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List of Best Hotel Stocks in India 2025

Whether traveling for business or with your family, you always want to be comfortable. You constantly search for a hotel that meets all your requirements, such as good meals, a cozy bed, and other services. If you’re looking for the best hotel company in India, the industry offers a mix of domestic and international players excelling in hospitality and customer satisfaction.

In this blog, we will discuss the Indian hotel industry and provide an overview of the top hotel companies based on market capitalization and 1-year returns.

Overview of the Hotel Industry

The hotel industry is one of the key elements of any nation that encourages tourism. In addition to lodging, the hotels provide local and foreign guests with various other amenities. In this industry, there are many players; some cater to the wealthy, while others serve the middle class. India’s hotel industry is valued at $ 24.61 billion in 2024 and is expected to reach a valuation of $ 31.01 billion by 2029 at a CAGR of 4.73%.

The Ministry of Tourism launched the “Dekho Apna Desh” initiative in April 2020 to encourage tourists to explore cultural destinations of India. They also launched the National Integrated Database of Hospitality Industry (NIDHI) scheme to encourage the use of technology in the hotel business.

Top Hotel Stocks Based on Market Capitalization

The Top Hotel Stocks in 2025 are:

S.No.	Hotel Stocks
1	Indian Hotels Company Ltd.
2	EIH Limited
3	Chalet Hotels Limited
4	Lemon Tree Limited
5	Juniper Hotels

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

Company	Market Capitalization (in INR crore)	Current Market Price (INR)	52-Week High	52-Week Low
Indian Hotels Company Ltd.	88,651	623	663	371
EIH Ltd.	24,489	392	566	205
Chalet Hotels Ltd.	17,245	791	959	477
Lemon Tree Hotels Ltd.	9,598	121	158	92.5
Juniper Hotels Ltd.	9,223	414	538	361

(As of 9 August 2024)

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

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

1. Indian Hotels Company Ltd.

India Hotel Company Ltd. was founded in 1899, with its headquarters in Mumbai. The company opened its first hotel, The Taj Mahal Palace, in Mumbai in 1903. IHCL has 218 hotels currently operating, with another 91 in the pipeline, covering luxury, premium, and budget categories. The company’s hotel chains include Taj, SeleQtions, Vivanta, and Ginger. The Indian Hotel Company focuses on providing high standards of service and guest experience.

1Y Return (%)	3Y Return (%)	5Y Return (%)
34.29%	260.51%	444.75%

(As of 16 February 2025)

2. EIH Ltd.

EIH Ltd. is an Indian hospitality company with the Oberoi, Trident, and Maidens brands. It has over 30 hotels and resorts across India and overseas, with luxurious accommodations, fine dining, and end-to-end event services. Its business model features an in-house hotel management and operations system focusing on high-end service and guest satisfaction. The company’s headquarters is in New Delhi.

1Y Return (%)	3Y Return (%)	5Y Return (%)
-15.40%	152.18%	148.25%

(As of 16 February 2025)

3. Chalet Hotels Ltd.

Chalet Hotels Ltd., incorporated in 1986, is an Indian hospitality company based in Mumbai. The company has a portfolio of 10 luxury hotels and serviced apartments across select metro cities such as Mumbai, Bangalore, and Hyderabad. These are managed under various brands like JW Marriott and The Westin. Its business model centers on the ownership and management of upscale hotels, working out strategic locations and worldwide hospitality partnerships to deliver extraordinary guest experiences.

1Y Return (%)	3Y Return (%)	5Y Return (%)
-17.00%	191.76%	98.19%

(As of 16 February 2025)

4. Lemon Tree Hotels Ltd.

Lemon Tree Hotels Ltd. is one of India’s largest hotel chains and was incorporated in 2002. The company has its headquarters in New Delhi. The company operates 100 hotels in 64 cities across India. The company owns seven brands including, Aurika Hotels and Resorts, Lemon Tree Premier, Lemon Tree Hotels, Keys Prima, etc. Their services have concentrated on offering midscale and upscale accommodations, dining options, and meeting facilities. Lemon Tree Hotels has adopted an asset-light business model of managing and franchising properties to achieve operational efficiency.

1Y Return (%)	3Y Return (%)	5Y Return (%)
-4.52%	172.54%	132.56%

(As of 16 February 2025)

5. Juniper Hotels Ltd.

A joint venture between the Saraf Group and Hyatt led to the creation of Juniper Hotels. In 1998, the Arun Kumar Saraf-led Saraf group partnered with Hyatt to create a chain of upscale hotels in India. The Grand Hyatt Mumbai Hotel and Residences, the company’s first hotel, was opened in 2004 in Mumbai. In 2024, the company was listed on the Indian Stock Exchange. The company’s headquarters is in Mumbai.

1Y Return (%)	3Y Return (%)	5Y Return (%)
-35.89%	35.89%	35.89%

(As of 16 February 2025)

Top Hotel Stocks Based on 1-Year Return

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

S.No.	Company	1-Year Return
1	Viceroy Hotels Ltd.	4472.65%
2	The Byke Hospitality Ltd.	106.94%
3	India Tourism Development Corporation Ltd.	99.24%
4	Robust Hotels Ltd.	98.62%
5	EIH Ltd.	82.93%

(As of 9 August 2024)

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

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

Viceroy Hotels Ltd.

The company was originally named Palace Heights Hotels Ltd. and was established in 1965. Eventually, the business increased its operations by forming strategic alliances with global names like Marriott International. In 2001, the business rebranded itself as Viceroy Hotel. The company’s primary goal is to give its clients access to top-notch facilities. The organization’s headquarters is in Hyderabad.

1Y Return (%)	3Y Return (%)	5Y Return (%)
221.46%	221.46%	221.46%

(As of 16 February 2025)

The Byke Hospitality Ltd.

When the company was first founded in 1990, it was known as Suave Hotels. In 2011, the name was changed to The Byke Hospitality Limited. The company has 21 hotels across 16 cities offering comfortable accommodations to the tourists. The company was listed on the Indian Stock Exchange in 2015. The company’s headquarters are in Mumbai, operating 21 hotels across the nation.

1Y Return (%)	3Y Return (%)	5Y Return (%)
7.98%	111.93%	257.11%

(As of 16 February 2025)

India Tourism Development Corporation Ltd.

The Indian government founded ITDC, or India Tourism Development Corporation Limited (ITDC Limited), in 1966 to promote tourism in India. The company established the Ashok Group of Hotels around the country and also operates duty-free stores at airports. Its main office is located in New Delhi.

1Y Return (%)	3Y Return (%)	5Y Return (%)
-29.27%	34.95%	57.52%

(As of 16 February 2025)

Robust Hotels Ltd.

The business was founded in 2007 under the name Robust Hotels Private Limited. The company’s primary goal is to offer hospitality services. The company operates a hotel named Hyatt Regency in Chennai. Robust Hotels Ltd. is a part of the Saraf group, which has been in the hotel business since 1977, when they opened their first hotel in Kathmandu, Nepal.

1Y Return (%)	3Y Return (%)	5Y Return (%)
30.65%	130.47%	130.47%

(As of 16 February 2025)

Overviews of the remaining companies have been given above.

Key Performance Indicators (KPIs)

Company	ROE (%)	ROCE (%)	Debt to Equity	P/E	P/B
Indian Hotels Company Ltd.	13.31	14.66	0.03	68.56	9.33
EIH Ltd.	16.22	20.20	0	38.91	6.2
Chalet Hotels Ltd.	15.48	12.14	1.53	68.96	9.26
Lemon Tree Hotels Ltd.	15.35	11.52	1.96	65.8	9.87
Juniper Hotels Ltd.	0.89	6.56	0.32	1,016.15	3.54
Viceroy Hotels Ltd.	3.57	1.86	2.52	-172.73	10.78
The Byke Hospitality Ltd.	2.79	4.5	0.05	70.42	1.92
India Tourism Development Corporation Ltd.	18.07	27.71	0	91.89	16.53
Robust Hotels Ltd.	7.95	1.99	0.16	57.67	0.68

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

Benefit of Investing in Hotel Stocks

Investing in hotel stocks can have several advantages, some of which are listed below:

Sectoral Growth – Investing in hotel stocks can help you enhance the return on your portfolio due to the rise in tourism.
Asset Value – The corporations own hotels in desirable locations, and as time goes on, their value will rise as well, making them an asset in their portfolio.
Diversified Revenue – Besides accommodation, the hotels offer food and beverage services, spa and wellness centers, and event management.

Factors to be Considered Before Investing in Hotel Stocks

There are various factors one should take into account before investing in hotel stocks:

Competition – The hotel industry is quite competitive due to the presence of well-known companies and many small players. As a result, prices are very competitive, which lowers the company’s profit margin.
Seasonal Business – Most people in India go on a vacation during summer vacations or holiday seasons, which affects hotel occupancy and revenue.
Economic Conditions – Revenues of hotels decline if people’s disposable income declines as they won’t travel or spend money on holidays.

Future of Hotel Sector in India

The hotel industry is expected to rise by 7-9% in FY 2025 due to rising tourism and favorable government initiatives. The rise in business trips and weddings is expected to drive up hotel occupancy rates in India, particularly in tier 2 cities, where it is expected to reach its highest level in a decade. Additionally, the government has approved 100% foreign direct investment in the hotel sector, which is expected to reach 31.01 billion USD by 2029. However, it is advised to consult a financial advisor before investing.

Read Also: List of Best Metal Stocks in India

Conclusion

To summarize, investing in hotel stocks can be profitable due to the growth potential of the hotel industry. Hotel stocks can also help you achieve portfolio diversification. Before making any investments, an investor should assess the firm’s financial data, such as its revenue and profit margins. Additionally, an individual must consult a financial advisor before investing.

Frequently Asked Questions (FAQs)

Which hotel companies are listed on the stock market in India?
The top hotel stocks in India are Lemon Tree Hotels, Indian Hotels Company Ltd., Chalet Hotels, EIH Ltd., etc.
Is it a good time to invest in Hotel Stocks?
Yes, you may invest in hotel stocks since they have a lot of room to grow their operations. The Indian hotel business is predicted to grow to be worth 31.01 billion USD by 2029; therefore, investors can invest after consulting a financial advisor.
Is the hotel business cyclical in nature?
Hotel business is cyclical as tourism increases during holiday seasons and summer vacations, resulting in high revenues. During other times, the vacancy rate increases, and the revenue decreases.
Do hotel stocks pay dividends?
Some hotel stocks pay dividends, while others do not. Dividend yield also varies between companies.
Is it safe to invest in hotel stocks?
You should consider investing in hotel stocks, as the industry is expected to grow in the future. However, an investor should do a thorough analysis or consult a financial advisor before investing.

August 9, 2024

List of Best Banking Stocks in India 2025

Today, every street corner has an ATM and digital payment systems are seamlessly woven into everyday transactions. Not only do banks provide a safe space to store your money, but they also offer a wide range of services to help you grow your wealth. From savings accounts and fixed deposits to loans and investment opportunities, they are the cornerstone of the Indian Financial system.

But with so many banking stocks available to invest in, how should an investor sort out the leading players in the banking industry? In this blog, we will discuss the best Indian banking stocks based on market capitalization and 1-year returns.

Overview of the Banking Sector in India

India’s banking sector is crucial for the economy and plays a vital role in financial inclusion and economic growth. The industry has experienced substantial transformation throughout the years. India has a large banking network that includes several types of banks, such as the public sector, private sector, and foreign banks. It is one of the world’s largest banking markets, serving a massive population. According to RBI, total deposits with banks as of May 2024 are approximately $ 2,452 billion. Public sector banks have always held a significant share of the banking industry, although private sector banks have gained prominence in recent years.

The Indian banking sector is classified into:

Scheduled Banks: These banks are included in the Second Schedule of the Reserve Bank of India Act, 1934. They are further categorized into Public Sector Banks, Private Sector Banks, Foreign Banks, Regional Rural Banks, and Co-operative Banks.
Non-Scheduled Banks: These banks are not included in the Second Schedule of the RBI Act and operate under different regulations than the scheduled banks.

Best Banking Stocks Based on Market Capitalization

The top banking stocks in 2025 are:

S.No.	Banking Stocks
1	HDFC Bank
2	ICICI Bank
3	State Bank of India
4	Kotak Mahindra Bank
5	Axis Bank

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

Bank	Market Cap(in INR crore)	CMP (in INR)	52-W High	52-W Low
HDFC Bank Ltd.	12,47,745	1,638	1,794	1,363
ICICI Bank Ltd.	8,20,737	1,166	1,258	899
State Bank of India	7,22,894	810	912	543
Kotak Mahindra Bank Ltd.	3,53,438	1,778	1,926	1,544
Axis Bank	3,49,977	1,132	1,340	921

(Data as of 8 August 2024)

Best Banking Stocks Based on Market Capitalisation – An Overview

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

1. HDFC Bank

HDFC Bank was among the first financial institutions in India to receive an ‘in principle’ approval from the Reserve Bank of India in 1994. The HDFC bank started its operations as a scheduled commercial bank in January 1995. The bank’s business philosophy is based on five core values: Operational Excellence, Customer Focus, Product Leadership, People, and Sustainability.

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

2. ICICI Bank

ICICI Bank stands for Industrial Credit and Investment Corporation of India and is regarded as India’s second-largest private sector bank. The World Bank, Indian public-sector banks, and public-sector insurance companies initiated the establishment of ICICI through a joint venture with other businesses in 1955 as a part of their initiative to accelerate the economy’s industrial growth by providing them with long and medium-term financing. ICICI became the first Indian company and Asian bank other than Japanese Banks to be listed on the New York Stock Exchange (NYSE). In October 2001, the directors of ICICI and ICICI Bank approved the merger of its subsidiary businesses named ICICI Personal Financial Services Limited and ICICI Capital Services Limited with ICICI Bank.

3. State Bank of India (SBI)

SBI is India’s largest public sector bank, with a 23% market share. SBI is headquartered in Mumbai and holds a rich heritage of over 200 years.

The roots of SBI trace back to 1806 when the Bank of Calcutta was established, the first joint stock bank in British India. Bank of Calcutta was later renamed as Bank of Bengal. Three separate presidency banks, Bank of Bengal, Bank of Bombay, and Bank of Madras, emerged across British India during this period, which were later merged to form the Imperial Bank of India in 1921.

In 1955, the Reserve Bank of India acquired a controlling stake in the Imperial Bank of India and renamed it the State Bank of India. SBI later acquired various state-associated banks and commercial banks.

SBI has played an important role in bringing banking services to rural areas. Core values of the Bank – Service, Transparency, Ethics, Politeness and Sustainability.

4. Kotak Mahindra Bank

Kotak Mahindra Bank is a leading Indian banking and financial services company headquartered in Mumbai. It offers a wide range of banking products and financial services for corporate and retail customers. It is India’s third-largest private sector bank by market capitalization.

Kotak Mahindra Financial Services was founded in 1985 by Uday Kotak. In 1986, Anand Mahindra and his father, Harish Mahindra, invested in the company, which was subsequently renamed Kotak Mahindra Bank. The company was initially engaged in bill discounting and lease and hire-purchase activities. In 2003, Kotak Mahindra Bank became India’s first non-banking finance company to convert into a commercial bank.

5. Axis Bank

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

Best Banking Stocks Based on 1-Year Return

S.No.	Bank	1-Year Return
1	Indian Overseas Bank	135.40%
2	Dhanlaxmi Bank Ltd.	100.51%
3	Central Bank of India Ltd.	96.63%
4	Punjab & Sind Bank	94.95%
5	UCO Bank	89.08%

(Data as of 8 August 2024)

Best Banking Stocks Based on 1-Year Return – An Overview

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

Indian Overseas Bank

IOB is a well-known government-owned bank in India that was established in 1937. Founded by M. Ct. M Chidambaram Chettyar, a visionary entrepreneur who aimed to promote overseas banking and foreign exchange operations. In 1969, IOB was nationalized along with 14 other major banks in India. Today, IOB is a well-established bank with an extensive network of branches across India and a presence in several countries. It also has overseas branches in Singapore, Hong Kong, Thailand, and Sri Lanka.

Dhanlaxmi Bank

Dhanlaxmi Bank was established in 1927 in Thrissur, Kerala. Starting with a small capital of INR 11,000, the bank has grown significantly over the years. It became a scheduled commercial bank in 1977. The bank focuses on retail and SME lending and aims to be customer-centric. It has a significant presence in Kerala and is expanding its operations across India. The bank implemented digital initiatives to enhance customer experience and streamline operations. This includes investing in technological advancements to offer a wide range of digital banking services. Over the years, it has earned the trust and goodwill of clients.

Punjab & Sind Bank

Punjab & Sind Bank is a prominent public sector bank in India and was established in 1908. It was nationalized in 1980 and still plays an important role in India’s financial system. The bank was founded with a noble mission to empower the underprivileged. The bank provides a wide range of financial services, including personal banking, corporate banking, and international banking. Its commitment to social responsibility and financial inclusion continues to be a driving force behind its operations.

Central Bank of India Ltd.

Central Bank of India is a well-known government bank. The bank was founded in 1911 and is the first Indian commercial bank fully owned and managed by Indians. Sir Sorabji Pochkhanwala and Sir Pherozehshah Mehta created the bank to represent India’s increasing financial independence in the British Raj. The bank was nationalized in 1969. It has been important for India’s economic development for decades, helping many customers and contributing to the country’s banking system.

UCO Bank

UCO Bank is a well-recognized public sector bank in India that was established in 1943. It was established by renowned industrialist G.D. Birla as the United Commercial Bank. The bank played an important role in India’s economic development post-independence. In 1969, UCO bank was nationalized along with other major banks. This marked a turning point, leading to the expansion of the bank’s operations and a heightened focus on social banking. Over the years, UCO Bank has been a pioneer in implementing various welfare schemes and credit programs, empowering individuals and promoting inclusive growth in the country.

Key Performance Indicators (KPIs)

Bank	Net Interest Margin (%)	CASA (%)	Capital Adequacy Ratios (%)	P/E (x)	P/B (x)
HDFC Bank Ltd.	3.21	38.13	18.80	18.38	2.77
ICICI Bank	3.61	39.6	16.33	17.68	3.04
State Bank of India	2.66	39.92	14.28	10.50	1.87
Kotak Mahindra Bank Ltd.	4.47	52.77	21.80	16.33	2.71
Axis Bank Ltd.	3.38	42.96	16.63	13.15	2.26
Indian Overseas Bank	2.79	43.87	17.28	41.60	4.72
Dhanlaxmi Bank Ltd.	2.87	30.66	12.71	18.59	1.05
Punjab & Sind Bank	1.92	32.41	17.16	66.61	2.68
Central Bank of India	2.89	49.97	15.08	16.74	1.85
UCO Bank	2.50	37.45	16.98	16.45	2.56

(all the above data is of the year ended March 2024 except P/E and P/B)

Benefits of Investing in Banking Stocks

The benefits of investing in banking stocks are:

Dividend Income – Banks often pay regular dividends to shareholders. This offers a stable income stream, which makes it particularly appealing to long-term investors.
Hedge against Inflation – Bank stocks have been seen as protection against inflation. When inflation increases, banks can raise interest rates on loans and make more profit.
Diversification – Adding banking stocks to your portfolio helps you reduce overall portfolio risk.

Factors to Consider Before Investing in Banking Stocks

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

Financial Performance – Analyze important financial ratios such as net interest margin, CASA, etc.
Valuation – Investors should compare the bank’s valuation to its peers and judge its intrinsic value.
Interest Rate – Rising interest rates generally benefit banks’ net interest margins, while falling rates can reduce profitability.
Inflation – High inflation can erode the buying power and increase loan defaults, impacting the bank’s profitability.

Future of the Banking Industry

The banking industry is undergoing significant changes due to technological advancements and the evolving regulatory landscape. Banks use data analytics and artificial intelligence to offer customized financial products and services. These technological advancements have the potential to enhance fraud detection and prevention mechanisms, ultimately creating a more secure financial environment. More AI-powered chatbots and virtual assistants are being used for customer support and process automation. The RBI’s IFTAS cloud platform is also expected to strengthen the banking sector by enhancing the security, integrity and privacy of financial data.

Conclusion

To summarize, investors must thoroughly analyze banking stocks to ensure profitability. While these investments can give you lucrative returns, it is important to have a careful and well-thought-out investment plan. A thorough analysis of market trends and fundamental research can help investors make better decisions. It is advised to consult a financial advisor before investing.

Frequently Asked Questions (FAQs)

Is it good to invest in banking stocks in India?
While the future of the Indian banking sector is promising, the short-term performance is affected by the regulations and other market variables. Hence, it is important to consult a financial advisor before investing.
How can I identify good banking stocks?
Investors can analyze the financial performance, past returns, growth prospects and industry trends to identify banking stocks for investment purposes.
Should I invest in public or private sector banks?
Both the private and public sector banks offer good investment opportunities. Public sector banks may be more stable, while private sector banks offer high growth potential.
How much should I invest in banking stocks?
Diversification is important to reduce portfolio risk, and investors should allocate a suitable amount to banking stocks depending on the investor’s risk tolerance and investment goals.
What are the risks involved when investing in banking stocks?
Economic downturns, NPAs, interest rate fluctuations, and regulatory changes are major risks that an investor should be aware of before investing in banking stocks.

August 9, 2024

How to Check Mutual Fund Status with Folio Number?

You can see this trend of number identification everywhere, like Aadhaar, PAN card, and Passport. Banks provide an account number to identify their customers when they open an account with that bank; similarly, when you invest in mutual funds through an AMC, you are assigned an identity number in mutual funds, known as a folio number.

In this blog, we will share information about folio number and its benefits.

What is a Folio Number?

A unique number, called a folio number, is assigned to investors who invest through mutual funds. An investor uses this number to track his/her mutual fund investment account. The folio number also helps monitor an investor’s activities, such as buying, selling, dividends, and other associated activities. In principle, the folio number helps in the seamless and effective management of investments.

How do You Find Your Folio Number?

Generally, an investor can find his/her folio number in three ways.

From your fund account statement – AMC will provide you with your mutual fund account statement. In the case of SIPs, this statement is issued to you every month. You can find your folio number in the mutual fund account statement.
From Consolidated Account Statement – These are documents showing individual total investments under several folio numbers of different AMCs. Consolidated account statements are issued by Registrars like CAMS Online and KFintech.
From the Registrar’s website – You can also get your folio number from the Registrar’s website or their branch office. However, you must first prove that you are a legitimate owner of the folio. Nowadays, fund companies also provide the facility wherein you can contact the Registrar’s call center and get your folio number.

Read Also: How to Cancel Mutual Fund SIP?

How to Use Folio Number to Check Mutual Funds Status?

Method 1 – Check Status Online

An investor can sign into AMC’s website or apps, and with the help of a folio number, the investor can access the details regarding mutual fund transaction history, balance, etc.

Method 2 – Check Status by contacting AMC customer care

If you find the above method burdensome, you may directly contact your AMC through their customer care number available online, visit their office, or even email customer care to check mutual fund status by folio number. You must have your PAN number and other details handy for verification.

Method 3 – Check status through the Consolidated Account Statement

Investors receive periodic Consolidated Accounts Statements from Central Depository Services Limited (CDSL) and National Securities Depository Limited (NSDL). If you are a mutual fund investor, they provide you with folio-wise mutual fund status, performance, and value of your investment.

Method 4 – Contacting Broker

If you invest your money in Mutual Funds through a broker, you may also contact them. These brokers, with the help of AMC, provide you with a folio number to acquire real-time mutual fund status and performance. An investor must keep documents handy while contacting the broker for verification.

Method 5 – Check the Status through the Registrar’s website

Registrars like CAMS and Karvy help investors know their mutual fund status. You just need to visit their website and register using your PAN number or registered mobile number.

Who Allocates Folio Numbers?

When you invest in a mutual fund through an AMC, the AMC assigns you a folio number to your investment. Each AMC assigns its own folio number to investors for the mutual funds managed by that AMC. When you make your first contribution to the fund you are investing in, a folio number gets generated for you by the fund house or AMC.

If you have more than one share of the same mutual fund, the fund house gives you only one folio number. If an investor invests in a scheme provided by a different AMC, then the investor must create a new folio number.

Advantages of Folio Number

Now, let’s delve into the benefits of a folio number.

Accessing the consolidated view – You can approach all schemes with a single folio number through a single statement in which all the details of your investment are also mentioned along with AMC.
Tracking of investments – Through the folio number, investors track their mutual fund investments. You can get your statement of any particular period’s investment and quickly know how many units you hold in a fund.
Helps in Easy Redemption – Investors must mention or give a folio number while redeeming their mutual fund units. This makes the redemption process quick and easy.
Tax Implications – Folio number helps in accurately reporting capital gains; dividends are other income on your mutual fund investment, making the process of tax reporting easier.

Conclusion

Each mutual fund investor gets a unique folio number. Investors can also have multiple folio number investments in schemes provided by different AMCs. One practical step mutual fund investors can take toward better management of their investments is consolidating folio numbers. It would mean merging all investments under a single folio to make tracking easier. Identifying multiple folios, contacting the AMC, filling and submitting a consolidation form, and checking for changes can be quite a complex process. This will involve, among others, ease of tracking, redemption of investments, and ease of tax planning. Overall, consolidation ensures a more seamless and effective investment experience. However, it is advised to consult a financial advisor before investing.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Types of Mutual Funds in India
2	Mutual Fund Factsheet: Definition And Importance
3	Equity Mutual Funds: Meaning, Types & Features
4	What Is An IPO Mutual Fund? Should You Invest?
5	Who Regulates Mutual Funds in India?

Frequently Asked Questions (FAQs)

What should be done in case I forget my folio number?
The folio number can be obtained by viewing the mutual fund account statement, calling the fund house, and using online platforms.
Can the status of all the mutual funds that I hold be checked using a single folio number?
If all your investments are with the same fund house, then one folio number can be used to check the status of all mutual funds. For investments under other fund houses, you need to use their respective folio numbers.
Is it safe to share my folio number online?
While the folio number is usually fairly safe, it is best to check your mutual fund status through official or known mediums, as security risks can’t be ruled out altogether.
How often should I check my mutual fund status?
It is a good idea to see your status periodically — say, monthly or quarterly. That will at least let you know how your investments are performing.
Can one folio number have multiple mutual fund schemes?
Yes, multiple mutual fund schemes could be under the same folio number.

August 8, 2024

What Happens When a Stock Share is Delisted?

A once-promising investment may now be worthless, draining your overall returns. Investors often find themselves holding inactive stock after a company goes through the delisting process. This can be a frustrating situation, as the value of these shares has significantly declined.

In this blog, we will learn about the process of delisting, its impact on shareholders, types of delisting, and whether a delisted company can get listed again.

It refers to the removal of a company’s stock from a stock exchange. This means the stock can no longer be traded on that exchange. Delisting can happen for a couple of reasons: voluntarily and involuntarily. Let’s understand them in detail.

Voluntary Delisting

A company opts for voluntary delisting if it chooses to go private or get acquired by another company. In this case, the company will generally offer shareholders a way to sell their shares through a reverse book-building process in case of a merger or acquisition. Shareholders also have the option to sell their shares in the OTC market, which is a little tough to execute.

Involuntary Delisting

This happens when a company does not follow the rules of the stock exchange. There are different requirements a company needs to meet to stay listed, such as maintaining a certain price or filing financial reports on time. If a company does not meet these requirements, the exchange can delist them.

Examples of Delisting in India

Capgemini Technology voluntarily delisted itself in 2008.
Atlas Copco India Limited was delisted from the BSE in 2011.

What Happens to the Delisted Shares?

Let’s have a quick overview of the status of the delisted shares. Even though delisting makes things trickier, you still own some stake in the company, as indicated by your holdings.

Once the company is delisted, you can no longer trade them on the stock exchange. This significantly reduces liquidity and makes the process of finding a buyer difficult. You might be able to sell your shares on the OTC market, which is essentially a network of dealers who trade securities outside of exchanges. However, OTC markets are less regulated and generally have wider bid-ask spreads than the stock exchange spreads.

Shareholders might find it challenging to sell their shares as there may be limited buyers in the OTC market.

Also, during the buyback window, shareholders can profit by selling their delisted stock to promoters.

Impact on the Shareholders

Shareholders are significantly affected in the following ways if the shares they hold get delisted:

Loss of Liquidity – The main impact of delisting is the loss of liquidity, which makes it difficult to sell shares or turn your investment into cash.
Reduced Market Value – Delisting usually causes a drop in the share price because there is less interest in buying the shares. The absence of a public market can have a significant impact on the valuation.
Corporate Governance Concerns – After delisting, it becomes difficult for investors to get company information, leading to lower transparency in financial reporting. It also makes the process of analyzing a company’s performance complex.

Important Recommendations by the Committee formed by SEBI

No prohibition should exist against delisting securities as long as the company’s securities have been listed on a stock exchange for at least three years.
No selective restriction or discrimination should be imposed on any type of company when it comes to delisting. However, the regulatory framework may need to be stronger to prevent misuse by companies and protect investors’ interests.
Acquisitions resulting in delisting must comply with SEBI regulations, circulars, guidelines, and the Listing Agreement to protect investors.
SEBI should reiterate that companies cannot use the buy-back provision to de-list companies.
Delisting provisions apply when public ownership (excluding promoters) falls below the required limit due to a takeover process.
A company listed on a stock exchange can be removed from that exchange without making an exit offer to its shareholders, provided that the securities of the company are listed on BSE or NSE. When a company that is listed on any stock exchange other than BSE or NSE seeks is delisting, an exit offer must be made to the shareholders.
A separate agency called the Central Listing Authority (CLA) should be formed to ensure consistent due diligence in reviewing listing applications.

Can delisted stock get listed again?

Yes, securities can be re-listed after a three-year period in case of voluntary delisting and a ten-year period for involuntary delisting. The listing will be based on the respective norms and criteria applicable at the time of application. The application will undergo thorough scrutiny by the CLA.

Read Also: What is Earnings Per Share (EPS)?

Conclusion

To summarize, delisting can be an important event for both investors and companies. Delisting does not always mean business failure, although it may indicate financial or operational issues. It can cause investments to turn illiquid and decrease their value. Understanding the reasons behind delisting and evaluating the long-term prospects of the company can help investors make better decisions. It is important to analyze the available information and consider the impact on one’s investment strategy. For further guidance, an investor must consult a financial advisor before investing.

Frequently Asked Questions (FAQs)

What if the company is acquired after delisting?
Shareholders might receive a cash offer for their shares as a part of the acquisition process or receive shares of the acquiring companies.
What are inactive stocks?
Inactive stocks refer to shares no longer listed on a stock exchange.
How to sell inactive or delisted stocks?
Inactive or delisted stocks can be sold in the OTC market, and an investor may need a broker who deals in such securities.
What will happen to my shares if a company is delisted?
If a company is delisted, you will still own the shares but can no longer sell them on the stock exchange.
How can I check if a company is at risk of delisting?
You can analyze the company’s financial performance, news announcements, and regulatory filings to judge whether the company is facing a risk of getting delisted.

August 8, 2024

List of Best Liquor Stocks in India

From ancient civilizations to modern-day cocktail culture, alcohol has played an important role in human history. From humble beginnings to global conglomerates, the industry has evolved into a complex interaction of culture, commerce, and consumer desire. Behind the fancy bottles and sophisticated marketing, there are many opportunities and challenges.

In this blog, we will discuss the best liquor stocks in India that an investor can watch out for, their recent returns, and how the liquor industry is poised for growth in the future.

Overview of the Liquor Industry in India

India’s liquor industry is valued at $ 55,840 million in 2024. Alcoholic beverage sales in the country are expected to increase by 7.2% annually, reaching US $ 112,338.9 million by 2034. Indian-Made Foreign Liquor dominates the market with a 69% share, with whiskey, rum, and brandy being the most popular categories. It is a highly regulated industry with heavy tax burdens. The sector comprises a mix of large multinational corporations, domestic giants, and regional players.

Top Liquor Stocks Based on Market Capitalisation

The top liquor stocks in India are:

S.No.	Liquor Stocks
1	United Spirits Ltd.
2	United Breweries Ltd.
3	Radico Khaitan Ltd.
4	Allied Blenders & Distillers Ltd.
5	Tilaknagar Industries Ltd.

The top liquor stocks have been listed in descending order based on their market capitalization in the table below,

Company	Market Cap (in INR crore)	CMP (in INR)	52-Week High	52-Week Low
United Spirits Ltd.	1,06,266	1,461	1,466	976
United Breweries Ltd.	52,211	1,975	2,182	1,492
Radico Khaitan Ltd.	22,429	1,677	1,885	1,141
Allied Blenders & Distillers Ltd.	8,268	296	348	282
Tilaknagar Industries Ltd.	4,658	242	291	171

(Data as of 7 August, 2024)

Top 5 Liquor Stocks Based on Market Capitalisation – An Overview

1. United Spirits Ltd.

United Spirits Ltd., or USL, is a titan of the Indian alcoholic beverages industry. It started in 1826 as a trading company named McDowell & Company. The company initially imported liquor, tobacco, and other goods for the Britishers living in India. Over time, the company changed and evolved. In 1962, McDowell launched its first product, Golden Grape Brandy. In 2013, Diageo, a global leader in alcoholic beverages, acquired a majority stake in USL. This partnership has brought global expertise and resources to improve the company’s operations. Today, the company has a strong presence in both domestic and international markets, exporting its products to over 37 countries. The product portfolio of United Spirits consists of 140 liquor brands.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
20.21%	66.39%	93.90%

(As of 16 February 2025)

2. United Breweries Ltd.

The company was established in 1915 with five breweries in South India. The company was bought by the late Mr Vittal Mallya in 1947. Since then, it has consistently grown and never looked back. United Breweries products sell at more than 85,000 outlets across India. The company’s headquarters is situated in Bangalore. It owns numerous iconic brands like Kingfisher, McDowell, Royal Stag, etc.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
17.68%	33.62%	58.19%

(As of 16 February 2025)

3. Radico Khaitan Ltd.

Radico Khaitan is a top Indian manufacturer of Indian-Made-Foreign-Liquor (IMFL). Radico Khaitan was founded in 1943 as Rampur Distillery & Chemical Company Limited. It has become a major bulk spirits supplier and bottler and has over fifteen organically grown brands. Khaitan’s portfolio includes a wide range of IMFL products such as 8 PM, Magic Moments, Old Monk, etc. Radico Khaitan is the fourth largest company in India, with a strong presence in North India, and exports its products to over 85 countries. Radico Khaitan also created an international division, namely Radico International, in 2003 and introduced brands such as Beck’s Beer and wines from E&J Gallo to the Indian alcohol market.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
18.64%	124.15%	381.93%

(As of 16 February 2025)

4. Allied Blenders & Distillers Ltd.

Allied Blenders & Distillers is a well-known Indian liquor company based in Mumbai. It is a key player in the alcohol industry, distributing a wide range of products, including whiskey, rum, vodka, brandy, and other spirits. The company holds a strong global presence, exporting its products to over 22 countries. It was founded in 1988 by Kishore Rajaram Chhabria. He was the former Managing Director of Shaw Wallace, saw a chance to bring back lesser-known alcohol brands, started a new business in Delhi, and launched a new whiskey brand.

The company’s core focus is on producing, marketing, and distributing a wide range of alcoholic beverages. Allied Blenders & Distillers has a strong distribution network that ensures its products reach a wide audience.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
2.20%	2.20%	2.20%

(As of 16 February 2025)

5. Tilaknagar Industries Ltd.

Tilaknagar Industries is a prominent Indian liquor company that is well-recognized for its assorted portfolio of IMFL and extra-neutral alcohol (ENA). The company was established in 1933 by Shri Mahadev L Dahanukar as ‘The Maharashtra Sugar Mills Limited.’ Tilaknagar Industries offers a wide range of products, such as brandy, whiskey, vodka, gin, rum, etc. The company has a strong distribution network, and its products are exported to international markets.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
6.60%	260.88%	1,242.33%

(As of 16 February 2025)

Top Liquor Stocks in India Based on 1-Year Return

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

Company	1-Year Returns (in %)
Winsome Breweries Ltd.	438.65%
Ravi Kumar Distilleries Ltd.	201.15%
GM Breweries Ltd.	69.64%
Associated Alcohols and Breweries Ltd.	69.23%
Tilaknagar Industries Ltd.	40.85%

(Data as of 7 August, 2024)

Winsome Breweries Ltd.

Winsome Breweries is an Indian company that operates in the brewing industry. It was established in June 1992 by R.K. Bagrodia as a joint venture between India and Germany, specifically with Henniger Brau, Germany. It started selling beer in January 1997 with a yearly capacity of 10,000 kilolitres annually. Indigenous brands German Thunder and Limo Lemon were introduced in 1997-98. The company’s primary focus is on manufacturing and distributing beer. It has a strong distribution network that reaches consumers across India. The plant of WBL is situated in Village Sarehkhurd, Tehsil Tijara, District Alwar, Rajasthan, with an installed capacity of 3,00,000 HL per annum. There are plans to double its capacity shortly.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
66.75%	203.79%	854.05%

(As of 16 February 2025)

Ravi Kumar Distilleries Ltd.

Ravi Kumar Distilleries Limited is an Indian company involved in the manufacturing and sale of Indian-made foreign liquor (IMFL). It was established in 1993 with its manufacturing unit in Puducherry, India. They have a mix of their brands and products manufactured under tie-up arrangements with other liquor companies. Some of their famous brands include Capricorn, Green Magic Brandy, Chevalier, and Oncemore. The state-of-the-art plant is constructed to meet international standards and is operated by a skilled workforce with the highest standards of safety and hygiene.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
14.47%	194.73%	272.88%

(As of 16 February 2025)

Associated Alcohols and Breweries Ltd.

The company has a strong presence in the IMFL (Indian Made Foreign Liquor) segment and also sells popular beer brands. Associated Alcohol’s focus on quality and innovation has contributed to its success in a competitive market. It was founded in 1989 by Shri Bhagwati Prasad Kedia. It has grown a lot since then under the leadership of his sons, Anand Kedia and Prasann Kedia. AABL specializes in manufacturing Extra Neutral Alcohol (ENA), rectified spirit, IMFL, and country liquor. Their advanced manufacturing facility is located in Central India, close to Indore, in Madhya Pradesh.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
145.07%	153.96%	306.41%

(As of 16 February 2025)

GM Breweries Ltd.

G M Breweries Limited is a well-known company in India that makes and sells Country Liquor and Indian-made foreign liquor (IMFL). Founded in 1981 by Shri Jimmy William Almeida, the company has grown to become the largest manufacturer of country liquor in Maharashtra, holding a significant market share. It maintains a good distribution network to reach a wide customer base.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
32.53%	33.15%	89.74%

(As of 16 February 2025)

Key Performance Indicators (KPIs)

Company	ROE (%)	ROCE (%)	Debt-to-Equity	P/E (x)	P/B (x)
United Spirits Ltd.	19.77	26.55	0	75.11	14.92
United Breweries Ltd.	9.81	13.21	0.02	116.16	12.44
Radico Khaitan Ltd.	10.74	13.91	0.3	88.5	9.46
Allied Blenders & Distillers Ltd.	0.44	30.3	2.03	–	19.48
Tilaknagar Industries Ltd.	21.1	21.55	0.18	33.74	7.13
Winsome Breweries Ltd.	1.67	2.03	0.27	–	–
Ravi Kumar Distilleries Ltd.	-4.65	0.46	0.95	370	1.93
Associated Alcohols and Breweries Ltd.	18.22	21.35	0.57	25.28	3.44
GM Breweries Ltd.	18.42	22.03	0	11.38	2.17

(all the above data is of the year ended March 2024 except P/E and P/B)

Read Also: Top Alcohol Stocks In India

Benefits of Investing in Liquor Stocks

The benefits of investing in liquor stocks are:

Steady Demand – The demand for liquor tends to remain relatively stable, even during economic downturns, which can eventually lead to consistent revenue generation for liquor companies.
High-Profit Margins – The liquor industry often has high-profit margins, which can translate into strong share price returns.
Growth potential – With increasing disposable income and changing lifestyles, the demand for liquor in India and many other countries is growing. The continuous shift towards premium and luxury brands can drive growth and profitability.
Diversification – Adding liquor stocks to your portfolio can help reduce overall risk because the liquor industry often performs differently from other sectors and provides a hedge against market swings.

Factors to Consider Before Investing in Liquor Stocks

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

Inflation – Rising inflation can increase the production cost of alcohol companies, squeezing their profit margins and stock prices.
Taxation & pricing – Liquor stocks are sensitive to changes in taxation policy. Higher taxes can lead to increased costs for companies and can discourage consumption.
Economic Growth – Strong economic growth results in increased disposable income in the hands of consumers and leads to a rise in spending on discretionary items like alcohol.
Regulatory Procedures – Complex licensing & regulatory procedures can be a hurdle for liquor companies, thereby increasing operational costs and negatively affecting their profitability.
Consumer Trends – People trying to adopt a healthy lifestyle can also affect the sales of liquor. Companies need to adapt to the evolving trends of consumers and produce accordingly.

Future of the Liquor Industry

The liquor industry is expected to undergo substantial changes in the coming years, prompted by factors such as consumer preferences and regulatory changes. Consumers are willing to pay more for high-quality alcohol products. This trend is driving the growth in premium segments. Growing health consciousness is giving rise to low-alcohol and non-alcoholic options. Online platforms are gaining traction, offering new distribution channels and opportunities for direct consumer engagement. Companies that can differentiate themselves through unique flavors and a focus on craftsmanship are well-positioned to sustain in this evolving market.

Read Also: Best Alcohol Penny Stocks in India

Conclusion

The liquor industry is complicated and constantly changing, affected by multiple factors. The liquor industry faces both opportunities and challenges. The demand for liquor is steady, and profit margins are high, which makes it a sector to look out for. Liquor companies must prioritize strong brand building, understanding consumer needs, and adapting to market changes for success. Embracing these shifts in consumer preferences and market dynamics will be essential for long-term success in the industry. However, it is advised to consult a financial advisor before investing.

Frequently Asked Questions (FAQs)

What is the main difference between spirits and liquor?
Spirits are distilled alcoholic beverages, while liquor is a broader term, including spirits, wines, and beers.
Which country produces the most liquor?
China is currently the largest producer of liquor in the world.
Which companies manufacture liquor in India?
United Spirits Ltd., United Breweries Ltd., and Tilaknagar Industries Ltd. are prominent liquor companies in India.
Is investing in liquor stocks a good option?
It can be a good option, but similar to any other investment, it involves risks. Brand loyalty, market share, and economic trends should be considered before investing in liquor stocks.
How do government regulations impact the liquor industry?
Government regulations affect production, distribution, advertising, and taxation, which directly impacts the company’s profitability.

August 8, 2024

Vedanta Case Study: Business Model, Financial Statement, SWOT Analysis

Imagine you are constructing your dream house, and you need some raw materials. Have you ever wondered where these raw materials come from? Companies such as Vedanta are involved in the production of these raw materials. The raw materials include steel, aluminum, copper wires, etc.

In this Vedanta Case Study, we explore the company’s overview, business model, financial performance, and SWOT analysis to understand its market position.

Vedanta Company Overview

The business was founded in 1979 under the name Sterlite Industries (India) Limited, and its initial focus was on the production of wires and cables for the telecommunications sector. In 1992, the company changed its focus and concentrated on smelting and refining copper. In 2003, the business formed a parent company in the United Kingdom called Vedanta Resources Limited, listed on the London Stock Exchange. A prominent operator in the Indian iron ore mining industry, Sesa Goa Limited was eventually purchased by Vedanta in 2007. Subsequently, the business bought Cairns India and Cairns Energy, a significant player in the oil and gas industry. The company’s headquarters is situated in Mumbai.

Business Model of Vedanta

The Vedanta Business Model has diversified operations because it operates in a variety of fields. It offers various commodities such as zinc, aluminum, iron, steel, etc. The company controls the entire value chain, which helps it achieve operational efficiency and high-quality products. The corporation can maintain a steady supply of products because of its huge natural reserves in Africa and India. The company has also completed several acquisitions to establish itself as a major player in the mining industry.

Product Portfolio of Vedanta

The corporation is a major participant in the commodities market and offers a wide range of commodities, such as zinc, lead, copper, steel, aluminum, semiconductor, etc. The company is involved in the production and exploration of natural gas and oil reserves in the oil and gas industry.

Market Details of Vedanta Ltd.

Vedanta Ltd. is a globally diversified natural resources company listed on BSE and NSE, with a significant market capitalization and an extensive portfolio in metals, mining, and energy.

Current Market Price	INR 414
Market Capitalization	INR 1,61,851 Crores
52 Week High	INR 507
52 Week Low	INR 208
P/E Ratio (x)	43.9

(Data as of 6 August 2024)

Financial Highlights of Vedanta Ltd.

Income Statement

Particulars	March 2024	March 2023	March 2022
Sales	1,43,727	1,47,308	1,32,732
Total Income	1,46,277	1,50,159	1,35,332
Total Expenditure	1,16,449	1,23,658	97,571
Net Profit	7,537	14,506	23,709

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

The above graph shows that the company’s net profit has been decreasing for the last three years.

Balance Sheet

Particulars	March 2024	March 2023	March 2022
Non-Current Assets	1,38,883	1,35,849	1,30,025
Current Assets	51,924	60,507	68,575
Total Assets	1,90,807	1,96,356	1,98,600
Non-Current Liabilities	70,075	58,901	50,181
Current Liabilities	78,661	88,026	65,713
Total Shareholder Funds	30,724	39,425	65,385

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

Based on the graph, we can conclude that the company’s non-current liabilities have increased over the past three years, whereas its shareholder funds have declined.

Cash Flow Statement

Particulars	March 2024	March 2023	March 2022
Cash flow from operating activities	35,654	33,065	34,963
Cash flow from Investing activities	-13,868	-693	-2,253
Cash flow from Financing activities	-26,092	-34,142	-28,903

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

We may conclude from the above graph that, aside from the company’s cash flow from operations, cash flow from financing and investing is negative.

Key Performance Indicators (KPIs)

Particulars	March 2024	March 2023	March 2022
Operating Margin (%)	18.80	18.13	29.02
Net Profit Margin (%)	5.24	9.84	17.86
ROCE (%)	24.09	24.66	28.99
Current Ratio	0.66	0.69	1.04
Debt to Equity Ratio	2.34	1.68	0.81

SWOT Analysis of Vedanta

Strengths

Product Portfolio – By providing a large selection of commodities to its clients, the business reduces its reliance on a single commodity and increases the stability of its revenue stream.
Brand Image – Over time, the organization has developed a strong brand image that helps in client acquisition.
Geographical Reach – Vedanta’s clients are present worldwide, hence mitigating concentration risk.

Weaknesses

Volatility in Prices – Commodities price fluctuations will immediately affect the company’s profit margin.
High Debts – Due to ongoing interest payments and restrictions on taking on new projects, the company’s large debt load has a negative impact on its profit.
Environmental Concern – The business may have to deal with strict government regulations and environmental issues, which could have an effect on how it operates.

Opportunities

Technological Advancement – Utilizing cutting-edge new technologies in the exploration and production processes will benefit the business by lowering costs and boosting profit margins.
Renewable Energy – Because there is a growing market for renewable energy, the corporation can move towards clean energy sources.
Infrastructure Development – India’s infrastructure is expanding at a rapid pace, which may raise demand for products offered by Vedanta.

Threats

Competition – The mining industry has many participants, and the competition between them will lower the company’s profit margin.
Economic Condition – Negative economic conditions may decrease Vedanta’s revenues and profit margins.
Government Policies – The operations of the corporation will be immediately impacted by any policy changes made by the Indian government.

Conclusion

In conclusion, Vedanta Limited is a well-known participant in the Indian metal and energy sector. The firm has a wide geographical presence and a broad product range but faces several risks, including heavy debt. Even if the company has a lot of room to grow, an investor should always speak with a financial advisor before making any investment decisions.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	TCS Case Study: Business Model, Financial Statement, SWOT Analysis
2	Jio Financial Services: Business Model And SWOT Analysis
3	Nestle India Case Study: Business Model, Financial Statement, SWOT Analysis
4	BPCL Case Study: Business Model, Product Portfolio and SWOT Analysis
5	Apollo Hospitals Case Study : Business Model, Financial Statements, And SWOT Analysis

FAQs

Who is the founder of Vedanta Limited?
Mr Anil Agarwal is the founder of Vedanta Limited.
Which companies are subsidiaries of Vedanta?
Some of Vedanta’s subsidiary firms are Hindustan Zinc Limited, Bharat Aluminium Company, ESL Steel Limited, Sterlite Technologies Ltd., etc.
Vedanta operates in which countries?
Vedanta operates in India, Namibia, Liberia, and South Africa.
Is Vedanta a profitable company?
The company has been profitable, but its net profits have decreased over the past three years.
What are the products offered by Vedanta Limited?
The company’s main offerings include iron ore, steel, zinc, silver, copper, etc.

August 7, 2024

List Of Best Logistics Stocks in India 2025

Have you ever wondered how the products you order while lounging on your couch get delivered in a matter of hours? The journey of a product from the factory to consumers is taken care of by the logistics companies. These companies play a crucial role in ensuring seamless delivery, making them some of the best logistics companies in India.

In this blog post, we will provide an overview of the logistics sector and the top 5 companies based on market capitalization and 1-year return.

Overview of Logistics Industry in India

The logistics industry plays an important role in providing a facility for the movement of goods and services in commerce and trade. The companies in this sector provide services such as transportation, warehousing, freight forwarding, management of inventory and supply chain, etc. India’s freight and logistics market is currently valued at $317.3 billion and is expected to reach a valuation of $545.6 billion by 2030. This industry requires adequate infrastructure, technology, skilled labor, etc., to grow at a higher pace.

Top Logistics Stocks Based on the Market Capitalization

The top logistics stocks in India are:

S.No.	Logistics Stocks
1	Container Corporation of India Ltd.
2	Aegis Logistics Ltd.
3	Delhivery Ltd.
4	Blue Dart Express Ltd.
5	TVS Supply Solutions Ltd.

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

Company	Market Capitalization (In Crores)	Share Prices (In INR)	52 Week High Price	52 Week Low Price
Container Corporation of India Ltd.	60,506	993	1,194	646
Delhivery Ltd.	30,344	410	488	354
Aegis Logistics Ltd.	25,674	731	970	280
Blue Dart Express Ltd.	19,335	8,148	8,980	5,487
TVS Supply Chain Solutions Ltd.	7,920	180	258	145

S.No.	Logistics Stocks	1 Year Returns (%)
1	Navkar Corporation Ltd.	91.54%
2	DJ Mediaprint and Logistics Ltd.	89.06%
3	AVG Logistics Ltd.	81.65%
4	North Eastern Carrying Corporation Ltd.	80.70%

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-27.07%	19.96%	379.85%

(As of 17 February 2025)

Key Performance Indicators (KPIs)

Company	ROE (%)	ROCE (%)	Debt to Equity	P/E	P/B
Container Corporation of India Ltd.	10.66	13.36	0	47.34	5.05
Aegis Logistics Ltd.	14.61	13.89	0.43	44.06	6.63
Delhivery Ltd.	-2.72	-1.40	0.01	-133.33	3.12
Blue Dart Express Ltd.	22.01	23.89	0.19	65.74	14.10
TVS Supply Chain Solutions Ltd.	-5.57	6.38	0.44	67.79	3.05
Navkar Corporation Ltd.	-0.08	1.22	0.11	359	1.02
DJ Mediaprint and Logistics Ltd.	15.02	21.11	0.46	67.48	10.13
AVG Logistics Ltd.	15.96	16.89	0.44	20.47	3.27
North Eastern Carrying Corporation Ltd.	7.13	6.55	1.06	24.11	1.44

(As of 17 February 2025)

Benefits of Investing in Logistics Stocks

There are various benefits of investing in logistics stocks, a few of which are mentioned below:

Growth Potential – With the expansion of e-commerce, there will eventually be a greater need for logistics services, which will present an investment opportunity for investors.
Demand for Product – The need for logistical infrastructure is growing as disposable income rises, and so is the demand for products.
Government Support – The Indian government introduced the ‘National Logistics Policy’ in 2020 for the development of the logistics sector.
Innovations – The businesses in this industry are embracing new technologies, which will allow them to achieve efficiency.

Factors to Be Considered Before Investing in Logistics Stocks

There are various factors that one should consider before investing in logistics stocks:

Efficiency of company – It is necessary to evaluate the business’s efficiency in terms of asset utilization, cost-effectiveness, and technology use, among other things. Companies need to make use of the newest technologies on the market to increase productivity.
Network – The business with wider geographic operations will be at a competitive advantage over rivals.
Client Base – A business with a large client base and good customer retention rates will have a more reliable revenue stream.

Future of the Logistics Industry in India

In India, the logistics sector has a lot of room to grow. India is ranked 38th out of 139 nations in the World Bank’s Logistics Performance Index for 2023. According to other reports, the logistics business in India is projected to expand at an annualized rate of 9.46%. At this rate, the industry is estimated to reach a valuation of around 545.6 billion USD by 2030 from its present value of 317.3 billion USD. This implies that there is a lot of room for growth in this market going forward.

Conclusion

The development of a nation is significantly influenced by the logistics sector. People purchase more products as their disposable income rises, and this industry makes it easier for them to buy those goods whenever and wherever they want. Nevertheless, before making any investments, one should take into account the possible risks associated with the logistics industry, which include operating and regulatory changes, economic downturns, and more.

Frequently Asked Questions (FAQs)

What are the main business of logistics sector companies?
Logistics companies are generally involved in supply chain management, transportation of goods, inventory management, warehouse-related services, etc.
Is there any difference between transportation and logistics stocks?
There is a slight difference between transportation and logistics companies; transportation companies are generally engaged in moving goods and people from one place to another, whereas logistics companies also offer additional services like warehouses for storing goods, supply chain management, etc., along with the transportation of goods.
What are the prominent players in the Indian logistics sector?
The major players in the Indian logistics sector are Container Corporation of India Limited, Aegis Logistics Ltd., Delhivery Limited, Blue Dart Express Limited, TVS Supply Chain Limited etc.
What is the meaning of cold chain logistics?
Cold chain logistics refers to storing and transporting temperature-sensitive products such as pharmaceuticals, perishable foods, ice creams, etc.
Is it good to include logistics stocks in your portfolio?
Including logistics stocks in your portfolio provides you with the benefit of diversification and reduces the overall risk. However, you must consult your investment advisor before making any investment decision.

August 7, 2024

List Of Best Footwear Stocks in India 2025

Today’s generation invests heavily in footwear and even goes the extra distance to acquire some limited edition sneakers. Many investors are having a hard time deciding which brands will come up with the next big trend in this constantly changing industry.

As designers forecast which trends will be the most successful, investors must be able to identify the best footwear companies in India that will be at the forefront of technology and popularity. In today’s blog, we will discuss the key footwear companies in India and share all the necessary details so that you can walk proudly into the footwear investment arena.

Overview Of the Footwear Industry in India

The Indian footwear industry is of considerable size and contributes around 2% to GDP. On the global scale, India is the second-largest producer of footwear, producing over 2.2 billion pairs annually. India’s footwear industry is valued at $26 billion in 2024 and is expected to reach $90 billion by 2030. Major players such as Bata, Relaxo, Liberty, and many small players cater to diverse consumer preferences in urban and rural areas.

Government initiatives, such as the ‘Make in India’ campaign and other trade policies, have also nurtured higher production capacity and export potential. India exports about $2 billion of footwear annually. Some of the key export destinations are the USA, the UK, and Germany. As the industry evolves, sustainable and innovative practices will become more important and give India an edge to establish itself as a global hub for quality and affordable footwear.

Top Footwear Stocks in India Based on Market Capitalization

The top footwear stocks are:

S.No.	Footwear Stocks
1	Metro Brands Ltd.
2	Relaxo Footwears Ltd.
3	Bata India Ltd.
4	Redtape Ltd.
5	Campus Activewear Ltd.
6	Liberty Shoes Ltd.

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

Company	Market Capitalization (In crores)	Share Prices (In INR)	52 Week High Price (In INR)	52-Week Low Price(In INR)
Metro Brands Ltd.	35,732	1,314	1,441	986
Relaxo Footwears Ltd.	20,806	836	974	758
Bata India Ltd.	19,832	1,543	1,771	1,269
Redtape Ltd.	9,660	699	810	411
Campus Activewear Ltd.	9,118	301	324	213
Liberty Shoes Ltd.	872	512	555	225

(as of 6 August 2024)

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

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

1. Metro Brands Ltd.

Metro Brands Ltd. is a footwear retailer in India that started as a shoe store in 1955. The group sells various products under its brands, including Metro, Mochi, Walkway, and Da Vinci, as well as third-party brands like Crocs and Skechers. Metro Brands has 629 stores across 140 cities in India, with plans to add 260 new stores by FY25. The business group follows an omnichannel strategy, wherein the physical presence and online platforms work in unison to craft a smooth customer experience.

1Y Return (%)	3Y Return (%)	5Y Return (%)
2.30%	101.53%	160.56%

(As of 16 February 2025)

2. Relaxo Footwears Ltd.

Relaxo Footwear Ltd. was established in 1984 and has positioned itself as a major player in the footwear industry. The company designs, manufactures, and markets sandals, slippers, footwear, and athletic shoes. Relaxo operates more than 350 retail outlets, and its products are available on major e-commerce portals. Relaxo’s execution strategy is centered on being a value-for-money brand with broad coverage and a clear mission of being a quality brand for the masses.

1Y Return (%)	3Y Return (%)	5Y Return (%)
-44.44%	-62.44%	-41.32%

(As of 16 February 2025)

3. Bata India Ltd.

Bata India Limited was established in 1931, and it is one of the leading footwear companies in India. Bata owns brands such as Hush Puppies, Power, Marie Claire, etc. Bata operates through its chain of retail outlets and over 10,000 multi-product dealerships, making it easily accessible. Innovation is among the company’s priorities, and the company releases approximately 4,000 new designs annually.

1Y Return (%)	3Y Return (%)	5Y Return (%)
-7.17%	-26.87%	-26.23%

(As of 16 February 2025)

4. Redtape Ltd.

Redtape Ltd. was established in 1996 and offers footwear and apparel to its customers. The company designs its footwear range in its design studios in the UK, making its designs unique and trendy. Redtape products are available online and can also be bought from its stores. It was the first Indian footwear brand to sell its products in UK markets, and today, its products are available worldwide.

1Y Return (%)	3Y Return (%)	5Y Return (%)
0.29%	31.96%	31.96%

(As of 16 February 2025)

5. Campus Activewear Ltd.

Campus Activewear Ltd., which started its journey in 2005, is India’s largest sports and athleisure footwear company. The company offers several products, such as running shoes, casual shoes, and sandals for men, women, and children. Campus Activewear has access to more than 19,200 geographically mapped retail outlets, 425 distributors, and more than 250 authorized stores. In terms of the business strategy, the company targets a major market share of the growing and organized sports footwear market in India.

1Y Return (%)	3Y Return (%)	5Y Return (%)
9.81%	-25.39%	-25.39%

(As of 16 February 2025)

6. Liberty Shoes Ltd.

Liberty Shoes Ltd. was founded in 1954. Its corporate office is situated at Karnal, Haryana. The company has more than 100 outlets and operates in 25 countries. It designs and manufactures formal, casual, and sports shoes for men, women, and children. It offers over 1,000 designs and has developed the company’s notable principles of quality and innovation. Liberty Shoes follows a vertical integration of business strategy that incorporates designing, manufacturing, and selling the shoes.

1Y Return (%)	3Y Return (%)	5Y Return (%)
21.52%	153..01%	185.95%

(As of 16 February 2025)

Top Footwear Stocks Based on 1-year Return

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

S.No.	Company	1-Year Return
1	Liberty Shoes Ltd.	120.99%
2	Lehar Footwears Ltd.	71.22%
3	Khadim India Ltd.	69.43%
4	Sreeleathers Ltd.	42.57%
5	Metro Brands Ltd.	22.06%

(as of 6 August 2024)

Best Footwear Stocks in India 2025 Based on 1-Year Return – An Overview

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

Lehar Footwears Ltd.

Lehar Footwears Ltd. was established in 1994. Lehar manufactures a variety of footwear, including rubber, PU, PVC, EVA, and TPR soles. The company initiated its presence with an annual capacity of 45 lakh pairs of shoes, whose capacity has surged to over 6.94 crore pairs per annum. The business model followed by Lehar emphasizes modern technology and the ISO certification it acquired through the maintenance of standards, with added value in quality and affordability.

1Y Return (%)	3Y Return (%)	5Y Return (%)
89.56%	543.04%	754.06%

(As of 16 February 2025)

Khadim India Ltd.

Khadim India Ltd It is one of the leading footwear retailing companies in the country. This company has a wide merchandise portfolio, selling formal and casual shoes for men, women, and children. Khadim has more than 850 retail outlets and has branches in over twenty states of India. The company offers a wide variety of footwear designs at affordable prices.

1Y Return (%)	3Y Return (%)	5Y Return (%)
-19.70%	5.03%	147.27%

(As of 16 February 2025)

Sreeleathers Ltd.

Sreeleathers Ltd. Footwear and Leather Products Manufacturing Company, established in 1984, is located in Kolkata, West Bengal. The company has more than 150 outlets all over India and has export operations in many foreign countries. Company products include casual formal and sports shoes and leather accessories. The company’s business model is vertically integrated, where the company is involved in designing, manufacturing, and selling the products. The company aims to achieve high standards for quality to increase its market share.

An overview of the remaining stocks has been given above in the market capitalization section.

1Y Return (%)	3Y Return (%)	5Y Return (%)
-30.03%	42.10%	35.61%

(As of 16 February 2025)

Key Performance Indicators

Company	Net Profit Margin (%)	ROCE (%)	TTM EPS(in Rs.)	TTM P/E (x)	P/B (x)
Metro Brands Ltd.	17.50	19.01	16.97	77.26	19.45
Relaxo Footwears Ltd.	6.87	13.12	7.57	110.42	10.40
Bata India Ltd.	7.52	18.7	4.69	70.1	13.41
Redtape Ltd.	9.56	27.70	12.75	54.95	14.94
Campus Activewear Ltd.	6.17	17.46	2.93	102.54	14.08
Liberty Shoes Ltd.	1.28	3.58	6.55	78.08	4.17
Lehar Footwears Ltd.	2.22	9.17	3.71	67.8	4.35
Khadim India Ltd.	1.02	9.39	3.42	118.13	3.10
Sreeleathers Ltd.	12.33	8.63	11.59	26.89	1.73

(all the above data is of the year ended March 2024 except P/E and P/B)

Benefits of Investing in the Footwear Industry

The benefits of investing in footwear stocks are:

Strong Market Growth: The Indian Footwear market is supposed to grow at a CAGR of 4.84% from 2023 to 2028, which will result in the growth of revenues and profits of footwear companies.
Strong Demand: Increased spending on footwear by consumers due to rising disposable incomes and an expanding middle class would boost revenue growth for footwear companies.
Government Support: The government has policy initiatives such as the Indian Footwear and Leather Development Program (IFLDP) to strengthen infrastructure and sustainability in the sector and, thereby, support the industry.

Factors to Consider Before Investing in the Footwear Industry

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

Market Trends and Demand: Investors must understand consumer preferences and trends in athleisure and sustainable footwear.
Competitive Landscape: The industry is rather competitive. Analysis of the market share, distribution channels, and innovation strategies can help investors identify companies with competitive advantages.
Financial performance: The financial health of the firm, like revenues and growth, profit margins, and return on investment, is one of the most important considerations for an investor.

The Future of Footwear Industry

The future of the footwear industry in India is bright due to rising consumer demand and the growth of disposable incomes. The market is valued at USD 26 billion in 2024 and is expected to reach $90 billion by 2030. Leather footwear accounts for the largest share of about USD 17.28 billion.

Government initiatives like the IFLDP, with a budget of INR 1700 crore, are proposed for infrastructure building and the long-term sustainability of the sector. At the same time, the rapidly increasing focus on e-commerce is opening up market access, providing customers with a wide range of choices, and encouraging competition and innovation.

Conclusion

Footwear stocks represent shares of companies that design, manufacture, and sell footwear products. Some of the key characteristics of footwear companies in India are consistent demand and brand loyalty.The advantages of investing in footwear stocks are strong growth potential and resistance to economic cycles.

The best way to choose a good footwear stock to invest in is by analyzing the company’s performance based on market position and prospects for further growth. All these factors will help one understand the opportunity better and make the right investment decisions to capture this growth opportunity. However, it is advised to consult a financial advisor before investing.

Frequently Asked Questions (FAQs)

Why should you invest in footwear stocks in India?
Footwear stocks present a great investment opportunity due to growing consumer demand, rising disposable incomes, and strong government support.
How has the footwear sector performed in India recently?
There was a robust recovery after the pandemic, which was attributed to stable local demand and growth in exports.
How do the government’s policies affect the footwear sector?
Government policies like GST benefits and export incentives can positively affect footwear companies’ growth and profitability. Policies also provide incentives related to production.
Are footwear stocks a risky investment?
Risk factors linked to footwear stocks in India include variations in consumer taste, fluctuations in raw material prices, and competition from disorganized sectors.
What are some prominent footwear companies in India?
Metro Brands, Relaxo Footwear, Redtape, Campus Activewear, etc., are some of the prominent footwear companies in India.
Which is the footwear capital of India?
The footwear capital of India is Agra, located in Uttar Pradesh.

August 7, 2024

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

Yes Bank is well-known for its pioneering approach and expertise in digital banking. The bank’s journey has been marked by both successes and setbacks as it strives to adapt to changing market conditions and regulatory needs. Despite the hurdles, Yes Bank has continued to demonstrate resilience.

Today’s blog presents a case study on Yes Bank, which includes insights into the bank’s journey, business model, and current financial position.

Yes Bank Overview and History

Yes Bank is a private sector bank with its headquarters located in Mumbai, India. It is known for its technology-driven approach and offers a wide range of products and services for retail, MSME, and corporate clients. The bank also offers brokerage services through its subsidiary, YES Securities.

Yes Bank was founded in 1999 by Indian bankers Ashok Kapur, Harkikat Singh, and Rana Kapoor. They worked with Rabobank from the Netherlands, who owned a majority stake. In 2003, it was renamed as Yes Bank. A banking license was granted in 2004, and in 2005, the bank went public through an IPO.

The bank has a pan-India presence with 1,198 branches and 1,345 ATMs. It also has an international banking unit (IBU) at GIFT City and a representative office in Abu Dhabi.

The RBI Takeover!

In 2018, the bank’s financial health began to deteriorate due to asset quality issues and concerns regarding corporate governance.

In 2020, the RBI took control of the Bank and fixed limits on withdrawals to protect depositors. A reconstruction scheme was implemented, with investors infusing INR 12,000 crores. These investors included the State Bank of India, ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, etc. State Bank of India took a 49% stake and was the lead participant.

Yes Bank has been restructured under a new management to regain trust and stability. The bank has been focused on improving asset quality and strengthening its risk management framework.

Business Model of Yes Bank

Yes Bank is a full-service commercial bank offering a comprehensive range of financial products and services to individuals, small and medium-sized enterprises, and large corporations.

The business model mainly revolved around three segments:

Retail Banking – This segment serves individual customers by offering various products and services, including savings accounts, current accounts, deposits, loans (home, personal, auto), credit cards, investment advisory, and wealth management.
SME & Corporate Banking – This segment caters to small and medium-sized businesses and large corporations. It provides different financial solutions such as working capital finance, term loans, cash management services, trade finance, and advisory services.
Investment Banking – Through its subsidiary, YES Securities, the bank provides investment banking services such as equity and debt capital markets, mergers and acquisitions, and financial advisory.

Furthermore, the bank positions itself as a technologically advanced institution, blending innovation and services to deliver a smooth banking experience. Customer satisfaction and digital banking have set it apart from others.

Market Data of Yes Bank

Current Market Price	INR 23.8
Market Capitalization	INR 74,610 crores
52 Week High	INR 32.8
52 Week Low	INR 14.1

(As of 5 August 2024)

Financial Statements Analysis of Yes Bank

Income Statement

Particulars	FY 2024	FY 2023	FY 2022
Interest Income	27,605	22,702	19,018
Total Income	32,960	26,826	22,423
Total Expenses	29,536	23,625	19,509
Profit before tax	1,537	735	1,064
Net Profit	1,285	736	1,064

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

Balance Sheet

Particulars	FY 2024	FY 2023	FY 2022
Advances	2,27,799	2,03,236	1,80,959
Total Assets	4,06,361	3,55,204	3,18,577
Deposits	2,66,229	2,17,382	1,97,062
Total Shareholder Funds	35,453	34,018	28,687

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

Cash Flow Statement

Particulars	FY 2024	FY 2023	FY 2022
Cash flow from Operating activities	9,644	-25,816	23,597
Cash flow from Investing activities	-12,430	-12,904	-14,511
Cash flow from Financing activities	2,770	11,450	8,391

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

Key Performance Indicators (KPIs)

Particulars	FY 2024	FY 2023	FY 2022
Net Interest Margin (%)	1.98	2.22	2.03
Net Profit Margin (%)	4.65	3.24	5.59
ROCE (%)	0.88	0.95	0.96
CASA (%)	30.91	30.77	31.11

SWOT Analysis of YES Bank.

Strengths

Yes Bank has a strong brand image and is still recognized by customers for its innovative products and services, even after the crisis.
It has been a leader in digital banking, providing a strong online and mobile banking platform.
Its presence in retail, SME, and corporate banking provides a stable revenue stream.

Weaknesses

The bank has gone through considerable financial instability in recent years, which has raised concerns about the quality of its assets and the adequacy of its capital.
Most of Yes Bank’s loan portfolio is concentrated in the corporate sector, leading to an increased risk of NPAs in case of defaults.
Yes Bank’s recovery largely depends on external funding, which can be risky.

Opportunities

The bank can benefit from the growing demand for digital banking services in India by expanding its customer base and enhancing service quality.
It also has an opportunity to expand its operations into underserved markets, especially in rural and semi-urban areas.
The government’s efforts to strengthen the banking sector through policies like financial inclusion and digital India can create growth opportunities.

Threats

The Indian banking sector is highly competitive, with both public and private banks and fintech companies vying for market share.
Enhanced regulatory needs and vigilant oversight have the potential to significantly influence banking operations and profitability.
Yes Bank faces cyber security threats as it expands digitally, which could cause financial and reputational harm.

Conclusion

From facing a severe liquidity crisis to being rescued by a consortium of financial institutions, the bank has undergone drastic changes in its leadership and operations. It remains to be seen how the future unfolds for Yes Bank and whether it can regain its stability and trust in the market. However, the bank has shown impressive resilience in its recovery. While challenges persist, the future of Yes Bank appears promising. However, it is advised to consult a financial advisor before investing.

Frequently Asked Questions (FAQs)

When did the RBI take control of Yes Bank?
The Reserve Bank of India (RBI) took control of Yes Bank in March 2020.
Who is the CEO of Yes Bank?
Prashant Kumar is the Managing Director and CEO of Yes Bank.
Is Yes Bank listed on stock exchanges?
Yes Bank is listed on NSE and BSE.
What is the current market price and market capitalization of Yes Bank?
The market price of Yes Bank is INR 23.8, and the market capitalization is INR 74,610 crores on 5 August 2024.
Should I invest in Yes Bank?
Investors should thoroughly analyze the financial statements and consider other factors affecting the banking industry before investing in Yes Bank.

August 6, 2024

List of Best Telecom Stocks in India 2025

The Indian telecom sector is one of the largest and fastest-growing industries in the country. The telecom sector in India has undergone a remarkable transformation over the past few decades, evolving from a state-controlled monopoly to a highly competitive market with multiple private players. The industry encompasses a wide range of services, including mobile and fixed-line telephony, broadband, and value-added services. So, if you want to go from network to net worth, telecom stocks can be an investment for you.

In this blog, let’s look at the best telecom stocks in India and the reasons to invest in them.

Overview of the Telecom Sector

Investing in telecom stocks in India can be promising due to the sector’s growth potential driven by increasing digital connectivity, expanding 5G networks, and rising data consumption. Its key segments are listed below:

1. Mobile Telecommunications

Voice Services: Traditional voice calling services are provided by mobile network operators.
Data Services: Internet and data connectivity services, including mobile broadband (3G, 4G, 5G).
Value-Added Services (VAS): Additional services like SMS, MMS, caller tunes, and mobile banking.

2. Fixed-Line Telecommunications

Voice Services: Landline telephone services.
Broadband Services: Fixed broadband and internet services, including fiber-to-the-home (FTTH) and DSL.

3. Internet Services

Internet Service Providers (ISPs): Companies providing internet access and related services to consumers and businesses.
Wi-Fi Services: Public and private Wi-Fi networks.

4. Telecom Infrastructure

Towers and Antennas: Physical infrastructure for mobile and wireless networks.
Fiber Optic Networks: High-speed data transmission networks.
Data Centers: Facilities for data storage, processing, and cloud services.

5. Enterprise Solutions

Managed Services: Outsourced management of IT and telecom networks.
Unified Communications: Integration of various communication services like voice, video, messaging, and conferencing.
IoT Solutions: Internet of Things services for various applications like smart cities, industrial automation, and connected devices.

6. Telecom Equipment and Devices

Network Equipment: Routers, switches, and other hardware for telecom networks.
Customer Premises Equipment (CPE): Devices like modems, routers, and set-top boxes used by customers.
Mobile Devices: Smartphones, tablets, and other mobile gadgets.

7. Over-the-Top (OTT) Services

Streaming Services: Video and audio streaming platforms like Netflix, Amazon Prime, etc.
Messaging Services: Instant messaging applications like WhatsApp, Telegram, etc.
VoIP Services: Voice over Internet Protocol services like Skype.

8. Telecom Software and Applications

Network Management Software: Tools for monitoring and managing telecom networks.
Billing and CRM Systems: Software for billing, customer relationship management, and support.
Security Solutions: Cybersecurity tools for protecting telecom networks and data.

9. Satellite Communications

Satellite Broadband: Internet services can be provided via satellite, often for remote and rural areas.
Broadcasting Services: TV and radio broadcasting via satellite.

Top Telecom Stocks in India Based on Market Capitalization

The top telecom stocks in India are:

S.no.	Telecom Stocks
1	Reliance Industries Ltd.
2	Bharti Airtel Ltd.
3	Vodafone Idea Ltd.
4	Tata Communications Ltd.
5	Tejas Network Ltd.
6	Mahanagar Telephone Nigam Ltd.

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

Company	Market Cap (₹ Cr.)	CMP (₹)	52-Week High (₹)	52-Week Low (₹)
Reliance Industries Ltd.	20,37,590	3,011	3,218	2,220
Bharti Airtel Ltd.	8,91,138	1,492	1,539	847
Vodafone Idea Ltd.	1,10,371	16.3	19.2	7.50
Tata Communications Ltd.	56,742	1,991	2,085	1,543
Tejas Network Ltd.	21,224	1,240	1,495	651
Mahanagar Telephone Nigam Ltd.	5,242	83.2	102	19.7

(As of 31 July 2024)

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

Here are brief introductions and business models of the top Indian telecom stocks

1. Reliance Industries Ltd.

Reliance Jio Infocomm Limited, a subsidiary of Reliance Industries, has revolutionized the Indian telecom market with its aggressive pricing strategy and extensive 4G network. The services were made available to the general public on 5 September 2016. It is the leading operator with a large subscriber base with over 46.72 crore subscribers. It has strong financial backing, which has helped it lead the 5G rollout in India, partnering with global tech companies for network and technology advancements. Currently, the company is also developing its 6G service. The company’s headquarters is in Navi Mumbai.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-16.20%	1.25%	66.12%

(Data as of 17 February 2025)

2. Bharti Airtel Ltd.

Bharti Airtel was established by Sunil Mittal in 1995 and offers services in 18 countries. The company has a strong urban and rural presence and is known for superior network quality and customer service. It is the second-largest mobile network operator in India. The expansion of the 5G network will help increase the Average Revenue Per User (ARPU) through premium services and partnerships for digital services. Headquarters of Bharti Airtel is located in New Delhi.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
49.55%	131.42%	201.55%

(Data as of 17 February 2025)

3. Vodafone Idea Ltd.

Vodafone Idea was formed by the merger of Vodafone India and Idea Cellular in 2018 and has a large subscriber base. VI is India’s third-largest mobile network operator but has been facing financial challenges and high debt levels in recent times. The company has been unable to invest in 5G services due to fundraising delays and government debt, which has significantly affected the financial performance of the company.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-47.84%	-21.88%	124.86%

(Data as of 17 February 2025)

4. Tata Communications Ltd.

Tata Communications was previously known as Videsh Sanchar Nigam Limited before it was acquired by the Tata Group in 2008. The company provides a range of communication services and solutions, focusing on enterprise solutions, global connectivity, and the Internet of Things (IoT). The company has an extensive data center network present at 44 locations worldwide. The company is focusing on cloud services, cybersecurity solutions, and strategic partnerships to enhance the quality of its services.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-17.40%	19.50%	289.07%

(Data as of 17 February 2025)

4. Tejas Networks Ltd.

Tejas Networks is a telecom equipment manufacturer that designs, develops, and sells high-performance telecom and data networking products. The company was established by Sanjay Nayak in 2000 and has its headquarters in Bangalore. The company is known for its strong R&D capabilities and focus on optical and broadband products. The company focuses on strategic alliances with international firms to develop products and invest in new technologies to increase its revenues.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
4.41%	78.30%	996.84%

(Data as of 17 February 2025)

5. Mahanagar Telephone Nigam Limited (MTNL)

Mahanagar Telephone Nigam Limited (MTNL) is a state-owned telecommunications service provider in India. It was founded in 1986 and has its headquarters in New Delhi. The company had a strong presence in the metropolitan areas of Mumbai and Delhi, offering a range of telecom services until 1992. The company suffered and lost subscribers when other service providers entered the telecom sector. The government decided to merge MTNL and BSNL on 23 October 2019 to revive the loss-making PSUs.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
4.96%	84.82%	372.82%

(Data as of 17 February 2025)

Performance of Telecom Stocks

Company	6 Months Return	1 Year Return
Reliance Industries Ltd.	5.46%	18.03%
Bharti Airtel Ltd.	27.53 %	67.77%
Vodafone Idea Ltd.	13.38%	96.02%
Tata Communications Ltd.	14.62 %	10.85 %
Tejas Network Ltd.	58.68 %	52.14 %
Mahanagar Telephone Nigam Ltd.	66.94%	315.06 %

(As of 31 July 2024)

Key Performance Indicators

Company	ROE (%)	ROCE (%)	Debt to Equity	P/E (X)	P/B (X)
Reliance Industries Ltd.	8.77	9.38	0.41	29.83	2.59
Bharti Airtel Ltd.	9.1	13.13	1.85	116.8	10.63
Vodafone Idea Ltd.	0	-4.12	-1.99	-2.58	-1.32
Tata Communications Ltd.	54.2	18.75	5.66	61.09	31.45
Tejas Network Ltd.	1.99	4.27	0.55	126.17	6.69
Mahanagar Telephone Nigam Ltd.	0	-60.94	-1.27	-1.52	-0.23

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

Read Also: List Of Best IT Stocks in India

Benefits of Investing in Telecom Stocks

The benefits of investing in telecom stocks are:

High Growth Potential: The sector offers robust growth prospects, making it an attractive investment opportunity.
Untapped Markets: Rural areas represent a significant growth opportunity for telecom operators. Initiatives to improve network coverage and affordability in these regions will drive subscriber growth.
Innovation and Technology: Advancements in technology, services and digitalization are driving productivity and quality improvements.
Government’s support: The government supports this sector through regulations and policies.
Improving Financial Health: Strategic investment and consolidation will lead to a more balanced landscape with fewer stronger players.

Factors to Consider Before Investing in Telecom Stocks

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

Market Position: Companies with strong market shares and competitive advantages are generally safer bets.
Financial Health: Evaluate balance sheets, debt levels, revenue growth, and profitability.
5G Rollout: Companies leading in 5G technology and network expansion may have higher growth prospects.
Regulatory Environment: Telecom is a highly regulated sector, and investors must stay informed about policy changes and regulatory impacts.
Innovation and Diversification: Companies investing in new technologies and diversifying their offerings could have long-term growth potential.
High Capital Expenditure: Significant investment is required for network expansion and technology upgrades, especially for 5G.
Competitive Pressure: Intense competition and price wars can impact profitability.

Future of the Telecom Industry

The Indian telecom sector is poised for continued growth, driven by technological advancements, increasing internet penetration, and supportive government policies. The transition to 5G is expected to be a game-changer, unlocking new revenue streams and transforming the digital landscape. The future of the telecom industry looks bright because:

Rural Penetration: Untapped rural markets present significant growth opportunities.
Digital Services: Expanding digital services such as mobile banking, e-commerce, and online education.
Enterprise Solutions: Increasing demand for enterprise communication solutions, cloud services, and managed services.
5G and Beyond: The deployment of 5G technology and future advancements offer vast growth potential.

Emerging Trends in the telecom sector are listed below:

5G Networks: High-speed, low-latency mobile networks enabling advanced applications like autonomous vehicles and smart cities.
Edge Computing: Distributed computing closer to the data source to reduce latency and improve performance.
Blockchain in Telecom: Enhancing security, transparency, and efficiency in operations and transactions.
Artificial Intelligence (AI): AI-driven network management, customer service, and predictive maintenance.

Conclusion

The Indian telecom sector is a dynamic and rapidly evolving industry with significant growth potential. While it faces challenges, there are opportunities presented by technological advancements and government initiatives that make it an attractive area for investment and development. However, it is advised to always consult a financial advisor before investing.

Frequently Asked Questions (FAQs)

What should an investor consider before investing in a Telecom stock?
Consider the company’s overall market position with respect to its competitors, its financial health, growth prospects, competitive advantages, entry barriers, government policies, etc, before investing in telecom stocks.
What kind of market structure does the Telecom Sector have?
It has an oligopoly market structure where a few firms dominate the sector.
How does the Telecom sector generate revenue?
Telecom companies generate revenue through subscription fees for voice and data services, value-added services, enterprise solutions, and advertising. They also earn from leasing infrastructure and selling telecom equipment.
What is ARPU, and why is it important?
ARPU stands for Average Revenue Per User. It is a key metric indicating the revenue generated per user and is crucial for assessing a telecom company’s financial health and profitability.
What are Value-Added Services in Telecom?
Value-added Services are additional services provided by telecom operators beyond standard voice calls and data. These include SMS, MMS, caller tunes, mobile banking, and entertainment services like music and video streaming.

August 6, 2024

Blog

List of Best Hotel Stocks in India 2025

Overview of the Hotel Industry

Top Hotel Stocks Based on Market Capitalization

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

1. Indian Hotels Company Ltd.

2. EIH Ltd.

3. Chalet Hotels Ltd.

4. Lemon Tree Hotels Ltd.

5. Juniper Hotels Ltd.

Top Hotel Stocks Based on 1-Year Return

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

Viceroy Hotels Ltd.

The Byke Hospitality Ltd.

India Tourism Development Corporation Ltd.

Robust Hotels Ltd.

Key Performance Indicators (KPIs)

Benefit of Investing in Hotel Stocks

Factors to be Considered Before Investing in Hotel Stocks

Future of Hotel Sector in India

Conclusion

Frequently Asked Questions (FAQs)

Which hotel companies are listed on the stock market in India?

Is it a good time to invest in Hotel Stocks?

Is the hotel business cyclical in nature?

Do hotel stocks pay dividends?

Is it safe to invest in hotel stocks?

List of Best Banking Stocks in India 2025

Overview of the Banking Sector in India

Best Banking Stocks Based on Market Capitalization

Best Banking Stocks Based on Market Capitalisation – An Overview

1. HDFC Bank

2. ICICI Bank

3. State Bank of India (SBI)

4. Kotak Mahindra Bank

5. Axis Bank

Best Banking Stocks Based on 1-Year Return

Best Banking Stocks Based on 1-Year Return – An Overview

Indian Overseas Bank

Dhanlaxmi Bank

Punjab & Sind Bank

Central Bank of India Ltd.

UCO Bank

Key Performance Indicators (KPIs)

Benefits of Investing in Banking Stocks

Factors to Consider Before Investing in Banking Stocks

Future of the Banking Industry

Conclusion

Frequently Asked Questions (FAQs)

Is it good to invest in banking stocks in India?

How can I identify good banking stocks?

Should I invest in public or private sector banks?

How much should I invest in banking stocks?

What are the risks involved when investing in banking stocks?

How to Check Mutual Fund Status with Folio Number?

What is a Folio Number?

How do You Find Your Folio Number?

How to Use Folio Number to Check Mutual Funds Status?

Who Allocates Folio Numbers?

Advantages of Folio Number

Conclusion

Frequently Asked Questions (FAQs)

What should be done in case I forget my folio number?

Can the status of all the mutual funds that I hold be checked using a single folio number?

Is it safe to share my folio number online?

How often should I check my mutual fund status?

Can one folio number have multiple mutual fund schemes?

What Happens When a Stock Share is Delisted?

What is Share Delisting?

Voluntary Delisting

Involuntary Delisting

What Happens to the Delisted Shares?

Impact on the Shareholders

Conclusion

Frequently Asked Questions (FAQs)

What if the company is acquired after delisting?

What are inactive stocks?

How to sell inactive or delisted stocks?

What will happen to my shares if a company is delisted?

How can I check if a company is at risk of delisting?