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What Is An IPO Mutual Fund? Should You Invest?
Recently, there have been a lot of new IPOs in Indian markets that have given stellar listing gains to investors. However, the better the potential IPO, the lesser the chances of getting an allotment for Retail Investors. Don’t worry; we will be discussing how you can invest in an Initial Public Offering (IPOs) via the mutual fund route.

Mutual funds are pooled investments that aim to provide capital growth to investors in the long term. They are classified according to asset class, financial goals, and structure. In this blog, we will discuss the thematic funds—IPO theme.

Thematic funds are similar to sectoral funds, which fall under equity mutual funds category and are professionally managed by a fund manager. Their strategy involves investing in a particular theme, e.g., IPO theme, Digital and tech theme, etc.

There is one such mutual fund in the industry that will enable you to invest in quality IPOs without worrying about allotment status. We are referring to “Edelweiss Recently Listed IPO Mutual Fund”. It is a thematic fund that will assist you in investing in quality IPOs that have either recently been listed or are going to be listed on the exchanges.

Edelweiss converted its “Maiden-Opportunities Fund”, a close-ended scheme launched in February 2018, to the “Recently listed IPO Fund, an open-ended scheme” open to new investments since June 2021.

As per Edelweiss, the following is the strategy of the fund:

1. The fund will invest in the recent 100 IPOs to capture listing and post-listing gains.

2. The fund will invest in new-age businesses that are getting listed in the Indian market.

3. The fund will invest in companies across sectors with a bias towards small and mid-caps that promise growth.

4. The fund will not invest in weak businesses that can be highly impacted by market shocks.

Read Also: Why Invest in an IPO and its Benefits?

Characteristics of the Fund:

As of December 2023:

1. More than 72,000 people have invested in this mutual fund.

2. Its expense ratio is 0.92% and has an exit load of 2% if redeemed within six months.

3. Since inception, the fund has given an app. annualized return of 15%.

4. Only such thematic mutual fund available in the industry.

5. The fund’s asset under management (AUM) is INR 943 crs.

Positives if you invest in such thematic mutual funds:
1. Get access to a large number of IPOs with minimal investment amounts without the headache of research and analysis.
2. You don’t have to worry about the non-allotment of IPOs, as such funds place bids via the QIB route (Qualified Institutional Buyers).
3. High growth potential as the fund will invest in new-age businesses with a bias towards small and mid-caps.
Negatives if you invest in such thematic mutual funds:
1. IPO-themed funds are relatively new in the industry, with a minimal track record. Further, there is only one IPO-themed fund in the industry as of December 2023, so comparing its characteristics and returns can be challenging.
2. Thematic funds have a narrowly defined investment focus, which provides less freedom to the fund manager to invest in profitable companies.
3. The fund’s AUM may get smaller if the quality of new IPOs declines.
4. Thematic funds are not suitable for short-term horizons. These funds may have negative or poor returns during the bear market or in the short term.
5. Thematic funds substantially carry more risks than other categories of mutual funds, as news and events related to a particular sector can impact the entire sector.
Conclusion

We have discussed one of the thematic funds, the IPO theme. Thematic funds are equity mutual funds that invest in a particular theme. As we discussed above, the IPO theme is relatively new, and the only fund available in the industry as of now is the “Edelweiss Recently Listed IPO Fund”. Assessing the long-term prospects of such funds can be challenging. Further, thematic funds generally carry a higher risk than other categories of mutual funds because of their concentrated approach and smaller investment universe.

The optimal asset allocation approach is to choose mutual funds after consulting with a financial advisor and assessing your investment horizon and risk appetite. Investments in thematic mutual funds shouldn’t constitute a significant portion of your portfolio.

Read Also: What is an IPO Subscription & How Does it Work?

Frequently Asked Questions (FAQs)
1. What are some examples of thematic funds?
  Digital and AI theme, IPO theme, Clean energy theme, etc.
2. What is the risk profile of thematic funds?
  Thematic funds carry a very high level of risk.
3. How many IPO-themed mutual funds are available in the industry?
  As of December 2023, only one fund invests in the IPO theme.
4. What are the Sectoral Funds?
  Both are almost similar; thematic funds focus on themes such as IPO, Digital India, etc., while sectoral funds focus on a particular sector such as Healthcare, FMCG, Financials, etc.
5. What is QIB?
  QIB stands for Qualified Institutional Buyers. These are institutional buyers with expertise in capital markets. Example: Mutual Funds, Alternative Investment Funds, Endowment Funds, etc.

December 11, 2023

Nykaa Case Study: SWOT Analysis, Business Model and Marketing Strategy

Nykaa is an Indian brand of beauty and cosmetic products. It was founded by Falguni Nayar in 2012. Since then, it has evolved into a lifestyle brand offering a curated selection of 1900+ brands and 1 lakh+ products across skincare, makeup, fragrance, health, haircare, etc.

It is a dominant player in the market and is continuously trying to adapt and innovate itself to align with consumer preferences. Its omnichannel approach, curated product selection, and focus on building a loyal community position it for sustained growth in the years to come. In this blog, we will analyze Nykaa’s strengths, weaknesses, opportunities, and threats, along with Nykaa’s marketing strategy.

Nykaa is a public company that was initially incorporated as FSN E-Commerce Ventures Private Limited and was listed on the stock exchange in 2021. As of December 2024, Nykaa’s shareholding pattern is as follows:

Investor Type	Holding Percentage (%)
Promoter	52.16
FII	9.05
DII	23.56
Public	15.23

Nykaa’s USP includes a first-mover advantage, a strong brand identity in the cosmetics industry, and a data-driven approach with personalized recommendations for customers. Nykaa’s target audience is primarily women aged 18–50 and beauty influencers. Nykaa has extensively used brand marketing and social media reach to build its customer base. The phrase “Be Bold and Be Good” drives Nykaa, and the company is still working toward its goals.

Nykaa is a D2C brand of consumer products with 145 BPC stores and 9 fashion stores across 60 cities that work on an inventory-based model, i.e., the company buys the products from the manufacturers and stores them in warehouses. Products are sold either through online apps or in offline stores.

Nykaa also has a series of in-house fashion and beauty brands. Some of them are Nykaa Cosmetics, Kay Beauty, and Nykaa Naturals. The apparel and accessories verticals consist of 1,350 brands.

Download Nykaa Case Study PDF

Market Details of Nykaa (FSN E-Commerce Ventures Ltd.

Current Market Price	₹164
Market Capitalization (in ₹ Crores)	47,019
52 Week High	230
52 Week Low	146
Book Value	4.56
P/E Ratio	892

(Data as of 17 March 2025)

SWOT Analysis of Nykaa

Strengths

1. Nykaa captures a significant market share when it comes to online beauty. It created a strong customer base and brand loyalty, which gives the company its first-mover advantage.

2. Unlike generic e-commerce platforms, Nykaa offers a carefully curated range of authentic beauty and wellness products catering to diverse needs and preferences.

3. Nykaa’s engaging content, user-friendly interface, and social media presence fascinate the young generation of India.

4. Nykaa offers its customers a wide variety of products in various categories.

5. Nykaa has shown exponential and exemplary growth over the years with continuous expansion in its product lines.

Weakness

1. Maintaining inventory and storage of beauty products can be complex and challenging, leading to stockouts and inefficiencies. This can negatively impact the customer shopping experience.

2. Nykaa also faces tough competition from other D2C brands, which can put the company under immense pressure, thereby affecting its margins.

3. No free delivery below INR 700 can make it unattractive to customers with low budgets.

4. Nykaa hardly spends on research and development activities, which can limit its capacity to compete with other beauty brands, and as a retail business with both offline and online presence, functioning without proper R&D can lead to operational challenges.

5. Overdependence on the female demographic can affect the business.

Opportunities

1. Nykaa can tap international markets, which can help the company increase its customer base and revenue.

2. Acquisitions of niche brands can cater to the needs of customers and create a new customer base.

3. The existing loyalty program of the brand can be enhanced and improved with some exclusive offerings, which can eventually help boost customer retention.

4. Nykaa can further invest in AI-powered solutions for product recommendations, chatbot customer service, and AR/VR beauty consultations. This can improve operational efficiency and potential customers.

Threats

1. Tough competition from other brands is a threat for Nykaa, as this can move their price-sensitive customers to other, more affordable alternatives.

2. Evolving consumer preferences and buying behavior can be a threat to the beauty brand if it does not align with the changing trend.

3. At the time of listing, the company’s valuation stood at $15.36 billion. A significant decline can be seen in the valuation of the company post-listing. Further, as of March 2025, the company is trading at a P/E of INR 892, which is high as compared to its peers.

4. Evolving technologies like augmented reality (AR) and virtual reality (VR) offer try-on methods to customers. If not implemented with a seamless experience, it can be a threat to Nykaa.

Marketing Strategies of Nykaa

1. Product Strategy

Nykaa is currently offering a diverse range of 1500+ beauty and wellness products. The company has also recently launched its product brand, which is adding an extra dimension to its product basket. Nykaa aims to be a one-stop destination for people of all age groups and offers beauty products from both national and international brands with a presence across major markets like the U.A.E., Mauritius, and the U.S.A.

It tries to offer curated products suitable for various skin tones and types to its customers that align with their needs and are also in trend. The brand also launches limited-edition products and collaborates with celebrities and influencers to create exclusive collections. It personalizes the product experience by offering recommendations based on individual purchase histories and reviews from other users. The brand also promotes environment-friendly packaging to promote sustainability.

Nykaa has also launched Nykaa fashion and Nykaa men. We can say that the product strategy of Nykaa is dynamic.

2. Pricing Strategy

The company generally focuses on cost-based pricing, where it analyses the cost of acquiring and distributing products and adds a markup to decide the final price, and prestige pricing, where the company has collaborated with different luxury brands like MAC, Anomaly, Aveda, etc., catering to high-end consumers.

Nykaa runs promotional campaigns, discounts, and special offers during festive sales to attract customers and drive sales. It also offers diverse payment options, including cash on delivery, credit card EMI, and buy-now-pay-later schemes, making purchases accessible to a broader customer base.

3. Place / Distribution Strategy

Nykaa’s omni-channel presence has helped the company evolve over the years. The brand provides three options to customers. They can visit either Nykaa’s luxe store for a premium shopping experience or on-trend stores for budget shopping. The third option is to buy products online via Nykaa’s web and mobile app.

In recent years, the company has tried to expand its network. It has collaborated with different logistics partners to offer flexible delivery options like express delivery and scheduled delivery in some locations.

4. Promotion Strategy

Nykaa engages with its customers through blog posts, makeup tutorials on YouTube, and articles to spread informative content among the audience. This creates a sense of trust among the customers. The company also collaborates with influencers to promote its trendy products. It sends targeted emails to customers based on their purchase history, preferences, and interests, offering personalized recommendations and promotions.

Nykaa leverages influencers through its customized creator-focused product and program called the Nykaa affiliate program, which enables external content creators to publish content on behalf of the company across several digital platforms. Further, the company continuously posts deals and giveaway alerts on social sites to attract customers.

Key Performance Indicators (KPIs)

Particulars	FY2024	FY2023	FY2022
Operating Profit Margin (%)	2.37	2.19	2.48
Net Profit Margin (%)	0.68	0.48	1.09
ROCE (%)	9.97	6.44	5.58
Current Ratio	1.22	1.59	2
Debt to Equity Ratio	0.54	0.33	0.25

(Data as of 17 March 2025)

Future Outlook of Nykaa

Nykaa is poised for significant growth in the coming years, driven by expansion into international markets, strategic acquisitions, and technological advancements. The company aims to enhance its AI-driven personalized shopping experience and integrate AR/VR solutions for virtual product trials. With an increasing focus on sustainability, Nykaa plans to introduce more eco-friendly packaging and expand its organic and cruelty-free product range. Additionally, the brand is strengthening its offline presence by opening more Nykaa Luxe and On-Trend stores across Tier 2 and Tier 3 cities. As digital adoption rises, Nykaa is expected to strengthen its market leadership by leveraging data-driven marketing and influencer collaborations.

Conclusion

Nykaa’s journey from a fledgling e-commerce platform offering beauty products to a platform that innovates with vision and is adaptable as per the choices and preferences of the customer is phenomenal. The brand knows how to capitalize on opportunities well. It has carved out a significant niche in the Indian market and has the potential to further expand its business, shaping the future of the beauty market.

If you have enjoyed reading our blog, check out the related case study: Flipkart Case Study- Business Model and Marketing Strategy.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Zara Case Study: Business Model and Pricing Strategies
2	CAMS Case Study: Business Model, KPIs, and SWOT Analysis
3	TCS Case Study: Business Model, Financial Statement, SWOT Analysis
4	Hindustan Unilever Case Study: Business Model, Financials, and SWOT Analysis
5	Vedanta Case Study: Business Model, Financial Statement, SWOT Analysis

Frequently Asked Questions (FAQs)

Who founded Nykaa?
Nykaa was founded by Falguni Nayyar in 2012.
Does Nykaa sell products for females only?
No, Nykaa is not only for females; it also sells grooming and personal care products for men.
Is Nykaa a public company?
Yes, Nykaa is a public company listed on the NSE & BSE.
Who are the competitors of Nykaa?
Nykaa faces tough competition from Purplle, Myntra, Ajio, etc.
What is the biggest sale introduced by Nykaa?
The biggest sale of Nykaa is the “Nykaa Pink Friday sale”.

December 11, 2023

Multi-Cap Vs Flexi-Cap Mutual Funds? Which Is Better For You?

You are a well-versed investor and recently stumbled upon multi-cap and flexi-cap mutual funds and asked yourself, what exactly is the difference. We will unfold your question in today’s blog.

Firstly, if you are new to the world of mutual funds, check out our blog: Mutual Funds: Meaning, Types, Features, Benefits and How They Work.

Mutual funds are classified according to asset class, financial goals, and structure. Multi-cap and Flexi-cap are both similar to other equity mutual funds, which are pooled investments, and they aim to provide capital growth to investors in the long term. Both funds fall under the umbrella of active mutual funds.

Multi-Cap Funds

Multi-cap funds are active equity mutual funds that invest in large-cap, mid-cap, and small-cap stocks. As per the latest circular released by SEBI, at least 75% of the investments made by multi-cap mutual funds are in equity and equity-related instruments. The investments should be made in the following manner:

Investments in large-cap companies: at least 25% of the total assets.
Investments in mid-cap companies: at least 25% of the total assets.
Investments in small-cap companies: at least 25% of the total assets.

The advantage of multi-cap funds is that your capital is invested in all three caps (at least 25%), with mid and small caps being more volatile than large caps, which can yield an ample return in the long run. However, keep in mind that there is no guarantee that multi-cap funds will outperform other mutual fund classes; in fact, multi-cap funds can be more volatile in the short run.

Flexi-Cap Funds

The Securities and Exchange Board of India (SEBI) and the Association of Mutual Funds in India (AMFI) have launched a number of initiatives in India to raise public awareness and confidence in the financial sector.

SEBI introduced this category of mutual funds in November 2020 after receiving recommendations from the Mutual Fund Advisory Committee (MFAC). As per the circular released by SEBI, it is an open-ended, dynamic equity scheme investing across large-cap, mid-cap, and small-cap stocks.

In the flexi-cap fund, at least 65% of the investments should be invested in equity and equity-related instruments. However, as compared to multi-cap funds, there is no minimum criterion to invest this 65% across large, small, or mid-cap stocks. The advantage of flexi-cap funds is that fund managers have more investment flexibility to invest money across large, mid, and small caps.

Let’s look at the below comparison. We have selected one mutual fund from each category:

Parag Parikh Flexi Cap Fund
Nippon India Multi Cap Fund

Source: Valueresearch

As you can observe, the Parag Parikh flexi-cap fund has more investment in large-cap funds than the Nippon India multi-cap fund. Further, the Parag Parikh flexi-cap fund has only a 1% investment in small-cap stocks. Flexi-cap funds provide more flexibility for investments as compared to multi-cap funds, as there is no regulatory requirement for flexi-cap funds.

Choosing Between Multi-Cap and Flexi-Cap:

Particulars	Flexi-cap fund	Multi-cap fund
Equity Exposure	At-least 65% investment in equity and equity-related instruments	At-least 75% investment in equity and equity-related instruments
Asset Allocation	Fund managers have flexibility in asset allocation	At-least 25% in each of the cap: large, mid and small
Risk	Very High	Very high
Volatility	Low as compared to multi-cap	High as compared to flexi-cap
Tax	Subject to both STCG and LTCG	Subject to both STCG and LTCG

Conclusion

We have discussed the similarities and differences between flexi-cap and multi-cap mutual funds. Both are equity mutual funds and provide diversification to your mutual fund portfolio. However, the key difference in both is the equity exposure and the asset allocation. The minimum percentage of equity and equity-related instruments that flexi-cap funds and multi-cap funds can invest in is 65% and 75%, respectively. Further, multi-cap funds must invest at least 25% in each class: large, mid, and small-cap, whereas flexi-cap funds have greater flexibility.

The best mutual fund strategy is to select mutual funds based on your risk appetite and time horizon after consulting with your financial advisor.

Frequently Asked Questions (FAQs)

Are multi-cap and flexi-cap active or passive funds?
Both multi-cap and flexi-cap are active mutual funds means they are actively managed by a professional fund manager.
Can flexi-cap funds invest in debt securities?
Yes, as long as a fund has at least 65% of its investments in equity.
What is the risk profile of flexi-cap and multi-cap funds?
The risk profile for both funds is very high, as both are equity mutual funds.
Are multi-cap funds more volatile than flexi-cap funds?
In general, the answer is yes, because multi-cap funds must invest at least 25% in small-cap and mid-cap funds due to regulatory requirements, whereas no such requirement for flexi-cap funds.
When did flexi-cap funds launch?
In November 2020, SEBI introduced flexi-cap funds.

December 11, 2023

Top Indicators Used By Intraday Traders In Scalping

Ever heard of the term “Scalping”? What is it, how traders use it, etc? Don’t worry, we will unwind all these questions in this blog.

Scalping is a trading strategy that involves buying / selling securities in large amounts but for a very short time frame. The time frame can be as short as a few seconds. The ideology behind this strategy is that people think it is easier to make quick profits in a shorter time than to get stuck in long periods.

Illustration of a Scalp Trade:

Traders who do scalping are often known as “scalpers.” Scalpers use a combination of technical indicators for quick decisions and the identifying entry and exit points. In this blog, we will learn about the technical indicators that scalpers often use.

Key Features of Scalping

1. The time frame used by most scalpers ranges from 1 minute to 15 minutes. In a few cases, it can be as low as a few seconds.

2. Generally, scalping is considered less risky than long or multiple-time frame strategies such as swing trading or positional trading.

3. High Frequency Traders (HFTs) indulge in scalping and generally use Algorithmic trading.

4. Scalpers often trade with pre-determined entry and exit levels and are quick to take off profits or book losses.

Benefits of Scalping

1. Less risky: As discussed, scalpers trade in a very short time frame with pre-defined entry and exit levels, eliminating the potential risk of significant losses.

2. Only technical, no fundamental: Scalpers operate in a short time frame where decisions are purely based on technical indicators and no fundamental analysis (stock news, events, financial analysis) is used.

3. All-weather strategy: Scalping is an all-weather strategy that can be used in bullish as well as bearish markets.

Drawbacks of Scalping

1. Transaction Costs: Scalpers indulge in multiple trades during the day, which results in very high transaction costs, including but not limited to: Brokerage, STT, Stamp duty, Exchanges fees, etc. In cases of low margins, transaction costs often eat up entire profits.

Check out our blog: Different Types of Charges in Online Trading

2. Tech Issues: Scalping means buying or selling in a very short time frame, and scalpers often use algorithmic trading. Even a few seconds of delay can significantly hamper the outcome of a trade and tech issues are common in India, including broker-related glitches, internet connectivity, etc.

3. May not be suitable for illiquid securities: Scalpers generally prefer trading in highly liquid securities, as to buy / sell in large quantities, liquidity is a must requirement. In certain markets, liquidity is not enough, which shortens the horizons of scalpers, and they end up trading in scattered markets.

4. Shorter time frames are less reliable: As explained above, they trade in a very short time frame. However, there is a general phenomenon: the longer the period, the more reliable the indicator. Therefore, scalpers are prone to false signals which increases their challenges.

Read Also: What is Scalping Trading Strategy?

Technical Indicators Used in Scalping

So far, we have discussed scalping, its key features, merits, and demerits. Let’s deep dive into the most commonly used intraday technical indicators used by scalpers for trading in equity, commodities, and forex markets:

1. Moving Averages

Moving averages are price-based indicators, meaning they combine current and historical prices. It is the average of the price of security over a specified number of periods. The most popular moving average periods used by traders are the 20, 60, 100, and 200 periods. A widely followed moving average crossover signal is between 50 and 200 periods, often referred to as the “Golden Cross”.

Moving averages can be of multiple types and are less volatile than the price of a security. The most popular averages used by traders are: Simple Moving Average (SMA) and Exponential Moving Average (EMA). The key difference between the two is that SMA uses equal price weights while EMA gives more weight to the recent prices.

Moving averages are often used to identify potential buy or sell levels. When a moving average of a particular time frame, say 20 periods, crosses another moving average of another time frame, say 50 periods, it is a bullish crossover. They are also used to identify support and resistance levels; the longer the timeframe, the stronger the support or resistance level.

2. MACD Indicator

Moving Average Convergence Divergence (MACD) is a momentum technical indicator formed by the difference between short-time frame and long-time frame moving averages. It is formed by the two lines:

MACD Line: It is the difference between two EMA of different time frames (generally 26 and 12 periods).
Signal Line: It is the EMA (9 periods) of the MACD line.

It is often used to identify potential buy or sell signals. When the MACD line crosses above the signal line, it indicates a buying signal, or vice versa.

3. Bollinger Bands

Renowned trader John Bollinger developed Bollinger bands. Bollinger bands provide an approximate range of security that is expected to trade within. It consists of three bands: the upper, middle, and lower bands. While the middle band is the moving average of a particular time frame, say 20 periods, the upper and lower bands are decided based on the standard deviation.

The more volatile the security, the higher the standard deviation and wider the range of upper and lower bands.

4. Relative Strength Index

It measures the level of recent price change in a security computed over a rolling time period. It is used to evaluate overbought or oversold zones. It can also be used to identify potential reversal points. It moves in a range of 0 to 100.

Generally, an RSI above 70 is considered an overbought zone, while an RSI below 30 is considered an oversold zone.

5. Stochastic Oscillator

The stochastic oscillator is a momentum indicator developed in 1950 and used to identify overbought or oversold zones. It is formed by comparing the closing price of a security to a range of its prices, say the 14-day moving average.

It ranges from 0 to 100, and generally, above 80 means security is in overbought zone and below 20 means security is in oversold zone.

Relative Strength Index (RSI) and Stochastic Oscillator are both used to measure momentum. RSI is widely used in directional markets, and stochastic oscillators are widely used in sideways markets.

6. Fibonacci Retracement

The Fibonacci sequence, discovered by an Italian mathematician, has applications in various aspects of life, including technical analysis in the financial markets. It is a set of steadily increasing numbers where each number is equal to the sum of the preceding two numbers. Example: 0, 1, 1, 2, 3, 5, 8,…

Fibonacci Retracement is a popular tool used in technical analysis to identify potential levels of support and resistance and has great relevance in the technical analysis world. The most common “Fibonacci Retracement” levels are 23.6%, 38.2%, and 61.8%

Analysing the potential level of retracement using “Fibonacci levels” offers great insights to a trader.

Checkout our blog: Fibonacci Retracement: Complete Guide on How to Use and Strategy

7. Parabolic SAR

Parabolic SAR (stop and reverse), or PSAR, is a technical indicator developed by American engineer J. Wells Wilder. The “Parabolic SAR” indicator is a series of dots plotted either above or below the price of the security. When a security is in a bullish trend, a dot is positioned below the price; in a bearish trend, it is positioned above the price.

It is often used to identify the trend’s direction and potential buy / sell signals. Further, it is used by traders to determine the range of trailing stop-loss orders.

The de-merit of PSAR is that sometimes it may generate false signals, which results in poor earnings for scalpers.

Conclusion

In this blog, we have unwinded scalping and widely used technical indicators by scalpers. However, it’s essential to remember that technical analysis is subjective and should be used along with other tools and indicators for more comprehensive decision-making.

Although it is not suggested to new traders, if one wants to start scalping trading, making quick decisions, proper strategy, and risk management are must-haves to become a successful scalper.

Further, the indicators that we have discussed above are useful for traders, but it’s essential to remember that no analysis method guarantees 100% prediction and prudent risk management is crucial in trading whether it is scalping or positional trading.

Frequently Asked Questions (FAQs)

What is the time frame used by scalpers?
Generally, scalpers trade in the 1 minute to 15 minute range.
What are the most common Fibonacci Retracement levels?
23.6%, 38.2%, and 61.8%
Can scalpers trade in bearish markets?
Yes, scalping is a all weather strategy.
Is there a need for Fundamental analysis in scalping?
No, scalping is purely based on technical analysis
Does an RSI of 90 indicates an overbought or an oversold zone?
Traditionally, an RSI above 70 indicates an overbought zone.

December 8, 2023

Indian Oil Case Study: SWOT Analysis and Marketing Strategy

Indian Oil Corporation (IOC) is the largest Indian public-sector oil and gas company, overseen by the Ministry of Petroleum and Natural Gas. It was formed in 1964 through the merger of Indian Oil Company Limited (established in 1959) and Indian Refineries Limited (established in 1958). The company has subsidiaries in Mauritius, Sri Lanka, and the Middle East.

The company was established with the objective of refining and marketing petroleum products in India, but over the years it has expanded its business operations, including exploration and production, renewable energy, and petrochemicals.

With an ideology of being ‘Pehle Indian Phir Oil,’ IOC focuses on the well-being and progress of the nation above all. To further emphasize this commitment, a new core value, ‘Nation First,’ was introduced alongside the existing values of care, innovation, passion, and trust on June 30, 2023. This date is historically significant as it marks the day in 1959 when Indian Oil Company Ltd. was incorporated.

A few key facts about the IOC as of March 2024:

IOC ranked 116th in the Fortune Global 500 list of the world’s largest companies.
IOC has filed 1,736 patents as of March 2024.
It has a refining capacity of 70 million metric tonnes per year (MMTPA) and operates 1,788 CNG stations.
The Indian Oil Group owns and operates 9 refineries and has an over 17,000 km pipeline network.

Market Information of Indian Oil Corporation

Current Market Price	₹129
Market Capitalization (in ₹ Crores)	1,81,740
52 Week High	₹186
52 Week Low	₹111
Dividend Yield	9.34%
ROCE	21.1%

(Data as of 28 March 2025)