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Best Plastic Stocks in India

Bottles, boxes, packing material, storage units, to even household materials, there are hundreds of things that are made of plastic and we use every day. In fact, it is one of the most commonly used materials that is durable, cost-friendly, and non-breakable in nature. And this is what makes it a good investment as well.

But when you talk about the investment, have you even considered the plastic stocks in India? Yes, this is true. Investing in the top plastic stocks in India can offer you sustainability and higher returns as well. The only question here is which are the top plastic companies in India to invest in?

Well, if you are looking for the same, then read this guide. Explore the list of the top 10 plastic companies in India that are known for their quality and profitability. So, let us just find our way here.

What Are Plastic Stocks?

Plastic stocks refer to the shares of companies which are involved in the manufacturing of raw materials which are used in making plastic products or the final product itself. These companies can make a range of products that can be packaging material, vessels, boxes, covers, and so on.

Since plastic is used widely across households and industries, investing in plastic stocks in India can offer you higher profits and greater exposure.

The key features of the plastic companies include:

Wide usage across industries like packaging, FMCG, construction, and healthcare.
Strong and steady demand driven by daily consumption and e-commerce growth.
Cost-effective material compared to alternatives like glass or metal.
Export opportunities add to the revenue potential of leading players.
Input costs are linked to crude oil prices, making them cyclic in nature.
Growth supported by urbanisation and rising middle-class consumption.

This makes it clear that investing in the best plastic company in India can offer you not just good returns but also stability to your portfolio. Now, to help you out with your investment decisions, let us explore the list of the top plastic stocks in India that you must look out for.

Top Plastic Company in India

While there are various plastic stocks in India, there are a few that truly stand out. This is mainly due to their performance and the company’s values. Also, these stocks have performed quite well over time, which is one of the reasons why people prefer to invest in these stocks.

So, here is the list of the top 10 plastic companies in India:

Name	Market Price	Market Cap (₹ Cr)	1Y Return (%)	52 Week High / low
Supreme Industries Ltd	4,246	53,600	-20.71	5,580 / 3020
Time Technoplast Ltd	213	9,521	7.23	257 / 153
Ddev Plastiks Industries Ltd	3,496	3,504	27.45	360 / 213
Xpro India Ltd	1,124	2,654	-0.30	1,677 / 946
Mold-Tek Packaging Ltd	730	2,424	-3.47	893 / 410
Nilkamal Ltd	1,552	2,315	-19.20	2,069 / 1,494
All Time Plastics Ltd	266	1,719	–	335 / 257
Cool Caps Industries Ltd	90.8	2,099	30.99	99.5 / 59.8
Aeroflex Enterprises Ltd	174	2,253	–	272 / 145
Shree Rama Multi-Tech Ltd	60.7	813	128.16	67.5 / 25

Date as on 30-09-2025

Read Also: Best Recycling Stocks

Now that you know the list of the best plastic companies in India, let us explore their details here.

1. Supreme Industries Ltd

Supreme Industries is one of the largest players in India’s plastic products market. It is one with a strong brand presence and diversified portfolio. It offers products across packaging, furniture, and consumer goods, it remains a market leader. Despite recent negative returns, its solid ROE and low debt make it a stable long-term bet.

2. Time Technoplast Ltd

Time Technoplast is known for its innovative solutions. It is involved in plastic packaging, industrial products, and specialty items. With a healthy ROE and moderate PE ratio, the company has delivered steady returns. Its balance of domestic and international business makes it a reliable pick in the plastic stocks in India segment.

3. Ddev Plastiks Industries Ltd

Ddev Plastiks focuses on specialty plastics, engineering compounds, and advanced polymer solutions. With impressive return ratios and strong ROCE, the company shows operational efficiency. Its growth in the last year highlights potential, though investors must track its dependency on raw material prices linked to crude oil.

4. Xpro India Ltd

Xpro India operates across specialty films and plastic products, catering to both domestic and global markets. While the stock trades at a high PE, its presence in niche applications ensures consistent demand. Conservative investors may find it expensive, but it carries growth potential in select sectors.

5. Mold-Tek Packaging Ltd

Mold-Tek Packaging specialises in rigid plastic packaging. It is serving FMCG and paint industries. The company has strong client relationships with reputed brands. It provides consistent revenue visibility. Despite short-term negative returns, its long-term outlook remains promising due to high demand in food-grade and industrial packaging.

6. Nilkamal Ltd

Nilkamal is a household name in India for furniture and storage solutions. The company’s strength lies in its retail and B2B business. Though recent returns are negative, it offers stability, decent dividend yield, and a trusted brand legacy, making it a conservative pick among plastic companies in India.

7. All Time Plastics Ltd

All Time Plastics has a strong presence in kitchenware and household utility products. Despite recent underperformance, its focus on design innovation and export market opportunities provide growth visibility. With moderate debt levels and steady ROCE, it appeals to investors seeking exposure to consumer-focused plastic businesses.

8. Cool Caps Industries Ltd

Cool Caps Industries has delivered one of the strongest returns among top plastic companies in India. It is one with impressive growth, high PE ratio, and strong profitability metrics. This reflects investor confidence. But it is one with high volatility and debt levels. This makes it suitable for risk-tolerant investors looking for momentum-driven gains.

9. Aeroflex Enterprises Ltd

Aeroflex Enterprises manufactures flexible packaging materials. It is an expert in plastic-based industrial products. The company has seen sharp negative returns recently. This is mainly due to sectoral challenges. Still, with low debt and decent return ratios, it remains a turnaround candidate, especially if demand in packaging and industrial usage strengthens in the coming years.

10. Shree Rama Multi-Tech Ltd

Shree Rama Multi-Tech has surprised with exceptional 1-year returns, driven by growth in packaging solutions. With strong ROE and low debt, it has shown resilience despite being a mid-sized player. Investors should track sustainability of earnings. Also, it stands out as a high-growth opportunity in plastic stocks.

Read Also: Best Waste Management Stocks

Key Performance Indicators (KPIs)

Name	Net Profit Margin(%)	ROE (%)	ROCE (%)	Debt to Equity
Supreme Industries Ltd	8.04	16.97	19.31	0.00
Time Technoplast Ltd	7.22	13.41	18.70	0.22
Ddev Plastiks Industries Ltd	7.12	22.22	31.32	0.05
Xpro India Ltd	7.09	6.22	6.74	0.39
Mold-Tek Packaging Ltd	7.75	9.49	12.72	0.28
Nilkamal Ltd	2.99	7.15	9.00	0.25
All Time Plastics Ltd	8.47	19.01	20.97	0.88
Cool Caps Industries Ltd	10.83	20.49	23.43	1.46
Aeroflex Enterprises Ltd	13.95	7.58	13.54	0.04
Shree Rama Multi-Tech Ltd	24.70	33.52	13.20	0.20

Date as on 30-09-2025

Benefits and Risks of Investing in Plastic Stocks

Investing in plastic stocks in India is a great opportunity. It can offer your portfolio a positive exposure. But there are pros and cons that you must know.

Benefits

Strong demand across packaging, FMCG, construction, and automotive.
Diversified revenue streams reduce dependency on one sector.
Global exports boost growth potential.
Established brands provide stability and trust.
Innovation in eco-friendly plastics supports long-term prospects.

Risks

Raw material prices linked to crude oil create margin pressure.
Regulations on single-use plastics impact certain businesses.
Some stocks trade at high valuations, adding risk.
Mid and small caps show higher volatility.
Environmental concerns limit appeal for ESG-focused investors.

Factors to Consider Before Investing in Plastic Stocks

When you plan to invest in plastic stocks in India, there are certain things to consider. This will ensure that you are investing at the right place. This includes:

Start by exploring the industry demand for the products.
Ensure that you evaluate the company well.
Consider the internal and external factors before finalising on investment.
Check for history and performance metrics.
Keep an eye on the government policies well.

Read Also: Best Chemical Stocks

Conclusion

Plastic is deeply integrated into everyday consumption. This is one of the reasons that makes plastic companies quite an important part of the economy as a whole. But when you plan to invest in plastic stocks in India, you must consider various aspects. This can help you invest right and earn good returns.

And if you are looking for expert support and guidance, connect with Pocketful. Start your investment journey right.

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Frequently Asked Questions (FAQs)

Are plastic stocks good for long-term investment?
Yes, plastic stocks can be good long-term picks. It is mainly because of the steady demand for plastic products and raw materials across industries. But investors should consider risks and valuations.
How do crude oil prices impact plastic stocks?
Plastic companies depend on petrochemicals. Hence, if there is any change in the prices of the crude oil there are chances that the company profits and performance will get impacted.
Do plastic companies pay dividends?
Many leading plastic companies distribute dividends. But it is important to note that this ratio is based on the company’s profits and strategies.
What factors should I check before investing?
Evaluate demand growth, valuations, debt levels, return ratios, and government policies on plastic usage to make informed investment decisions.

October 10, 2025

Best Private Banks in India

In 2025, the role of private banks in the Indian banking sector has become stronger than ever. People are now liking them due to digital banking, better customer service and attractive products. If you want to know which is the best private bank in India or which banks have got a place in the top 10 private banks in India 2025, then this article is for you. Here we will explain in detail which private bank can prove to be the best according to your needs.

What is a Private Bank?

When we talk about private banks, it means banks that are owned by private companies or investors rather than the government. The specialty of these banks is that they focus on providing quick and modern facilities to the customers. Whether opening a new account, taking a loan or transferring money through a digital app their processes are generally considered to be fast and easy.

These banks are more competitive than government banks and are ahead in adopting new technology. For this reason, the popularity of private banks has increased in recent years and people have started preferring them for their everyday banking needs.

Top 10 Private Banks in India 2025

S.no	Bank Name	Market Cap (₹ Cr, 2025 est)	Current Market Price	Founded	Headquarters
1	HDFC Bank Ltd	₹ 14,53,319	₹ 946	1994	Mumbai
2	ICICI Bank Ltd	₹ 9,85,625	₹ 1,380	1994	Mumbai
3	Kotak Mahindra Bank Ltd	₹ 4,05,056	₹ 2,037	2003	Mumbai
4	Axis Bank Ltd	₹ 3,60,438	₹ 1,162	1993	Mumbai
5	Yes Bank Ltd	₹ 66,914	₹ 21.3	2003	Mumbai
6	IndusInd Bank Ltd	₹ 58,290	₹ 748	1994	Mumbai
7	AU Small Finance Bank Ltd	₹ 55,219	₹ 740	1996	Jaipur
8	IDFC First Bank Ltd	₹ 51,613	₹ 70.3	2015	Mumbai
9	Federal Bank Ltd	₹ 47,806	₹ 194	1931	Aluva, Kerala
10	Bandhan Bank Ltd	₹ 25,832	₹ 160	2015	Kolkata

(Data as of 24 Sep 2025)

Read Also: Best Bank Penny Stocks List

A brief overview of the Top 10 Private Banks in India is given below:

1. HDFC Bank Ltd

HDFC Bank is one of the largest private banks in India. It focuses on customer-first services: from easy bank account opening, digital banking apps, online transactions, home loans to wealth management. The bank has strengthened its mortgage portfolio, retail network and digital touch-points after the merger of HDFC Limited. The branch and ATM network is very large in terms of customer service, and the bank plans to open new branches frequently to reach out to small towns and rural areas. The current CEO and MD is Sashidhar Jagdishan, who is focusing the bank’s strategy on technology, digital experience and customer satisfaction.

Description	Information
Number of branches	Around 9,499 branches
Services provided	Retail & commercial banking, loans, credit cards, wealth management, home & auto loans, digital banking, NRI Services , Forex.
Number of customers	Over 120 million customers , After Merger
CEO	Sashidhar Jagdishan

Read more Information: HDFC Bank Case Study

2. ICICI Bank Ltd

ICICI Bank is a name that is well known in big cities as well as small towns. The bank does both retail + corporate banking well. They have made great strides in digital services – mobile app upgrades, net banking, UPI transactions, customer-friendly products. Their service network is large in both branches & ATM and they have also built an international presence. The bank focuses on customer experience, as styled by their CEO MD Sandeep Bakhshi – simple, reliable and technology-oriented.

Description	Information
Number of branches	Around 7,066 branches
Services provided	Retail & corporate banking, credit cards, insurance, investment banking, wealth & asset management, NRI services
Number of customers	More than 30 million
CEO	Sandeep Bakhshi

Read more Information: ICICI Bank Case Study

3. Kotak Mahindra Bank

Kotak Mahindra Bank has distinguished itself from larger banks by its strong focus on innovation and customer service. The company was initially founded in 1985 as Kotak Capital Management Finance Limited in 2003, it received a banking licence from the RBI making it the first non- banking financial companyin India. The bank is not limited to savings accounts and personal loans, but also operates in areas such as wealth management, investment banking, insurance, and premium banking. Kotak is significantly ahead in digital services such as mobile banking, faster account opening, and UPI integration for online transactions. Recently, the RBI imposed restrictions on certain digital customer acquisition activities, but Kotak has tried to get back on track after addressing these weaknesses.

Description	Information
Number of branches	Around 1,869 branches
Services provided	Retail & corporate & Commercial banking, credit cards, wealth & investment management, insurance, digital banking , NRI & Forex Services.
Number of customers	More than 54 million
CEO	Ashok Vaswani

Read more Information: Kotak Mahindra Bank

4. Axis Bank

Axis Bank is a bank that has expanded its branches from major cities to smaller towns. Its mission is not just to provide financial services, but to offer customers a comprehensive banking experience through robust digital tools, easy loan options, and features like international trade and forex services. The number of branches is constantly expanding, and new products are being rapidly implemented on digital platforms.

Description	Information
Number of branches	Approximately 4,910 branches and extension counters
Services provided	Retail banking, corporate banking, investment banking, mortgages, credit cards, wealth management, NRI services, SME & Agri Banking.
Number of customers	More than 22.6 million
CEO	Amitabh Chaudhry

Read more Information: Axis Bank Case Study

5. YES Bank

YES Bank was started in 2003 and has established its presence in all three sectors – retail, MSME and corporate banking. The last few years have been challenging for the bank, but now it is slowly on the path of recovery. Recently, the bank has further expanded its branch network and is focusing more on digital banking services. YES Bank is continuously introducing new products in credit cards, SME loans and digital payment solutions. The special identity of the bank is that it tries to provide tailor-made solutions to both mid-size businesses and individual customers. Its current MD & CEO is Prashant Kumar, whose tenure has been extended till October 2025 so that the bank can work further towards stability.

Description	Information
Number of branches	1,234 branches across India
Services provided	Retail & corporate banking, SME & MSME loans, credit cards, digital payments, wealth management, GST payment solutions
Number of customers	More than 2 million
CEO	Prashant Kumar

Read more Information: Yes Bank Case Study

6. IndusInd Bank

IndusInd Bank was founded in 1994 and has since established itself in the banking sector. It primarily serves both retail and corporate customers. Its specialty is its tailored services for affluent and HNI (High Net Worth Individuals) customers, such as investment advisory, wealth management, and priority banking. It also has a strong presence in rural banking and vehicle finance. IndusInd Bank is also continuously investing in digital banking solutions to provide a seamless customer experience.

Description	Information
Number of branches	Approximately 3,110 branches and extension counters
Services provided	Retail & corporate banking, wealth management, vehicle finance, microfinance, NRI banking, digital banking
Number of customers	More than 41 million
CEO	Rajiv Anand

Read more Information: IndusInd Bank Case Study

7. AU Small Finance Bank Ltd

AU Small Finance Bank was founded in Jaipur and received its Small Finance Bank license in 2017. Initially, its focus was on small businesses and rural customers, but gradually, the bank has established its presence across the country. AU Bank’s biggest differentiator is its customer-centric approach whether it’s video banking, WhatsApp banking, or the “AU 0101” mobile app, it has significantly expanded its digital footprint. In 2025, the RBI granted it in-principle approval for universal bank status, allowing it to offer services on a broader scale. Its branches are no longer limited to major cities, but are rapidly expanding into smaller towns and semi-urban areas.

Description	Information
Number of branches	2,500+ banking touchpoints across 21 states
Services provided	Savings & current accounts, personal & business loans, credit cards, microfinance, insurance, investment products, digital banking (AU 0101 app, video & WhatsApp banking)
Number of customers	More than 1.16 crore customers
CEO	Sanjay Agarwal

Read more Information: AU Small Finance Bank Case Study

8. IDFC First Bank Ltd

IDFC First Bank was launched in 2018 after the merger of Capital First and IDFC Bank. Within a short time, the bank has gained a strong reputation for its “customer-first” model. It offers attractive interest rates on savings accounts, digital banking features, and customer-friendly products. The bank’s focus is on serving retail customers, MSMEs, and small businesses. With products such as credit cards (especially co-branded ones), personal loans, and digital UPI payments, IDFC First has rapidly gained the trust of youth and middle-class customers.

Description	Information
Number of branches	1,016+ banking touchpoints across 21 states
Services provided	Savings & current accounts, personal & business loans, credit cards, MSME lending, microfinance, digital banking (UPI, doorstep banking, GST payments)
Number of customers	More than 35 million customers
CEO	V. Vaidyanathan

9. Federal Bank

Federal Bank, founded in 1931 and headquartered in Aluva, Kerala, is one of India’s oldest and most trusted private banks. It is particularly known for its NRI banking services, with a large number of Indians working in Gulf countries choosing Federal Bank. It also has a strong presence in retail and SME banking and continues to innovate with digital banking services. Its mobile app and UPI-based services are very popular with customers.

Description	Information
Number of branches	1,588+ branches across India
Services provided	Retail & corporate banking, NRI services, SME finance, digital banking, investment & insurance products
Number of customers	More than 18.2 million
CEO	Manian KVS

10. Bandhan Bank

Bandhan Bank was launched in 2015, but its roots are rooted in microfinance. The bank’s primary focus is to bring banking to areas often underserved by traditional large banks. Bandhan Bank’s strong network in rural and semi-urban areas has created a distinct identity for itself. It offers more than just savings accounts and loans, but now also offers credit cards, insurance, and investment products. The bank is continuously working towards financial inclusion and recently expanded its reach by opening branches in new states.

Description	Information
Number of branches	6,350 banking outlets across India
Services provided	Savings & current accounts, fixed deposits, personal & home loans, credit cards, insurance, mutual funds, microfinance
Number of customers	More than 3.44 crore
CEO	Partha Pratim Sengupta

Read more Information: Bandhan Bank Case Study

Key Performance Indicators (KPIs)

The key performance metrics of stocks of 10 private banks in India

Bank Name	Operating Margin (%)	Net Profit Margin (%)	ROE (%)	ROCE (%)	P/E
HDFC Bank Ltd	25.58	21.83	13.56	2.62	9.85
ICICI Bank Ltd	26.47	29.20	16.45	3.13	18.62
Kotak Mahindra Bank Ltd	27.91	33.41	14.04	3.93	19.51
Axis Bank Ltd	33.11	22.07	14.98	2.84	12.15
Yes Bank Ltd	16.22	7.91	5.11	1.06	21.37
IndusInd Bank Ltd	9.63	5.29	3.99	2.01	19.65
AU Small Finance Bank Ltd	19.98	13.10	12.26	2.99	18.88
IDFC First Bank Ltd	5.67	4.08	3.90	2.24	26.94
Federal Bank Ltd	29.17	14.94	12.04	1.85	11.35
Bandhan Bank Ltd	18.98	12.50	11.15	3.95	8.58

(Data as of 24 Sep 2025)

How to Choose the Right Private Bank: A Customer vs. Investor Perspective

A. For Customers Seeking Banking Services:

1. Identifying Needs : Consider what you need from a bank just a savings account or a credit card, personal loan, and wealth services as well. Your priorities determine the right bank.

2. Interest Rates and Fees : Every bank charges different interest rates and charges. Whether it’s savings or loan EMIs, pay attention to hidden charges. These small differences can make a big difference in the long run.

3. Branches and Digital Facilities : Check if a branch and ATM are available in your city or town. Also, if the mobile app and net banking are running smoothly.

4. Customer Experience : Check app ratings, online reviews, and customer care responses. A good bank is one that resolves your issues quickly and promptly.

5. Trustworthiness : Pay attention to RBI compliance, track record, and market reputation. A safe bank is the right place for your money in the long run.

B. For investors investing in the banking sector

1. Financial Strength : Look at market cap, capital adequacy ratio, and loan book growth. These indicate how stable a bank is operating.

2. Profitability : Look at Net Interest Margin (NIM), Return on Assets (RoA), and cost-to-income ratio. These metrics indicate long-term profitability.

3. Asset Quality : Analyze NPA levels and provisioning policy. Low NPAs indicate strong risk management.

4. Growth Strategy : Consider which new areas the bank is expanding into (digital banking, SME finance, NRI services). Growth strategy determines future returns.

5. Management and Governance : It is important to trust the credibility and governance culture of the CEO and top management. Good leadership increases investor confidence.

Read Also: Best Banking Stocks in India

Conclusion

Private banking in India is constantly changing, and each bank has its own unique identity. Digital banking and customer service are important to some, while interest rates and product variety are important to others. For investors, this sector is also considered a reliable option in the long run. The right choice always depends on your needs and priorities.

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Frequently Asked Questions (FAQs)

Which is the best private bank in India in 2025?
Depending on your needs, big names like HDFC and ICICI are trustworthy.
Are private banks safe for deposits?
Yes, all are regulated by the RBI, so they are safe.
Which private bank is best for digital banking?
HDFC, ICICI, and Axis are ahead in digital services.
Can I switch my salary account to another private bank?
Yes, you can do it easily by informing your employer.
Which private bank is good for rural areas?
Bandhan and Federal are strong in rural and semi-urban areas.

October 10, 2025

What is Margin Money?

Have you ever looked at the fundamentals of a company and felt bullish on its stock, had an idea that it was going to do well, but you fell short on funds and wished you had more money to invest in it. Meet Rohan, he has saved up Rs.50,000 in his trading account. After weeks of research, he finds a company to invest in, the stock is trading at Rs.500, and he feels it’s a golden opportunity. With his money, he can only buy 100 shares, but he wishes he had more capital to buy more stocks due to strong company fundamentals and rising growth. This is a common feeling for many of us.

Imagine you come across a facility which gives you the opportunity to purchase more shares and earn more profit on those shares. This is where a special facility offered by stockbrokers comes into the picture, known as margin trading.

What is Margin Money?

It is the money you borrow from your stockbroker over and above the money you have to buy shares. Think of it as a loan, the shares you buy with this borrowed money are kept as security with the broker, much like a bank keeps your house papers as security when you take a home loan.

It is used to buy more shares than you could afford with just your own cash, a practice known as “buying on margin”. This facility, often called the Margin Trading Facility (MTF) in India, allows Rohan to potentially turn his Rs.50,000 investment into a much larger one, thereby borrowing additional funds from his broker so he can have more shares that have high potential of giving large profits.

Read Also: What is Margin Funding?

How it Works

Margin Account: To start with it, first you need to have a special account called a margin account. This is different from a regular “cash account” where you only trade with the money you have deposited. When you open a margin account, you’ll need to agree to certain terms and conditions set by your broker and regulatory bodies.

Margin: It means depositing your own cash or eligible securities into a margin account as collateral for the loan taken from your broker.

Broker’s Loan: Your broker then lends you the remaining amount needed to complete the purchase of the securities. One has to pay interest on this borrowed money, just like any other loan.

Leverage: Leverage means you amplify your potential gains if the investment performs well. It’s crucial to understand that it also amplifies your potential risks if the strategy doesn’t work.

Components of Margin Money

1. Initial Margin

The initial margin is the percentage of the total share value you must pay from your own funds before borrowing from your broker.

If you want to buy shares worth Rs.1,00,000, your broker has prescribed an initial margin requirement of say 40% (varies from broker to broker). This prescribed percentage which is set by the broker becomes the initial margin. The broker while deciding the initial margin has to follow the minimum rules set by the market regulator, SEBI, to prevent people from taking too much risk.

So, with just Rs.40,000 of his own, one can now control shares worth Rs.1,00,000. The initial margin is what decides your borrowing power, or leverage. A lower initial margin means you can borrow more.

2. Maintenance Margin

Once you’ve bought the shares, the value of these shares will go up and down every day. The broker, who has lent Rs.60,000, needs a safety net in case the stock price falls. This safety net is called the Maintenance Margin.

The maintenance margin is the minimum value of your own money (your equity) that you must always have in your margin account. You might notice that the maintenance margin percentage is usually lower than the initial margin percentage (40%). This gap acts like a shock absorber, giving your investment some room to handle small, everyday market movements without causing immediate panic.

Let’s look at Rohan’s account right after buying the shares, current value of stocks is Rs.1,00,000, loan from broker is Rs.60,000, Rohan’s equity of Rs.40,000 and the Maintenance margin required 25% of Rs.1,00,000 = Rs.25,000

3. Margin Call

The stock Rohan was so optimistic about, now starts to fall. The total value of his investment drops from Rs.1,00,000 to Rs.75,000. This drop can trigger a Margin Call. A margin call is a demand from your broker to add more money to your account because your equity has fallen below the safety net level, the maintenance margin. The broker will call, email, or send an SMS to Rohan, asking him to deposit the shortfall.

If he fails to meet the margin call, the broker can sell his shares without permission to recover the loan, this is called forced liquidation.

Advantages of Margin Money

Higher Profits: It offers the potential for much higher returns on your capital, but remember these things can go negatively as well.
Increased Buying Capacity: You can buy more stocks than you can buy with your own funds.
Flexibility and Speed: It allows you to act on market opportunities quickly without needing to have all the funds upfront.
Portfolio Diversification: You can spread your investment across several different stocks to help manage risk.

Disadvantages of Margin Money

High Loss Potential : The potential for higher losses is just as real as for higher profits, and you can lose more than you initially invested.
Interest Costs : The money you borrow is a loan, and you must pay interest on it, which reduces your profits or increases your losses.
Risk of Forced Liquidation : If you get a margin call and can’t add more funds, your broker can sell your stocks to recover their loan.
Limited Availability : Not all securities are allowed on margin. Usually only liquid, high-volume stocks can be bought.

Read Also: What is Stock Margin?

Conclusion

Margin trading is a powerful tool, but it does not guarantee profits. It gives you the power to amplify your gains, but comes with the very real and equal risk of amplifying your losses.

Margin trading is generally considered more suitable for experienced traders who have solid risk management strategies, and can afford to lose the money they are trading with. It is often used for short-term trading and is not recommended for beginners or for long-term investing, mainly because the interest costs add up over time.

The most important investment you can make is in your own knowledge. Before thinking about using margin, it is crucial to educate yourself. Platforms like Pocketful offer free, in-depth lessons on financial markets.

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5	Difference between Margin Trading and Leverage Trading
6	Margin Against Shares: How Does it Work?
7	What is Operating Profit Margin?
8	What is Pay Later (MTF) & Steps to Avail Pay Later?
9	Pledging Shares vs Pay Later (MTF): Key Differences
10	What is Pledging of Shares?

Frequently Asked Questions (FAQs)

Can margin trading be considered for long term trading?
No, margin trading is best suitable for short term trading, where quick price movements are expected.
Can margin money be used to buy any stock in the market?
No, brokers, as per SEBI guidelines, have a pre-approved list of stocks that you can buy using the margin facility. These are usually stocks that have high trading volumes and are less volatile. You generally cannot use margin to buy shares in an IPO, mutual funds, or very risky stocks like penny stocks.
What if interest payments are not paid regularly?
The interest on your margin loan is usually debited automatically from the cash balance in your trading account. If you don’t have enough cash, the interest amount is simply added to your loan balance. This means your debt increases, and you start paying interest on the interest, a process called compounding.
How is margin trading different from intraday trading?
Both use leverage, which means you trade with more money than you have. The key difference is the holding period. In intraday trading, you must close your position on the same day before the market closes. With the Margin Trading Facility (MTF), you can hold your borrowed position overnight and for a longer duration , but you have to pay interest for every day you hold it.
How can margin calls be avoided?
You should consider the following strategies like don’t over-leverage, keep a cash buffer, use stop-loss orders and monitor your account regularly.

October 10, 2025

LG Electronics IPO Allotment Status: Check Latest GMP, Steps to Verify Status

LG Electronics India, a leading consumer electronics and home appliances company (a subsidiary of South Korea’s LG Group), has launched its ₹11,607.01 crore Initial Public Offering (IPO), entirely as an Offer for Sale (OFS) (i.e., no fresh capital is being raised). The IPO opened for subscription on October 07, 2025, with a price band set between ₹1,080 and ₹1,140 per share. The subscription window will close on October 09, 2025, and the shares are scheduled to be listed on both the BSE and NSE on October 14, 2025.

LG Electronics IPO Day 3 Subscription Status

On Day 3, the LG Electronics IPO witnessed an overwhelming response, closing with an overall subscription of 54.02 times. The QIB category led the demand in a big way with a massive 166.51 times subscription, highlighting strong institutional interest. Among non-institutional investors, the bNII portion was subscribed 24.68 times, while the sNII portion stood at 17.98 times. The overall NII category recorded 22.40 times subscription. Retail investors also showed healthy participation at 3.55 times, and the employee quota was subscribed 7.62 times.

Investor Category	Subscription (x)
Qualified Institutional Buyers (QIB)	166.51
Non-Institutional Investors (NII)	22.40
bNII (above ₹10 lakh)	24.68
sNII (less than ₹10 lakh)	17.98
Retail Individual Investors (RII)	3.55
Employees	7.62
Total Subscriptions	54.02

Total Applications: 65,06,683

Total Bid Amount (₹ Crores): 4,39,311.40

How to Check WeWork IPO Allotment Status

LG Electronics IPO allotment can be easily checked online in two ways: from the Registrar’s website and from the BSE or NSE website. This IPO will be listed on both the exchanges – BSE and NSE, so the allotment status will be available to all investors on both platforms.

Method 1: Registrar’s website (Kfin Technologies Ltd)

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

How to do:

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

Method 2: Check from BSE or NSE’s website

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

How to do:

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

Objective of the LG Electronics IPO

LG Electronics will not receive any proceeds from the Offer. All funds raised through the Offer will go entirely to the Selling Shareholder, after deduction of Offer-related expenses and applicable taxes, which will be borne solely by the Selling Shareholder.

LG Electronics IPO GMP – Day 3 Update

The grey market premium (GMP) of LG Electronics IPO is ₹350, as on 5:00 PM October 09, 2025. The upper limit of the price band is ₹1,140, and the estimated listing price as per today’s GMP can be ₹1,490, giving a potential gain of around 30.70% per share.

Date	GMP	Est. Listing Price	Gain
09-10-2025 (Day 3)	₹350	₹1,490	30.70%

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

LG Electronics IPO – Key Details

Particulars	Details
IPO Opening Date	October 7, 2025
IPO Closing Date	October 9, 2025
Issue Price Band	₹1,080 to ₹1,140 per share
Total Issue Size	10,18,00,000 shares(aggregating up to ₹11,607 Cr)
Listing Platform	BSE, NSE
Registrar	Kfin Technologies Limited
LG Electronics IPO RHP	Click here

Important Dates for LG Electronics IPO Allotment

Event	Date
Tentative Allotment	October 10, 2025
Refunds Initiation	October 13, 2025
Credit of Shares to Demat	October 13, 2025
Listing Date	October 14, 2025

LG Electronics Overview

LG Electronics Inc., headquartered in Seoul, South Korea, is a global innovator in consumer electronics, home appliances, and air solutions, operating across more than 100 countries. The company’s diverse portfolio includes televisions, refrigerators, washing machines, air conditioners, audio systems, and smart-home products, driven by a strong focus on technology and design. In India, LG Electronics India Limited was established in 1997 and has become one of the most trusted consumer brands. It operates major manufacturing facilities in Greater Noida and Pune, and is setting up a new USD 600 million plant in Sri City, Andhra Pradesh, to strengthen local production. LG continues to invest in AI-enabled, IoT-integrated, and energy-efficient innovations, aligning with sustainability goals. With advanced R&D capabilities and localized product strategies, LG combines global excellence with Indian consumer insights, positioning itself as a leader in quality, innovation, and reliability across households nationwide.

Frequently Asked Questions (FAQs)

What is the opening and closing date of LG Electronics IPO?
LG Electronics IPO is open on 07 October 2025 and will close on 09 October 2025.
What is the price band of the LG Electronics IPO?
Its price band is fixed from ₹1,080 to ₹1,140 per share.
What is the GMP (Grey Market Premium) of LG Electronics IPO today?
The GMP on 9 October 2025 is ₹350, which leads to a possible listing price of ₹1,490.
What is the total issue size of LG Electronics IPO?
The total issue size of the LG Electronics IPO is ₹11,607.01 crore, entirely as an “Offer for Sale”.
What is the expected listing date of LG Electronics?
This IPO is expected to be listed on BSE and NSE on 14 October 2025.

October 9, 2025

JioHotstar Company Case Study: Merger, Business Model & SWOT Analysis

JioHotstar is a company that was made after the two giant players joined hands, the merger took place between Reliance’s Viacom 18 and Disney’s Star India. Together these two companies created a new entertainment company named JioStar. Imagine the two biggest players in Indian entertainment joining hands. That’s what this JioHotstar Company case study is all about. It looks at the huge merger between Reliance’s Viacom18 and Disney’s Star India. Together, they have created a new entertainment giant joint-venture called JioStar.

It was a massive deal of about Rs.70,352 Cr which created this new entertainment company. The new company, JioStar, now controls over 100 TV channels and two of India’s biggest streaming apps, JioCinema and Hotstar. These two apps have now become one, called JioHotstar, reaching over 750 million people.

Reliance is being led by Mukesh Ambani on one side and after the introduction of Jio in the telecom world he wanted to move toward the segment of movies, online series and shows. On the other side was Disney which is one of the global entertainment giants that owned channels like StarPlus and the Hotstar app, but Disney was spending a lot of money on running the company as well as the high cost of cricket broadcasting rights. For Disney, this merger was a smart way to cut its losses while still owning a big part of a much stronger company.

Star India was facing financial troubles in 2024 and also reported a Rs.12,548 Cr. loss and on the other hand Reliance was pouring money into its media business and even added another Rs.11,500 crore in cash to the new company. This shows that Reliance with its cash flow took over Disney’s struggling Indian business to create a market leader that it now controls.

JioHotstar Company Business Model

JioStar’s is not just having a popular entertainment app, it has a complete ecosystem that is hard for others to compete with. The company now owns the studios of both Star and Viacom18, so it can create its own movies and TV shows. It has a massive collection of content, from popular TV serials and Bollywood movies to, most importantly, exclusive rights to highly watched sports in India. This turns out to be its biggest advantage where they have hit TV channels like StarPlus and Colors. They have the JioHotstar app for online streaming. And, most importantly, they have Reliance’s Jio mobile network, which has over 450 million users, and JioFiber for home internet. This gives them a direct line into millions of Indian homes, something no competitor has.

Read Also: Nestle India Case Study

How They Make Money of JioHotstar

JioStar has two main ways of earning money:

1. Subscribers

The company uses a “Freemium” model meaning most of the content available is free to watch, making people interested and gets them to download the app, a similar strategy that was used by Jio to get millions of new mobile and network customers. The strategy is to get you hooked first and then introduce the paid plans, you get your hands on the premium version starting form Rs.149 for three months and enjoy an ad free entertainment.

2. Advertisement

With exclusive rights to huge events like the IPL and ICC cricket tournaments, JioStar controls the most valuable ad spots in the country. Brands that want to reach millions of viewers during these events have to advertise on JioHotstar. This gives the company the power to charge high prices for ads.

The business revolves around the valuable data that it gets from its millions of users and what they are interested in watching, simultaneously the company uses this data to know what kind of shows to make next. This data can also be combined with information from Jio’s mobile and retail businesses to create detailed customer profiles. This helps them show you targeted ads and sell other Reliance products, giving them a long-term advantage.

The Marketing Strategy of JioHotstar Company

A Perfect Match

The launch campaign was perfectly timed around Valentine’s Day and the merger was presented as a “perfect match” between JioCinema and Disney+ Hotstar.

They used fun, back-and-forth messages on city billboards and social media. A JioCinema billboard might say, “Looking for someone who digs cricket, reality shows and live concerts, Know Anyone?” A nearby Disney+ Hotstar billboard would then reply, “Cricket is my love language, who wants to match this Valentine’s Day?”. This created a lot of buzz and made people curious.

They also teamed up with the matchmaking website Shaadi.com. to put up its own billboards next to the JioHotstar ads, saying, “Badhai ho JioHotstar! Aisi jodi toh hum sab deserve karte hain” (Congratulations JioHotstar! We all deserve a match like this). This made the “perfect match” idea even stronger and more memorable.

“Infinite Possibilities”

The new brand focus revolves around endless choice and big ambitions. The new logo, a starburst, and the tagline, “Infinite Possibilities,” tell you that this platform is more than just a place to watch shows. The colours of the logo mix Jio’s blue with Hotstar’s warmer entertainment colours, showing a blend of technology and creativity.

Read Also: Intel Case Study

Financials Analysis of JioHotstar Company

To understand how big this deal is, we need to look at the money involved. The Financials analysis of JioHotstar Company shows the huge value of the new company and the financial health of the two partners before they joined.

The Financial Story Before the Merger

The two companies were in very different places financially before they came together.

Star India’s Big Loss: In the year 2024 Star India reported a massive loss of Rs.12,548 crore. The main reason was the very expensive $3 billion deal for the ICC cricket streaming rights. The high cost of these rights, combined with challenges in monetizing them sufficiently through subscriptions and advertising, contributed heavily to the reported losses.
Viacom18’s Growth Gamble: On the other hand, Viacom18’s income grew by an impressive 75% to Rs.8,032 crore. But it also made a loss of Rs.252 crore because it was spending a lot on sports and its app to gain more users. Their plan focused on growing the company and not focusing on profits.

The merger aims was to develop a profitable company by combining their strengths and cost cutting.

SWOT Analysis of JioHotstar Company

A swot analysis of the JioHotstar Company helps us understand the new company’s strengths and weaknesses, as well as the opportunities and threats it faces in the market.

Strengths

Diversified Content: Disney HotStar gives users a mix of Live sports (cricket), Best Indian TV shows and also world class entertainment from Disney, HBO etc.
Massive Reach: The Jio network users and customers of reliance are almost 450 million, which enhances the reach and helps in reaching the new customers existing in the company’s user base.
Strong Financial Backing: Reliance is a financially strong company that pools in money to invest in content, technology, and marketing.
Market Leader: The merger has created the biggest media company in India, giving it a lot of scope to expand.

Weaknesses

High Costs: The rights for premium content, especially cricket, are very expensive which was earlier a financial challenge for Star India and is now a challenge for this new company.
Merging Challenges: Combining the technology, teams, and cultures of two huge companies is difficult to cooperate as some problems can arise in the short run.
Cricket Dependency: While cricket is one of the biggest strengths, depending only upon it could be risky. If the company loses the streaming rights, it could lose many subscribers.

Opportunities

Bundling Offers: Selling the premium subscription with Jio mobile and internet plans is one of the leading opportunities for the company, keeping customers reliant on the Reliance ecosystem.
Regional Content: There is a growing demand for regional reality shows, sports and movies in regional Indian languages, this can be a great opportunity as Jio can directly target the new emerging regions.
Global Opportunity: The platform can target the Indian diaspora living in foreign countries like USA, UK, Canada etc. and cater them with their favourite Indian shows.

Threats

Government Scrutiny: The Competition Commission of India (CCI) is worried about the monopoly of the company on cricket rights which could turn out to be a legal trouble for them.
Competitive Market: Global giants like Netflix and Amazon Prime Video are also spending a lot of money to gain new users in India.
Subscription Fatigue: Users are streaming on various platforms and paying multiple subscriptions, which could be a challenge as keeping the subscribers stick to the same company.
Piracy: The illegal online streaming of movies and sports, availability of paid content for free can reduce the company’s income.
Revenue Risk: Volatility in advertising revenues due to economic cycles and shifts in marketing spends.

Read Also: Lenskart Case Study

Conclusion

The merger of Reliance’s Viacom18 and Disney’s Star India has created a new giant in the entertainment market. This media giant has unmatched power and scaling capacity. The new company, JioStar, is built on a foundation to provide the best content with the biggest distribution network that comes with the financial strength of Reliance. The success of this mega-merger will not just decide the future of one company, it will change the entertainment world for a billion Indians.

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Frequently Asked Questions (FAQs)

What is JioStar, and how is it different from JioHotstar?
JioStar is the name of the new parent company formed by the merger and JioHotstar is the name of the streaming app that JioStar owns, which combines JioCinema and Disney + Hotstar all in one.
What happens to my old JioCinema or Disney+ Hotstar subscription?
Your existing subscription will be moved to the new JioHotstar platform smoothly and will get updated in the new JioHotstar app.
Can we watch IPL without subscription for free?
JioCinema streamed the IPL for free to get more users, but the new JioHotstar platform is focused on getting paid subscribers, so you must shift to the paid plan for such exclusive content.
Who owns the new JioStar company?
Reliance Industries is in control, Viacom18 (which is mostly owned by Reliance) has the biggest share at 46.82%, Disney has 36.84%, and Reliance Industries has a direct share of 16.34%.
How big is this new company?
It is now the largest media and entertainment company in India. It is valued at $8.5 billion (over Rs.70,000 crore), has over 100 TV channels, reaches more than 750 million people, and is expected to earn around Rs.26,000 crore every year.

October 9, 2025

Best ESG Stocks in India

In today’s world, investing is not just about “How much return can I earn”, but also about “How those returns are earned”. ESG or Environmental, Social, Governance focused companies are those that prioritize sustainability, social responsibility, and ethical governance practices. Choosing ESG stocks in India is no longer a trend, but a necessity and hence, investors are now focusing on ESG stocks in India.

In this blog, we will explore some of the best ESG stocks in India, their benefits, challenges, and how you can get started.

What are ESG Stocks?

The value of a company isn’t solely determined by its earnings, but also by how those earnings are generated. ESG stocks are those stocks associated with companies that prioritize environmental sustainability, social responsibility, and strong governance practices. Let us understand each aspect of ESG.

1. Environmental : Companies that focus on minimizing pollution, increasing the use of renewable energy, and utilizing natural resources efficiently. For example, firms that generate power from solar or wind energy fall into this category.

2. Social : This aspect reflects how a company treats its employees and customers. This includes equal opportunities, employee safety, women’s empowerment, and social work.

3. Governance : This dimension highlights a company’s leadership, accountability, and transparency. Businesses with strong governance practices provide honest reporting, comply with regulations, and prioritize the interests of their shareholders.

Market Information of Best ESG Stocks in India

Company	Current Market Price (in ₹)	Market Capitalisation (in ₹ crore)	52-Week High (in ₹)	52-Week Low (in ₹)
HDFC Bank Ltd	954	14,65,377	1,019	806
Tata Consultancy Services Ltd	2,905	10,51,000	4,495	2,891
Hindustan Unilever Ltd	2,525	5,93,225	2,971	2,136
Wipro Ltd	241	2,52,447	325	225
Maruti Suzuki India Ltd	15,983	5,02,497	16,438	10,725
Mahindra & Mahindra Ltd	3,421	4,25,449	3,724	2,360
Tata Steel Ltd	170	2,11,658	174	123
Adani Green Energy Ltd	1,024	1,66,121	1,930	758
Havells India Ltd	1,506	94,417	2,065	1,360
Lupin Ltd	1,925	87,919	2,403	1,774

(Data as of 06 October 2025)

Read Also: Best Data Center Stocks in India

Overview of the Best ESG stocks in India

A brief overview of the Best ESG Stocks in India is given below:

1. HDFC Bank Ltd

HDFC Bank was founded in 1994 and is today the country’s largest private bank. Its merger with HDFC Ltd in 2023 further strengthened it. The bank is recognized for its digital services and customer-centric approach.

In terms of ESG, HDFC Bank has integrated sustainability into its operations. The bank considers the environmental and social impact of large loans before approving them. Paperless processes, energy savings, and digital banking are part of its environmental efforts. Meanwhile, expanding banking access to rural areas and transparent governance demonstrate its social and administrative responsibility.

Know the Returns:

1Y Return	3Y Return	5Y Return
18.00%	33.55%	71.78%

(Data as of 06 October 2025)

2. Tata Consultancy Services Ltd (TCS)

TCS was founded in 1968 and today is one of the largest Tata Group companies. TCS is a trusted name for clients worldwide in the field of IT and digital solutions.

TCS has always been at the forefront of ESG. The company has built digital tools that help other companies improve their ESG reporting. It also continuously invests in social programs such as education and digital skilling. Women’s empowerment and community development are also priorities. In terms of governance, TCS emphasizes transparency and accountability, making it a trusted ESG company.

Know the Returns:

1Y Return	3Y Return	5Y Return
-30.70%	-4.79%	8.26%

(Data as of 06 October 2025)

3. Hindustan Unilever Ltd (HUL)

HUL was founded in 1933 and today is one of India’s largest FMCG companies. Its products are present in every household in some form or another, be it soap, shampoo, or food products. For a long time, the company has been working to understand the changing needs of consumers. HUL is very active in ESG initiatives. The company has placed a strong emphasis on reducing plastic waste, saving water, and sustainable sourcing. Additionally, social programs such as rural development and women’s empowerment are its hallmarks. Transparent policies and strong governance systems make it a trusted ESG company.

Know the Returns:

1Y Return	3Y Return	5Y Return
-10.89%	-5.45%	19.63%

(Data as of 06 October 2025)

4. Wipro Ltd

Wipro was founded in 1945 and initially began as a vegetable oil manufacturer. It later entered the IT sector and today is one of the world’s leading technology services companies. Wipro’s services and innovations have a significant impact in many countries, including India. Wipro has always been committed to ESG initiatives. The company has worked to make its campuses and data centers energy-efficient and has increased the use of renewable energy. As part of its social responsibility initiatives, it runs education and health projects, and promotes diversity and inclusivity in the workplace. Transparent reporting and responsible governance policies establish Wipro as a strong ESG stock.

Know the Returns:

1Y Return	3Y Return	5Y Return
-10.04%	18.24%	44.47%

(Data as of 06 October 2025)

5. Maruti Suzuki India Ltd

Maruti Suzuki was founded in 1981 and is today India’s largest car manufacturer. Its vehicles have long been a favorite of middle-class families and have long been a fixture on Indian roads. Affordable prices, reliable quality, and an easy service network make it unique. From an ESG perspective, Maruti Suzuki is constantly taking new steps. The company is developing engines with improved fuel efficiency and working on hybrid and electric vehicles. Energy savings and pollution reduction measures are being implemented at its plants. Social initiatives such as road safety and driver training programs further establish it as a responsible ESG company.

Know the Returns:

1Y Return	3Y Return	5Y Return
26.40%	83.31%	133.54%

(Data as of 06 October 2025)

6. Mahindra & Mahindra Ltd

Mahindra & Mahindra, founded in 1945, is a well-known name in automobiles, agricultural equipment, and many other sectors. Its dominance in tractors and SUVs extends not only to India but also to many countries. M&M has always been known for innovation and reliable products. Mahindra & Mahindra is a leading ESG player. The company has made significant investments in electric vehicles and is considered one of India’s leading companies in the EV segment. It is also working to introduce sustainable technology into agricultural equipment. Socially, it focuses on rural development, women’s empowerment, and education projects. Transparency in governance and clear policies make it a strong ESG stock.

Know the Returns:

1Y Return	3Y Return	5Y Return
14.22%	173.71%	465.50%

(Data as of 06 October 2025)

7. Tata Steel Ltd

Founded in 1907, Tata Steel is one of India’s oldest and most trusted steel companies. It has a presence not only in India but also in several countries in Asia and Europe. Its robust steel products and long-standing reliability have earned it global recognition.

Tata Steel continues to progress in ESG initiatives. The company has transitioned to green steel production and is adopting new technologies to reduce carbon emissions. It also pays special attention to worker safety and community development. Transparent governance policies and honest reporting make Tata Steel a strong ESG company.

Know the Returns:

1Y Return	3Y Return	5Y Return
1.90%	66.80%	339.58%

(Data as of 06 October 2025)

8. Adani Green Energy Ltd

Adani Green Energy was founded in 2015 and is one of India’s largest renewable energy companies. Its focus is on solar and wind energy, and the company is implementing large-scale green energy projects across the country. Its goal is to meet India’s growing electricity needs in an environmentally friendly manner. From an ESG perspective, Adani Green Energy operates entirely on sustainable energy. This contributes to saving millions of tons of carbon emissions and furthering the clean energy mission. Local employment and development projects are also part of its social efforts. In terms of governance, the company’s emphasis on transparency and compliance makes it one of India’s leading ESG stocks.

Know the Returns:

1Y Return	3Y Return	5Y Return
-41.26%	-51.07%	41.36%

(Data as of 06 October 2025)

9. Havells India Ltd

Havells was founded in 1958 and is today a well-known electrical goods company in India. Its products include fans, cables, switches, lighting, and kitchen appliances. Havells is considered a trusted brand, and its products can be found in almost every home and office. Havells plays an active role in ESG. The company has taken steps to make its manufacturing plants energy-efficient and reduce carbon emissions. LED lighting and environmentally friendly products reflect its green approach. Additionally, it contributes to society through education and health projects. Transparent governance policies make Havells a strong ESG company.

Know the Returns:

1Y Return	3Y Return	5Y Return
-23.18%	10.43%	121.85%

(Data as of 06 October 2025)

10. Lupin Ltd

Lupin was founded in 1968 and is considered one of India’s leading pharmaceutical companies. The company manufactures generic medicines, biotechnology products, and active pharmaceutical ingredients, which are used not only in India but worldwide. From an ESG perspective, Lupin prioritizes health and ensures access to its medicines in remote areas. Environmentally, it focuses on reducing water and energy consumption at its plants. Socially responsible, Lupin runs healthcare programs and community initiatives. Transparency in governance and strict compliance make this company a responsible ESG stock.

Know the Returns:

1Y Return	3Y Return	5Y Return
-11.75%	160.42%	85.54%

(Data as of 06 October 2025)

Read Also: Best Midcap IT Stocks

Key Performance Indicators (KPIs)

The key performance metrics of the Best ESG Stocks in India are mentioned below:

Company	Operating Margin (%)	Net Profit Margin (%)	ROE (%)	ROCE (%)
HDFC Bank Ltd	25.58	21.83	13.56	2.62
Tata Consultancy Services Ltd	25.89	19.11	51.24	62.01
Hindustan Unilever Ltd	22.99	16.91	21.55	22.91
Wipro Ltd	21.26	14.80	15.94	19.03
Maruti Suzuki India Ltd	12.79	9.32	15.06	19.29
Mahindra & Mahindra Ltd	16.77	7.89	16.78	14.21
Tata Steel Ltd	7.51	1.36	3.75	8.49
Adani Green Energy Ltd	67.68	13.88	13.47	8.02
Havells India Ltd	9.33	6.75	17.68	22.51
Lupin Ltd	18.97	14.55	19.07	21.29

(Data as of March 2025)

Why ESG Investment Matters in India

Investors are increasingly preferring companies that focus on ESG because:

Net-Zero Targets : India has set a target to achieve net-zero emissions by 2070 and its impact is clearly visible. Companies are now focusing on green energy, electric vehicles, and sustainable projects. This means that businesses with environmentally friendly models could reap significant benefits in the coming years.

SEBI Reporting Initiatives : SEBI has made it mandatory for large companies to provide ESG-related information. Investors can now easily see which companies are reducing carbon, saving water, or adopting appropriate employee policies. This has also increased investment confidence.

Growing ESG Funds: The size of ESG funds in India has grown significantly, rising from about ₹2,700 crore in 2020 to nearly ₹9,700 crore by 2024. This rapid increase reflects a shift in investor mindset, with many now seeking responsible profits rather than just profits.

Changing Mindset : For millennials and Gen Z, investing is not just about financial returns; it is also about creating a meaningful impact. This shift in priorities is driving the growing popularity of ESG investing among young investors in India.

Long-Term Benefits : Companies that focus on ESG generally remain strong even during market downturns. They manage risk better and avoid controversies, thus gaining greater investor trust.

What to consider before choosing the right ESG stocks

When making ESG investments, it’s not always wise to base your decision solely on a company’s name or brand. It’s important to understand key factors before making an investment decision.

ESG Scores and Ratings : Many agencies release ESG scores for companies. These scores indicate how a company performs on environmental, social, and governance standards. This provides an initial indication for investors.
Transparency and Disclosure : What and how a company discloses in its reports is crucial. Companies that provide clear and honest information are more trustworthy.
Industry-Specific ESG Risks : Each sector faces its own unique ESG challenges. For example, reducing carbon emissions is a major challenge for energy companies, while data privacy and employee well-being are crucial for IT companies.
Business Model Sustainability : Companies with sustainable business models are more sustainable in the long term. It’s important to assess whether a company’s business will align with ESG goals in the coming years.
Understanding Report Reading : In India, SEBI has mandated BRSR (Business Responsibility and Sustainability Reporting). Carefully reading and understanding these reports helps investors make better decisions.

Risks & Challenges in ESG Stocks

ESG investing is a hot topic these days, but it also faces some challenges and criticisms. Investors can make better decisions if they understand these aspects and proceed with their goals.

The Risk of Greenwashing : Companies often exaggerate their ESG efforts, while in reality, little is being done on the ground. This is called greenwashing.
Lack of Standardization : There is no uniform standard for measuring ESG in India yet. Different ratings from different agencies can make comparisons difficult for investors.
The Challenge of Short-Term Performance : ESG adoption in some sectors increases initial costs. As a result, returns may be lower than expected in the short term.
Balancing Profit and Responsibility : Sometimes, companies find it difficult to balance ESG values and profits. In such situations, investors may also face a dilemma.
Long-Term Perspective : ESG investing provides long-term stability and reliability rather than quick returns. Its real impact is visible over time, when the company achieves sustainable growth.

Conclusion

ESG investing is no longer just a trend; it represents a new direction in the world of finance. Investors in India are increasingly recognizing that while generating profits is important, fulfilling their responsibilities toward the environment and society is equally vital. Selecting the right ESG stocks can not only provide stable long-term returns but also contribute to building a more sustainable future. ESG investing in India is poised to become mainstream in the coming years. It is advised to consult a financial advisor before making any investment decisions.

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Frequently Asked Questions (FAQs)

What are ESG stocks?
ESG stocks are shares of companies that prioritize strong practices in Environmental sustainability, Social responsibility, and Corporate Governance. These companies aim to generate profits while positively impacting society and the environment.
Are ESG stocks profitable in India?
Yes, these stocks can provide stable and reliable returns over the long term.
How can I start ESG investing in India?
You can start with ESG mutual funds or directly invest in some good ESG stocks. However, it is advised to consult a financial advisor before investing.
Which are some of the top ESG companies in India?
Infosys, HUL, TCS, Mahindra & Mahindra, and Adani Green Energy are some of the prominent ESG companies in India.
What is the main risk in ESG investing?
The biggest risk is greenwashing and lack of consistent ratings.

October 9, 2025

Tata Capital IPO Allotment Status: Check Latest GMP, Steps to Verify Status

Tata Capital, a leading non-banking financial company under the Tata Group, has launched its ₹15,512 crore Initial Public Offering (IPO), comprising a fresh issue of ₹6846 crore and an offer-for-sale (OFS) of ₹8666 crore. The IPO opened for subscription on October 06, 2025, with a price band set between ₹310 and ₹326 per share. The subscription window will close on October 08, 2025, and the shares are scheduled to be listed on both the BSE and NSE on October 13, 2025.

Tata Capital IPO Day 3 Subscription Status

The Tata Capital IPO closed with an overall subscription of 1.91 times on Day 3. Among investor categories, Qualified Institutional Buyers (QIBs) led the demand with 3.42 times subscription, followed by employees at 2.92 times. The Non-Institutional Investors (NII) portion was subscribed 1.77 times, with sNII (less than ₹10 lakh) at 2.14 times and bNII (above ₹10 lakh) at 1.90 times. Retail Individual Investors (RII) showed steady interest with 1.10 times subscription, reflecting a balanced participation across categories.

Investor Category	Subscription (x)
Qualified Institutional Buyers (QIB)	3.42
Non-Institutional Investors (NII)	1.98
bNII (above ₹10 lakh)	1.90
sNII (less than ₹10 lakh)	2.14
Retail Individual Investors (RII)	1.10
Employees	2.92
Total Subscriptions	1.96

Total Applications: 23,61,452

Total Bid Amount (₹ Crores): 21253.89

How to Check WeWork IPO Allotment Status

Tata Capital IPO allotment can be easily checked online in two ways: from the Registrar’s website and from the BSE or NSE website. This IPO will be listed on both the exchanges – BSE and NSE, so the allotment status will be available to all investors on both platforms.

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

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

How to do:

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

Method 2: Check from BSE or NSE’s website

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

How to do:

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

Objective of the Tata Capital IPO

Tata Capital plans to utilize the net proceeds from the fresh issue for the following purposes:

Use of IPO Proceeds	Amount (₹ Cr)
Augment the company’s Tier-1 capital base to meet future capital requirements including onward lending	–

Tata Capital IPO GMP – Day 3 Update

The grey market premium (GMP) of Tata Capital IPO is ₹2, as on 5:00 PM October 08, 2025. The upper limit of the price band is ₹326, and the estimated listing price as per today’s GMP can be ₹328, giving a potential gain of around 0.61% per share.

Date	GMP	Est. Listing Price	Gain
08-10-2025 (Day 3)	₹2	₹328	0.61%

Tata Capital IPO – Key Details

Particulars	Details
IPO Opening Date	October 06, 2025
IPO Closing Date	October 08, 2025
Issue Price Band	₹310 to ₹326 per share
Total Issue Size	47,58,24,280 shares(aggregating up to ₹15,512 Cr)
Listing Platform	BSE, NSE
Registrar	MUFG Intime India Pvt. Ltd.
Tata Capital IPO RHP	Click Here

Important Dates for Tata Capital IPO Allotment

Event	Date
Tentative Allotment	October 09, 2025
Refunds Initiation	October 10, 2025
Credit of Shares to Demat	October 10, 2025
Listing Date	October 13, 2025

Tata Capital Overview

Tata Capital Limited is the flagship financial services company of the Tata Group and one of India’s leading diversified NBFCs, offering retail, SME, and corporate financing solutions. Its portfolio spans home, personal, business, auto, education, and SME loans, along with corporate finance, infrastructure finance, and supply chain financing. The company operates through a ‘phygital’ distribution model with over 1,500 branches across India, complemented by strong digital platforms and partnerships with dealers, DSAs, and fintechs. Tata Capital also provides non-lending services such as wealth management, distribution of insurance and credit cards, and private equity funds focused on growth and healthcare. With over 7.3 million customers, industry-leading asset quality, and AAA domestic credit ratings, the company leverages the trusted Tata brand, advanced technology, and a diversified funding base to drive growth and scale.

Frequently Asked Questions (FAQs)

What is the opening and closing date of Tata Capital IPO?
Tata Capital IPO is open on 06 October 2025 and will close on 08 October 2025.
What is the price band of the Tata Capital IPO?
Its price band is fixed from ₹310 to ₹326 per share.
What is the GMP (Grey Market Premium) of Tata Capital IPO today?
The GMP on 10 October 2025 is ₹2, which leads to a possible listing price of ₹328.
What is the total issue size of Tata Capital IPO?
The total issue size of the Tata Capital IPO is ₹15,512 crore, comprising a fresh issue of ₹6846 crore and an offer for sale (OFS) of ₹8666 crore.
What is the expected listing date of Tata Capital?
This IPO is expected to be listed on BSE and NSE on 13 October 2025.

October 8, 2025

LG Electronics IPO Day 2: Check GMP, Subscription Status & Key Highlights

LG Electronics IPO Day 2 Subscription Status

LG Electronics IPO saw a strong response on Day 2, with an overall subscription of 3.32 times. The SNII led the demand at 8.08 times, followed by NII at 7.30 times. The bNII category was subscribed 7.34 times, while QIBs showed steady interest with 2.59 times subscription.

Investor Category	Subscription (x)
Qualified Institutional Buyers (QIB)	2.59
Non-Institutional Investors (NII)	7.30
bNII (above ₹10 lakh)	7.34
sNII (less than ₹10 lakh)	8.08
Retail Individual Investors (RII)	1.90
Employees	4.11
Total Subscriptions	3.32

Total Applications: 33,65,569

Total Bid Amount (₹ Crores): 27,011

Objective of the LG Electronics IPO

LG Electronics IPO GMP – Day 2 Update

The grey market premium (GMP) of LG Electronics IPO is ₹318, as on 5:00 PM October 07, 2025. The upper limit of the price band is ₹1,140, and the estimated listing price as per today’s GMP can be ₹1,458, giving a potential gain of around 27.89% per share.

Date	GMP	Est. Listing Price	Gain
07-09-2025 (DAY 1)	₹288	₹1,428	25.26%

LG Electronics IPO – Key Details

Particulars	Details
IPO Opening Date	October 7, 2025
IPO Closing Date	October 9, 2025
Issue Price Band	₹1,080 to ₹1,140 per share
Total Issue Size	10,18,00,000 shares(aggregating up to ₹11,607 Cr)
Listing Platform	BSE, NSE
Registrar	Kfin Technologies Limited
LG Electronics IPO RHP	Click here

Important Dates for LG Electronics IPO Allotment

Event	Date
Tentative Allotment	October 10, 2025
Refunds Initiation	October 13, 2025
Credit of Shares to Demat	October 13, 2025
Listing Date	October 14, 2025

LG Electronics Overview

Easy Steps to Apply for LG Electronics IPO via Pocketful

Step 1 : Install the Pocketful Application from Play Store or App Store

Step 2 : Sign up and complete your KYC requirements

Step 3 : Go to the IPO section from the home page

Step 4 : Look for “LG Electronics” in the list

Step 5 : Tap on Apply and enter your bid details

Frequently Asked Questions (FAQs)

What is the opening and closing date of LG Electronics IPO?
LG Electronics IPO is open on 07 October 2025 and will close on 09 October 2025.
What is the price band of the LG Electronics IPO?
Its price band is fixed from ₹1,080 to ₹1,140 per share.
What is the GMP (Grey Market Premium) of LG Electronics IPO today?
The GMP on 8 October 2025 is ₹288, which leads to a possible listing price of ₹1,428.
What is the total issue size of LG Electronics IPO?
The total issue size of the LG Electronics IPO is ₹11,607.01 crore, entirely as an “Offer for Sale”.
What is the expected listing date of LG Electronics?
This IPO is expected to be listed on BSE and NSE on 14 October 2025.

October 8, 2025

Tax on Gold Investment in India: Physical, Digital & SGB Explained

What is the first thing that comes to your mind when someone says safe and secure investment asset? Well, there is no doubt that it is gold. For years, people have invested in gold for so many reasons. Be it to save for a good future or to build assets against inflation, all the reasons define gold as a reliable investment choice.

But with time, we have seen a change in how people invest in gold. The options like digital gold, gold mutual funds, gold ETFs and others have allowed people to explore and expand their investment choices. But are the taxes on gold of different types the same?

Well, this is definitely one of the most important questions that we need to address. So, if you are an investor looking to get answers on the taxation policies for different types of gold, then you have just landed at the right place. Read this guide to find the answers and start your investment journey with ease.

Gold Investment Types to Know

Before we move ahead to explore the tax on gold, it is important that we understand what are the different types of options available for investment. Now, traditionally, the investment mainly focused on physical gold. But now, you can also own gold online with no need for physical storage at all.

So, based on the same, here are the most common types of gold investment options that are available for us:

Type of Gold Investment	Description	Key Features
Physical Gold (Jewellery, Coins, Bars)	Buying gold in physical form through jewellers or banks.	Tangible AssetMaking Charges and GST applicable Storage & safety concerns
Gold ETFs	Exchange-traded funds that track gold prices and are traded on stock exchanges.	High liquidityNo storage hasslesRequires a Demat account
Gold Mutual Funds	Mutual funds invest primarily in Gold ETFs on behalf of investors.	Accessible via SIPsNo Demat requiredFollows gold mutual fund taxation rules
Sovereign Gold Bonds (SGBs)	Government securities linked to gold prices, offering fixed annual interest.	2.5% annual interestRedemption after maturity , Capital Gain is tax-freeNo storage costs
Digital Gold	Online platforms allow fractional purchase of gold stored by providers.	Easy online accessStored securely by providerTaxed like physical gold
Gold Derivatives (Futures & Options)	Contracts to buy or sell gold at a predetermined future date/price.	Hedging & speculation toolNo physical delivery unless optedHigh risk-reward potential

Now that you know the various types of gold investment options that are available for you, let us explore the taxation policies for each. This will help you not just to plan your investments well but also to ensure that you gain the best out of them.

Tax on Physical Gold (Jewellery, Coins, and Bars)

Investing in physical gold includes bars, coins, jewelry, and other forms. People have been investing in these for years. Most of these come with making charges, which add on to the actual value of the gold. Now, when it comes to tax on gold, which you hold physically, here is what you must know:

Transaction Type	Condition	Tax Treatment
Purchase of Gold	Buying jewellery, coins, or bars	3% GST on the value of gold + 5% GST on making charges
Sale within 3 years	Short-Term Capital Gains (STCG)	Gains are taxed as per the individual’s income tax slab
Sale after 3 years	Long-Term Capital Gains (LTCG)	20% tax with indexation benefit (inflation-adjusted cost) and 4% cess

While this allows you to have the physical ownership, the charges and costs associated with this are high. There is also a risk associated with storing. Hence, this is less preferred these days.

Tax on Digital Gold

This is one of the newest forms of investing in gold. It offers you purity and affordability. You can start investing in digital gold with as low as INR 10, which makes it a great choice for beginners. The taxation on this gold is as follows:

Transaction Type	Condition	Tax Treatment
Purchase of Digital Gold	Buying via apps, platforms, or wallets	3% GST on the purchase value
Sale within 3 years	Short-Term Capital Gains (STCG)	Gains taxed as per individual’s income tax slab
Sale after 3 years	Long-Term Capital Gains (LTCG)	20% tax with indexation benefit (inflation-adjusted cost) with 4% cess

Though the taxation part is quite similar to the physical gold, it eases the storage process. This helps you save on locker cost and also the making charges, which is why this is a better choice.

Tax on Sovereign Gold Bonds (SGBs)

SGBs are government-backed securities that offer fixed interest along with exposure to gold prices. Their taxation is slightly different from other gold investments.

Transaction Type	Condition	Tax Treatment
Annual Interest	2.5% interest paid semi-annually	Taxed as per the investor’s income tax slab (no TDS deducted)
Redemption at Maturity (8 years)	Holding till maturity	Capital gains exempt — no tax on redemption value
Early redemption (after 5 years)	The RBI gives an early exit option after 5 years, allowed on interest payment dates	Capital gains exempt — no tax on redemption value
Premature Sale (before maturity)	Sale after 5 years (through exchange)	Long-term gains taxed at 20% with indexation and 4% cess and surcharge
Sale within 3 years	Early exit before 3 years	Short-term gains taxed as per income slab

These are indeed the most tax-effective options for investment. They are backed by the government, and so there is an assurance that your money stays safe. Also, the taxation is similar to that of digital gold, with no worry about storage.

Tax on Gold Mutual Funds and ETFs

Now, when it comes to the gold mutual fund taxation, it is important to note that the same rule applies to both MF and ETFs. Also, this is quite similar to the SGBs. So, here is what you need to know about the taxation on gold mutual funds and ETFs:

Holding Period	Type of Gain	Tax Treatment
Less than 3 years	Short-Term Capital Gains (STCG)	Gains are taxed as per the investor’s income tax slab.
3 years or more	Long-Term Capital Gains (LTCG)	Taxed at 20% with indexation benefit, as per gold fund taxation rules. There is 4% cess too.

While the gold fund taxation is the same as the SGBs and physical gold, these are linked to markets. At times, these can be the underlying assets working with some other stocks that can offer you deeper benefits.

Tax on Gold Derivatives (Futures & Options)

Gold derivatives, such as futures and options, are widely used for trading and hedging. Their taxation is very different from physical or fund-based gold. The returns are treated as business income, but investors can also opt for the presumptive taxation scheme under Section 44AD.

Condition	Tax Treatment
Turnover less than ₹2 crore (Section 44AD)	6% (digital) / 8% (cash) of turnover is considered taxable income. No need to maintain detailed books of accounts.
Turnover between ₹2 crore – ₹3 crore	Eligible for presumptive schemes if digital transactions (>95%) are used. Tax limited to 6% of turnover.
Turnover above ₹3 crore	Normal business income rules apply. Profits taxed as per slab rate.

In derivatives, annual turnover = total of all profits and losses from each trade. By declaring 6% of this turnover as taxable income under presumptive taxation, investors can reduce compliance burden while keeping tax outgo predictable.

Taxation on Gold Received as a Gift or Inheritance

Gold given as a gift or inherited is common in India, but it carries certain tax rules:

Gifts from Relatives: Exempt from tax when received from parents, siblings, children, or other specified relatives.
Gifts from Non-Relatives: Taxable as “income from other sources” if the total value exceeds ₹50,000 in a financial year.
Sale of Gifted Gold: Normal tax on gold rules apply. STCG if sold within 3 years, LTCG at 20% with indexation if held longer.
Inheritance: Receiving gold from a relative is tax-free. On selling, capital gains tax applies, and the original owner’s acquisition date is considered for holding period.

Conclusion

Gold is timeless, but taxes shape real returns. From SGB exemptions to gold mutual fund taxation with indexation, every option is unique. If you want pure tax savings, SGBs shine; if flexibility matters, ETFs and mutual funds work best.

Physical and digital gold carry upfront costs, while derivatives are business-like. Knowing the tax on gold helps you pick wisely because the smartest gold investment is not just about buying, but about keeping more in your pocket.

And if you need assistance, connect with the experts at Pocketful today.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Gold Investment: How to Invest in Gold in India?
2	A Guide To Investing In Gold In India
3	GST on Gold Purchase in India
4	Best ETFs in India to Invest
5	What is Nifty BeES ETF? Features, Benefits & How to Invest?

Frequently Asked Questions (FAQs)

How can I save taxes on gold investments?
Sovereign Gold Bonds are the most tax-efficient since redemption after maturity is exempt from capital gains tax, and indexation benefits apply to premature sales after five years.
Which gold investment option should I choose for better taxation?
If tax efficiency is your priority, go for SGBs. For flexibility and indexation, gold mutual funds or ETFs are better. Physical and digital gold usually add GST and higher costs.
Is there a common taxation rule for gold investments?
Yes. Selling gold within three years attracts short-term tax at slab rates, while holding longer leads to long-term capital gains taxed at 20% with indexation.
Can I invest in gold online?
Yes, through digital gold, gold ETFs, and mutual funds—no physical storage needed.
Are gold derivatives risky?
Yes, futures and options carry high risk and are taxed as business income; only suitable for experienced investors.

October 8, 2025

What is Option Premium & How is it Calculated?

Trading in the stock market is not always limited to buying and selling shares. Many traders and investors prefer to use other financial products to either protect their investments or to make profits from price movements. One of the most popular financial products in this category is the options contract.

Whenever you enter into an options contract, you have to deal with something called an option premium.

In this blog, we will explain what an option premium is, how it is calculated, what factors affect it, and how it is taxed in India in very simple words.

Understanding the Meaning of Option Premium

If you are wondering what exactly an option premium means in the simplest words, it can be described as the cost a buyer pays to gain the rights stated in the option contract. This cost is fixed when the trade is made. The buyer pays it upfront, and the seller accepts it as income in exchange for taking on a certain risk.

The importance of this premium is that it takes the form of a maximum loss to the buyer. In case the market is trading contrary to the direction, the prospective buyer is free to merely permit the option to lapse, holding minimal risk; that is, the payment made as a premium.

On the part of the seller, the premium is compensation to them in case they risk consummating the contract in the chance that the buyer may exercise the right.

Why Does the Option Premium Exist?

In order to grasp the existence of the option premium, we must know that there is some risk associated with every trade. The option seller also takes an agreement whereby he or she will acquire or sell the underlying asset at a specified price at any future period at the discretion of the buyer. This is risky since the market price can sharply move in a manner that makes the seller suffer losses.

Due to this risk, the buyer pays a premium to the seller. To the buyer, such an amount of payment is justified given the flexibility and control of the buyer, which is not subjected to compulsion to purchase or to sell even when the market forces are unfavourable.

Read Also: What Is an Option Contract?

The Main Parts of an Option Premium

An option premium is made up of two main parts. Knowing them will help you understand how the price is calculated:

1. Intrinsic Value

This is the profit you would make if you used the option right now. For a call option, it is the current market price minus the strike price. If the result is negative, it becomes zero. For a put option, it is the strike price minus the current market price. Again, if the result is negative, it is zero.

2. Time Value

This is the extra amount the buyer is willing to pay because there is still time left before expiry. More time means more chances for the price to move in a profitable direction. As time lapses, the time value goes down and on expiry day, it becomes zero. The option seller benefits from time decay (Theta) when the stock shows little or no movement as time passes.

How to Calculate Option Premium

When you combine these two parts, you get the formula for the option premium. It is simply the sum of the intrinsic value and the time value. Some advanced pricing models like Black–Scholes–Merton (BSM) model also consider market volatility, risk-free rate as a separate part, but for beginners, focusing on intrinsic and time value is enough to understand the basics.

Example of Option Premium for a Call Option

It is easier to understand this concept with an example. Imagine the current market price of a company’s stock is ₹1,200. You hold a call option with a strike price of ₹1,150, and the time value of this option is ₹30. The intrinsic value will be ₹1,200 minus ₹1,150, which is ₹50. Adding the time value of ₹30 gives a total premium of ₹80 per share. If your contract size is 100 shares, then you will pay ₹8,000 in total.

Example of Option Premium for a Put Option

Now let us take the example of a put option. Suppose the current market price is ₹900, the strike price is ₹950, and the time value is ₹20. The intrinsic value is ₹950 minus ₹900, which equals ₹50. Adding the time value of ₹20 gives a total premium of ₹70 per share. If your contract size is 200 shares, then the total amount you pay will be ₹14,000.

What Affects Option Premium in the Market

The option premium you see in the market is not fixed forever. It changes every day depending on different factors.

Current market price of the asset – If the price moves in a way that benefits the buyer, the premium usually goes up.
Strike price – The nearer the strike price is to the current market price, the more valuable the option may be.
Time left before expiry – More time gives more chances for price changes, so premiums are usually higher.
Volatility – If prices move a lot in a short time, the option becomes more valuable because of the higher chance of big profits.
Interest rates – Higher interest rates can slightly affect premiums.
Expected dividends – Upcoming dividends can change the value of options, especially for stocks.

How Option Premium Works in Real Trading

In real trading, the buyer pays the premium on the day the trade is made. This payment is final and is not returned, even if the option is not exercised. For the buyer, this is the maximum amount an investor can lose. If the market moves against them, they can simply let the option expire without taking further losses.

For the seller, the premium is received at the start and is theirs to keep and it is maximum profit for the seller, but the risk is much higher. If the market moves sharply against them, they may face losses far greater than the premium they received.

How Option Premium is Taxed in India

In India, an option premium is treated in tax differently depending on your trading activity (buyer or seller) and your trading activity.

To a buyer, the amount of premium paid is regarded as a cost of buying the option. This cost is offset against which the profit or loss is computed when the option is sold or exercised. In the case that the option lapses without exercise, then the premium is treated as a loss.

In the case of a seller, the premium obtained is treated as business income in the event of trading of options in established stock exchanges and it is taxed based on your income tax slab. The losses accrued in the trade of options are eligible to be offset with the other income that the business earns; they can also be carried through for eight years when you present your tax returns on time.

Why Knowing Option Premium Matters

Knowing about option premiums is not meant only for advanced traders. Knowing how it works is useful even to the novice. Your premium will inform you of how much you will really pay on the trade, and the lead you will be able to calculate the upper limit loss you can incur as a buyer. It also enables you to put in comparison various options so as to identify those that can be adopted as more appropriate concerning your goals.

In the case of sellers, it becomes easier to know the likely profits and risks that may arise by knowing the determination of the premium. Selling options may cause you to miss big losses, and hence, you should not put yourself in a compromised position by not knowing what you are getting yourself into when buying a premium.

Risks Involved with Option Premium

Trading options is a risky business. On the side of buyers, one can only risk the premium price, losing which is an opportunity as well, when the market does not shift in the planned way. The risk is more dramatic in the case of sellers, as they might end up purchasing or selling an asset at unfavourable prices, which will incur great losses.

Read Also: Options Trading Strategies

Conclusion

The heart of any option trade is the option premium. It shows the current profitability of the contract as well as the prospects of profits by the time of expiry. Knowing how it is calculated, what affects it, and how it is treated as far as taxes are concerned, you will be able to make better choices in the options market.

When you purchase options to hedge, to speculate, or get income, it is good to know the precise amount of money that you pay or are being paid as a premium so that your risk management is made easier. Ultimately, options trading does not only entail forecasting of prices, but also encompasses the calculation of costs and benefits.

Start your stock market journey today with Pocketful — open a free Demat account now. Sign Up for Free.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Short Straddle: Option Strategy with Examples
2	Top Algorithmic Trading Strategies
3	What is Zero Days to Expiration (0DTE) Options and How Do They Work?
4	Types of Traders in the Stock Market: Styles, Strategies & Pros and Cons
5	Risk Management In Trading: Meaning, Uses, and Strategies
6	Option Chain Analysis: A Detail Guide for Beginners
7	What is Covered Call?
8	What is Implied Volatility in Options Trading
9	What is a Covered Put Strategy?
10	Understanding Futures Pricing Formula

Frequently Asked Questions (FAQs)

What is an option premium?
An option premium is the cost a buyer pays to gain the rights in an options contract, paid upfront to the seller, representing the buyer’s maximum loss and the seller’s income.
How is an option premium calculated?
It’s the sum of intrinsic value (profit if exercised now) and time value (extra amount for remaining time until expiry).
What factors influence option premiums?
Premiums depend on the current market price, strike price, time left to expiry, volatility, interest rates, and expected dividends.
How does option premium work in trading?
The buyer pays the premium on the trade day. If the option is not exercised, the premium is lost. The seller keeps the premium but faces higher risk if the market moves against them.
How is option premium taxed in India?
For buyers, the premium is a cost and treated as loss if the option expires. For sellers, it is business income taxed according to their income slab, and losses can be offset or carried forward.

October 8, 2025

Blog

What Are Plastic Stocks?

Top Plastic Company in India

1. Supreme Industries Ltd

2. Time Technoplast Ltd

3. Ddev Plastiks Industries Ltd

4. Xpro India Ltd

5. Mold-Tek Packaging Ltd

6. Nilkamal Ltd

7. All Time Plastics Ltd

8. Cool Caps Industries Ltd

9. Aeroflex Enterprises Ltd

10. Shree Rama Multi-Tech Ltd

Key Performance Indicators (KPIs)

Benefits and Risks of Investing in Plastic Stocks

Factors to Consider Before Investing in Plastic Stocks

Conclusion

Frequently Asked Questions (FAQs)

Are plastic stocks good for long-term investment?

How do crude oil prices impact plastic stocks?

Do plastic companies pay dividends?

What factors should I check before investing?

What is a Private Bank?

Top 10 Private Banks in India 2025

1. HDFC Bank Ltd

2. ICICI Bank Ltd

3. Kotak Mahindra Bank

4. Axis Bank

5. YES Bank

6. IndusInd Bank

7. AU Small Finance Bank Ltd

8. IDFC First Bank Ltd

9. Federal Bank

10. Bandhan Bank

Key Performance Indicators (KPIs)

How to Choose the Right Private Bank: A Customer vs. Investor Perspective

B. For investors investing in the banking sector

Conclusion

Frequently Asked Questions (FAQs)

Which is the best private bank in India in 2025?

Are private banks safe for deposits?

Which private bank is best for digital banking?

Can I switch my salary account to another private bank?

Which private bank is good for rural areas?

What is Margin Money?

How it Works

Components of Margin Money

1. Initial Margin

2. Maintenance Margin

3. Margin Call

Advantages of Margin Money

Disadvantages of Margin Money

Conclusion

Frequently Asked Questions (FAQs)

Can margin trading be considered for long term trading?

Can margin money be used to buy any stock in the market?

What if interest payments are not paid regularly?

How is margin trading different from intraday trading?

How can margin calls be avoided?

LG Electronics IPO Day 3 Subscription Status

How to Check WeWork IPO Allotment Status

Method 1: Registrar’s website (Kfin Technologies Ltd)

How to do:

Method 2: Check from BSE or NSE’s website

How to do:

Objective of the LG Electronics IPO

LG Electronics IPO GMP – Day 3 Update

LG Electronics IPO – Key Details

Important Dates for LG Electronics IPO Allotment

LG Electronics Overview

Frequently Asked Questions (FAQs)

What is the opening and closing date of LG Electronics IPO?

What is the price band of the LG Electronics IPO?

What is the GMP (Grey Market Premium) of LG Electronics IPO today?

What is the total issue size of LG Electronics IPO?

What is the expected listing date of LG Electronics?

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