry will grow.
How can I identify the best IT stock to invest in?
An investor should analyze a company’s financial statements and other factors impacting the performance of the stock.
Name the top 5 IT Stocks in India.
Based on market capitalization, TCS, Infosys, Wipro, HCL Tech, and LTI Mindtree are the top IT stocks in India.
What are the major risks associated with investing in the IT Sector?
The main risks of investing in the IT sector are increased competition, a slowing economy, fluctuations in currency exchange rates, etc.
Can I invest in IT stock for the short term?
Yes, you can think about investing in IT stocks for the short term if your investment strategy is focused on technical analysis. On the other hand, you must conduct a fundamental analysis before making a longer-term investment in IT companies.

August 1, 2024

Budget 2024: Explainer On Changes In SIP Taxation

The Mutual fund industry of India is currently valued at $0.66 trillion and is expected to grow to $1.61 trillion by 2029 in terms of assets under management (AUM). Investors are offered two modes of investment in mutual funds: Lumpsum and SIP. The calculation of taxes payable on lump sum investments is pretty straightforward, but what about SIP investments, which are a more popular way of investing among the general public?

In this blog, we will discuss the changes in STCG and LTCG tax introduced in the Budget 2024, process of calculating taxes on SIP and the impact of tax rate changes.

What is Capital Gains Tax?

It is a tax applicable to the profits earned from the sale of a capital asset. When you sell an asset at a price higher than initial buying price, you earn capital gains. In case of mutual funds, allotment is done based on the NAV.

For example – You bought one unit of a mutual fund having NAV of 100. Your total buying was 1*100 = INR 100. Now, after some time, you sold this one unit at 150. So, you earned 50*1= INR 50, i.e., capital gains.

It can be of two types based on the holding period of the asset:

Long term capital gains tax is the tax applicable to the profits earned upon selling the asset after a certain time period.
Short term capital gains tax is the tax applicable to the profits earned upon selling the asset before a certain period of time.

The time period for equity or equity oriented mutual funds is one year, which means STCG will apply if the holding period is less than a year and LTCG if the holding period exceeds one year. Keep in mind that the time period for distinction between long term and short term varies for different assets. However, in this blog we will only deal with equity mutual funds for easy understanding.

BUDGET 2024 Update

Currently, in LTCG in equity, there is no tax till the income of one lakh; post this limit, a 10% tax is applicable without indexation benefit. In the case of STCG, there is a flat 15% tax on gains without indexation benefit.

The budget introduced by the Government of India proposed the following changes:

LTCG for equity and equity-related instruments has been hiked from 10% to 12.5% and exemption limit has also been raised from INR 1,00,000 to INR 1,25,000

STCG for equity and equity-related instruments has been hiked from 15% to 20%

How Will the SIPs Be Taxed?

SIP or Systematic Investment Plan is a type of investment plan in which an investor invests small amounts periodically instead of a lump sum investment. Each installment of a SIP is considered as a separate investment for tax purposes due to which the holding period of each installment will be different from one another. Let’s understand how the SIPs will be taxed with the help of an example.

Suppose Rohan started a monthly SIP of INR 1,00,000 in an equity mutual fund for 2 years, starting from 1 Aug 2024 till 1 July 2026. On 1 Aug 2024, with an SIP amount of 1,00,000 he purchased 1,000 units with an NAV of 100 (1,00,000 INR /100 NAV = 1,000 units). With each SIP, he accumulated certain units of the mutual fund.

So, after 24 months, i.e. 1 July 2026, his total value of the portfolio is app. INR 30 lakhs (investment amount = 24 lakhs, profit = 6 lakhs). Now, on 2 July 2026, he wants to sell the entire mutual fund units with an NAV of 142.

Remember that, for calculation of capital gains, we use the First-in First-out (FIFO) method, i.e., the units which are purchased first assume to be sold first. As installments were invested at different points in time, we need to separate LTCG and STCG. The gains earned during the first 12 months will be termed as long term capital gains as one year is completed and gains earned in the last 12 months will be termed as short term capital gains because they are redeemed before completing one year.

Have a look at the table below:

Sl. No.	Date	SIP Amount	NAV	Units	Capital Gain	Holding Period (Months)	STCG	LTCG
1	01-Aug-24	1,00,000	100	1,000	42,000	23	–	42,000
2	01-Sep-24	1,00,000	105	952	35,238	22	–	35,238
3	01-Oct-24	1,00,000	98	1,020	44,898	21	–	44,898
4	01-Nov-24	1,00,000	106	943	33,962	20	–	33,962
5	01-Dec-24	1,00,000	103	971	37,864	19	–	37,864
6	01-Jan-25	1,00,000	105	952	35,238	18	–	35,238
7	01-Feb-25	1,00,000	109	917	30,275	17	–	30,275
8	01-Mar-25	1,00,000	107	935	32,710	16	–	32,710
9	01-Apr-25	1,00,000	111	901	27,928	15	–	27,928
10	01-May-25	1,00,000	104	962	36,538	14	–	36,538
11	01-Jun-25	1,00,000	112	893	26,786	13	–	26,786
12	01-Jul-25	1,00,000	107	935	32,710	12	–	32,710
13	01-Aug-25	1,00,000	99	1,010	43,434	11	43,434	–
14	01-Sep-25	1,00,000	108	928	31,725	10	31,725	–
15	01-Oct-25	1,00,000	118	847	20,339	9	20,339	–
16	01-Nov-25	1,00,000	119	840	19,328	8	19,328	–
17	01-Dec-25	1,00,000	121	826	17,355	7	17,355	–
18	01-Jan-26	1,00,000	124	806	14,516	6	14,516	–
19	01-Feb-26	1,00,000	134	746	5,970	5	5,970	–
20	01-Mar-26	1,00,000	132	758	7,576	4	7,576	–
21	01-Apr-26	1,00,000	127	787	11,811	3	11,811	–
22	01-May-26	1,00,000	135	741	5,185	2	5,185	–
23	01-Jun-26	1,00,000	135	741	5,185	1	5,185	–
24	01-Jul-26	1,00,000	140	714	1,426	0	1,426	–
	Total	24,00,000		21,127	6,00,000		1,83,852	4,16,148

He sold the entire holding with an applicable NAV of 142 on 2 July 2026, which earned him INR 6 lakhs as capital gains. Here,

Short term capital gains = INR 1,83,852
Long term capital gains = INR 4,16,148

Tax Calculation

Now, we will calculate the tax on the capital gains made by him.

Based on tax rates before Budget 2024:

LTCG after deduction = INR 4,16,148 – INR 1,00,000 = INR 3,16,148

LTCG tax rate = 10%

LTCG taxes = 10% * 3,16,148 = INR 31,615

STCG tax rate = 15%

STCG taxes = 15% of 1,83,852 = INR 27,578

Total taxes payable = INR 31,615 + INR 27,578 = INR 59,193

Based on tax rates proposed in Budget 2024:

LTCG after deduction = INR 4,16,148 – INR 1,25,000 = INR 2,91,148

LTCG tax rate = 12.5%

LTCG taxes = 12.5% * 2,91,148 = INR 36,394.

STCG tax rate = 20%

STCG taxes = 20% of 1,83,852 = INR 36,770.

Total taxes payable = INR 36,394 + INR 36,770 = INR 73,164

Particulars	Tax payable as per earlier rates	Tax payable as per new rates	Difference
STCG Tax	27,578	36,770	9,192
LTCG Tax	31,615	36,394	4,779
Total Tax Liability	59,913	73,164	13,251

From the above example, it is clearly visible that Rohan incurs a greater income tax liability due to the hike in capital gains tax rate introduced in Budget 2024.

Conclusion

Many new investors prefer starting their mutual fund journey through a Systematic Investment Plan (SIP) as it is the most popular investment method in equity mutual funds. However, understanding the taxation of returns earned is crucial.

The Budget 2024 has introduced changes to capital gains tax rates, resulting in higher tax liabilities for investors. It is important to understand the impact of the recent hike in Short term capital gains (STCG) and Long term capital gains (LTCG) rates. It is recommended to get in touch with your tax advisor for more detailed insights and calculations.

Frequently Asked Questions (FAQs)

What are the changes introduced in Budget 2024 in relation to capital gains tax?
In Budget 2024, the LTCG tax has been hiked from 10% to 12.5% and STCG tax increased from 15% to 20%.
What are the two types of capital gains?
Long term capital gains (LTCG) and short term capital gains (STCG) are the two types of capital gains.
How much capital gains are tax-free?
As per the Budget 2024, in the case of LTCG in equity, there is no tax till the income of 1.25 lakhs; post this limit, a 12.5% tax is applicable without indexation benefit.
Is the amount of tax automatically deducted from the profit?
The tax is not automatically deducted, investors must compute their gain and pay tax at the time of filing income tax return.
How can an investor invest in mutual funds?
Investors can invest in mutual funds either through SIP route or lump sum investment.

August 1, 2024

List Of Best Defense Stocks in India 2025

The defense industry in India is emerging as a significant sector, both in terms of economic contribution and strategic importance. With one of the largest military forces in the world, India’s defense sector has witnessed substantial growth over the past few years. It is mainly driven by modernization efforts, technological advancements, and increased government spending.

In this blog, we will explore the best defense stocks of India based on their market capitalization.

Overview of the Defense Industry In India

India spends approximately $75 billion, approximately 13.04% of the total budget, on increasing its defense capabilities each year. India is ranked fourth in the world in terms of spending on defense. Currently, India relies heavily on imports for defense equipment. In the next 5 years, the Government of India aims to achieve $5 billion worth of export opportunities in the defense sector. India’s defense industry has transformed, especially with the government’s “Make in India” initiative to enhance domestic manufacturing capabilities. This initiative has attracted public and private players to invest in defense production.

Top Defense Stocks Based on Market Capitalisation

The top defense stocks in India are:

S.No.	Defence Stocks
1	Hindustan Aeronautics Ltd.
2	Bharat Dynamics Ltd.
3	Zen Technologies Ltd.
4	Astra Microwave Products Ltd.
5	Paras Defence and Space Technologies Ltd.

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

Name of the Company	Market Cap (in INR Cr.)	Share Price (in INR)	52 Week High Price (in INR)	52 Week Low Price (in INR)
Hindustan Aeronautics Ltd.	3,29,047	4,920	5,675	1,768
Bharat Dynamics Ltd.	53,514	1,460	1,795	450
Zen Technologies Ltd.	14,371	1,710	1,773	578
Astra Microwave Products Ltd.	8,473	892	1,060	342
Paras Defence and Space Technologies Ltd.	5,017	1,286	1,593	604

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

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

1. Hindustan Aeronautics Ltd.

Hindustan Aeronautics Limited (HAL), headquartered in Bangalore, is a leading Indian aerospace and defense company. Founded on 23 December 1940, HAL is one of the world’s oldest and largest aerospace and defense manufacturers. HAL operates 11 dedicated R&D centers and 21 manufacturing divisions across four production units in India. It is managed by a board of directors appointed by the President of India through the Ministry of Defence.

The company designs and manufactures fighter jets, helicopters, jet engines, marine gas turbine engines, avionics, and software. HAL also provides spares and upgrades for Indian military aircraft.

2. Bharat Dynamics Ltd.

Bharat Dynamics Limited (BDL) is a leading manufacturer of ammunition and missile systems in India. BDL was established in 1970 in Hyderabad to create a manufacturing base for guided weapon systems. The company initially produced the French SS11B1, a first-generation anti-tank guided missile.

Over time, BDL has developed strong in-house R&D capabilities, focusing on design and engineering. They operate three manufacturing units in Kanchanbagh, Hyderabad; Bhanur, Medak district; and Visakhapatnam, Andhra Pradesh.

3. Zen Technologies Ltd.

Zen Technologies Limited, established in 1996, specializes in designing, developing, and manufacturing combat training solutions and counter-drone systems for defense and security forces. The company focuses on technologies that benefit the Indian armed forces, state police, and paramilitary forces. The company’s headquarters is located in Hyderabad.

4. Astra Microwave Products Ltd.

Astra Microwave Products Limited (AMPL), established in 1991, was founded by a team of experienced scientists specializing in RF, microwave, and digital electronics. The founders recognized the need for a technically strong private company to design, develop, and produce advanced RF and microwave subsystems and systems for strategic applications. These systems have applications in defense, space, meteorology, and telecommunication.

5. Paras Defence and Space Technologies Ltd.

Paras Defence and Space Technologies Ltd. is a company that specializes in the design, development, manufacturing, testing, and commissioning of products and systems for defense and space applications.

With a state-of-the-art manufacturing facility and a highly skilled workforce, they ensure high-quality output. Paras Defence has a robust supply chain and can manage turnkey projects of all sizes, demonstrating the resource scalability needed to handle mega projects.

Performance of Defense Stocks

Company	6 Month Return	1 Year Return
Hindustan Aeronautics Ltd.	64.03%	148.39%
Bharat Dynamics Ltd.	71.29%	138.20%
Zen Technologies Ltd.	102.40%	175.40%
Astra Microwave Products Ltd.	55%	139.03%
Paras Defence and Space Technologies Ltd.	61.50%	92.26%

(As of 31 July 2024)

Key Performance Indicators

Name of the Company	ROE (%)	ROCE (%)	Debt to Equity Ratio	P/E Ratio
Hindustan Aeronautics Ltd.	26.15	24.49	0	43.2
Bharat Dynamics Ltd.	16.84	11.33	0	87.33
Zen Technologies Ltd.	17.70	22.12	0.02	112.03
Astra Microwave Products Ltd.	12.53	17.14	0.25	70.13
Paras Defence and Space Technologies Ltd.	7.66	10.28	0.08	146.67

(All the above data is of the year ended March 2024)

Benefits of Investing in the Defense Sector in India

The benefits of investing in defense stocks are:

The government’s emphasis on “Make in India” supports local defense manufacturing and helps them achieve growth.
Defense stocks will diversify your investment portfolio, balancing risk with consistent returns.
Defense companies benefit from long-term government contracts, providing reliable revenue streams.

Factors to Consider Before Investing in Defence Stocks in India

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

Financial Performance: Analyze the financial health of the company, including revenue growth and profitability.
Business contracts: Assess the company’s current contracts and the contracts the company might be able to secure in the future.
Global Events: Understand how regional and global tensions may impact defense spending.
Diversification Potential: Consider how defense stocks fit into your overall investment strategy for risk management.

Future of Defense Stocks in India

The future of defense stocks in India appears promising due to several key factors. The Indian government is increasing its defense budget, prioritizing modernizing its armed forces and reducing dependence on imports. India’s geopolitical landscape and the need for enhanced national security drive demand for advanced defense systems, including drones, surveillance, and cybersecurity solutions. This growing demand will benefit companies involved in these areas and, thus, the investors.

Conclusion

The defense industry is crucial for the growth of any country, as strong defense systems result in the smooth functioning of the economy. India is among the biggest spenders on the defense sector and now wishes to develop domestic manufacturing facilities. Companies such as HAL, Bharat Dynamics Ltd., etc., would play a key role in making India self-reliant in the defense sector. The revenues of defense companies are expected to grow, which makes this an exciting sector to watch out for. However, it is advised to always consult a financial advisor before investing.

Frequently Asked Questions (FAQs)

How does government policy affect defense stocks?
Government policies, such as increased defense budgets and the “Make in India” initiative, boost domestic production and can positively impact defense stocks by providing more opportunities for local companies.
What should investors look for in a defense company’s financials?
Investors should focus on revenue growth, profitability, and the size of the order book. Strong financial health and a robust order pipeline indicate a company’s ability to sustain and grow its business.
How do export opportunities influence defense stocks?
Export opportunities can significantly boost a defense company’s revenue. Companies that meet international standards and secure export contracts will likely achieve higher growth.
What is the impact of technology advancements on defense stocks?
Technological advancements, such as AI, drones, and cybersecurity, can drive growth for defense companies. Firms that invest in cutting-edge technology are better positioned to win new contracts and expand their market share.
What is the significance of a company’s order book in the defense sector?
A strong order book indicates a healthy backlog of work and future revenue. It provides clarity regarding the company’s financial stability and growth potential.

August 1, 2024

List Of Best Textile Stocks in India 2025

The Indian textile sector has been stitching growth and weaving wealth for the past few years. This sector has a rich heritage of traditional craftsmanship. It is one of the oldest industries in India and has grown significantly with the introduction of modern machinery and technology. It accounts for a significant portion of GDP and generates employment. It is one of the largest sectors of the country and has diverse segments like cotton, silk, woolen, textiles and readymade garments.

In this blog, let’s look at the best textile stocks in India based on market capitalization and the reasons for investing in them.

Overview of the Textile Sector

The Indian textile sector is one of the largest in the world and has a diverse range of segments, such as cotton, silk, wool, jute, and handloom textiles. The industry contributes around 2% to GDP and 12% of the country’s export earnings. Its key segments include:

Cotton Textiles: India is the largest cotton producer and has a robust cotton textile industry.
Silk and Jute Textiles: India is also one of the largest producers of silk and jute.
Synthetic Textiles: The country has a well-established synthetic fiber and yarn industry.
Handlooms and Handicrafts: India has a rich tradition of handlooms and handicrafts, known for their uniqueness and quality.

Top Textile Stocks in India Based on Market Capitalization

The top textile stocks in India are:

S.No.	Textile Stocks
1	Page Industries Ltd.
2	KPR Mill Ltd.
3	Swan Energy Ltd.
4	Trident Ltd.
5	Welspun Living Ltd.
6	Vardhman Textiles Ltd.
7	Raymond Ltd.
8	Garware Technical Fibres Ltd.
9	Jindal Worldwide Ltd.
10	Siyaram Silk Mills Ltd.

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

Company	Market Cap (₹ Cr.)	CMP (₹)	52-Week High (₹)	52-Week Low (₹)
Page Industries Ltd.	47,059	42,200	42,885	33,070
KPR Mill Ltd.	29,759	870	934	615
Swan Energy Ltd.	23,782	759	783	214
Trident Ltd.	20,058	39.4	52.9	31.6
Welspun Living Ltd.	17,863	184	191	108
Vardhman Textiles Ltd.	15,801	547	592	334
Raymond Ltd.	13,138	1,974	2,381	919
Garware Technical Fibres Ltd.	7,663	3,855	4,289	3,027
Jindal Worldwide Ltd.	7,552	375	440	268
Siyaram Silk Mills Ltd.	2,366	523	635	410

(As of 31 July 2024)

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

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

1. Page Industries Ltd.

Page Industries is the exclusive licensee of Jockey International in India, Sri Lanka, Bangladesh, Nepal, etc. It also holds the license for Speedo in India. Page Industries operates in the innerwear and leisurewear segments. It leverages a strong brand image, extensive distribution networks, and innovation in product design to maintain its market leadership. The company focuses on premium quality products and effective marketing strategies to drive sales.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
12.39%	-2.26%	80.46%