Pocketful

Basis	NSE	BSE
Acronym	National Stock Exchange	Bombay Stock Exchange
Established in	1992	1875
Primary index	Nifty 50	S&P BSE SENSEX
Companies in the Primary index	50	30
Companies listed on the exchange	2,302	5,309
Global Ranking (By Market Cap)	6	10
Trading Volume	Higher than BSE	Lower than NSE
Products traded	Equity stocks, Equity derivatives, Currency derivatives, Commodity derivatives, Mutual funds, Exchange-Traded Funds, and many more.	Equity stock, currency derivatives, corporate bonds, Mutual funds, and many more.
Market Capitalisation	Approx. Rs. 334.7 lakh cr.	Approx. Rs. 333 lakh cr.
Liquidity	Due to higher volume, NSE provides higher liquidity	Due to lower volume, BSE provides lower liquidity

Particulars	FY2023	FY2022	FY2021
Revenue	41,398	31,641	26,673
Interest (Paid)	12,701	9,855	9,519
Financing Profit	16,018	9,906	6,314
Net Profit	11,508	7,028	4,420

Particulars	FY2023	FY2022	FY2021
Borrowings	216,690	165,232	131,634
Reserves	54,251	43,592	36,798
Cash From Operating Activity (CFO)	-42,140	-37,090	-807
Cash From Investing Activity (CFI)	-10,365	6,347	-429
Cash From Financing Activity (CFF)	50,675	32,275	1,741

ICICI Bank Case Study: Financials, KPIs, Growth Strategies, and SWOT Analysis

Financial Institutions are the backbone of the Indian economy as they accept funds from depositors and lend to those in need; this facilitates the flow of currency and thus helps the country move ahead.

Indian banks have played a crucial role in growing the GDP to 3.6 Trillion USD (As of Feb 24), making it essential to know about the situation of the banking industry. Therefore, in today’s blog, we’ll be talking about ICICI Bank, which constitutes almost 25% of the Bank Nifty Index (As of Feb 24).

ICICI Bank Overview

The Industrial Credit and Investment Corporation of India (ICICI) was a government entity established on the 5th of January 1994. Sir Arcot Ramasamy Mudaliar was elected as the first Chairman of ICICI Ltd. It is a multinational company and financial services company headquartered in Mumbai.

It offers several services in the sector of banking and finance for corporate entities and retail customers via a variety of delivery channels and specialized subsidiaries, including but not limited to investment banking, life insurance, non-life insurance, loans and venture capital.

Full Name	Industrial Credit and Investment Corporation of India
Company Type	Listed
Industry	Finance and Banking services
Founded	1994
Headquarter	Mumbai, Maharashtra
Products offered	Consumer banking, Commercial banking, Insurance, Credit cards, Investment Banking, Mortgage loans, Private banking, Private equity, Investment Management, Asset management, Mutual funds, Wealth management, etc.
Subsidiaries	ICICI Prudential Life Insurance, ICICI Lombard, ICICI Securities, ICICI Direct, ICICI Home Finance Company
Presence	5,900 Branches and 16,650 ATMs
Key people	Girish Chandra Chaturvedi (Chairman)Sandeep Bakhshi (MD & CEO)

Key Highlights for FY2022-23:

● Total Deposits stood at ₹ 11,808 billion, and Total Advances were ₹ 10,196 billion.

● Net Interest Margin (NIM) is 4.48%, and Net Interest Income (NII) is ₹ 621 billion.

● Profit before tax, excluding treasury gains, reached ₹ 424.73 bn in FY2023.

● Core operating profit stood at ₹ 491.39 bn in FY2023.

● Provisions and contingencies were ₹ 424.73 bn in FY2023.

● Average current account deposits grew up 1.9% y-o-y to reach ₹ 1,614.86 billion.

● Average saving deposits grew up 5.5% y-o-y to reach ₹ 3,797.76 billion.

Key Data Points for ICICI

Let’s have a look at the statistical data of the company:

Market Cap	₹ 7,69,828 cr.
Current Price	₹ 1,097
Stock P/E	18.2
52 Week High / Low	₹ 1,114 / 810
ROCE	6.32 %
ROE	17.2 %

(As of 6 March 2024)

Net Interest Margin (NIM)	4.14%
CASA Ratio	45.84%
Total Capital Adequacy Ratio	18.34%

(As of 31 March 2023)

Strategy and Growth of ICICI Bank

Strategy

In 2023, Indian equities emerged as outperformers in the global space, particularly in the mid and large-cap space, while facing rising international policy rates, volatile community rates, and geopolitical tensions. During all this turbulence, ICICI stayed consistent and remained the 2nd largest private bank in India after HDFC Bank. Here are some of the strategies implemented by them.

● Credit Growth:

Loans are the primary revenue drivers for the bank and help to enhance the growth in the market. ICICI Bank has increased its domestic loan book by 20.5% y-o-y to reach ₹ 9855.28 bn. In FY23, the bank’s total advances grew by 18.7% y-o-y to reach ₹ 10,196.38 bn, and Overseas Book reached ₹ 341.1 bn.

● Deposit Growth:

In FY23, deposits increased by 11% y-o-y to reach ₹ 11,808.41 bn. Overall, the average CASA deposit growth was 13.3%.

● Capital Adequacy:

Capital Adequacy stood at 18.34% for FY23, 19.16% for FY22 and 19.12% for FY21. Thus indicating a healthy margin over the RBI-mandated percentage.

● Profit After Tax (PAT):

Profit after tax increased to ₹ 318.96 bn, growing at 36.7%.

Did you know?

ICICI Bank has supported over 400 hospitals, benefitting over 1.5 million people by fostering healthcare facilities and infrastructure.

SWOT Analysis of ICICI Bank

Strengths

● ICICI Bank has a presence in 19 countries. Thus making it easier for it to expand further.

● In FY23, ICICI had a nationwide network of 5,900 branches and 16,650 ATMs.

● ICICI boasts about a robust infrastructure with a meagre crash rate. ICICI hosts 1.5 million active users on its banking app InstaBIZ, the value of which grew 22% in FY23.

● This bank enjoys a strong brand identity due to its vast branches and ATM network.

Weaknesses

● ICICI Bank faces tough competition from SBI and HDFC bank, making it difficult for ICICI to improve its ranking beyond the current position of 3rd largest bank in India (in terms of deposits).

● The banking industry, in general, saw massive corrections in FY23 as the bull run of 2021-2022 seems to be coming to an end. This can be noticed by comparing Nifty Bank returns with other indices; Nifty Bank grew around 15% while Nifty Pharma grew at 63% (in FY23).

Opportunities

● While it may seem difficult for ICICI to outgrow SBI and HDFC, it is still possible via implementing fast growth strategies such as expansion in tier 3, M&A, etc.

● ICICI’s penetration into the Tier 3 segment of India remains limited; they can gain considerable market share if they focus on substantially improving customer service in Tier 3.

Threats

● Policies impact the banking industry significantly, any unanticipated changes in the monetary policy can cause substantial damage to the bank’s KPIs.

● The bank has grown considerably in the last decade, this was made possible due to the brilliant policies and strategies of the management. But, the banking industry is extremely volatile and failure to adapt quickly could erode all the success.

● NBFCs and Fintechs have seen a massive uptrend in the past few years. This trend will likely continue and potentially revolutionize the banking industry as we know it. This could substantially affect the business’s bottom line figures.

Conclusion

In summation, we evaluated the business, growth strategy, and financials of ICICI Bank. As of February 2024, It is the 2nd largest bank in the nation in terms of Market capitalization and represents a strong position to capture market share amidst the growing demand for credit in the upcoming years.

Frequently Asked Questions (FAQs)

Is ICICI the largest bank in India?
ICICI Bank is the 2^nd largest bank in India in terms of Market Capitalization.
Who is the CEO of ICICI Bank?
Sandeep Bakhshi heads ICICI Bank as the MD and CEO.
What is ICICI Bank known for?
ICICI Bank offers corporate and retail customers a wide range of banking products and financial services through various delivery channels and its group companies.
Is ICICI Bank a Private Bank or a Government Bank?
ICICI Bank is a Private sector bank.
What is the full form of ICICI?
The ICICI stands for Industrial Credit and Investment Corporation of India.

March 7, 2024

Financial Scams in India: Types, Resolution, and Awareness

Did you know that during the financial year 2023, the Reserve Bank of India (RBI) registered bank frauds exceeding INR 30,000 Cr in value? Nowadays, financial scams have become more prevalent, making it difficult to distinguish fraudulent activities from genuine ones.

As per the reports of Statista in 2023, the Reserve Bank of India reported 9,103 financial scams across India. In this blog, we will understand how to avoid scams with the aim of increasing awareness.

Prevalence of Financial Scams in India

In 2023, India’s financial sector witnessed a surge in sophisticated scams and frauds that exploit evolving technologies and capitalize on unsuspecting individuals. Here are some facts pertaining to the year of 2023:

The national cyber crime helpline receives around 50,000 Calls every day, totalling over 13.1 lakh complaints in the entire year.
During investment and due process, a total of 2.95 lakh fake SIM cards, 46,000 devices, 2,810 websites, and 595 mobile applications were blocked.
Approx. 35% of the total scams focussed around customer service and KYC.
Approx. 24% of the total scams focussed on sextortion.
Approx. 22% of the total scams were focused on online bookings and QR codes.

While scams are spread out in the entire country, some states witnessed more than others. Data for some of the individual states (& UTs) are as follows:

Uttarakhand – 243 cyber crimes per capita
Gujarat – 226 cyber crimes per capita
Haryana – 381 cyber crimes per capita
Telangana – 261 cyber crimes per capita
Delhi – 755 cyber crimes per capita

It is an undisputed fact that the country is facing an epidemic of scams and frauds. Hence, we must know about the varied types of scams happening around the country.

UPI Scam

The advent of UPI transactions marked an important milestone in the digital era of payments in India. However, fraudsters and scammers are using different social media platforms like WhatsApp to gain access to a number of individuals and defraud them via various means, such as claiming to be bank representatives, NGOs, etc. They feed on fear of the victims and compel them to adhere to the fraudsters’ demands.

In the year 22-23, reported UPI fraud cases exceeded 95,000, a notable increase from the 84,000 cases reported in 2021–2022, as per the Ministry of Finance.
Shockingly, 55% of all digital payment frauds in India are associated with UPI transactions.
According to the reports, it has been witnessed that 50% of these scams have an average ticket size of less than Rs 10,000.
In 2023, UPI fraud, bank fraud, and email scams resulted in a staggering financial loss exceeding INR 200 cr.

QR code scam alert

Nowadays, QR code scams are on the rise in India, with fraudsters employing deceptive tactics to lure victims into scanning fraudulent QR codes, resulting in the direct theft of funds from their bank accounts.

As per police statistics, 41% of the 50,000 reported cybercrime incidents in Bangalore revolved around QR codes.

Part-time job scams

Fraudsters are using social media to target their audiences with promises of easy part-time work and handsome salaries.

As per a report in 2023, Delhi police addressed 467 complaints about internet fraudsters advertising part-time work—an alarming increase from the 32 complaints reported in 2020.

Courier Scam

These kinds of scammers are targeting young audiences and claiming that courier parcels, allegedly containing drugs or other illegal items, are being sent in their names to foreign countries.

Bengaluru police addressed around 163 such courier reports in 2023, and the cumulative financial loss from these scams was more than Rs 5 cr.

Malware warning frauds

Fraudsters are increasing in delusive tactics, like fake customer support, cashback links, or emails, to convince unsuspecting consumers to install malware, screen mirroring, or remote access apps.

Tech support scams are becoming a worrying factor where 7 out of 10 consumers fall victim to such schemes.

Financial Scams Awareness

Protecting yourself from financial scams and fraud in India requires awareness and caution. Frauds and scams exist in different forms: phishing, emails, and phone calls. Some steps to protect yourself are stated below.

Educate yourself

Knowledge is a great way to defend yourself from scams and frauds. Stay informed and updated about scams and fraud. Government bodies provide information about current scams and how to avoid them.

Verify PIN

Do not share your PIN or any other personal information with anyone. Reputed organizations will not ask for your PIN.

Two-step -verification

It is essential to enable the two-step verification factor. This will help you to give an extra layer of security.

Use strong passwords

Create strong and unique passwords for your files, including social media sites, banking files, etc. Always use a combination of letters, numbers, and special characters, and avoid using the same passwords for multiple portals.

Beware of fraud phone calls

Avoid picking up calls from suspecting numbers and do not provide any confidential details on such calls, even if they claim to be representatives of corporations.

Ask help

If you become the victim of a scam, then consult with the police and legal professionals to seek resolution as quickly as possible.

Financial Scams Resolution

In a recent interview, the Director General of Police (DGP) of Uttarakhand, Ashok Kumar, spoke on cyber crimes in India. He explained a few preventive steps to minimize cyber crimes, fraud, and scams. The pointers are stated below:

Notify your bank’s customer service immediately, report your incident to them, and ask for help to cease your bank details.
File a complaint with NCRP (National Cyber Crime Reporting Portal).
Contact your local police station and also file an FIR.
Keep a close eye on your account’s transactions.

Conclusion

In conclusion, it is crucial to stay informed and cautious to avoid falling victim to scams and fraud in India. By educating themselves, verifying identities, enabling two-step verification, using strong passwords, being wary of fraudulent phone calls, staying updated, and seeking help when needed, individuals can protect themselves from financial scams and fraud.

Frequently Asked Questions (FAQs)

What is Fraud?
It is defined as the false representation of facts or providing false statements to another party for the specific purpose of gaining something that may not have been supplied without the deception.
What are two basic types of Fraud?
The courts classify fraud under two major types: criminal and civil.
What is an example of a fraud scheme?
Common frauds include Ponzi schemes, phoney job offers, false billings, bogus investment opportunities, etc.
Why is it important to understand fraud?
Fraudsters have evolved their methodology in recent times. Therefore, we need to stay aware of their movements so that we can protect ourselves from getting defrauded.

March 7, 2024

Polycab Case Study: Business Model, Financials, Competitors, and Growth Outlook

Polycab India is one of the leading manufacturers of wires and cables in the nation. It is engaged in the business of manufacturing wires and cables. Along with these products, Polycab offers FMCG products such as electric fans, LED lighting and luminaires, switches & switchgear, solar products, and conduits & accessories. Let’s look at its company profile, financials, market position, and segments.

All About Polycab

This reputed company was incorporated in 1964, in Mumbai as a private limited company under the Companies Act, of 1956. The company’s consolidated turnover of INR 14,108 Crores in FY23. The company focuses on brand positioning, new product development, scaling operations, customer-centricity, talent acquisition, go-to-market excellence, and good governance.

In FY23, the revenue of Polycab contributed to a consolidated 9.8% of the revenue in international business. The company also has expanded its footprint in 93 countries. The company is enhancing its reach and distribution in B2C business and increasing its presence in white spaces for B2B business.

Key Metrics

Market Cap	₹ 73,244 Cr.
Current Price	₹ 4,881
High / Low	₹ 5,733 / 2,754
Stock P/E	44
Book Value	₹ 479
Dividend Yield	0.41 %
ROCE	27.0 %
ROE	20.0 %
Face Value	₹ 10.0

Product Mix

Products	Sales in FY23
Wires and Cables	89%
FMEG	9%
Copper and others	2%

The figure presents an overview of the segments for Polycab India in the FY 2023. The company’s total revenue was INR 14,108 Crores, of which 89% came from wires and cables, 9% from FMEG (fast-moving electric goods), and 2% from copper plus other sources.

Revenue of Polycab

Year	Revenue in (INR Crores)
FY19	7,986
FY20	8,830
FY21	8,792
FY22	12,204
FY23	1,41,078

Notes: Numbers are on a consolidated basis.

The figure represents a CAGR of 15% in revenue between FY19 and FY23.

Products Offered by Polycab

This company has a diversified range of products and their main products are wires and cables segments. These are:

Control and power cables
Instrumentation cables
Building wires and green wires
Welding cables

Project Leap

Project Leap is a multi-year transformational programme aimed at having the right methodology in place which will enable them to achieve INR 200 billion of the top line by FY26. Progressing towards the goal, the company witnessed strong Q3FY24 performance and generated revenue of ₹4,340 crore, growing by 17% YoY.

Competitors of Polycab

The industry faces tough competition due to its low barriers to entry. Some of them are :

KEI industries
Sterlite Techno
Finolex cables
Precision wires
Universal cables.

A New Era

In an era, where branding plays a critical role in establishing a company’s identity and connection with customers, Polycab identifies the significance of refreshing its brand and staying in touch with technological advancements. The company engages in deep research and development which helped them to scale up its businesses in the FMEG segment. The company also introduced a new tagline “Ideas. Connected.” which builds on the idea of a future where innovative products simplify lives. Their main intention is to connect with their customers deeply and build brand loyalty.

The main pillars of the new brand will constitute a diverse range of products and services such as home automation products, FMEG goods, improved customer experience, and sustainable cables and wires. Polycab’s growth momentum is driven by the growth in its B2C business and sustenance in B2B business while expanding its footprints internationally.

Growth Outlook

In 2024, Polycab is planning to witness substantial growth in its business with more focus on 2 of its product segments – Wires and Cables and FMEG (Fast Moving Electrical Goods).

By FY26, the company aims to achieve the following objectives:

Attain revenue of ₹20,000 crores.
Achieve EBITDA margin of 10-12% in the FMEG segment.
Achieve 2 times market growth in emerging segments.
Secure over 10% of its contribution from online channels.
Build stronger and more robust relations with the customers.

Conclusion

Polycab India has established itself as a leader in the wire industry, with a strong focus on innovation, customer-centricity, and sustainable growth. The company’s strategic initiatives, such as Project Leap and brand revitalization, are driving its expansion and success in both domestic and international markets.

Looking forward, the company has plans to grow even more. Polycab wants to acquire greater market share and meet the increasing demand for their products in global markets.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Hindustan Unilever Case Study
2	Case Study on Apple Marketing Strategy
3	Reliance Power Case Study
4	Burger King Case Study
5	D Mart Case Study

Frequently Asked Questions (FAQs)

What is the market share of Polycab?
Polycab is expected to have an organised market share of 22% – 24%.
Who is the Chairman of Polycab?
Inder Jaisinghani runs Polycab as its Chairman and MD.
Is Polycab a debt-free company?
The company is almost debt-free. Polycab has a healthy Interest coverage ratio of 31.12 and a debt to equity ratio of 0.01.
What is Project Leap of Polycab?
Project Leap is a multi-year programme aimed at having the right infrastructure in place which will enable them to achieve INR 20,000 Crores of Revenue by FY26.
What is the EBITDA Margin of Polycab?
Polycab reported an EBITDA Margin of 13.1% in FY23, an increase of 270 bps from 10.3% in FY22.

March 7, 2024

Explainer on Portfolio Management Services (PMS): Features, Types, Charges, Taxation, and Risks

If you have accumulated significant wealth during your career and wish to seek professional help in managing the funds, then Portfolio Management Services (PMS) can prove helpful to you.

Today’s blog will focus on individuals who wish to gain more profound knowledge of Portfolio Management Services (PMS).

Portfolio Management Services Overview

Portfolio management services, or PMS, is a financial service offered by financial institutions. This service primarily focuses on investing investors’ funds with a larger portfolio than the average individual. Such investors can invest their money in this service, and a team of qualified fund managers will allocate it to various asset classes based on their investment goals.

Typically, investors allocate a portion of their portfolio to equity but cannot manage it effectively due to a lack of professional knowledge. This is where PMS comes in; with a minimum investment of 50 Lakhs, your entire investment amount will be given to a portfolio management company, and their team of seasoned professionals will allocate it among various asset classes based on market and economic conditions. In exchange, they will charge a fee for their services.

The first announcement of the SEBI regulation for PMS dates back to 1993. All Portfolio Management Companies are required to adhere to the compliance standards established by SEBI.

Minimum Investment Amount

Over time, PMS’s minimum investment amount has undergone modifications. The PMS legislation was first established in 1993, with a minimum investment value of 5 lakh. In 2012, the minimum investment amount was raised to 25 lakh; in November 2019, it was further increased to 50 lakh.

Features of PMS

1. Investment in PMS provides customized solutions as per investors’ objectives.

2. The fund managers have vast experience in managing funds

3. PMS fund managers generally diversify the investment across different asset classes, ultimately lowering the risk.

4. Reports like transactions, profit and loss, etc., will be sent periodically to investors, and they can also check the same on the online platform provided by PMS companies.

5. PMS is a product with a minimum ticket value of 50 lakhs, which is generally suitable for HNI investors.

Types of PMS

A financial institution offers a variety of portfolio management services, including

1. Discretionary Portfolio Management– The portfolio managers make all investment-related decisions under this category of portfolio management services on the client’s behalf. Before making any investments, the fund management is at liberty and is not required to confer with the investor. The majority of the clients choose this type of service.

2. Non-discretionary Portfolio Management– The fund manager must obtain the client’s confirmation before investing in this kind of service. The client receives financial advice from PMS’s investment team but ultimately decides whether or not to act on the advice.

3. Advisory Services – In this arrangement, a fund manager will merely offer advice to investors on various asset classes; the investor will decide whether to follow the fund manager’s recommendation.

4. Active Portfolio Management – The ultimate goal of active portfolio management is to maximize investor return, which is accomplished by actively allocating funds to various asset classes. The fund management actively chooses the allocation of funds and where to invest them.

5. Passive Portfolio Management – The fund manager uses this investment management technique to allocate the funds to stocks that track indexes and increase steadily over time.

Charges of PMS

The charges of PMS can be classified into 3 different categories-

Fixed Charges

This is what every PMS charges as its main fee. This is an ongoing charge that depends on the average value of your investment and varies from 1% to 3%. The fee is due regardless of the fund manager’s performance ratings. This is the minimum amount that must be paid to the PMS firm regardless of the fund’s performance.

Below is the illustrative table of the same.

Fees	2%
Investment Amount	50,00,000
Return on Portfolio	20%
Profit	10,00,000
Portfolio Value at the year-end	60,00,000
Fixed Charges 2%	1,20,000
Net Value of Portfolio after Fees Adjustment	58,80,000

Performance Based

The fund’s returns are used to determine these fees. The fund management will charge a fee based on the percentage of profit made above the minimum rate, also referred to as the hurdle rate.

We can better understand this by using an example. For example, if the hurdle rate is 8% the profit sharing ratio is 20% above the hurdle rate, and your investment of Rs. 50 lakh yields a 20% return on your portfolio, your total profit will be Rs. 10 lakh, of which Rs. 4 lakh is the minimum profit that needs to be delivered. The company will then charge a fee of 20% of the remaining profit of 6 lakhs.

Below is the illustrative table for the same.

Fees	Profit Sharing – 20% above 8% Hurdle Rate
Investment Amount	50,00,000
Return on Portfolio	20%
Profit	10,00,000
Value of Portfolio at the end of the year	60,00,000
Hurdle Rate 8%	4,00,000
Profit over hurdle rate	6,00,000
Profit Sharing 20% of 6,00,000	1,20,000
Net Value of Portfolio after Adjustment	58,80,000

Hybrid Fee Structure

This fee schedule combines a profit-sharing concept with a fixed fee. In this instance, the hurdle rate is typically higher than in a performance fee-based approach, and the fixed charge rate will be lower than in a fixed charge model. This is intended for PMS managers who wish to profit from both fee structures.

Taxation

Equity Taxation – If a portfolio is heavily weighted toward the equities asset class, the tax rate on the profit amount will be 15% if the holdings are sold within a year, and the appropriate rate will be 10% above 1 lakh if the holdings are sold after the year.

Non-Equity Taxation – The portfolio will be considered a short-term gain and included in the investor’s income at their slab rate if it is sold within three years and does not concentrate in the equity asset class. If the units are sold after three years, they will be considered a long-term gain and subject to a 20% tax with indexation benefit.

Dividend Income –All dividend income earned on the investment will be included in the investor’s income and taxable as per their tax slab.

Exit Load – If you withdraw your money before a predetermined amount of time, PMS firms typically charge an exit load, ranging between 1 to 3%.

Risks

The risks investors should consider before investing in PMS are listed below.

1. Performance of Fund Manager – Evaluating the fund manager’s performance before investing is essential. Looking for a fund manager with a stable track record is usually advisable.

2. Market Risk – Due to the investment’s significant exposure to the equities asset class, there is a greater chance of losses and a rise in portfolio volatility.

3. Liquidity Risk – Because certain illiquid securities are difficult to sell, investing in them may affect your portfolio liquidity.

4. Regulatory Risk – As previously stated, the minimum ticket size for investing in PMS has increased from 25 lakhs to 50 lakhs in 2019. Future legislative changes of this nature could affect PMS’s investment strategies and tax consequences.

Conclusion

We’ve gone over the benefits and risks of investing in PMS with you; this service is for high-net-worth individuals (HNIs) who understand the risks involved in this kind of investing. Suppose an investor is willing to assume the risk of this product and is seeking a better return. In that case, they should consider all the important characteristics before making a decision.

Before making any investing decisions, we advise you to speak with your financial advisor to better understand your ability to accept risk.

Frequently Asked Questions (FAQs)

Is PMS investment permissible for NRIs?
Yes, You can invest in PMS as an NRI.
How do I access my PMS portfolio valuation?
In addition to sending clients statements regularly, PMS businesses offer their clients an online portal through which they can monitor their assets, transaction statements, and profit and loss statements.
How can you evaluate PMS performance before purchasing?
Before purchasing PMS, you can evaluate its performance by comparing its returns to the appropriate benchmark and examining the consistency of its returns over an extended duration.
Does PMS have a lock-in period?
PMS offers the flexibility of no lock-in period. However, redeeming your investment before the allotted time will incur an exit load.
Is there a guaranteed return in PMS?
No, PMS company cannot provide investors with a guaranteed rate of return.

March 7, 2024

Introduction to Bearish Candlesticks Patterns: Implications and Price Movement Prediction

In our last blog, we explained a candlestick pattern and which bullish patterns to consider before entering a bullish trend. However, how can you tell when a stock will correct after making higher highs? In this blog, we’ll introduce you to several bearish candlestick patterns, which will help you determine when to exit a buying position.

To learn more about bullish candlestick patterns, click here.

Hanging Man

Typically, this one-off candlestick pattern emerges after an upward trend. It is referred to as a bearish reversal pattern, which suggests that an uptrend is ending and that a stock price correction is on the card. The candle is small in the top part and has a lengthy bottom shadow that extends beyond the body of the light, giving the appearance of a hanging man. However, the shadows in the upper part are either nonexistent or minimal. This pattern appears after a strong uptrend with an increase in selling volume.

Shooting Star

The shooting star sometimes called the inverted hammer candlestick pattern, signals that a stock’s upward trend will halt and a negative one is about to start. The single candlestick in this pattern has a little body with a longer upper shadow (lacks a lower shadow). This candle typically indicates that although purchasers attempted to drive up the price, they could not because of selling pressure.

Dark Cloud Cover

A pair of candlestick patterns called “dark cloud cover” signals the end of an uptrend. A bullish candle with a lengthy white or green body that suggests a significant upward trend will be the first candle to appear. The second candle will be red and open higher than the close of the day before, but it closes below the candle’s halfway. This pattern typically signals a bearish trend’s beginning and a bullish sentiment’s end.

Bearish Engulfing

It is considered a strong reversal signal, which indicates that bullish movement is about to end, and a potential downtrend may start. This is also a two-candlestick pattern out of which the first candle is green and has a small body. The second candle opens above the previous day’s close and closes below the last day’s open by covering the entire range of the last day’s candle. The size of the second candle needs to be larger than the size of the first candle.

Three Black Crows

The three candlestick pattern known as the “three black crows” is a vital clue that a negative trend in the script is about to start. The three candles are all bearish, and since their closing prices are all less than their opening prices, they are likely to lack a wick or have a short one. The selling pressure increases with the length of the candle’s body. And the closing price of every candle should be near to its low. Also, a larger volume using these candles will put more pressure on the seller to sell.

Tweezer Top

This pattern suggests that the peak has formed and that the stock is ready to go into a bear trend. This is also a two-candlestick pattern, where the buyers are showing interest in the stock indicated by the first green candle, and the second candle, which forms later, is bearish, indicating that the closing price is lower than the opening price and that the highs of both candles are the same or barely differ. This pattern suggests that selling pressure is building and that purchasers are unable to gain control over the stock. These two candles are known as “Tweezer Tops” because of the way their patterns form; they look like tweezers.

Gravestone Doji

At the height of a bullish run, this candlestick pattern emerges. The graveyard doji is a little real-body candle with a long upper wick or shadow and a small or nonexistent below shadow. It shows that the opening and closing values of the candle are near the low of the trading session. The shape suggests that the buyer initially attempted, but was unable, to drive the price higher, and that ultimately, the closing price approached the lowest price of the day, taking the form of a gravestone.

Bearish Kicker

The pressure of volume has suddenly shifted from purchasing to selling. This two-candlestick pattern usually appears near the peak of an ascending trend. Two candlesticks will appear in this pattern: a long, bullish candle that suggests the upswing will continue and a gap-down candle that opens below the closing price of the preceding candle and closes below its low.

Bearish Harami

Bearish harami is a pattern that generally indicates that the upside has now been limited in stock, and a downside movement looms. It is a two-candlestick pattern. The first candle is a large bullish candle, followed by the second bearish candle, which is very small in trend and engulfed by the previous candle. The closing price of the second candle is significantly lower than the opening price of the first candle.

Conclusion

The bearish candlestick patterns will assist traders in taking short positions in the market. Using the indications above, one may determine when a bullish trend in a specific stock is about to stop and a negative trend is about to start. In general, there is no assurance from these indicators that the bearish trend will begin or persist. It is essential to realize that these patterns may not hold up if any unexpected news regarding the stock is made public.

Thus, before making any trades, traders should always review the larger market context, consider a few more indications in addition to the ones listed above, and remember that risk management is crucial.

Frequently Asked Questions (FAQs)

How important are the length and shape of a bearish candlestick pattern??
The length and shape of the candlestick pattern typically indicate the level of selling pressure in a particular stock.
Where can the bearish candlestick pattern be found?
A bearish candlestick pattern can be discovered close to the resistance level in an uptrend.
When a stock is trending downward, can I still trade?
Yes, you can take advantage of the sell-side opportunity by initiating a short position in the stock.
Which bearish candlestick pattern is the most effective?
There are various bearish candlestick patterns, such as bearish harami, hanging man, shooting star, black cloud cover, etc. However, each bearish candlestick pattern has pros and cons, so managing your risk appropriately is vital.
Is it possible for me to trade without understanding candlestick patterns?
You can trade without knowing about candlestick patterns. Still, it could be quite challenging for you to determine any stock’s trend because candlestick patterns are used in technical research to help you determine potential stock price trends.

March 6, 2024

Introduction to Bullish Candlestick Patterns: Implications and Price Movement Prediction

Technical analysis is an integral part of trading, and today we’ll explain a few Bullish Candlestick Patterns that experienced traders employ to indicate a potential movement of stock price and thus earn abnormal returns.

If you wish to expand your knowledge on Bearish Candlesticks Patterns, then click here to read our blog.

Bullish Candlestick Overview

Candlesticks are the pictorial representation of stock price movement over a specific period of time. The period can be daily, weekly, half-yearly, etc. The candles are formed by a stock’s open, high, low, and closing price. They are often shown by different colors, such as – a green or white candle stands for upside movement in the stock while a red or black candle represents the downward movement.

A candle has three parts:

1. The body represents the stock’s open and closing prices.

2. The wick displays the stock’s intraday high or low.

3. The color of the candlesticks indicates the direction of the stock’s price movement.

Bullish Candlestick Patterns

This pattern indicates that the stock price will rebound and trend upward following a stock price correction. Traders typically utilize the candlestick pattern to enter a stock after it has shown an upward trend.

A few typical bullish candlestick patterns are listed below.

Bullish Engulfing Pattern

This candlestick pattern indicates a turnaround and the conclusion of a downward trend. It manifests as two candles, the larger of which is a bullish candle that swallows the earlier bearish candle. It shows the change in momentum from negative to positive. Traders will interpret this as an indication to go long in stock. It is named “engulfing” because the body of the bullish candlestick “engulfs” the entire body of the previous bearish candlestick.

This pattern is more likely to occur when a stock price has had a substantial decline and the stock is finding support close to its critical levels. Additionally, a higher volume suggests buyers are becoming interested in the stock.

Hammer Candlestick Pattern

It is formed like a hammer, as the name implies. This single candlestick pattern appears when a stock hits its support level at the bottom of a downtrend. Hammer candles have long wicks and small upper bodies because the wick in the lower portion is significantly longer than the candle body in the upper half.

Traders typically interpret this as the end of selling pressure, at which point purchasers attempt to regain control of the buying interest.

The widespread consensus is that the stronger the bullish indication, the longer the lower wick of the candle.

Morning Star Candlestick Pattern

This bullish pattern with three candles usually appears at the bottom of a downtrend. The first candle in this pattern will be a long bearish candle, signifying that sellers are in complete control of the stock; the second candle will be a little body candle, suggesting that selling pressure may be waning. The long bullish candle that closes above the first candle’s midpoint will be the final or third candle. This suggests that buyers are attempting to control the stock price movement fully.

The strength of the pattern increases with the size of the second little body candle. When it follows a protracted downward trend, this pattern is more dependable.

Piercing Pattern

The pattern has two candlesticks and is bullish. The first candle in this pattern is bearish, while the second candle reverses course and closes close enough within the body of the previous day’s bearish candle. The second candle opens lower than the previous day’s close, or it opens with a gap down and trades lower during the session. The candle, on the second day, ought to close halfway up to the bearish candle’s body.

The bullish pattern’s strength increases with the bullish candle’s size relative to the preceding bearish candle.

Three White Soldier

Three consecutive white or green candles make up this bullish reversal candlestick pattern. It typically occurs near the conclusion of a downward trend and indicates a possible uptrend. Every one of the three white candles opens higher than the body of the candle from the day before and closes at a higher price. No upper shadow on any of the three candles should indicate constant purchasing pressure. Each candle in the pattern should have a body larger than the one before, signifying a purchasing indication. Buyers are believed to be aggressively gathering momentum in the stock through this pattern.

Bullish Harami Pattern

It is a signal that could indicate an upward trend reversal in the stock. It is a two-candlestick pattern that appears while the market is declining. The first candle in this pattern is a big bearish candle that suggests there is selling pressure on the stock, and the second candle is a tiny bullish candle that is entirely surrounded by the first candle’s body. The second candle begins lower than the previous day’s close and ends higher than that day’s opening. Although the second candle is bullish, it is smaller than the bearish candle that came before it, indicating insufficient positive momentum to reverse the downward trend completely.

Tweezer Bottom

The tweezer bottom pattern indicates that bulls are attempting to take complete control of the stock as selling pressure is likely to release. This pattern is often regarded as stronger when the stock is close to its support and is thought to be more dependable when it emerges following a prolonged downturn. The first candle in this pattern is bearish, which usually has a lengthy lower shadow. The second candle’s body should be larger than the first, and its bottom should be close to the first candle’s low. The pattern of these two candlesticks is similar to a pair of tweezers.

Conclusion

We’ve gone over the most common bullish candlestick patterns, but a trader must perform their due diligence before investing in stocks. It is also essential to remember that even with bullish candlestick patterns, it is advisable to use all other types of candlestick patterns to assess the larger market, as these can occasionally be false signals.

Frequently Asked Questions (FAQs)

To what extent are bullish candlestick patterns dependable?
Although bullish candlestick patterns can offer insightful information about the possible direction of stock movement, they should be utilized with additional indicators and tools for technical analysis to ensure accuracy. Since no single signal or pattern is perfect, it is essential to consider a range of factors before making trading decisions.
Which is the best bullish candlestick pattern?
Since each bullish candlestick pattern has advantages and disadvantages, controlling your risk when trading is always advisable.
What does the red candle signify?
A red candle indicates that the stock is likely to be in a downward trend and close lower than the previous day.
What do you mean by the wick of a candle?
The wick of a candle refers to the thin lines that extend from the body of the candle, reflecting the highest and the lowest price that stock hits on a particular day. These are also called the “Shadow” of a candle.
Do all bullish candlestick patterns have a long wick or shadow?
No, all bullish candlestick patterns do not have long wicks or shadows; only some candlestick patterns, like a hammer, etc, have shadows.

March 6, 2024

A Comparative Study on Top 5 Solar Stocks in India

Renewable energy has seen a massive uptrend in the past few years, majorly due to the overwhelming support of international entities. Fortunately, our country, India, has access to abundant solar energy, and a few companies can tap this resource’s full potential.

Today we’ll briefly overview solar firms and a performance comparison in today’s blog.

What are Solar companies?

Solar energy firms engage in various business activities that involve harvesting and converting solar radiation into electrical energy. Typically, solar companies offer a complete solution, including system design, equipment procurement, and plant installation. The businesses in this industry specialize in various areas, including solar panel manufacturing, solar inverter manufacturing, solar financing, battery manufacturing, and solar software preparation.

Reasons for choosing Solar stocks

The government regularly provides incentives to the solar energy industry, which is why investors find them enticing investment opportunities.
With the rising demand for solar energy in the upcoming years, this industry has seen substantial growth in recent years and has excellent long-term performance potential.
Many solar stock companies offer high dividend yields. Hence, investors seeking steady income find them appealing.
Investing money into solar companies gives you the mental comfort of knowing that you are positively impacting the environment.

Risks involved with Solar stocks

The solar sector is subject to significant influence from governmental policies, incentives, and regulations. Any modifications to these factors may impact the company’s growth prospects.
The solar industry is very young compared to other well-established market sectors; thus, any major shift in the market could impact its performance.
Large players are interested in this industry, so the corporation may eventually have to contend with fierce competition.
Small solar companies’ stock may be less liquid, and newly established businesses may have some financial insecurity.

Overview of Best Solar Companies in India.

Urja Global

The business was established in 1992 and initially concentrated on financial services until entering the renewable energy market in 2009. They started a project named “Urja Rath” in 2013 to promote environmentally friendly transportation.

The organization has partnered with several foreign businesses to grow their business, in addition to working on numerous solar projects throughout India.

Products and Services

They develop solar power projects after considering their client’s needs and budgets. They offer every piece of equipment needed for solar power plants. By giving their clients appropriate equipment maintenance, they offer excellent after-sale support.

Suzlon Energy

Established in 1995, Tulsi Tanti launched this worldwide provider of renewable energy solutions, with presence in over 17 countries. Pune is home to the company’s headquarters. Through its creative solutions, the company is dedicated to promoting sustainable energy solutions that lower carbon emissions. Since their entry into the solar energy industry, they have successfully installed and commissioned 340 MegaWatt of solar power across several states. In Rajasthan, the business also built a 1500 MW wind-solar hybrid park.

Products and services

They provide a large selection of wind turbines, as well as installation, upkeep, and replacement parts. Additionally, they also provide a customized selection of products to meet the needs of their customers in any climate—hot, dry, desert, humid, etc.

Sterling & Wilson

It is a multinational engineering, procurement, and construction (EPC) firm with a focus on sustainable energy initiatives. Willison Electric Works and Sterling Investment, a consortium of Shapoorji Pallonji consortium companies, merged to form the corporation in 1927. The company’s headquarters are located in Mumbai. In order to capitalize on the expanding energy industry, Sterling and Wilson Private Limited established a solar business in 2011 and started operations there. The business is present in more than 25 countries worldwide. The organization optimizes renewable energy projects’ performance, efficiency, and reliability by utilizing state-of-the-art technologies and creative ideas.

Products and services

They offer complete EPC services for energy projects, and solar power solutions, including roof-top solar installation solar parks, among other things, and their products are mostly concentrated on renewable energy. It also offers energy storage and wind power solutions to its customers.

Gita Renewable

The company was established in 2008, and its head office is in Chennai, Tamil Nadu. Gita renewable energy is firmly committed to sustainable practices and clean energy production. 2014 saw the company’s first 2 MegaWatt solar power plant successfully come online. It also won many accolades, including the state government’s “Outstanding SME Awards”.

Products and services

Using its own power plants, the company produces and distributes renewable energy. Their 2 MW power plant in Tamilnadu is currently their main source of energy.

Borosil Renewables

Borosil Renewables Limited started off its operations in 2009 to reflect a strategic move toward renewable energy. The company was granted approval in 2010 to establish the first commercial facility for producing tempered solar glass. The business introduced the first fully tempered 2 mm thick solar glass in the world in 2017; it offers exceptional strength and resilience to hail. With its current capacity, the company can produce 450 tons of solar glass per day or 2.8 gigawatts of solar modules.

The business is India’s first and only producer of solar glass.

Products and services

Tempered solar glass, the company’s main product, comes in a range of thicknesses from 2 mm to 4 mm. The company offers a diverse range of products. Additionally, the coating is self-cleaning, anti-soiling, and anti-reflective.

Comparative Study of Solar Companies

Market Capitalization

Company	Market Capitalization
Urja Global	1,388
Suzlon Energy	62,693
Sterling & Wilson Renewable Energy	13,678
Gita Renewable Energy	80.4
Borosil Renewable Energy	7,101

(In crores)

The table mentioned above makes it clear that Gita Renewable has the least market capitalization and Suzlon Energy has the greatest among the companies listed.

52 Week High and Low Prices

Company	52 Week High Date	52 Week High Price	52 Week Low Date	52-Week Low Price
Urja Global	5-Feb-2024	41.65	28-Mar-2023	6
Suzlon Energy	2-Feb-2024	50.6	28-Mar-2023	6.95
Sterling & Wilson Renewable Energy	9-Feb-2024	647	19-Oct-2023	253
Gita Renewable Energy	3-May-2023	70	10-1-2024	310.3
Borosil Renewable Energy	01-Feb-2024	669	28-Mar-2023	380

(As on 17 February 2024)

Income Statement (FY23)

Particulars	Urja Global	Suzlon Energy	Sterling & Wilson	Gita Renewable	Borosil Renewable Energy
Total Income	41.41	5,990	2,125	8.87	707.08
Total Expenses	39.43	5,819	3,304	1.01	587.9
Net Profit	1.97	2,887.29	(1,174)	7.85	88.54

(In crores)

Balance Sheet (FY23)

Particulars	Urja Global	Suzlon Energy	Sterling & Wilson	Gita Renewable	Borosil Renewable Energy
Total Asset	285	6,047.9	3,190	14.19	1,391
Inventory	20	760	1.57	–	174
Trade Payables (Non-current)	65.6	1,061	650	0.41	43.73

(In crores)

Cash Flow Statement (FY23)

Particulars	Urja Global	Suzlon Energy	Sterling & Wilson	Gita Renewable	Borosil Renewable Energy
Cash flow from Operating Activities	0.91	(31.15)	(1829)	15.2	25.64
Cash flow from Investing Activities	0.64	407	(11.78)	6.85	(220)
Cash flow from Financing Activities	(1.09)	(495.51)	1,431.26	(26.44)	184.64

(In crores)

Key Ratios (FY23)

Particulars	Urja Global	Suzlon Energy	Sterling & Wilson	Gita Renewable	Borosil Renewable Energy
Basic EPS	0.03	2.64	-61.65	19.11	6.79
ROCE (%)	1.15	20.69	-210.97	57.15	10.73
3 Year CAGR Sale(%)	-50.81	47.72	-39.87	-23.62	59.31
P/E (x)	228.33	2.99	-4.73	4.69	60.51
P/B (x)	2.14	8.82	-24.62	2.68	6.13

It is clear from the previously described comparative study of the company’s financials that some businesses are currently profitable while others are losing money and the growth in sales of the businesses is uneven.

Read Also: Top Power Companies in India

Conclusion

Investment in the solar energy business carries a high level of risk, but it also has the potential to be very profitable. As with any investment, you must exercise patience and perform due diligence.

This is the industry to choose if you are a long-term investor who has funds for long term investments.

However, before making any investing decisions take your investment horizon and risk tolerance into account.

Frequently Asked Questions (FAQs)

What potential obstacles can solar companies encounter in the present market?
People need to be made aware of the significance of solar energy in order for them to begin leaning toward it, as they are not well-informed about the future of solar companies.
What are some possible avenues for expansion in the solar sector in the future?
The industry might grow significantly as a result of favorable legislation, market expansion, business model improvements, and technological advancements and with the government’s incentive support for the promotion of renewable energy, this all would pave the way for a more sustainable and energy-secure future.
What role do solar companies play in maintaining a sustainable environment?
Solar businesses are important for preserving a sustainable environment because they lower emissions, enhance the quality of the air and water, conserve resources, create green jobs, and advance technology.
Which solar company is the best place to put money?
Every solar firm aims to succeed in its market, but all businesses have strengths and weaknesses. For this reason, before making any investment decisions, it is advised to thoroughly review the business strategy and financial statements of each company.
Are solar companies profitable?
While some solar companies are profitable, many are not. The market for solar energy is still quite small, so many companies have yet to grow to the point where they can profit. Nonetheless, businesses in the market longer are making good profits.

Disclaimer: The securities, funds, and strategies mentioned in this blog are purely for informational purposes and are not recommendations.

March 5, 2024

CAMS Case Study: Business Model, KPIs, and SWOT Analysis

While investing money may seem like a simple task, it’s more complex than you may think.

We will introduce you to a company in today’s article that manages the backend operations of practically all investments made through mutual funds. It’s a highly laborious operation!

Overview of CAMS

When V Shankar launched CAMS in 1988, the company was primarily focused on software development.

The company later obtained a significant investment in 2000 from the HDFC Group, and in 2014, it obtained more funds from the National Stock Exchange (NSE). The business rose to the industry’s top by offering registrar and transfer services to the mutual fund sector.

Subsequently, the corporation added other services to its list of offerings, including electronic payment services, KYC, insurance repository, and account aggregation.

By working with more than 750 institutions, the company expanded significantly and was able to secure a market share of more than 70% in the mutual fund transfer industry.

Do you know what RTA is?

The entity that manages a company’s ownership records of shareholders and bondholders is known as the Registrar and Transferer (RTA). It makes it easier for units to be transferred between holders.

Awards and Recognitions

2023 – Economic Times Datacon Award

2023 – Technoviti Awards 2023

2020 – Excellence Awards in BFSI – Technology by ASSOCHAM

2019 – Business World Top 1000 companies

2018 – Emerging Company Award by Economic Times

Quick facts

1. CAMS maintains a record of roughly 17 million investors.

2. Out of the 48 trillion assets in the business, they represent 33 trillion assets.

3. They hold a market share of roughly 69% of the assets in the mutual fund sector.

Market Capitalization

As of 11 February 2024, the current market capitalization of CAMS is 14,955 Crores.

As of 11 February 2024, the share price of CAMS is 2905.

Shareholding Pattern

In the most recent quarter, promoters saw a fall in their stake from 19.87 to 0, while FIIs and DIIs increased their holdings from 38.61% to 47.69% and 16.06% to 23.08%, respectively.

Business Model and Marketing Strategy

CAMS offers services to mutual funds, banks, insurance companies, and other financial institutions, including account opening, account maintenance, transaction processing, dividend distribution, and all forms of investor communication.

Transaction fees, which they charge for each account opening, transaction processed, dividend payout, etc., are their primary source of income. In addition, they impose fixed account charges based on the quantity of accounts they administer. Additionally, they also collect monthly fees for their add-on services.

Financial Highlights of CAMS

Let’s examine its annual income statement to gain further insight into the company’s financial performance.

Particular	31^st March 2023	31^st March 2022	31^st March 2021
Total Revenue	972	910	706
Total Expenses	551	486	409
Profit before tax	380	383	274
Profit after tax	285	287	205

(In crores)

Based on the financial statistics presented above, it is evident that the company’s finances are growing steadily. Both revenue and profit are consistently rising.

Let’s now examine the balance sheet of CAMS to see its financial situation.

Particular	31^st March 2023	31^st March 2022	31^st March 2021
Non-Current Assets	367	339	309
Current Assets	730	618	533
Non-Current Liabilities	147	135	139
Current Liabilities	168	173	186

(In crores)

We will now require you to review the company’s cash flow statement.

Particular	31^st March 2023	31^st March 2022	31^st March 2021
Cash flow from operating activities	319	321	264
Cash flow from investing activities	(102)	(131)	2.16
Cash flow from financing activities	(205)	(203)	(272)
Net Increase/Decrease in Cash Activities	12	(12)	(.58)

(In crores)

The statistics above make it evident that net cash flow is now positive after two years of negative figures.

Key Ratios

Particular	31^st March 2023	31^st March 2022	31^st March 2021
Net Profit Margin (%)	28.6	31	31
ROCE (%)	43.52	52.37	47.70
Y-o-Y Sales Growth (%)	18.49	15.16	5.45

Net Profit Margin – This ratio indicates the profit margin as a percentage of revenue.

ROCE – It refers to the financial ratio that defines a company’s profitability from the capital that it uses.

Y-o-Y Sales growth – This defines the increase in company’s sales over a year.

SWOT Analysis

Strengths

The business has a long history of great brand recognition and is well-known in the sector for its inventiveness, security, and dependability.
They have excellent stability options and can manage big data, both advantageous for expanding businesses.
Millions of investors’ sensitive data is protected from cyberattacks and unwanted access by CAMS’s highly advanced security system.

Weaknesses

The Indian market accounts for most of CAMS’s revenue; nevertheless, their performance may be impacted due to the company’s restricted geographical coverage and related regulatory risk.
Any downturn in this sector could affect CAMS’s performance, as the Indian mutual fund business provided the majority of its revenue.
Due to its strong market position in India, any new competitors will affect its market share.

Opportunities

As the population grows, so does the financial sector in India, and this expansion of the financial industry will help drive corporate growth.
In the upcoming years, the corporation can broaden its global reach to reduce the risk of becoming overly dependent on the Indian market.
Due to its strong market position in India, any new competitors will affect its market share.

Threats

Since their reliance on technology grows daily, any cyber risk could hurt their business operations and reputation.
The company works in the financial industry. Therefore any changes to government regulations will affect its operating and compliance costs, which will ultimately affect its profit margins.
Any economic downturn can potentially affect investors’ investment decisions and, in turn, their businesses.

Conclusion

CAMS’s market position in the Indian mutual fund industry is approximately 70%, thus undeniably limited in scope. Nevertheless, the company is growing by diversifying its range of products. It’s also important to keep an eye out for the company’s declining promoter holdings, even though revenue and profit are rising.

We have covered every facet of the company in this CAMS case study, from its strengths to its weaknesses. Still, before we wrap up, we would like to encourage you to always think about your risk tolerance and time horizon before making any kind of investment.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
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2	Bajaj Finance Case Study: Business Model, Financials, Competitors, and KPIs
3	Hindustan Unilever Case Study: Business Model, Financials, and SWOT Analysis
4	Infosys Case Study: Business Model and SWOT Analysis
5	Eicher Motors Case Study: Business Model & SWOT Analysis

Frequently Asked Questions (FAQs)

Who is the owner of CAMS?
HDFC Group and the National Stock Exchange own CAMS.
Can I track my mutual fund investment through CAMS?
Yes, you can track your mutual fund investment under CAMS; they provide a platform called CAMS online to check your mutual fund portfolio.
Do CAMS have a bright future?
Yes, the mutual fund business has a bright future based on its growth and the fact that CAMS holds approximately 70% of the market share.
Is CAMS an Indian company?
Yes, CAMS is an Indian company founded in the year 1988 by V Shankar.
Have FIIs increased their stake in CAMS?
Due to their strong optimism over CAMS’s future, FIIs have grown their share from 38.61% to 47.69% during the past month.

March 5, 2024

Company Type	Public
Founder	Rahul Bajaj
Founded on	May 2007
Headquarter	Pune, Maharashtra, India
Industry	Financial services

Market Cap	₹ 4,11,263 Cr.
Current Price	₹ 6,654
Stock P/E	29.8
Book Value	₹ 969
High / Low	₹ 8,192 / 5,486
Dividend Yield	0.45 %
ROCE	11.8 %
Net Profit	₹ 10,289.74 Cr.
ROE	23.5 %
Promoter Holding	54.78 %
Face Value	₹ 2.00

Blog

NSE and BSE

What is NSE?

What is BSE?

Similarities between NSE and BSE

NSE v/s BSE

Popularity Among Investors

Which platform to choose?

Conclusion

Frequently Asked Questions (FAQs)

Overview of Bajaj Finance

Financial Highlights of Bajaj Financal

Income Statement KPIs

Balance Sheet and Cash Flow KPIs

Competitors of Bajaj Finance

Services Provided

Durable Finance

Personal Loan

Gold Loan

Home Loan

Loan against securities

Fixed Deposits

Business Model of Bajaj Finance

Income Model

Success Factor

Conclusion

Frequently Asked Questions (FAQs)

Who is the CEO of Bajaj Finance?

What makes Bajaj Finance Limited so successful?

Bajaj Finance reported a negative cash flow from operations for FY23. Can this be considered a red flag?

What is Bajaj Finance’s NIM?

Where is the headquarters of Bajaj Finance?

ICICI Bank Overview

Key Highlights for FY2022-23:

Key Data Points for ICICI

Strategy and Growth of ICICI Bank

Strategy

● Credit Growth:

● Deposit Growth:

● Capital Adequacy:

● Profit After Tax (PAT):

Did you know?

SWOT Analysis of ICICI Bank

Strengths

Weaknesses

Opportunities

Threats

Conclusion

Frequently Asked Questions (FAQs)

Is ICICI the largest bank in India?

Who is the CEO of ICICI Bank?

What is ICICI Bank known for?

Is ICICI Bank a Private Bank or a Government Bank?

What is the full form of ICICI?

Prevalence of Financial Scams in India

UPI Scam

QR code scam alert

Part-time job scams

Courier Scam

Malware warning frauds

Financial Scams Awareness

Educate yourself

Verify PIN

Two-step -verification

Use strong passwords

Beware of fraud phone calls

Ask help

Financial Scams Resolution

Conclusion

Frequently Asked Questions (FAQs)

What is Fraud?

What are two basic types of Fraud?

What is an example of a fraud scheme?

Why is it important to understand fraud?

All About Polycab

Key Metrics

Product Mix

Revenue of Polycab

Products Offered by Polycab

Project Leap