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OFS vs IPO: Key Differences and Benefits

In today’s time, if you want to invest in the stock market, then you need to understand how companies bring their shares to the public. There are two main ways of doing this: IPO (Initial Public Offering) and OFS (Offer for Sale). An IPO is when a company sells its shares to the public for the first time, through which the company raises new capital. On the other hand, in OFS, the promoters or big investors of an already listed company sell their share of shares; in this, the company does not get any new funds. That is, the company gets money from the IPO, whereas only the shareholders get money from OFS. As an investor, it is important to know what the difference is between OFS and IPO.

What is an IPO?

IPO, or initial public offering, is a process in which a private company brings its shares to the market for sale to the general public for the first time. Its main purpose is to raise capital for the company so that it can expand its business, repay debt, or invest in new projects.

Process of IPO

Submitting Draft Red Herring Prospectus (DRHP): First, the company files a DRHP with SEBI (Securities and Exchange Board of India), which contains complete information about the company, financial position, future plans, and risk factors. This document gives investors complete information about the company.
Determination of price band : After this, the company and its underwriters together decide on a price band. This is the price range at which investors can buy shares.
Book-building process : After this, the company receives bids (applications) from investors. Investors can bid for shares at any price within the fixed price band. The book-building process helps the company determine what the value of the share should be.
Allotment of shares : After receiving the bids, the company allocates shares. In this process, it is seen who should get how many shares.
Listing on Stock Exchange : Finally, the company’s shares get listed on the stock exchange (like NSE or BSE), and then common people and investors can buy and sell the shares in the open market.

An IPO is a good opportunity for investors to be an early part of a company’s growth. If the right company is chosen, there is a possibility of getting good returns from the IPO.

What is an OFS?

The full form of OFS is Offer for Sale, and it is a process in which existing promoters or large shareholders sell their share of shares to the public. In this process, the company does not raise new capital, but the already issued shares are sold. The main purpose of OFS is to give the promoters an opportunity to reduce their stake or exit.

Process of OFS

Determination of floor price : First, the promoters of the company decide the floor price, i.e., the minimum price at which the shares will be sold. This price is usually kept slightly lower than the current market price so as to attract investors.
Starting the bidding process : Once the floor price is decided, the bidding process begins on the stock exchange. Investors participate in this process and place their bids within the stipulated time frame.
Allotment of shares : After the bidding, shares are allotted to those investors who placed the highest bids. If the number of bids is high, the allotment is done on a pro rata basis.
No fresh capital is raised : Since the company does not issue new shares in OFS, it is not considered a means of raising funds. It is just an exit route for shareholders.
Listing in the market : Finally, the shares sold from OFS get listed on the stock exchange, and investors can buy or sell them in the open market.

The main purpose of OFS is to provide an exit route for promoters, while for investors it is a safe way to buy shares of listed companies.

Aspect	IPO (Initial Public Offering)	OFS (Offer for Sale)
Purpose	The company issues new shares to raise capital.	Promoters or large shareholders sell their stake.
Type of Shares	New shares are issued.	Existing shares are sold.
Process Complexity	More complex involves strict SEBI scrutiny and approval.	Simpler process conducted via stock exchange bidding.
Time Frame	Lengthy process may take several weeks or months.	Quick process can be completed in 1–2 days.
Pricing Mechanism	Price band is set (book-building process).	A floor price is set, and bids are invited.
Investor Access	Open to all investors both institutional and retail.	Mostly accessible to institutional investors some portion for retail.
Dilution Impact	Increases total number of shares, leading to dilution of existing shareholding.	No new shares issued; only ownership changes hands.
Regulatory Requirements	Requires detailed SEBI approval and documentation.	Fewer regulatory steps; managed primarily through stock exchange platforms.

It is clear from this comparison that the purpose of both OFS vs IPO is different, and both the risks and opportunities for applicants are also different. IPO gives new exposure to the company, while in OFS the promoters keep their stake in the stock.

IPO and OFS: Benefits and Limitations

Both IPO (Initial Public Offering) and OFS (Offer for Sale) are important modes of investment in the stock market. While these can be good investment options, it is important to understand the benefits and limitations associated with them so that investors can make informed and strategic decisions.

Benefits of IPO :

Investors get an opportunity to be a part of the company’s initial growth journey.
If the company’s performance remains strong, the share price is likely to increase significantly.
There is a possibility of better returns for long-term investments.

Limitations of IPO :

There is limited information about new companies, which increases the risk.
There is a possibility of the share price falling immediately after listing.
Despite applying for an IPO, getting allotment of shares is not certain.

Benefits of OFS :

Opportunity to invest in already listed and credible companies.
The process is fast, transparent and simple, which is convenient for investors.
Risk is comparatively limited as the company is already active in the market.

Limitations of OFS :

This process is often more favorable for large institutional investors; participation of retail investors may be limited.
The company does not receive any new capital, which does not directly impact the company’s expansion plans.

How to invest in IPO and OFS through Pocketful?

Investing in IPO and OFS through Pocketful

Login to your Pocketful dashboard and go to the “Current IPOs/OFS” section.
Select the IPO or OFS you wish to apply for.
Fill in the required details like number of lots, price, and your UPI ID.
Read and tick the terms and conditions and click on the Submit button.
After submitting, a mandate request will appear on your UPI app.
Open your UPI app, approve the mandate and complete the process by entering the UPI PIN.

Your application will now be successfully submitted. Investing with Pocketful is easy and reliable!

Read Also: Key Difference Between IPO and FPO

Conclusion

IPO and OFS are both important ways of investment, but their purpose and process are different. In IPO, the company raises new capital, while in OFS, the promoters sell their stake. If you want to invest in new growth companies, then an IPO is better. On the other hand, if you want to invest in stable and listed companies with low risk, then OFS is the right option. Before investing, take a decision keeping in mind the company’s condition and your financial goals, so that your investments can be safe and profitable.

Frequently Asked Questions (FAQs)

What is the full form of IPO and OFS?
IPO means Initial Public Offering, and OFS means Offer for Sale.
Is new capital raised in OFS?
No, in OFS the company does not raise fresh capital; the promoters sell their existing shares.
Can retail investors apply in OFS?
Yes, as per SEBI regulations at least 10% of the OFS is reserved for retail investors.
Which is safer – IPO or OFS?
OFS is considered comparatively safe as the company is already listed.
Is IPO allotment guaranteed?
No, in case of oversubscription of IPO, allotment is done on lucky draw or pro rata basis.
Do I need a demat account for IPO or OFS?
Yes, to invest in both you need to have an active demat account.

May 14, 2025

Maruti Suzuki India Vs Hyundai: Which Car Stock is Better?

The Indian four-wheeler auto segment is primarily dominated by two companies: Maruti Suzuki India Limited and Hyundai India Motor Limited. Both of these companies offer a wide range of passenger vehicles, including hatchbacks, sedans, SUVS, etc. Maruti was listed in 2003, whereas Hyundai India was listed on the Indian Stock Exchange in 2024; therefore, the long-term returns of both cannot be compared. However, there are certain other parameters that can be considered while comparing both of them.

In this blog, we will help you find the answer to the question of which stock is better among Hyundai India Motor Limited and Maruti Suzuki India Limited based on various parameters.

Overview of Maruti Suzuki India Limited

Maruti Suzuki India Limited was established in 1981, and initially it was known as Maruti Udyog. It was a joint venture between the Government of India and Japanese automaker Suzuki Motor Corporation and eventually became its subsidiary. Now, it is one of the largest passenger vehicle manufacturers in India. The company holds a prominent position in the Indian passenger vehicle market and holds around 42% market share as of FY 24. Maruti Suzuki has manufacturing units in Gurgaon and Manesar and is planning to commence operations at a new plant in Kharkhoda, Haryana. Maruti Suzuki has invested a huge amount in localising the manufacturing of batteries by signing an MOU worth 150 billion yen with the Government of Gujarat. The company exports its cars to over 100 countries across the globe. The company’s headquarters are situated in New Delhi.

Business Model

Maruti Suzuki India Limited’s core business is manufacturing and selling vehicles. It offers a wide range of cars to every customer segment. The segments covered are entry-level hatchbacks, compact cars, sedans, SUVs and MPVs.
The company distributes their product through two channels: Arena, which sells budget-friendly cars, and NEXA, which caters to the needs of premium customers.
It offers other services like selling pre-owned cars through True Value, insurance broking, financing, driving schools, and selling accessories and spare parts.

Overview of Hyundai Motor India Limited

Hyundai Motor India Limited is a wholly owned subsidiary of the South Korean company, Hyundai Motor Company. It started its operation in India in 1996 and soon became India’s second-largest car manufacturing company by sales, just behind Maruti Suzuki. The company has two plants situated in the state of Tamil Nadu, with an annual combined capacity of more than 8 lakh units. The company also acquired a plant in Talegaon, which was earlier owned by General Motors India. The company offers a diversified portfolio of passenger vehicles to its customers, which includes hatchbacks, sedans, SUVs, and electric vehicles. It is the largest exporter of cars in India, and it exports its products to over 92 countries. It also set up a Research and Development centre in Hyderabad, which primarily focuses on innovating passenger vehicles. The company launched its IPO in 2024, which was one of the largest IPO of the year. The headquarters of Hyundai Motor India Limited is situated in Gurugram, Haryana.

Business Model

The company’s core revenue source is selling passenger vehicles, and catering to the needs of different customers who wish to have a hatchback, sedans, SUVS, and electric vehicles.
It also has a strong dealer network of more than 1,500 dealers spread across India.
The company also offers maintenance, service, accessories and spare parts through their service centres.

Comparison of Market Details

Particulars	Maruti Suzuki India Limited	Hyundai Motor India Limited
Current Market Price (₹)	12,615	1,757
Market Capitalisation (In ₹ Crores)	3,96,555	1,42,661
52 Week High (₹)	13,680	1,970
52 Week Low (₹)	10,725	1,542
Book Value (₹)	3061	161
Face Value of Share (₹)	5	10
P/E Ratio (x)	27.4	24

(As of 12th May 2025)

Performance Comparison

Return	Maruti Suzuki India Limited	Hyundai Motor India Limited
1 Month	6.50%	6.39%
6 Months	13.30%	-2.46%
1 Year	-0.39%	NA
5 Years	147.53%	NA
YTD	12.64%	-2.21%

(As of 11th May 2025)

Inference: In the short term, Hyundai Motor India has underperformed as compared to Maruti, which has been a consistent performer in the longer period. However, it would be unfair to compare the price performance of both companies as Hyundai was recently listed.

Income Statement Comparison

Particulars	Maruti Suzuki India Limited	Hyundai Motor India Limited
Sales	1,41,858	69,829
Total Revenue	1,45,951	71,302
Total Expenses	1,28,587	62,904
Profit After Tax	13,234	6,060

(As of March 2024)

Inference: As of March 2024, Maruti Suzuki India Limited has outperformed Hyundai Motor India Limited both in terms of revenue and profit.

Balance Sheet Comparison

Particulars	Maruti Suzuki India Limited	Hyundai Motor India Limited
Current Assets	22,634	16,124
Non-Current Assets	92,717	10,225
Total Shareholder Funds	85,636	10,666
Current Liabilities	25,952	26,349
Non-Current Liabilities	3,763	2,686

(As of March 2024)

Inference: Maruti Suzuki India Limited has more than 4x the assets of Hyundai Motor India Limited and almost equivalent total liabilities.

Cash Flow Statement Comparison

Particulars	Maruti Suzuki India Limited	Hyundai Motor India Limited
Cash Flow from Operating Activities	16,801	9,251
Cash Flow from Investing Activities	-11,864	-10,090
Cash Flow from Financing Activities	-4,062	-15,930

(As of March 2024)

Inference: Maruti Suzuki India Limited has a higher cash flow from operating activities, whereas, Hyundai Motor India Limited has a significantly higher cash outflow from financing activities, when compared to Maruti.

Key Performance Ratios

Particulars	Maruti Suzuki India Limited	Hyundai Motor India Limited
Operating Profit Margin (%)	12.24	12.02
Net Profit Margin (%)	9.32	8.67
ROE (%)	15.75	56.81
ROCE (%)	19.42	62.89
Debt to Equity (x)	0	0.07

(As of March 2024)

Inference: Being a company that is aggressively expanding, Hyundai Motor India Limited has better ROE and ROCE, but the net and operating profit margins of Maruti Suzuki India Limited are higher.

Shareholding Pattern

Particulars	Maruti Suzuki India Limited	Hyundai Motor India Limited
Promoter (%)	58.28	82.50
FII (%)	14.96	7.17
DII (%)	23.64	7.01
Public (%)	2.62	3

(As of March 2025)

Inference: Hyundai Motor India Limited has higher promoter holdings. But FIIS holds only a 7% stake in it, whereas they hold around 15% stake in Maruti Suzuki India Limited.

Which Stock is Better?

Maruti Suzuki India Limited focuses on reliability and affordability, whereas Hyundai Motor India Limited focuses on modern design and advanced features. However, in terms of revenue and profit, Maruti Suzuki is ahead of Hyundai by a long way. However, in terms of ROE and ROCE, Hyundai Motor is ahead of Maruti Suzuki India Limited. On the other hand, Hyundai Motor India Limited has already launched its electric vehicles, and announced its plans to manufacture them in India. Maruti Suzuki India Limited is focusing on the affordable passenger vehicle segment and dominates the segment. However, it is advisable to consider the risks which the automobile sectors have, such as cyclical business, production cost, government regulations, etc. Choosing the best stock depends on the investor’s risk profile. An aggressive investor can go for Hyundai Motor India Limited, and Maruti Suzuki India Limited is suitable for conservative investors. It is advised to consult a financial advisor before investing.

Conclusion

On a concluding note, Maruti Suzuki India Limited offers stability to your portfolio during market downturns and has the potential to deliver moderate returns. Hyundai Motor India Limited can be considered an aggressive investment option as it presents high risks in the form of higher debt to equity ratio, which can result in high volatility. However, it is always best to consult your investment advisor before making any investment decision.

One can easily invest in both the shares using the Pocketful mobile application, where you can buy them without paying any brokerage on delivery. So open a free demat account with Pocketful now.

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1	Tata Motors vs Maruti Suzuki? Analysis of Auto Stocks
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3	Tata Power Vs Adani Power: Comparison Of Two Energy Giants
4	ITC vs HUL: Comparison of India’s FMCG Giants
5	Flair Vs DOMS: Unveiling The Best In Stationery Industry

Frequently Asked Questions (FAQs)

Who is the current CEO of Maruti Suzuki India Limited?
The current managing director and CEO of Maruti Suzuki India Limited is Hisashi Takeuchi, he was reappointed for an additional three-year term from 1st April 2025.
Among Maruti Suzuki India Limited and Hyundai Motor India Limited, which stock is suitable for long-term investment?
Both companies belong to a large-cap category, but Maruti Suzuki is considered more stable when we compare the returns of the last year. Also, Maruti Suzuki India Limited has a higher market capitalisation when compared with Hyundai Motor India Limited.
Which is the best company between Maurit Limited and Hyundai Motor India Limited?
Both companies can be suitable for different types of investors as Hyundai Motor India Limited is primarily focusing on growth through its EV plans, whereas Maruti Suzuki India Limited is focusing on providing more stable returns and giving regular dividends.
Which company has the higher FIIS holding among Maruti Suzuki India Limited or Hyundai Motor India Limited?
As of 31st March 2025, FIIs hold a 14.96% stake in Maruti Suzuki India Limited, whereas their stake in Hyundai Motor India Limited is only 7.17%, which indicates that FIIs has a higher holding in Maruti Suzuki India Limited.
Is Hyundai Motor India Limited a large-cap company?
As of 12th May 2025, Hyundai Motor India has a total market capitalisation of 1,42,661 crores, and belongs to the large cap category.

May 13, 2025

What Is Day Trading and How to Start With It?

Ever wondered, what is day trading or how to start day trading? As the name goes, day trading refers to buying and selling financial assets, such as shares, commodities, etc., on the same day with the hopes of gaining profit from the trading activities. However, knowing the concepts before trading with real money is important, especially for beginners.

In this blog, we will discuss what day trading is, its key features, and how to get started.

What is Day Trading?

Day trading is a trading approach in which an individual buys and sells financial assets during the same day without holding any trading position overnight. It is known to have high risks because of leverage, but also gives higher returns. The different types of financial assets include stocks, commodities, currencies, and even derivatives. The trades are always executed on the same day, allowing the holder to not only get rid of unwanted overnight risk but also take advantage of immediate trading opportunities as needed. In this, traders close their open positions at the end of a trading day. This helps traders avoid the possibility of being affected by overnight announcements, events, news, etc.

The method is known best for its speed. In the fast-paced global economy that we live in today, every trader invests a considerable amount of time and effort to learn strategies and algorithms designed for evaluating different market conditions. They also require self-control, which enables them to act only after thorough deliberation. Day trading is more time-consuming compared to swing or positional trading, where traders keep their positions open for days, weeks, or months.

Important Features of Day Trading

Some of the important features of day trading are:

Highly Time Sensitive: Trades can last anywhere between just a few seconds to a couple of hours but never overnight. It is intended to take advantage of small price fluctuations within the market that occur throughout the day.
High Volume of Trades: A day trader can have many open trades on a single financial asset throughout the day, depending on how the prices fluctuate. This means that they can trade the same security along with its associated derivatives multiple times in a single day.
Use of Leverage: Margin accounts and leverage provided by brokers are often used by day traders. Leverage enables a day trader to trade with higher capital than the actual capital, which significantly increases the size of the positions taken and can magnify profits. However, it also increases your potential losses.
Technical Analysis Only: Chart patterns and price data along with technical indicators such as moving averages, RSI, MACD, Bollinger Bands, and many others indicators helps traders make decisions for day trading. Unlike long-term investors, day traders focus on technical analysis rather than analyzing a company’s financials or earnings reports.
Use of High Tech Tools: Day trading requires advanced technological tools such as new age trading platforms with real-time data feeds and updates, automated trading via APIs, advanced charting, etc., making it easier for traders to identify their entry and exits and act on trades swiftly.
Optimal Asset Choice: In day trading, most of the traders generally pick securities with high liquidity. In the case of Nifty 50 stocks or even the most traded currency pairs, large volumes are easily available which allows seamless trading.

Steps to Start Day Trading

If you are planning to do trading for the long-term, then a basic knowledge of key trading concepts is essential. An outline with all the details is given below :

1. Getting Started

Workshops and Webinars: Attend trading workshops and webinars to learn about practical trading concepts. Learning in a community also encourages the sharing of ideas and will make you a better trader.
Online Resources: Take online courses or read about trading concepts structured for beginners on platforms such as Investopedia and Coursera.
Keep an Eye on Current Events: Following the stocks you are considering buying or selling will give you a better context of the market.

2. Find a Reliable broker

Low Commission Charges: Frequent trading incurs increased transaction costs and amateurs can lose more in brokerages than they earn.
Dependable Platform: Check if the broker offers a reliable trading platform. Furthermore, the platform should be widely-used and have positive user reviews.
Customer Service: Quick response to issues can be critical during volatile market conditions.

3. Create a Trade Plan

Return Expectations: Write down the precise details about your return expectations.
Maximum Risk: Compute the maximum risk associated with trading strategies by considering different market scenarios.
Capital Required: Determine the total capital required and the amount of capital allotted to each trade.

4. Define Strategy, Backtest and Paper Trading

Develop Strategies: Create a well-defined trading strategy with a proper entry, exit, and stop-loss levels.
Backtesting: Test your strategy extensively using past price data. Incorporate insights gained from backtesting your strategy to increase the strategy’s profitability.
Paper Trading: Practicing with virtual money gives you more confidence and lets you experience the market conditions in real time.

5. Start with a small amount

Risk Reduction: Starting with a smaller capital reduces the amount of losses incurred.
Learn through Practical Experiences: Monitor your trading performance and compare it with the theoretical performance previously calculated and make the changes to your original strategy if required.
Increase Capital: Increase your trading capital as your confidence increases and you become consistently profitable.

Read Also: What is Algo Trading?

Factors to Consider before Day Trading

Not everyone can take part in day trading, and it does require a great deal of planning, commitment, and learning. To begin day trading, here are a few undersold factors to focus on:

1. Maintain Sufficient Capital

Absorb Unexpected Losses: Losses are part of a successful trader’s life and your capital should be able to absorb them.
Meets Margin Expectations: Brokers require a minimum margin to be deposited if you use leverage. Make sure the losses don’t exceed the margin amount to avoid getting your positions liquidated.
Helps in Diversification: Undue concentration in one stock or asset can cause huge losses.
Volatility Control: A larger capital gives you the opportunity to take more controlled and calculative risks.

2. Time Commitment

Monitor Markets Continuously: Day trading requires intense and intricate focus, especially when it comes to volatile market conditions as a small lapse in concentration can cause huge losses.
Act Immediately: Complete concentration as well as the ability to act in mere seconds is required during day trading.
Strategy Reviews: Evaluate your trading performance and ensure that it meets your expectations. If not, identify the reasons and make the required changes.
Analyze before the Market Opens: Get ready for the session by assessing trends and news regarding the market.
Evaluate Trades: Review your trades and determine whether the trades were based on your strategy or not.

3. Emotional Discipline

Focus on a Plan: Resisting the need to alter tested strategies is crucial, regardless of the situation arising from fear or greed.
Loss Acceptance: Losses should be embraced as learning opportunities and dealt without emotional biases.
Situational Calmness: One must remain calm when volatility increases due to global events.
Overtrading: Do not take drastic actions or overtrade in a desperate effort to cancel out losses.
Avoid FOMO (Fear of Missing Out): Do not enter trades simply because they seem a profitable opportunity. Stick to your trading plan.

4. Technical Knowledge

Indicators and Chart Patterns: Knowledge about technical indicators such as moving averages, RSI, MACD, and Bollinger bands should be used with technical chart patterns forming on price charts to increase profitability.
Get Familiar with Trading Systems: Having prior knowledge concerning types of orders and trading terminals ensures a smooth trading experience.

5. Risk Management

Set Stop-Loss Orders: Control losses before it gets out of hand and wipe your trading capital.
Position Sizing: Determine in advance how much financial risk per trade you’re willing to take and determine the quantity accordingly (e.g.1-2% of capital).
Restrict Losses: Avoid trading multiple positions at the same time to maintain focus.

6. Awareness of legal and tax issues

Make sure your trading activities do not breach Indian laws concerning insider trading, market manipulation, etc.
Understand the taxes applicable on profits from intraday trading.
Keep proper records of your trades and gains for tax purposes.

7. Education and Training

Learn Before You Leap: Listen to market experts, read books and undertake courses available online before trading with real capital.
Use of Mock Account: Initially, start with virtual money using a stock market simulator and avoid trading using real money until you are confident enough.
Get into Trading Communities: Engage in forums and group discussions to learn from expert traders.
Stay Up-to-Date: Following the market is vital to learn new things and evolve.

Advantages of Day Trading

Various advantages of day trading are:

Immediate Profits: Profits can be realized much more quickly than with traditional investing because day traders close out all trades within a single day.
No Overnight Risk: As all positions are closed before the stock market shuts down, the trader is protected from risks associated with the unexpected news announcements and changes in the global markets after trading hours.
High Liquidity: Traders concentrate on liquid assets, which facilitates faster execution of trades on both sides of the market.
Options for Leverage: Traders can make use of high leverage and earn much more profits. Most of the brokers such as Pocketful offer up to 5X margin on Equity Intraday trades. However, also read about the associated risks with the high leverage before trading.
Versatile Approaches: Based on the trader’s individual preferences, techniques such as scalping, momentum trading, or even news-based trading can be incorporated in the trading strategy.

Drawbacks of Day Trading

Some of the drawbacks of day trading are:

Significant Risks: A loss in a highly leveraged trade can have severe consequences and may wipe out the capital.
Emotional Burnout: Making multiple decisions and constantly monitoring metrics while managing risk can contribute to stress, anxiety, and fatigue.
High Transaction Costs: Buying and selling frequently can result in high brokerage fees and taxes.
Steep Learning Curve: Day trading doesn’t guarantee success as it may take several months or years to become consistently profitable.
High Taxes: Taxation of speculative income is significantly more than the long term capital gains, which makes staying profitable even more difficult.

Conclusion

Understanding the basics of day trading, along with how to start, is only the first step since success in day trading cannot be guaranteed without discipline and continuous effort. Day trading if done right can generate huge returns, but at the same time can cause a complete capital wipeout. Hence, it is required to consult a financial advisor before starting day trading. Following this path requires consistent practice and consistency, so start by learning to build a solid trading startegy.

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4	What is Crude Oil Trading and How Does it Work?
5	What is Spread Trading?

Frequently Asked Questions (FAQs)

Can day trading be done by someone new to stock markets?
Day trading is risky in nature and is not easy. A sound trading strategy and risk management plan needs to be in place first. Consistent learning along with paper trading initially will be important before one can safely use real capital.
How much capital is required to start day trading?
Working with a few thousand rupees initially will be fine, but serious traders often have a capital of at least ₹10 lakhs. However, the capital required depends on your trading strategy and return expectations and it is best to consult a financial advisor before trading.
Is day trading allowed in India?
Yes, day trading is allowed and overseen by SEBI (Securities and Exchange Board of India). You only require a trading account with a broker who has a SEBI registration.
Which stocks are best suited for day trading?
Volatile stocks with a high average daily trading volume are preferred for day trading.
Is it possible to become a full-time day trader?
This is possible, however, emotional discipline along with experience and a solid strategy is required. Most traders take years to be consistently profitable. Just like any other business, it is not a reliable method to make instant cash.

May 13, 2025

What is Corporate Demat Account? Features, Benefits, and Eligibility

In today’s digital age, participation in the stock market has become extremely important for companies looking to increase their overall profitability. However, for a company to begin investing, a corporate demat account is a must.

Corporate demat account refers to an account in the name of the company where shares and securities are kept in electronic form. At the same time, companies can buy and sell shares through a corporate trading account.

In this blog, we will understand in detail what is a corporate demat account, what are its benefits, who can open it, what are the necessary documents and what is the process of opening it.

What is a Corporate Demat Account?

A Demat Account, or “dematerialized account”, is an account where your shares and other securities are kept in electronic form. Just like a Demat account is opened in the name of an individual, when a company opens an account to keep its investments and shares in digital form, it is called a corporate Demat account.

This account is specifically for registered companies such as Private Limited (Pvt. Ltd.) Companies, Public Limited Companies, LLPs (Limited Liability Partnerships), Trusts, etc.

The major difference between an individual Demat account and a company Demat account is that a company account can have multiple authorized signatories and it is opened in the name of the company, not in the name of any individual.

The main purpose of this account is to keep all the shares, bonds, mutual fund units and other securities of the company safely and systematically on a single digital platform.

Read Also: Types of Demat Accounts in India

Differences Between Individual Demat Account and Corporate Demat Account

Particulars	Individual Demat Account	Corporate (Company) Demat Account
Account Holder	An individual person	A registered company or institution
Purpose	For personal investments	For company investments, ESOPs, IPO participation, etc.
Authorized Signatory	Single person (account holder)	One or more authorized signatories as per board resolution
Document Requirements	Basic KYC documents	Statutory company documents + KYC + Board Resolution
Control & Management	Managed by the individual	Managed by company representatives
Nomination Facility	Available	Limited or controlled via board decision
Processing Time	Fast and simple process	Detailed verification, may take more time

Features of a Corporate Demat Account

A corporate demat account is a digital account for companies to store their shares, debentures, mutual funds, and other securities in electronic form. This account is designed not just to store investments but also to manage them smartly.

Digital Holding: All securities in this account are held in electronic form, eliminating the need for paperwork and physical storage.
Multiple Authorized Signatories: Companies can nominate multiple authorized signatories through their board resolutions who can operate this account.
Nomination and Power of Attorney: A nominee or power of attorney holder can also be appointed if required, making account operations more flexible.
Link to Corporate Trading Account: This account is directly linked to the corporate trading account, allowing companies to buy and sell shares easily.
Accessible Platforms: The account can be easily accessed from the Depository Participant (DP) website or mobile apps.

Corporate Demat Account Benefits

In today’s times, when companies engage in activities like investments, IPOs, and stock options, a corporate demat account helps them manage all these operations in a smart and secure manner.

Improved transparency and accountability: All investment activities are recorded through a demat account, making internal audits and regulatory auditing easier. It enhances the financial transparency of the company.
Faster settlement: Transfer of shares happens digitally, making the trading and settlement process faster and more convenient.
Investment security: Holding shares and other securities in electronic form eliminates the risk of theft, loss, or fraud.
Helpful for IPO, ESOP, and M&A: When a company launches an IPO, or offers ESOPs to employees, or acquires another company, a demat account makes the entire process simple and efficient.
Scalable solution for large transactions: Corporate Demat Accounts can easily handle large volumes of securities.

Advantages Over Individual Demat Accounts

When a company has to make substantial investments, a corporate demat account becomes a better option, especially when compared to an individual demat account.

Centralized Investment Management: All the investments of the company are managed on a single platform, making reporting, tracking, and analysis easier.
Professional and Regulatory Compliance: Companies need to ensure that their investments are compliant with the rules and regulatory guidelines (SEBI, ROC, etc.). A corporate account supports this.

How to Open a Corporate Demat Account?

If your company wants to participate in investment or stock market-related activities, opening a corporate demat account is the first step. The process of opening it is easy; just follow a few important steps:

Choose a Depository Participant (DP): Choose a SEBI-registered broker, such as Pocketful.
Fill out the account opening form. Fill the form with the company details and authorized signatory information.
Submit the required documents: Company PAN, Certificate of Incorporation, board resolution, etc. (the full list is in the next section).
Verification and approval: After verification of documents by the DP, the account will be approved.
Get login access: After approval, login details are sent to you, through which you can start trading.

Documents Required for Company Demat Account

To open a corporate demat account, a company needs to submit certain documents. These documents reflect the legal identity of the company, permission to operate and validity of authorized signatories. Below is the list of required documents:

Board Resolution: An official resolution issued on the company’s letterhead, allowing the opening of a corporate demat account.
List of Authorized Signatories: Complete list of all authorized signatories on the company’s letterhead.
Directors’ Details: List of all Directors on the company’s letterhead.
Financial Records: Copies of the balance sheets of the last two financial years, Memorandum of Association (MOA), and Articles of Association (AOA).
Identity Proof: Self-attested copies of PAN and Aadhaar cards of authorized directors and signatories.
Bank Details: A valid cancelled cheque from the company’s bank account.
Registration Documents: Company’s registration certificate and other required registration documents.

Corporate Demat Account Eligibility

A corporate demat account can only be opened by entities that fulfil certain eligibility criteria:

Must be a registered company: The account can only be opened by private limited companies, public limited companies, LLPs, trusts or other registered entities.
Valid PAN Card: It is mandatory to have a valid PAN in the name of the company.
Bank Account: It is mandatory to have a current bank account in the name of the company.
Regulatory Compliance: The company must be registered and compliant with the Companies Act 2013 and SEBI (Securities and Exchange Board of India) rules.
Board Resolution: A resolution passed by the board of the company authorising the person to open and operate a demat account.

Read Also: Best Demat Accounts in India

Conclusion

In today’s fast-changing business environment, a corporate demat account has become an extremely important financial tool. It not only allows to digitally track and manage company investments but also facilitates smooth conduct of corporate actions such as IPOs, bonuses, share transfers and ESOPs. If you run a private limited, public limited or registered entity, now is the time to start investing through a corporate demat account.

We, Pocketful, as a registered stockbroker, help you open a corporate demat account with a fast, transparent and cost-effective process. Contact us today and take your investing game to new heights!

Frequently Asked Questions (FAQs)

Who can open a Corporate Demat Account?
Any registered company or organization like Pvt Ltd, LLP, Trust etc. can open a corporate demat account.
What documents are required to open a Corporate Demat Account?
PAN, MOA, AOA, Board Resolution, Directors details, Bank details and Address Proof.
Can a company have multiple Corporate Demat Accounts?
Yes, a company can have multiple Demat accounts with different Depository Participants (DPs).
Is it mandatory to have a Corporate Demat Account for a company?
If the company wants to invest in shares or IPO, then yes.
Are there any charges associated with a Corporate Demat Account?
Yes, like account opening fees, AMC and transaction fees.
Can a foreign company open a Corporate Demat Account in India?
Yes, they can open a corporate demat account after fulfilling all the requirements.

May 8, 2025

Top Defence Stocks to Watch After Operation Sindoor

A nation’s strength lies in its shield—its defense sector, guarding against threats and ensuring peace. India’s resolute “Operation Sindoor” on May 7, 2025, showcased this might, turning investor eyes towards the defense sector stocks. As the defense needs of the country increase, investors actively search for defense companies for investment.

After the Balakot airstrike in 2019, share prices of numerous defense companies increased considerably in the following days. Could a similar surge in defense stock prices follow Operation Sindoor? In this blog, we will discover which Indian defense companies are offering an opportunity to invest.

What is Operation Sindoor?

Operation Sindoor is the codename of missile strikes carried out by the Indian Armed Forces on 7 May 2025, targeting terrorist bases in Pakistan and Pakistan-Occupied Kashmir (PoK). The operation was carried out in response to the terrorist attack in Pahalgam, Jammu and Kashmir on 22 April, in which 26 tourists were killed. It not only had an impact from a strategic point of view, but also renewed investors’ interest in the Indian defense industry.

Historical Correlation: Wars & Stock Market Trends

History has shown us time and again that whenever India has taken a tough stand on the military front, defense stocks have surged. For instance, after the 2016 surgical strike and the 2019 Balakot airstrike, stocks of companies like Bharat Electronics (BEL), HAL, and BDL saw a good surge after both the incidents.

At a time when national security becomes a priority, the government increases the defense budget and approves new deals. This leads to new orders for defense sector companies and improves their profitability.

The Indian Defence Sector: 2025 Outlook

Currently, India’s defence sector is undergoing a significant transformation, driven by the ‘Make in India‘ initiative and the goal of self-reliance.

Budget Allocation: The Defence Ministry has been allocated a record budget of ₹6.81 lakh crore for FY 2025-26, an increase of 9.53% over the previous year. It constitutes 13.45% of the total Union Budget, which is the highest among all ministries.
Local production and exports: Under the ‘Make in India‘ initiative, India’s defence production has reached ₹1.27 lakh crore in FY 2023-24, while defence exports have reached an all-time high of ₹23,622 crore.
Private sector participation: The government has encouraged private companies to participate in defence production, leading to increased participation from companies such as Larsen & Toubro, Adani Group and Tata Sons.

Through these initiatives, India is not only moving towards meeting its own defence requirements but also becoming a significant player in the global defence market.

Top Defence Stocks to Watch After Operation Sindoor

Some of the Indian Defense stocks to watch out for after Operation Sindoor are mentioned below:

Hindustan Aeronautics Limited (HAL): India’s leading aerospace and defense manufacturer, HAL has recently received an order worth ₹13,500 crore for 12 Sukhoi fighter jets. Moreover, on 1 April, HAL bagged a ₹62,700 crore order for the manufacturing of 156 light combat helicopters.
Bharat Electronics Limited (BEL): A leader in manufacturing of defence electronics systems, BEL recently won a ₹2,200 crore contract from the Indian Air Force for supplying advanced Electronic Warfare (EW) suite for their helicopters.
Bharat Dynamics Limited (BDL): Headquartered in Hyderabad, Bharat Dynamics Limited (BDL) is a Public Sector Undertaking under India’s Ministry of Defence, established on July 16, 1970. BDL manufactures guided missile systems and allied equipment for the Indian Armed Forces, collaborating with DRDO and foreign OEMs.
Mazagon Dock Shipbuilders Limited (Mazagon Dock): A global leader in the construction of submarines and warships, the company has a market capitalisation of ₹1.20 lakh crore. Taken over by the Government in 1960, The company has built 805 vessels, including 30 warships and 8 submarines, serving both the Indian Navy and global clients with advanced shipbuilding expertise.
Data Patterns: Specialist in manufacturing of defence electronic systems such as radars, avionic systems and other electronic warfare systems, the company plays a key role in enhancing India’s defense capabilities. According to experts, this company is a rising star in the defence sector.

Top Defence Stocks

Company Name	Key Highlights	1 Month Performance
HAL (Hindustan Aeronautics Ltd.)	Sukhoi jet order worth ₹13,500 crore, strong Q3 results	11.06%
BEL (Bharat Electronics Ltd.)	60% market share, key electronics supplier	10.66%
BDL (Bharat Dynamics Ltd.)	Missile systems manufacturer, strong order book	14.74%
Mazagon Dock	Submarines and warships manufacturer	22.09%
Data Patterns	Defence tech and software, emerging company	35.30%

(Data as of 8 May 2025)

Risks & Volatility in Defence Investing

While investing in the defence sector, it is important to understand some key risks and fluctuations.

Market volatility : Defence stocks experience volatility due to global events and political tensions. There was volatility in the Indian stock market after Operation Sindoor, which led to a decline in the shares of defence companies. The market may fall during war or conflict, while there may also be gains during peace. At such times, investors should remain cautious and pay attention to the market conditions.

Political risk and delay in supply : The defence sector is affected by government policies and political decisions. Issues such as delay in supply of defence equipment, quality issues also pose risks to investors. Sometimes disputes in defence contracts or not completing production within the deadline lead to supply disruptions, causing uncertainty.

Cyclicality in budget allocation : The defence budget fluctuates every year. Sometimes there is an underallocation, which can hinder the growth of defence companies. The defense budget has been increased for 2025-26, but despite this, further increase in capital expenditure may be required for this sector.

Global politics and regional tensions : Geopolitical issues and regional tensions can also increase risks associated with investment in the defense sector. If tensions with neighboring countries increase, it will affect India’s defense sector as important supply chains of raw materials required by these companies may be hampered. Moreover, the global security situation may change after incidents like Operation Sindoor, resulting in losses to investors.

Investment awareness : Before investing in the defense sector, investors need to understand its policies, budget, and global defense industry. Investing with a long-term perspective and taking decisions based on the right information can reduce risks.

Suitable time to invest : After a fall in defense stocks, investing at the right time can yield benefits. Investors should plan their investments carefully, understanding the recent developments and constantly monitor their investments.

Keeping these risks in mind, investors should take a long-term view. The Indian defense sector has good growth potential, making it an attractive investment option.

Is It the Right Time to Invest?

The Indian defense sector has undergone significant changes, which have impacted investment in the sector. Favorable government policies and increased defense spending are expected to benefit the sector, but at the same time the market remains volatile.

Long-term outlook : Defense production in India is getting a boost under the “Make in India” initiative. 193 defense contracts were signed in FY24-25, with a total value of over ₹2.1 trillion, the largest figure ever.

Risks and volatility : While the long-term outlook for the defense sector is positive, the market witnessed volatility after Operation Sindoor. On May 7, the Sensex fell by 704 points, while the Nifty 50 fell by 169 points. This reflects market volatility, which poses risks for investors.

The defence sector has long-term growth potential, but given market volatility and external events, it is important to assess risks before investing in this sector.

Conclusion

Investing in the defense sector can be an attractive opportunity given India’s growing global presence. The government’s “Make in India” initiative and rising defense budgets have strengthened the long-term growth prospects for the sector. Events like Operation Sindoor give a new twist to the sector, but investors should also understand the risks involved, such as market volatility and political uncertainties.

The sector certainly has growth potential, but it is important to understand government policies, defense contracts and the global security situation before investing. Adopting a balanced approach, where both opportunities and risks are properly evaluated, will be key to succeeding in the stock market. Moreover, it is advised to consult a financial advisor before investing.

Frequently Asked Questions (FAQs)

What is Operation Sindoor?
Operation Sindoor was a strategic attack launched by India on 7 May 2025, aimed at taking quick and effective action against terrorists.
Which are the top defence stocks to consider after Operation Sindoor?
Key defense stocks include BEL (Bharat Electronics Ltd.), HAL (Hindustan Aeronautics Ltd.), and BDL (Bharat Dynamics Ltd.). These companies have long-term growth potential.
Is it a good time to invest in defence stocks?
The defence sector has good growth potential due to record number of defence contracts in the past one year, but due to market volatility and external events, it is important for investors to assess the risk or consult a financial advisor before investing.
What factors should be considered before investing in defence stocks?
Before investing you should understand the company’s financial position, government policies, defense budget, and global security scenario.
Can defence stocks outperform other sectors in India?
The defense sector has growth potential, but it may be riskier than other sectors, especially during unstable global conditions.
What is the role of “Make in India” in the growth of defence stocks?
The “Make in India” initiative is promoting domestic defence production, which supports long-term growth for Indian defence companies.

May 8, 2025

Top 10 Best Trading YouTube Channels in India for 2025 | Learn Trading Free

If you are looking for YouTube channels offering valuable trading knowledge, then you are in the right place. Learning the art of trading from the best can provide you with all the insights you need in one place. YouTube has established itself as a valuable resource in the modern world, offering numerous trading channels.

In this blog, we’ll help you discover the best YouTube trading channels in India. Trading YouTube channels in India are helpful in learning not only basic concepts and trading psychology, but also advanced technical tools and concepts.

What is Trading YouTube Channels?

The best trading channels on YouTube cater to both beginners and experienced traders, allowing content to be consumed free of cost. However, there is an abundance of creators, making it a challenge for one to select a trading Youtube channel that is credible enough. These channels, along with many others, have managed to capture the attention of their audience by teaching valuable trading concepts, helpful for beginners and seasoned traders alike.

Top 10 Trading YouTube Channels

In the following table, you’ll find an overview of the best trading channels, their unique selling points, popular videos, and the ideal audience they cater to. Whether you’re interested in intraday trading, swing trading, or simply improving your market knowledge, these channels provide valuable resources to help you sharpen your trading skills.

Rank	Channel Name	Subscribers	USP (Unique Selling Point)	Popular Video	Ideal For
1	Pushkar Raj Thakur	13.9 Mn	Practical financial knowledge focused on stock market strategies	How to be Rich? Step – 1: 40 days Financial Transformation	Aspiring traders, Intraday traders, Beginners
2	Booming Bulls	2.68 Mn	Motivational trading journey + technical tutorials	How to learn trading?	Individuals looking to improve trading psychology and beginners
3	Finology with Pranjal	6.4 Mn	A combination of investing + technical trading	Stock Market For Beginners	How can Beginners Start Investing in Share Market
4	Ghanshyam Tech	1.55 Mn	Real time market evaluation and trade setups	Bank Nifty Forms Dragonfly Doji Pattern – Bank Nifty 15 min chart analysis	Hindi speakers with an interest in stock market
5	Trade With Trend	252K	Real-world market scenarios and data-driven explanations	Trend Trading for Beginners	Traders seeking in-depth analysis
6	Nitin Bhatia	1 Mn	Technical analysis, swing trading, personal finance	Best Intraday Trend Indicator	F&O strategists, traders, early starters
7	Marketfeed	515K	Mid-day and after-hours market assessments	Best & Easy Intraday Trading Strategy	People who actively pay attention to the market
8	CA Rachana Phadke Ranade	5.23 Mn	Trading concepts explained in an easy-to-understand manner	Basics of Stock Market for Beginners	Those who are new to stock trading
9	IITian Trader	1.18 Mn	Trading concepts explained with a focus on crypto markets	Options Trading – How to Start Options Trading Journey	Traders looking to learn more about crypto trading
10	Neeraj Joshi	4.28 Mn	His video commentary on real-time trading makes his teaching unique	Share Market basics for Beginners Crash Course	Day traders, swing traders

An overview of the top 10 Trading YouTube channels in India is given below:

1. Pushkar Raj Thakur: Stock Market Educator

Pushkar Raj is a leading trading YouTube channel in India with a subscriber base of 13.9 Mn. This channel gives us complete information about Stock market trading, investment strategies, and managing personal finances. Pushkar Raj, a Guinness World Record holder, is known for his motivational speaking and business coaching simultaneously focusing on empowering individuals in the finance domain.

USP: Practical financial knowledge focused on stock market strategies.

Popular Video: How to be Rich? Step – 1: 40 days Financial Transformation.

Ideal For: Aspiring traders, Intraday traders and beginners.

2. Booming Bulls

Motivational and educational trading content has earned Anish Singh Thakur a massive follower base of 2.68 Mn. His live webinars and organized lessons make it one of the best trading YouTube channels for students.

USP: Motivational trading journey + technical tutorials.

3. Finology with Pranjal

More of a long-term investor, but Pranjal does provide valuable trading insights and explains technical trading jargon with ease. His videos take a case-study approach making it easier to be understood by new aspiring traders. As of 7 May 2025, Finology has 6.4 Mn subscribers

USP: A combination of investing + technical trading.

Popular Video: Stock Market For Beginners | How can Beginners Start Investing in Share Market

Ideal For: Investors trying to learn trading.

4. Ghanshyam Tech

This channel educates its subscribers on stock market trading, trade setups and market conditions that primarily focuses on Bank Nifty & Nifty options trading strategies. This channel focuses on offering knowledge to both newbies and advanced traders and has a subscriber base of 1.55 Mn.

USP: Real time market evaluation and trade setups.

Popular Video: Bank Nifty Forms Dragonfly Doji Pattern – Bank Nifty 15 min chart analysis

Optimal For: Hindi speakers with an interest in the stock market.

5. Trade With Trend

This channel offers in depth tutorials on technical as well as fundamentals of trading. The channel is detail – oriented towards momentum and swing trading, trading strategies, risk mitigation techniques & much more. It has a large follower base of 252K subscribers.

USP: Real-world market scenarios and data driven explanations.

Popular Video: Trend Trading for Beginners.

Optimal For: Traders seeking in-depth analysis.

6. Nitin Bhatia

Nitin Bhatia’s channel contains a blend of information related to market psychology, derivatives, and various trading setups, giving you in-depth knowledge on core trading concepts. The channel has a large subscriber base of 1 million.

USP: Information related to technical analysis, swing trading, and personal finance.

Popular Video: Best Intraday Trend Indicator.

Optimal For: F&O strategists, traders and early starters.

7. Marketfeed

Marketfeed’s founder, Sharique, offers aspiring traders extensive daily updates with technical analysis of the market. This channel helps in simplifying complex trading topics, with a subscriber base of 515K followers and is amongst the top 10 youtube trading channels in India.

USP: Mid-day and after-hours market assessments.

Popular Video: Best & Easy Intraday Trading Strategy

Ideal For: People who actively pay attention to the market.

8. CA Rachana Phadke Ranade

Through her YouTube channel, CA Rachna Phadke Ranade offers a range of content aimed at both beginners and seasoned investors, covering topics such as technical and fundamental analysis, options trading, and market trends. Her teaching style is characterized by clarity and practicality, making complex financial topics accessible to a broad audience. This is counted amongst the best youtube channels in India with 5.23 Mn subscribers.

USP: Trading concepts are explained in an easy-to -understand manner.

Popular Video: Basics of Stock Market for Beginners

Who Is This Video Suited For: Those who are new to stock trading.

9. IITian Trader

IITian Trader, run by Saurabh Maurya, an IIT-BHU graduate, is a YouTube channel offering practical lessons on trading, covering options, intraday strategies, and technical analysis for beginners and experienced traders alike. The YouTube channel has a subscriber base of 1.18 Mn.

USP: Trading concepts are explained with a focus on crypto markets.

Popular Video: Options Trading – How to Start Options Trading Journey

Who Is This Video Suited For: Traders looking to learn more about crypto trading.

10. Neeraj Joshi

Neeraj Joshi offers a clear knowledge about the stock market investing and exceptional trading strategies, transforming complicated concepts into simple lessons making it available for a broader audience. This channel has a subscriber base of 4.28 Mn.

USP : His Video Commentary On Real Time Trading Makes His Teaching Unique.

Popular Video: Share Market basics for Beginners Crash Course.

Who Is This Video Suited For: Day traders, swing traders, etc.

Factors To Keep In Mind Before Watching

Before subscribing, following, or taking suggestions from these trading YouTube channels, make sure you consider the following factors :

Consistency: Are they posting videos related to trading regularly?

Honesty: Do they show genuine trades and openly discuss losing trades, too?

Experience: Check their background, credentials, and professional profiles.

Community Feedback: Analyze comments and community discussion around the video.

Separating Paid and Free Content: Are they genuinely providing information free of cost or teaching basic concepts for selling paid courses or services?

Content Depth: Are the concepts explained in a simple and straightforward manner with detailed step-by-step explanations or not?

Advantages & Disadvantages of Trading YouTube Channels

Advantages

Choosing to trade on your own can be a stressful task, especially if you are a beginner. However, YouTube is an excellent source of information. Let us look at the major advantages of trading YouTube channels in India.

1. No Charges For Quality Education : You can understand how the market functions without spending thousands on a course. Channels like CA Rachana Ranade and Booming Bulls teach the fundamentals of candlestick patterns, price action, and intraday setups to beginners, free of cost.

Great flexibility and convenience for students and working professionals
Perfect for individuals looking for free resources
Trainers are SEBI-registered professionals and genuine traders

2. Learning As Per Your Schedule : Through YouTube, you can acquire knowledge at your convenience. Whether it’s during lunch break, at night, or during any breaks, you can always have the right things to study.

Replay until you get it right
Remove the stress that comes from following a live batch or fixed schedule
Have the freedom to customize your learning path through a selection of videos

3. Exposure to Diverse Trading Styles : Each trader has a different strategy. While some focus on intraday trading, others may focus on mastering swing trading. Best trading YouTube channels have something for each type of trader.

Helps you identify which strategy best aligns with your trading style
Both discretionary and systematic trading are taught
Learn what works during different market scenarios

4. Real-Time Market Examples : Many creators stream their screens and explain live trades. Watching setups unfold in real markets provides much more value compared to textbook learning.

Learn how traders respond to varying volatility
Position sizing and stop-loss placement along with trading strategies are taught
Understand the decision-making process in fast-paced markets

5. Community Interaction and Engagement : These channels have comment sections, live Q&As, and related telegram groups. In these communities, you can ask doubts or share your findings, and enhance your trading knowledge.

Communities help in collective learning.
Live Q&A’s help the audience connect with the educator promptly and resolve their doubts immediately.
Support from other traders keeps you motivated.

Disadvantages

Youtube is a great platform but it does have its’ cons. Here are some practical drawbacks you should consider before exclusively depending on learning trading through YouTube trading channels:

1. Content Overload : With thousands of videos available, one can easily fall into the trap of just consuming content without actually implementing anything strategically.

Unstructured information creates disorientation and stagnation in following the content.
Beginners may be exposed to contrasting strategies that are executed in conflicting ways by different educators.

2. Absence of Personal Guiding and Mentoring : You get no feedback on your trades, negative trades can hamper mindset and give rise to doubts.

No feedback leads to no improvement.
Repeatedly executing trades based on flawed trading approach and strategy.
Difficult to navigate content designed around individual’s trading preference

3. Not All Creators Are Certified And Experienced: While popular creators are reliable, there are a lot of content creators on YouTue that don’t have the required knowledge or expertise to teach complex stock market concepts.

There is a minimal regulatory oversight on the content creators with a smaller subscriber base.
There are no frameworks guaranteeing the authenticity of claims.
Many creators only show successful trades, which gives aspiring traders an unrealistic expectation.

4. Aggressive Sales Tactics : Some channels prioritize selling over educating, pushing their courses and tools for purchase in every video while offering little educational value through their “free” content.

More focus on selling their paid course.
Guidance offered without genuine marketing intent is hard to identify for a new trader.
Purchasing expensive courses impulsively can result in financial losses.

5. Market Dependency : Strategies for a bullish market might fail miserably in a sideways or bearish market. Trending YouTube videos can omit disclaimers like these.

Implementation of specific strategy without regard to changing market conditions is a common mistake that can cause significant losses.
Trading on market information already factored in can hamper your trading results.

Conclusion

YouTube has proven to be a great tool for individuals looking to learn about trading concepts from India’s top educators. Each of the top 10 trading YouTube channels has something different and unique to offer. Finding the right mentor comes down to identifying the individual whose approach aligns with your learning preferences and trading style. Don’t just learn; put your skills to the test, and your trading performance will enhance over time. If you are into intraday trading, swing trading, or positional trading, there is a mentor for you waiting on YouTube.

Take note: Learning is free, but exercising self-discipline requires sustained effort. Make your choices wisely and trade smart!

Frequently Asked Questions (FAQs)

Which are the best YouTube channels in India to learn trading for free?
YouTube channels such as Nitin Bhatia, Booming Bulls, IITian Trader can be relied on for your trading journey. These channels cover everything from price action, psychology, and intraday setups to technical indicators and F&O strategies.
How do I choose the right trading YouTube channel for myself?
One should find a channel that suits their learning requirement. Beginners shall prefer Neeraj Joshi as he teaches trading in a structured manner, from basics to advance, while advanced traders shall follow channels like Nitin Bhatia as they deal in technical aspects of market and trades.
Are all trading YouTube channels reliable?
Not necessarily. Most of the channels tend to give genuine guidance, but some of them may alter their approach just to gain followers or sell their paid online courses. One should follow creators that are SEBI-registered and have trading experience.
Can I become a successful trader just by watching YouTube videos?
YouTube can be a great source of learning, but trading requires knowledge, self-discipline, risk management, and dedication to master.
What are the risks of relying solely on YouTube for trading education?
Countless videos, lack of personal guidance, copy trading without understanding the basics, and being influenced by overly optimistic portrayals of trading success are some risks that you should keep in mind.

May 7, 2025

Devyani International Vs Sapphire Foods – Which is Better?

Fast food has become a huge part of our daily lives, whether it’s a quick lunch at KFC, a pizza party at Pizza Hut with friends, or a cheeky Taco Bell run. But have you ever wondered who runs all these popular chains in India?

That’s where Devyani International and Sapphire Foods come in. These two companies are the powerhouses behind your favourite quick-service restaurants, operating hundreds of outlets across India and even overseas.

In this blog, we’ll break down who they are, how they got started, and how they stack up against each other financially. Think of it as a behind-the-scenes look at the business of burgers, pizzas, and beyond!

Devyani International – An Overview

Devyani International Ltd. (DIL) is one of the biggest names in India’s quick service restaurant (QSR) space. If you’ve ever grabbed a bite from KFC, Pizza Hut, or Taco Bell in India, chances are it was operated by them! They’re one of the largest franchisees of Yum! Brands in the country and also run some homegrown food brands like Vaango, The Food Street, and Masala Twist.

A Quick Look at Their Journey

Started in 1991, Devyani International is part of the RJ Corp Group, headed by Ravi Jaipuria, a major player in the food and beverages industry.
They teamed up with Yum! Brands early on, bringing Pizza Hut and later KFC to Indian diners.
In 2011, they launched Vaango, their own South Indian vegetarian restaurant chain.
Over the years, they expanded outside India too, you’ll find their outlets in Nepal and Nigeria.

Currently, the company operates 941 KFC restaurants, 572 Pizza Hut outlets and 179 Costa Coffee stores in India.
In 2021, they went public with a highly successful IPO, and their shares were listed on the NSE and BSE.
Since then, they’ve been growing fast, opening new outlets in big cities and small towns alike, and putting a lot of focus on online orders and delivery.

Sapphire Foods – Overview

Sapphire Foods is one of the big names behind some of your favourite quick-service restaurants in India and nearby countries. They run a large number of KFC, Pizza Hut, and Taco Bell outlets across India, Sri Lanka, and the Maldives. So, if you’ve ever enjoyed a crispy bucket of chicken or a cheesy slice of pizza, there’s a good chance Sapphire Foods was behind it.

A Quick Look at Their Journey

The company was initially incorporated as Samarjit Advisors Pvt. Ltd in 2009, but was later renamed as Sapphire Foods in 2015.
In 2015, the company made a big move by acquiring over 270 KFC and Pizza Hut stores in India and Sri Lanka.
Since then, they’ve grown fast, opening restaurants in more than 106 cities and spreading to places like Sri Lanka and the Maldives too.

Currently, the company operates 429 KFC restaurants and 319 Pizza Hut outlets in India.
In 2021, they went public, and their shares were listed on the Indian stock markets.

Comparative Study: Devyani International vs. Sapphire Foods

Particulars	Devyani International	Sapphire Foods
Current Price	₹177	₹316
Market Capitalization (₹ Crores)	21,351	10,167
52-Week High	₹223	₹401
52-Week Low	₹130	₹242
FII Holdings as of March 2025	10.46%	30.42%
DII Holdings (as of March 2025)	16.87%	38.51%
Book Value	₹9.66	₹42.4
PE Ratio	1,592	413

(Data as of 6 May 2025)

Financial Statements Comparison of Devyani International and Sapphire Foods

Income Statement

Particulars	Devyani International	Sapphire Foods
Total Income	3,588	2,627
Total Expenditure	3,398	2,456
EBIT	190	170
Net Profit	-9	51

(All the values are in INR crores unless stated otherwise)

Balance Sheet

Particulars	Devyani International	Sapphire Foods
Current Liabilities	911	444
Non-Current Liabilities	2,673	1,056
Current Assets	486	363
Non-Current Assets	4,446	2,477
Equity Share Capital	120	64
Reserves & Surplus	910	1,275

(All the values are in INR crores unless stated otherwise)

Cash Flow Statements

Particulars	Devyani International	Sapphire Foods
Cash Flow from Operating Activities	592	448
Cash Flow from Investing Activities	-1,550	-186
Cash Flow from Financing Activities	889	-212

(All the values are in INR crores unless stated otherwise)

Key Performance Indicators (KPIs)

Particulars	Devyani International	Sapphire Foods
Basic EPS (₹)	0.39	8.30
Operating Profit Margin (%)	8.27	6.58
Net Profit Margin (%)	-0.27	2
Return on Equity (%)	4.48	3.94
Return on Capital Employed (%)	7.31	7.13
Debt-to-Equity (x)	0.86	0.02

Devyani International vs Sapphire Foods: Which Company is Better?

Honestly, it depends on what you’re looking at.

If we’re talking size and revenues, Devyani International definitely has the edge. It runs more outlets, makes more money, and has a few extra brands under its belt. It’s also been in the game longer, which shows in its wider reach and stronger numbers. However, the business reported a net loss in March 2024.

But Sapphire Foods isn’t far behind. It’s growing steadily, runs high-performing outlets, and has a solid presence in international markets like Sri Lanka and the Maldives. It seems to focus more on quality over quantity and is playing the long game.

So, is one better than the other?

Devyani is winning on scale and operating margins, and Sapphire has a significantly higher EPS. It is hard to pick one as both companies have long-term potential if you’re betting on India’s growing appetite for fast food.

Inference:

Devyani operates more outlets across countries, which reflects in its higher revenue.
Sapphire is more focused on efficiency and operates stores in select international markets like Sri Lanka and the Maldives.
Devyani International posted a net loss of ₹9 crores in March 2024, in contrast to a net profit of ₹51 crores for Sapphire Foods.
Both companies are strong franchise operators for Yum! Brands, but Devyani also operates some in-house brands, which gives the company more diversification.

Based on the above information, deciding between the two companies for investment can be a tough decision and it is advised to consult a financial advisor before investing.

Conclusion

Both Devyani International and Sapphire Foods are doing a great job serving millions of customers across India and beyond. While Devyani is ahead in terms of revenues and number of outlets, Sapphire is playing it smart with a focus on growth and efficient operations.

At the end of the day, whether you’re grabbing a crispy KFC bucket or biting into a cheesy Pizza Hut slice, you’re enjoying the results of two well-run companies working hard behind the scenes. So next time you’re at one of these places, you’ll know a bit more about the business that’s serving you. When it comes to selecting between the two, it can be a tricky decision and it is advised to consult a financial advisor before investing.

Frequently Asked Questions (FAQs)

Who owns Devyani International?
It’s part of the RJ Corp group, which is headed by Ravi Jaipuria, a well-known name in the food and beverage world.
Devyani International vs Sapphire Foods: Which company is bigger?
Devyani International is ahead right now since it has more outlets, more revenue, and a higher market capitalization.
Do Devyani International and Sapphire Foods operate outside India too?
Yes! Devyani has a presence in Nepal and Nigeria, while Sapphire is active in Sri Lanka and the Maldives.
Who has more stores in India?
Devyani International, by a good margin. They are operating over 1,600 outlets, while Sapphire has around 700 outlets.
How can I invest in Devyani International and Sapphire Foods?
Both companies are listed and available for retail investors to invest if you’re interested in the food and QSR space. But do not forget to consult your financial expert before making any investment decision.

May 7, 2025

HUF Demat Account: Benefits, Documents & How to Open

Many families in India still follow the tradition of the joint family, where several generations live together in the same house. Such a family structure is legally called HUF (Hindu Undivided Family). HUF is a recognized entity, which is separately recognized by the Income Tax Act of India (Income Tax Act, 1961). This entity has a head member, called Karta, and the rest of the members are coparceners.

When the money and property of the entire family have to be invested in stock market, mutual funds, or IPO, then a Demat account must be opened in the name of HUF, i.e. a separate HUF Demat account, to manage the joint property of the family. In this blog, we will give you the complete information about the HUF Demat account, its benefits and how it is different from an individual Demat account.

What is a HUF Demat Account?

HUF (Hindu Undivided Family) is a traditional Indian family structure, which is given a separate legal identity under the Indian Income Tax Act. It can be formed not only by Hindus but also by Sikh, Jain, and Buddhist families. HUF is headed by Karta, who is the eldest male member of the family. The rest of the members, called coparceners, are also members of HUF and have rights in the property.

A special feature of HUF is that it has its own PAN card, bank account, and tax returns, due to which it is considered a separate financial entity. The advantage of this is that the family can take advantage of separate tax limits and make collective investments by opening an HUF account.

If you have a joint family, then opening an HUF account can be a wise move for your financial future.

Documents Required to Open an HUF Demat Account

If you want to open a Demat account in the name of HUF (Hindu Undivided Family), then it is very important to keep some important documents ready in advance. There may be some variation in the documents on KYC status, citizenship of the Karta (NRI or resident), and who the members are.

The list of documents required is as follows:

HUF Declaration containing details of Karta and all coparceners
Copy of PAN card of both HUF and Karta
Valid address proof
Bank statement or cancelled cheque linked to the bank account of HUF
Income proof like ITR, passbook, or net worth certificate
NOC and declaration from other coparceners if Karta is female
Non-Individual Declaration Form (provided by broker)

If Karta is an NRI, passport, visa, and FATCA and FEMA forms will also be required.

Benefits of Opening a HUF Demat Account

If you have a joint family and want to invest together, a HUF Demat Account is a great option for you. It has several benefits:

Separate tax identity : The HUF has its own PAN and files a separate tax return, which can help the family get additional tax benefits.
Shared investments : The entire family’s capital can be invested in one place, making wealth creation and management easier.
Investments in IPOs, mutual funds, and stock markets : In the name of the HUF, you can invest in all these financial instruments, just like an individual would.

This type of account not only helps in tax planning but also keeps the family’s collective wealth organized.

How to Open a HUF Demat Account?

You can easily open a HUF Demat Account by following the steps mentioned below:

1. Select a stockbroker : Choose a SEBI-registered stockbroker that offers HUF Demat Account opening, such as Pocketful.

2. Collect the required documents : The following documents are required to open an HUF Demat Account:

PAN card of the HUF
PAN card and identity proof of the Karta (e.g., Aadhaar card, passport)
Address proof of the HUF (e.g., bank statement)
HUF declaration deed containing details of the Karta and members
Proof of the bank account of the HUF (e.g., cancelled cheque)
KYC form and other required documents

3. Fill the application form and submit documents :

Get the application form from the stockbroker’s portal or office, fill it with the correct information, and attach the required documents.

4. Verification of documents and account activation : The stockbroker will verify the documents submitted by you. Once the verification is complete, your HUF Demat Account will be activated.

Difference Between HUF Demat Account and Individual Demat Account

Both HUF Demat accounts and individual Demat accounts are used for investing in the stock market, but there are several key differences in their structure, operation, and tax treatment. The HUF account is managed by a joint family and is operated by the head of the family, i.e., Karta, while the individual account is in the name of a single person and is controlled by the account holder.

Understand the key differences through the table below:

Feature	HUF Demat Account	Individual Demat Account
Ownership	Entire family (HUF)	Single individual
PAN Card	In the name of the HUF	In the name of the individual
Operation	Managed by the Karta	Managed by the account holder
Tax Filing	Filed separately under HUF	Included in individual’s ITR
Nominee Facility	Not available	Available

HUF Demat Account is for collective investment, while Individual Demat Account is for individual investment. HUF account makes collective investment and tax planning of the family easier.

Important Things to Consider Before Opening a HUF Demat Account

Opening a HUF (Hindu Undivided Family) Demat Account is a responsible investment decision. Before opening it, it is important to pay attention to some important points:

Follow SEBI guidelines: Every brokerage firm considers the KYC and IPV (In-Person Verification) process prescribed by SEBI mandatory. It is necessary to provide correct information about Karta and the Coparceners.
Nominee facility is not available: Nominees cannot be added in a HUF account because HUF is a legal entity and not a person. In such a situation, after the death of Karta, a legal process is adopted to decide the successor.
Be aware of the charges: Every brokerage firm has different AMCs (Annual Maintenance Charges), brokerage fees, and other transaction charges. Get clear information about the pricing structure before opening the HUF account.
Update Karta changes in time: If the Karta of the HUF changes in the future (such as through death or resignation), immediately inform the brokerage about the new Karta and get the required documents updated.
Understand tax and compliance rules: HUF is considered a separate tax entity. Hence, its filings, investment gains, and other financial documents have to be maintained separately.

If all these things are understood beforehand, then the HUF account can be run smoothly, legally and safely for a long time.

Common issues while opening an HUF account and their solutions

Many people face some common issues while opening an HUF Demat account, such as documentation ambiguity, delays due to incorrect KYC, etc. Also, there may be a confusion about taxation and the validity of HUF.

All these problems can now be solved easily.

Pocketful, India’s trusted stock brokerage platform, guides you through the entire process from documentation to KYC clearance and tax advice. Our team supports you at every step to ensure that your HUF account is opened without any hassle.

Conclusion

HUF Demat Account is an effective way to manage a family investment structure in a professional and legal manner. It not only brings transparency in the distribution of assets but also helps in planning for tax benefits. While the process can be somewhat document-intensive and technical, it can be managed seamlessly if followed with the right guidelines and expert support. From the point of view of financial discipline and long-term planning, an HUF account is an important tool, especially for families who wish to invest jointly and plan property succession in a planned manner.

Frequently Asked Questions (FAQs)

Can a HUF apply for an IPO?
Yes, HUF can apply for IPO in its own name, provided it has an active Demat and Trading account.
Is nominee addition allowed in a HUF Demat account?
No, there is no facility to add a nominee in a HUF account as it is a non-individual entity.
What happens to the HUF account if Karta dies?
After the demise of the Karta, the most senior surviving Coparcener is appointed as the new Karta, and the account is updated with the required documents.
Can coparceners operate the account?
No, only the Karta has the right to operate the HUF Demat account; coparceners do not have this right.
Can a HUF invest in mutual funds?
Yes, HUF can invest in mutual funds in its own name, provided all the required documentation and KYC process is complete.
Can a female become the Karta of a HUF?
Yes, a woman can become a Karta if she is the most senior Coparcener.
Can a husband, wife, and child open a HUF Demat account?
Yes, husband will be the Karta, child will be the Coparcener, and wife will join as a member.
Can a HUF have multiple Demat accounts?
No, a HUF can have only one Demat account.
What documents are required to open a HUF Demat account?
PAN card, address proof, HUF declaration, bank statement, and KYC documents of all coparceners are required.

May 5, 2025

Investing in Water-Related Stocks in India: Top 10 Picks for 2025

Water is indispensable for human survival and essential for sustaining economic growth. Rising industrial activities and changing weather patterns have made efficient water management now more important than ever. But have you heard about listed companies that are involved in wastewater management and associated processes?

Water-related stocks are gaining growing attention from investors who are not only seeking strong returns but also aiming to make a meaningful environmental impact. In this blog, we will analyze the top 10 water-related companies in India and their performance so as to effectively guide your investment decisions.

What are Water Stocks?

Water-related stocks represent the companies that are involved in various activities concerning water, such as:

Water treatment
Construction of water distribution systems (such as pipes and water storage, dams, and reservoirs).
Pumps, valves and other water control mechanisms.
Managing wastewater.
Desalination.

Investing in these shares can offer substantial long-term returns while supporting water availability and quality, aligning both economic and ecological interests.

Here’s a curated list of the top 10 water-related stocks in India for 2025 based on market capitalization:

Company Name	Current Market Price (₹)	Market Capitalization (₹ Crores)	52 Week High (₹)	52 Week Low (₹)
Thermax Ltd	3,291	39,218	5,840	2,930
Welspun Corp Ltd	768	20,202	900	440
Shakti Pumps (India) Ltd	841	10,107	1,398	329
Praj Industries Ltd	461	8,479	875	452
Va Tech Wabag Ltd.	1,285	7,992	1,944	820
Ion Exchange (India) Ltd	499	7,320	768	401
Jash Engineering Ltd	564	3,542	699	376
EMS Ltd	598	3,321	1,017	392
Indian Hume Pipe Company Ltd	381	2,009	614	250
Felix Industries Ltd	159	218	455	108

(Data as of 1 May 2025)

An overview of the top 10 water-related stocks in India is:

1. Thermax Ltd

Thermax is headquartered in Pune; their services include water treatment, wastewater recycling, liquid waste elimination (zero liquid discharge), and desalination through their plants, which are equipped with the latest technologies. This company also designs, builds and commissions large boilers for steam and power generation, turnkey power plants and waste heat recovery systems. This company sets itself apart in the market through innovation and overcoming challenges related to the sustainability of clean water sources, resulting in an increased demand for its services.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-30.84%	53.33%	360.41%

(Data as of 2 May 2025)

2. Welspun Corp Ltd

As a primary supplier of large diameter pipes, The Welspun Group is engaged in water transportation projects within the country and abroad. The company’s product lines include SAWL, SAWH, HFW pipes, and ductile iron pipes, which are used in the oil & gas and water industries. Through its excellent quality and innovative products, Welspun ensures dependable infrastructure for the water distribution systems.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
34.50%	276.03%	1,096.77%

(Data as of 2 May 2025)

3. Shakti Pumps (India) Ltd

Shakti Pumps is a well-known manufacturer of energy-efficient pumps specializing in solar-powered and electric pumps. The company also provides submersible, solar, and pressure booster pump systems for agricultural, industrial, and domestic use. Shakti Pumps’ renewable energy initiatives further support India’s sustainable water management goals.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
144.06%	865.30%	3,072.45%

(Data as of 2 May 2025)

4. Praj Industries Ltd

From its outset, Praj Industries has been involved in bioenergy generation and water treatment, specializing in wastewater treatment and zero liquid discharge (ZLD) systems. The company designs ZLD systems utilizing multiple methods, including recycling, reuse, evaporation, and crystallization. Praj’s emphasis on sustainable water management practices corresponds with the growing concern for the environment and the efficient treatment of wastewater.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-17.09%	12.16%	671.53%

(Data as of 2 May 2025)

5. Va Tech Wabag Ltd

Va Tech Wabag is one of the few companies worldwide with expertise in transforming seawater into condensed reusable water via treatment plants. This company has operations in more than 63 countries with over 6,500 projects spanning across the globe, serving over 88 million people.

Wabag focuses on municipal and industrial water treatment using energy-neutral wastewater treatment plants and advanced desalination technologies. Their commitment to sustainable water management strengthens their position in the global context.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
35.54%	359.87%	968.40%

(Data as of 2 May 2025)

6. Ion Exchange (India) Ltd

Ion Exchange is a pioneer in the water treatment industry, providing services that include water purification as well as wastewater treatment. The company has an impressive international presence and has provided services for numerous sectors for more than 60 years. Ion Exchange is known for its focus on technological innovations as well as environmentally sustainable practices. Their sharp focus ensures effective and eco-friendly water management.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-10.20%	204.88%	-72.85%

(Data as of 2 May 2025)

7. Jash Engineering Ltd

Jash Engineering focuses on manufacturing of water control gates and valves for water treatment plants, irrigation systems, and hydropower plants. The company has five modernized manufacturing plants that produce penstocks, flap gates, and knife gate valves. Jash Engineering has clients in over 45 countries due to their constant quality services and products and innovative engineering.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
41.81%	335.27%	2,722.27%

(Data as of 2 May 2025)

8. EMS Ltd

EMS Ltd initially focused on providing wastewater treatment, which broadened to sewage treatment and solid waste management. The company designs and constructs water supply and sewerage systems including construction of pressure pipeline networks, water treatment plants, and reservoirs. EMS’s innovative solutions effectively balances the growing need of urban infrastructure needs with sustainability.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
29.93%	110.25%	110.25%

(Data as of 2 May 2025)

9. Indian Hume Pipe Company Ltd

Indian Hume Pipe Company (IHPL) has specialized in manufacturing and supply of pipelines for water supply and irrigation since 1926. IHPL has contributed significantly in the water sector by completing numerous water and sewerage projects all over India, and has played an integral role in facilitating efficient water supply systems throughout the nation. They are widely regarded as the one of the most dependable companies in India manufacturing reliable infrastructure and maintaining quality standards.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
42.35%	113.61%	142.13%

(Data as of 2 May 2025)

10. Felix Industries Ltd

Focusing on wastewater recycling, Felix Industries offers complete wastewater solutions inclusive of effluent treatment and recycling. The company has undertaken more than 100 sustainable development projects in India and the UAE, which have helped in conservation of the environment. Industrial wastewater recycling by Felix Industries is attuned to the strategies to sustain freshwater resources.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-56.87%	805.56%	1,258.33%

(Data as of 2 May 2025)

Key Performance Indicators (KPI)

Company Name	Diluted EPS (₹)	Operating Margin (%)	ROE (%)	ROCE (%)
Thermax Ltd	57.28	9.45	14.53	16.24
Welspun Corp Ltd	42.32	8.39	19.83	18.49
Shakti Pumps (India) Ltd	76.91	15.27	18.75	27.35
Praj Industries Ltd	15.42	11.17	22.23	26.96
Va Tech Wabag Ltd.	39.49	14.37	13.50	16.97
Ion Exchange (India) Ltd	165.34	11.90	19.25	23.47
Jash Engineering Ltd	54.55	18.30	19.01	25.32
EMS Ltd	29.38	26.85	19.10	25.18
Indian Hume Pipe Company Ltd	15.00	12.05	9.36	18.36
Felix Industries Ltd	5.77	20.02	7.60	10.61

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

Before you invest in water-related stocks in India, there are a few factors you must consider for making an informed investment decision:

Government Policies on Infrastructure Development: The Government of India has put in place favorable policies like the Jal Jeevan Mission, Namami Gange, and Smart City initiatives that benefit companies through developing water infrastructure projects. Not only do these policies cater to the long-term water requirements, but they also ensure project funding.
The Core Business of the Company and Diversification Level: Companies only involved in niche operations stand to gain high returns if the sector expands, but have more sector-specific risks. On the other hand, profits of diversified companies, with multiple business segments, experience low volatility during economic slowdowns, but also deliver slow returns.
Order Book and Revenue Pipeline: The completion of the order book for Indian Hume Pipe and Jash Engineering is strongly dependent on their future earnings and funding from government and private sectors. Tracking timelines is equally critical as an unanticipated cancellation of the project or execution delays can impact profitability.
Technological Edge and Innovation: More R&D spending in water treatment and recycling technologies such as smarter pumping and zero-liquid discharge systems is required for better scalability & margin growth.
Export Capabilities and Global Presence: An Increase in exports operations provides more shield against domestic slowdowns which in turn adds stability. Additionally, contracts from other countries are often more profitable if the foreign currency appreciates.
Environment, Social, and Governance (ESG) Focus: Some investors believe in impact investing and constantly search for companies with operations addressing ESG issues. Companies focused on the areas of wastewater recycling, industrial effluent treatment, and green energy solutions will likely benefit from ESG portfolio shifts.
Financial Ratios and Balance Sheet Strength: Evaluating a firm’s health before investing is prudent. One should assess the

Debt-to-equity ratio – lower is better,
Profit margins, Return on Equity (RoE),
Revenue growth consistency over a period of 3 to 5 years.

Advantages

Water Related Stocks have a Good Growth Potential: Water is a critical resource, especially in metropolitan and urban regions, where the demand for the resource is expected to rise substantially in the years to come. Companies such as Va Tech Wabag and Ion Exchange are strategically positioned to meet this long-term demand, showing potential growth opportunities.
Government Funding of Water Projects: Initiatives such as Jal Jeevan Mission and Smart Cities Program are positively working toward funding the water industry.
Sustainability Focus: With the rapid growth in ESG investing, companies related to water naturally fit within ESG frameworks making them sustainable for the future.
Export Opportunities: Several of these companies, such as Ion Exchange and Thermax, have an international presence which lessens reliance on domestic markets. A diversified clientele provides additional strength during periods of economic slowdowns.

Disadvantages

High Capital Expenditure: Establishing pumping stations or water treatment plants incurs high capital costs, which might affect cash flows of smaller companies like Felix Industries during slow-growth phases.
Regulatory Hurdles: Strict regulations often create operational challenges due to compliance concerns and impact project timelines.
Market Volatility: Some water-related stocks are very volatile, especially small-cap companies like EMS Ltd or Jash Engineering. Conservative investors may consider it risky to have their portfolios tied up in equities that have higher price fluctuations than established blue-chip stocks.
Technology Obsolescence: Failure to invest in the latest solutions can erode a company’s competitive edge. Without innovation in a fast-changing industry, profitability and investor confidence wanes over time.

Conclusion

In India’s infrastructure and sustainable development narrative, water emerges as the next key area of focus. In light of growing environmental concerns and public spending, water equities in India become more pertinent than ever in 2025.

For those willing to invest in water-related stocks in India, the Pocketful offers you the facility to buy these shares through their easy to use stock market mobile application.

Frequently Asked Questions (FAQs)

What companies constitute water-related stocks, and what is the reason for their prominence in 2025?
Water-related stocks refer to companies that deal with the treatment, distribution, storage, or management of water resources. In 2025, these stocks are gaining prominence due to the private sector’s growing involvement and concern about water scarcity, along with government initiatives like Jal Jeevan Mission.
Which sectors fall under the water investment theme in India?
Core sectors comprise water infrastructure (pipelines, pumps, valves), water treatment (purification, extraction, secondary wastewater treatment), utilities (urban water supply), and industrial services (EPC firms executing water projects).
Identify the most prominent companies in India that deal with water?
Prominent companies are VA Tech Wabag (wastewater treatment and desalination), Ion Exchange (India) Ltd. (water treatment solutions), Engineers India Ltd. (EPC services in water projects), Thermax Ltd. (water and wastewater treatment), Tata Projects / L&T (water infra through EPC contracts).
What initiatives by the government are augmenting growth in this field?
Jal Jeevan Mission, Namami Gange, Smart Cities Mission, and similar flagship schemes are launched by the Government to expand water infrastructure and support water treatment companies.
What are the challenges related to investing in water-related stocks?
Some challenges are project delays because of regulations, too much dependence on government contracts, decreasing profit margins on EPC projects, and scalability limitations in specialized areas.

May 1, 2025

Ather Energy Case Study: Business Model, Financials, and SWOT Analysis

Ather Energy offers modern electric scooters that come with advanced technology to attract customers looking for sustainable and smart mobility solutions. From their eye-catching design to advanced features and the growing network of charging stations, Ather is a name that’s gaining popularity in the EV space.

In this blog, we will learn about how they’re revolutionizing the EV space and their strengths. Furthermore, we will analyze their business model, risks, and the marketing strategy they use to keep their customer base growing.

Ather Energy: An Overview

Ather Energy is an Indian startup that’s reimagining what electric scooters can be. They’re not just building EVs, but are making them smart, stylish, and internet-connected two-wheelers that are fun to ride and good for the planet. From the sleek design to the technology-packed dashboard and even their charging network (called Ather Grid), they’ve built everything in-house with a clear focus on quality and user experience.

Their scooters, such as the Ather 450S, 450X, and the high-performance 450 Apex, have a futuristic design, great performance, and make city commutes easy and convenient.

A Brief History

A brief history of the Ather Energy is given below:

2013: Ather was started by two IIT Madras graduates, Tarun Mehta and Swapnil Jain, who wanted to build India’s first truly smart electric scooter. It was a forward-thinking idea, as EVs are eco-friendly, but they hadn’t gained popularity at the time.

2014–2015: After getting support from IIT Madras and early investors (including Flipkart’s founders), Ather started to pick up steam. Hero MotoCorp also came on board, giving them a strong boost.

2018: After years of research and hard work, Ather launched its first scooters, the Ather 340 and Ather 450, in Bangalore. These weren’t your average scooters as they had touchscreen dashboards, onboard navigation, and were connected to the cloud, which attracted people’s attention.

2020: Enters the Ather 450X: faster, smarter, and more powerful. Ather began expanding beyond Bangalore and brought its scooters to other cities across India.

2021–2023: Ather kept growing, opening new showrooms (they call them “Experience Centres”) and expanding their charging network. They also rolled out Over-The-Air (OTA) software updates for your scooter, just like your smartphone.

At its core, Ather is all about changing the way we move. They’re building electric scooters that people want to ride, not just because they’re sustainable, but because they’re fun, fast, and packed with tech. It’s the kind of company that’s not just thinking about the next scooter; instead, they’re thinking about the future of commuting.

Business Model of Ather Energy

The business model of Ather Energy can be summarized in the following 5 points:

1. Direct Sales of Smart Electric Scooters

This is the core of their business. Ather designs and manufactures electric scooters like the 450S, 450X, and 450 Apex, and sells them through:

Company-owned Experience Centres
Franchise-owned retail outlets
Online platform (you can book a test ride or buy directly)

They focus on premium, technology-heavy scooters that attract urban commuters who want performance and sustainability in one.

2. Ather Grid – Charging Infrastructure

Ather has built its public charging network called Ather Grid, which is available in multiple cities. It was free to use initially, but currently Ather charges ₹1/min + GST. This helps support not just Ather owners, but eventually the wider EV community too.

3. Subscriptions & Services

Ather offers monthly plans for smart features on its scooters, including:

Navigation
Remote diagnostics
Ride statistics
OTA (Over-the-Air) software updates
Ather Connect app access

These plans range from basic to pro-level, giving users a choice and recurring revenue for the company.

4. After-Sales & Servicing

They run a strong after-sales network with doorstep service options and maintenance plans. Customers can sign up for;

Annual service packages
Extended warranty
Roadside assistance

5. Strategic Partnerships & B2B Opportunities

Ather also explores:

Partnerships with corporates, delivery fleets, and tech platforms
Collaborations with governments for EV adoption incentives
EV financing and insurance tie-ups through third parties

Marketing Strategy of Ather Energy

1. Experience-First Marketing

Instead of hard selling, Ather focuses on letting people experience the product:

They’ve built “Experience Centres” in cities across India—not just showrooms but interactive spaces where people can test-drive, explore the tech, and learn about EVs.
Test rides are important to convert potential customers. Once people try the scooter, they often get hooked on the performance and features.

2. Strong Brand Positioning

Ather positions itself as:

Premium but not luxury
Tech-driven and futuristic
Sustainable without being preachy

3. Content & Digital Marketing

Ather is heavy on content, using platforms like YouTube, Instagram, and LinkedIn to:

Showcase real user stories
Share product explainer videos
Post behind-the-scenes R&D and software updates
Educate the public on EVs and sustainability

They make complex concepts, such as battery efficiency and range, easy to understand and fun to follow.

4. Word-of-Mouth & Community Building

Ather has cultivated a passionate user base that spreads the word:

They host community rides, events, and meetups
There’s even a name for their fanbase—“Ather Community”
Existing users often act as unofficial brand ambassadors

They also listen closely to customer feedback, which builds trust and loyalty.

5. Localized Launch Campaigns

When entering new cities, Ather runs targeted marketing campaigns that combine:

Outdoor ads (billboards, bus stops, metro stations)
Digital ads focused on local demographics
Local influencer collaborations and test ride events

Financials Analysis of Ather Energy

Income Statement

Particulars	FY 2024	FY 2023	FY2022
Total Income	1,789.10	1,801.80	413.8
Total Expenses	2,674.20	2,666.30	757.9
Loss for the Year	-1,059.70	-864.5	-344.1

(All the figures mentioned above are in INR crores)

Balance Sheet

Particulars	FY 2024	FY 2023	FY 2022
Total Non-Current Assets	684.1	668.5	526.1
Total Current Assets	1229.4	1308.3	292.5
Non-Current Liabilities	291.2	343.6	199.3
Current Liabilities	1076.4	1019.5	394.4

(All the figures mentioned above are in INR crores)

Cash Flow Statement

Particulars	FY 2024	FY 2023	FY2022
Net Cash Used in Operating Activities	-267.60	-871.30	-228.4
Net Cash Used in Investing Activities	-228.10	-135	-6.6
Net Cash Generated from Financing Activities	633.2	1,317.40	230.7

(All the figures mentioned above are in INR crores)

Important Highlights

Profitability: The company remains in a loss-making phase, but the narrowing losses in FY24 are a positive sign.
Cash Flow Concerns: The increasing cash burn and rising debt levels highlight the need for prudent financial management.
Market Dynamics: Ather’s market share has slightly declined, indicating intensified competition in the E2W segment.
Strategic Investments: The IPO funds are meant for expansion and innovation, which are critical for long-term growth.

SWOT Analysis of Ather Energy

Strengths

In-house innovation: Ather designs and builds most of its components, such as batteries, software, and dashboards, which gives it better quality control and a unique product.
Strong brand image: Seen as premium, tech-savvy, and futuristic, it is one of the few EV brands in India that is well-known.
Smart features & connectivity: OTA updates, touchscreen dashboards, app integration, these things make Ather scooters feel like the “iPhones of EVs.”
Ather Grid charging network: Building its fast-charging network gives Ather a big edge in convenience and customer loyalty.
Loyal customer base: Ather has created a passionate community of users who often promote the brand through word-of-mouth.

Weaknesses

Higher price point: Compared to traditional scooters or entry-level EVs, Ather scooters are pricey, which can limit public adoption.
Limited service & retail network (in some areas): Despite expanding fast, Ather still doesn’t have the reach of legacy two-wheeler brands.
Dependence on urban markets: The product positioning is heavily tailored around urban, tech-forward consumers, and is not as appealing in rural or price-sensitive markets.
Production scale limitations: Compared to giants like Hero or Bajaj, Ather still has a relatively small manufacturing footprint.

Opportunities

Expanding into Tier 2 & Tier 3 cities: As awareness about sustainability and EV infrastructure improves, these areas are becoming more open to the adoption of EVs.
Launching more affordable models: A more budget-friendly scooter could open up a much wider customer base.
Fleet and delivery partnerships: Tapping into B2B use (like food delivery or ride-share fleets) can boost volume and visibility.
Global expansion: Ather has the potential to enter Southeast Asia or Africa, where EV two-wheelers are starting to gain traction.
Government policies & incentives: Ongoing support for EVs (like FAME II) helps reduce prices and boost demand.

Threats

Tough competition: Legacy brands (like TVS, Bajaj, Ola Electric, and Hero) are now in the EV race with huge budgets and distribution power.
Policy changes: If government subsidies are reduced or withdrawn, prices may rise, and demand could slow.
Battery/raw material supply chain issues: Global shortages or rising costs of lithium and other EV materials could impact production.
Customer expectations rising fast: As EV adoption grows, customers expect faster charging, longer range, and lower prices, which makes staying ahead a constant challenge.

Conclusion

Ather Energy has created a unique space for itself in India’s electric vehicle market by focusing on innovation, quality, and smart technology. With its bold design, internet and bluetooth connected features, and strong community of users, Ather has gone beyond just building scooters and helped spark a movement toward smarter, cleaner mobility. While the brand faces tough competition and some challenges, its commitment to continuous improvement and customer experience keeps it ahead on the road to success. If Ather can keep balancing performance, price, and reach, it’s well on its way to becoming a household name in the future of urban transport.

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Frequently Asked Questions (FAQs)

How do you charge an Ather scooter?
You can charge at home or use Ather Grid, their fast-charging network available in many cities.
Is Ather more expensive than other scooters?
Yes, it’s priced higher than average, but it offers advanced tech, performance, and low running costs.
Can I buy Ather scooters online?
Yes, you can book online and choose home delivery or pickup from a nearby Ather’s Experience Centre.
When is the Ather Energy IPO open for subscription?
The IPO opened on April 28, 2025, and will close on April 30, 2025.
Is Ather Energy profitable?
No, Ather Energy is currently not profitable. The company plans to use the IPO proceeds to scale operations and reduce debt.

May 1, 2025

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What is an IPO?

Process of IPO

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Process of OFS

IPO and OFS: Benefits and Limitations

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How to invest in IPO and OFS through Pocketful?

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Cash Flow Statement Comparison

Key Performance Ratios

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Important Features of Day Trading

Steps to Start Day Trading

1. Getting Started

2. Find a Reliable broker

3. Create a Trade Plan

4. Define Strategy, Backtest and Paper Trading

5. Start with a small amount

Factors to Consider before Day Trading

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2. Time Commitment

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