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  • Punjab National Bank (PNB) Case Study: Overview, Financials, and SWOT Analysis

    Punjab National Bank (PNB) Case Study: Overview, Financials, and SWOT Analysis

    Do you also consider PSU banks to be safer than private banks? Most of India thinks along these lines, but very few perform extensive research before investing their hard-earned money in them. Therefore, today’s blog will focus on a popular PSU bank, PNB, and understand its KPIs, business segments, and financials.  

    Overview

    Punjab National Bank was established in New Delhi, India. The company’s offerings include retail and commercial banking, agricultural and international banking, and other services. Its retail and commercial banking portfolio provides debit and credit cards, corporate cash management,  retail loans, deposit services, and trade finance. Its international banking portfolio includes foreign currency accounts, money transfers, letters of guarantee, world travel cards, and solutions for non-resident Indians.

    Punjab National Bank also provides merchant banking services, mutual funds, depository services, insurance, and other services through the Internet. The bank is based in India but also operates in the United Kingdom, Bhutan, Myanmar, Bangladesh, Nepal, and the United Arab Emirates.

    Company TypePublic
    IndustryBanking and Financial services
    Founded1894
    Managing DirectorAtul Kumar Goel
    PNB deposit

    Awards and Recognition

    • 2016: Innovative Practices in Women’s Empowerment
    • 2020: Most Innovative Project using Technology for ‘PNBOne’ 
    • 2023: Iconic Brands of India by the Economic Times
    • 2023: Employee Happiness Award
    • 2023: Best CSR/Social Development Campaign for Rural India by Eggfirst Chalo 
    • 2023: CEO of the Year by Great Indian BFSI Awards 2023

    Products and Services

    1. Loans: Punjab National Bank offers various types of loans for retail customers, including students. They offer personal, home, car, and gold loans. 
    2. Credit Cards: The bank offers different types of credit cards designed to cater to the needs of its customers across categories such as traveling, dining, shopping, etc. 
    3. Debit cards: The bank offers debit cards to allow its customers access to instant and cashless transactions. 
    4. Insurance: The bank partners with leading insurance companies to provide a variety of insurance products, including life insurance, health insurance, and travel insurance, to its customers.
    5. Foreign exchange services: It offers foreign exchange services, including currency, remittances, exchange, and travel cards, to its customers who need to transact in foreign currencies.
    6. Digital banking:  It provides various digital banking services, including Internet banking, mobile banking, and UPI, to make it easier for its customers to access and manage their accounts and financial transactions.
    7. Investment Product: It provides various investment products, such as mutual funds, government securities, and fixed deposits, to assist its customers in growing their wealth.
    8. Account: The bank provides two different accounts, i.e. Savings and Current Accounts.
    • Saving Account: A basic savings account can be opened by any individual with an initial deposit of Rs 500. It also provides an ATM cum Debit Card and other advantages like free transfer of funds and free Internet banking.
    • Current Account: This account is suitable for customers who perform frequent banking transactions.

    Key Highlights of FY23-24

    • Savings deposits increased to ₹ 4,78,880 Crore as of December’23, from ₹ 4,51,945 Crore as of December’22, registering a growth of 6.0% on a YoY basis.
    • CASA ratio stands at 42.47% as of December’23.
    • Net Profit for Q3 FY’24 was at ₹ 2,223 Crore, increasing by 253.4% on a YoY basis.

    Market Data

    Let’s have a look at some essential market data of the company:

    Market Cap ₹ 136,977 Cr. 
    TTM P/E 17.95
    ROCE 5.86 % 
    Book Value 82.65
    ROE 3.32 % 
    High / Low 133 / 44.4
    Dividend Yield0.53 % 
    Face Value ₹ 2.00
    (As of 30th March 2024)

    Read Also: Hero MotoCorp Case Study: Business Model and SWOT Analysis

    Financial Highlights

    Income Statement

    ParticularsMar-23Mar-22Mar-21Mar-20
    Interest Earned 86,845.2976,241.8381,935.0354,918.48
    Other Income 12,239.5912,097.6612,234.919,387.65
    Total Income 99,084.8888,339.4994,169.9464,306.13
    Profit Before Tax 4,861.424,594.463,782.35827.00
    Consolidated Profit 3,348.453,860.742,561.97438.45
    (In Crores)

    Cash Flow Statement

    ParticularsMar-23Mar-22Mar-21Mar-20
    Cash From Operating Activities 22,592.0920,032.331,239.53-12,793.04
    Cash Flow from Investing Activities -732.47-1,204.38-786.84-338.33
    Cash from Financing Activities 1,274.982,031.505,415.1713,591.15
    Net Cash Inflow / Outflow 23,134.6020,859.455,867.86459.78
    (In Crores)
    CFS of PNB

    Financial Ratios

    ParticularsMar-23Mar-22Mar-21Mar-20
    Adjusted EPS (₹) 3.043.512.450.65
    Cash EPS (₹)3.614.152.991.45
    Adjusted Book Value (₹) 85.7682.2281.4487.74
    Dividend per Share (₹) 0.650.640.170.05
    Cash Flow per Share (₹) 20.5218.191.18-18.99
    Free Cash Flow per Share (₹) -0.791.06-21.62-39.80

    KPIs

    ParticularsMar-23Mar-22Mar-21Mar-20
    NIM (%) 2.482.342.602.22
    ROE (%) 3.324.182.980.72
    ROA (%) 0.220.280.200.04
    KPIs of PNB

    Shareholding Pattern

    ParticularsDec-23Sep-23Jun-23Mar-23Dec-22
    Indian Promoter73.1573.1573.1573.1573.15
    DIIs13.7413.8013.4513.5212.98
    FIIs3.102.651.821.711.71
    Others10.0110.4011.5811.6212.16
    (In %)
    Shareholding Pattern of PNB

    The graph indicates a stagnancy in the shareholding pattern. This shows the trust of institutional investors. 

    Peer Comparison

    ParticularsPunjab National BankHDFC BankICICI BankState Bank Of IndiaKotak Mahindra Bank
    Market cap (₹ Cr)1,36,92211,00,1857,69,5446,71,6663,55,003
    Interest Income (₹ Cr)1,04,6882,51,7641,51,3484,19,80253,062
    Net Interest Income (₹ Cr)39,669.811,18,710.6883,184.211,77,258.8132,477.35
    RoA (%)0.473.092.101.062.79
    Price to Earnings17.8018.4617.9810.3720.15
    Price-To-Book1.362.493.191.752.82

    SWOT Analysis

    SWOT Analysis of PNB

    Strengths

    • It offers a wide range of banking services, catering to both urban and rural customers and international clients. The bank serves a diverse customer base and effectively meets their banking needs and requirements.
    • The bank has a long history of providing services of utmost quality. 
    • The bank has created a positive reputation that distinguishes it from its competitors.

    Weaknesses

    • Punjab National Bank exists in a highly competitive environment, with numerous players vying for market share. 
    • The bank must invest in advanced technological infrastructure and offer convenient and secure online banking services to meet changing customer requirements and expectations.

    Opportunities

    • Punjab National Bank must display an increase in net profit margin and favorable NIM (Net Interest Margin).
    • The bank should continuously monitor and evaluate its performance against established benchmarks and adjust its strategies as needed.

    Threats

    • In 2018, Punjab National Bank suffered from controversies such as the Nirav Modi scam, where fraudulent transactions worth $2 billion were conducted through PNB’s Mumbai branch without detection for a long time, tarnishing the bank’s reputation significantly.
    • New entrants can give tough competition to the Punjab National Bank. It can impact the bank’s profitability and financial stability.

    Read Also: LIC Case Study: Business Model and SWOT Analysis

    Conclusion

    Punjab National Bank is a public sector undertaking in India that offers a wide range of banking and financial services. It has a strong presence in various segments, including retail and commercial banking, international banking, and digital banking. The bank has experienced growth in its financial metrics and is expected to continue growing. Overall, Punjab National Bank is a reputable institution with a diverse customer base and a positive outlook.

    However, it is advised that you perform your own analysis before investing your hard-earned money. 

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    Frequently Asked Questions (FAQs)

    1. Is PNB a private or government bank?

      Punjab National Bank is a government entity public sector bank.

    2. Who established the Punjab National Bank?

      Punjab National Bank is an Indian Public sector bank, established on 19th May 1894 by Sardar Dyal Singh Majithia.

    3. What is the book value of Punjab National Bank?

      As of 25th March 2024, the per share book value of PNB is ₹ 82.65.

    4. Who is the CEO of PNB?

      Atul Kumar Goel is the current Managing Director and Chief Executive Officer of Punjab National Bank.

    5. Which banks merged with PNB in 2020?

      The Oriental Bank of Commerce and the United Bank of India (UBI) merged with PNB in 2020.

  • Patanjali Foods Case Study: Business Model, Financials, KPIs, and SWOT Analysis

    Patanjali Foods Case Study: Business Model, Financials, KPIs, and SWOT Analysis

    Patanjali, the name itself, evokes a sense of tradition and well-being. Over time, it has become a household name in India. Patanjali is a modern consumer goods company that provides everything from herbal remedies to healthy staples in India, and is known for its Ayurvedic and natural products. 

    In today’s blog, we will delve deeper into Patanjali Foods, a brand synonymous with a back-to-nature approach, and explore the company’s financials, SWOT analysis, and business model.

    Patanjali Overview

    Baba Ramdev and Acharya Balkrishna established Patanjali Ayurveda Limited in Haridwar in 2006. Patanjali Foods was initially founded as Ruchi Soya Industries Limited. The company initially concentrated on manufacturing herbal formulations and ayurvedic medications. They started producing food, household goods, and personal care items later in 2010 after entering the fast-moving consumer goods (FMCG) industry. 

    Ruchi Soya Industries declared bankruptcy in the year 2019 as a result of heavy debt. In June 2022, Ruchi Soya Industries Limited formally changed its name to Patanjali Foods Limited after Patanjali Foods purchased the bankrupt company in 2019. The company produces bakery fats, soy products, edible oil, and Vanaspati Ghee.

    The company grew tremendously between 2015 and 2017 due to aggressive marketing efforts and strong brand recall. 

    Patanjali Maggi

    Patanjali Business Model

    The business model of Patanjali Foods is built around a number of essential components

    1.  The company targets customers who like natural products and concentrates primarily on Ayurveda and natural ingredients in its products.

    2.  The company maintains standards and quality because it has direct control over many areas of the production process, including the supply chain and raw material purchases.

    3.  The company draws customers who are sensitive to price changes because they offer their items at very reasonable costs.

    4.  The company’s extensive distribution network, which consists of franchise stores, supermarkets, and its own retail locations, makes its products easily accessible to consumers.

    Market Details

    Current Market PriceINR 1372
    Book ValueINR 272
    52 Week HighINR 1713
    52 Week LowINR 864
    Face ValueINR 2
    PE Ratio59.51
    Market Capitalization49,587 Crores
    (As of 21st March 2024)

    Read Also: Colgate Palmolive India Case Study: Business Model, Product Portfolio, And SWOT Anlaysis

    Patanjali Financial Highlights

    Balance Sheet

    Particulars31st March 202331st March 202231st March 2021
    Non-Current Asset5415.13765124.77685320.7144
    Current Asset7824.77246351.35873688.1054
    Total Asset13243.585611480.21119008.8198
    Equity9846.56676170.84044062.4128
    Long Term Liability193.36533054.02673215.1662
    Current Liability3201.92362253.61401731.2408
    (In Crores)

    From the above table and graph, it is evident that the company’s total assets have increased over time. It was 11480 crore in the year 2022 and increased to 13243 crores in FY 2023. Still, their non-current assets remain constant, and their long-term liability has decreased drastically in FY 2023. It was 3054 crore in FY 2022 and decreased to 193 crores in FY 2023.

    Income Statement

    Particulars31st March 202331st March 202231st March 2021
    Revenue from operations31524.656024205.375116318.6330
    Total Income31821.454824284.382216382.9771
    Total Expenses30642.493523210.000715868.5769
    Profit before tax1178.96131074.3815514.4002
    Profit after tax886.4411806.3089680.7718
    (In Crores)

    The table above indicates that the business is growing, with operating revenue rising at an approximate rate of 35% CAGR and profit rising at an approximate rate of 10% YoY.

    Cash Flow Statement

    Particulars31st March 202331st March 202231st March 2021
    Net Cash flow from operating activities(339.3398)724.2141247.2654
    Cash flow from investing activities526.1229(1,384.47)(43.9808)
    Cash flow from financing activities241.3590988.94(310.8140)
    (In Crores)

    The above table indicates that the company’s primary source of earnings are its investing and financing activities, which have been erratic in the past. Given that a stable company’s primary source of earnings should come from operating activities, this could be cause for concern.

    KPIs

    Particulars31st March 202331st March 202231st March 2021
    Operating Profit Margin (%)4.495.905.42
    Net Profit Margin (%)2.813.334.17
    Return on Capital Employed (%)14.1215.4912.16
    Inventory Turnover7.197.367.53
    Current Ratio2.442.822.13
    Return on Net Worth (%)916.5116.75

    The company’s major performance metrics show that its net profit margin dropped to 2.81% in FY 2023 from 3.33% in 2022. 

    Patanjali SWOT Analysis

    The SWOT analysis of Patanjali reveals key strengths, weaknesses, opportunities, and threats shaping the company’s growth strategy:

    SWOT analysis of Patanjali Foods

    Strengths

    1.  The company incorporates natural ingredients in its products, which helps it gain the trust of its clients and establish a strong brand identity. 

    2.  To meet the demands of various clients, the company offers a varied product range spanning food, wellness, personal care, and other categories. 

    3.  The products of Patanjali are affordable for every segment of customers, through which they can position themselves easily in the market.

    4.  The company can reach every corner of the nation, whether in an urban or rural setting, thanks to its wide distribution network. 

    Weaknesses

    1.  The company has occasionally received complaints about the quality of its products. This can be a cause for concern since a persistent pattern of complaints will negatively impact the company’s reputation with customers. 

    2.  The company’s minimal exposure to the global market raises questions about how the firm can expand. 

    3.  Since the company only sells ayurvedic items, its target market is only health-conscious individuals; as a result, it might not be able to meet the needs of a larger customer base. 

    Opportunities

    1.  To satisfy the demands of changing consumers, the corporation must concentrate on diversifying its product line to include ready-to-eat meals, FMCG, functional beverages, etc. 

    2.  The company has yet to explore the foreign market, but doing so will help it grow as it will present new opportunities. 

    3.  They can access a larger spectrum of customers thanks to the rise of e-commerce platforms. 

    4.  The research and development team should concentrate on creating new items that will meet consumer wants, giving them an advantage over competitors. 

    Threats

    1.  Due to intense competition from both domestic and foreign brands, the company’s profitability will be severely damaged by any poor judgments the management makes regarding the quality of the product, price, and other concerns.  

    2.  Any interruption to the supply chain, a scarcity of raw materials, or a problem with transportation could have a detrimental effect on the company’s earnings. 

    3.  Nowadays, customer needs are changing quickly; as a result, businesses that are unable to adjust will likely experience a decline in sales. 

    4.  Any change in a regulation made by the government regarding food safety and labeling standards could adversely impact the margins of the company.

    Read Also: Gillette India Case Study: Business Model, SWOT Analysis, and Financial Overview

    Conclusion 

    Owing to its ayurvedic products, Patanjali has established a reputation as the Swadesi Company and has always been in the spotlight. The company is still surviving and is regarded as the fastest-growing FMCG company in India despite having suffered several problems in the past with the quality of its products. 

    If the organization cannot meet the evolving needs of its customers, it still has a long way to go. As we usually advise, think about your risk tolerance before making any investing decisions.

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    FAQs

    1. What is Patanjali Foods’ primary business? 

      The company processes oil seeds and refines oils for culinary use in India. It also works in the FMCG sector, producing cow ghee, spices, and herbal goods, among other things. 

    2. What does the company’s cash flow situation say?

      The company’s CFS indicates a very turbulent picture, where the majority of the net cash flow came from investing and financing activities.

    3. Is PATANJALI in FMCG company?

      Yes, Patanjali Ayurved Limited is an FMCG (Fast-Moving Consumer Goods) company. It offers a wide range of products, including food items, beverages, personal care products, and Ayurvedic medicines.

    4. Are Patanjali Foods and Ruchi Soya the same company?

      Yes, Patanjali Foods Limited is the new name of the company following Patanjali Ayurved’s acquisition of Ruchi Soya.

    5. Do Foreign Institutional Investors hold any stake in Patanjali Foods?

      As of December 2023, FII holds around 10.93% stake in Patanjali Foods.

    6. Who was the CEO of Patanjali?

      As of the latest information, the CEO of Patanjali Ayurved Limited is Acharya Balkrishna. He is a close associate of Baba Ramdev and has been instrumental in the company’s growth.

  • SBI Cards and Payment Services Case Study: Products, Financials, and SWOT Analysis

    SBI Cards and Payment Services Case Study: Products, Financials, and SWOT Analysis

    1998 SBI entered the Indian credit card market with its Cards and Payment services arm. At the time, the industry was still picking up so SBI Cards had a lot of scope for growth. But a lot of time has passed, so let’s delve into the SBI Cards Case Study to understand their market, business segments, financials, and SWOT analysis.

    Overview of SBI Cards and Payment Services

    State Bank of India Cards was launched in 1998 by SBI and GE Capital as a Joint Venture. The company is headquartered in Gurugram, India. The company aims to offer Indian consumers access to a wide range of world-class, value-added payment products and services and, in doing so, simplify the lives of the customers.  

    In December 2017, the State Bank of India and The Carlyle Group acquired GE Capital’s stake in SBI Card. The company officially changed its name to SBI Cards and Payments Services Limited in August 2019. SBI Card then became the first pure-play credit card company to list on the stock exchanges in India in March 2020.

    With more than 1.68 crore cards issued as of March 31, 2023, SBI Cards and Payments Services Ltd. is the largest pure-play credit card issuer and the second-largest credit card player in the nation. The company also has the second-largest market share in credit cards with an 18.2% share as of March 31, 2023. Let’s have a quick summary of the company:

    IndustryPayment processing industry
    HeadquartersGurugram, India
    ProductsCredit cards
    Services Payments processing

    Products and Services Offered

    SBI Cards have different cards for the various needs of their customers. Some of the cards issued by the company are:

    SBI Card Elite

    SBI Card Elite is an all-rounder premium card that offers benefits across multiple categories, such as travel, movies, dining, and rewards. The cardholders can earn decent rewards on their everyday spending along with substantial milestone benefits. This card is suitable for high spenders.

    Features

    • Welcome e-Gift Voucher worth Rs. 5,000 
    • Get free movie tickets worth Rs. 6,000 every year
    • Earn up to 50,000 Bonus Reward Points worth Rs.12,500 per year
    • Complimentary membership is available to the members of Club Vistara and the Trident Privilege program.

    SBI Card Pulse

    SBI Card Pulse is a credit card specially tailored for people who are health-conscious and have an active lifestyle. The card offers several complimentary health memberships and benefits to the cardholders’ well-being.

    Features

    • Free Noise ColorFit Pulse 2 Max Smartwatch worth Rs. 5,999 on payment of joining fees
    • 12 Month Membership for FITPASS and Netmeds First Pass at the time of joining and card activation.  
    • 5X Reward Points on Chemist, Pharmacy, Dining, and Movie Spends.
    • 8 complimentary (2 per Quarter) domestic lounge access in a calendar year.
    SBI Cards

    Doctor’s SBI Card in Association with IMA

    This credit card is associated with the prestigious Indian Medical Association. The card is specially tailored to keep a doctor’s lifestyle in mind.

    Features

    • Professional Indemnity Insurance cover of Rs. 20 Lakhs.
    • E-Gift Voucher worth Rs. 1,500 on joining.
    • Users will receive 5X Reward Points on Medical Supplies, Travel Bookings, International Spends, and Doctors’ Day.
    • The e-Gift voucher is worth Rs. 5,000 in annual spending of Rs. 5 lakhs.
    • 35% off on Avis Car Rentals bookings.

    SBI Card ELITE Advantage

    This card is suitable for people who travel internationally. It offers one of the lowest foreign currency markup fees, travel benefits, along with lounge access. 

    Features

    • Welcome e-Gift Voucher worth Rs. 5,000 on joining.
    • Get free movie tickets worth Rs. 6,000 every year.
    • Earn up to 50,000 Bonus Reward Points worth Rs. 12,500 per year.
    • Complimentary membership is available to members or users of Club Vistara and the Trident Privilege program.
    • The age of salaried customers must be between 21 to 70 years.

    Awards and Recognitions

    • 2023 – Gold and Silvers Stevie Awards for Sales and Customer Services.
    • 2022 – Recognized as the Best Brand award by The Economic Times.
    • 2022 – Recognized as Reader’s Digest Trusted Brand.
    • 2023 – SBI Card won the Golden Peacock National Training Award for Excellence in Training and Development in the Financial Sector.

    Read Also: SBI Case Study: India’s Leading Public Sector Bank

    Market Data of SBI Cards and Payment Services

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

    Market Cap ₹ 64,908 Cr. 
    TTM P/E 27.71
    ROCE 14.83 % 
    Book Value ₹ 103.42
    ROE 25.8 % 
    52 Week High / Low ₹ 933 / 679
    Dividend Yield 0.36 % 
    Face Value ₹ 10.0
    (As on 28th March 2024)

    Financial Highlights of SBI Cards and Payment Services

    Income Statement

    ParticularsMar-23Mar-22Mar-21Mar-20
    Operating Income 13,666.6410,677.279,296.469,276.40
    Total Income 14,285.6711,857.779,713.589,752.29
    Operating Expenses 8,807.258,033.716,866.496,230.34
    Profit before Tax 3,030.572,172.161,323.731,729.64
    Consolidated Profit 2,258.471,616.14984.521,244.82
    (Figures in Crores)

    The company is able to grow the consolidated profit at a continuously increasing rate. This growth is driven primarily by growing total income while maintaining a steady but lower expense growth rate.  

    Cash Flow Statement

    ParticularsMar-23Mar-22Mar-21Mar-20
    Cash From Operating Activities -6,670.51-4,391.46692.32-4,062.93
    Cash Flow from Investing Activities -921.44-538.12-996.78-77.17
    Cash from Financing Activities 7,823.585,044.54431.753,922.51
    Net Cash Inflow / Outflow 231.63114.96127.29-217.59
    (Figures in Crores)
    CFS Of SBI Cards

    The company’s operating activities have produced negative figures for the past few years now. This can be considered as a major issue as it may come across as a reduction in operational capability of the management. 

    Shareholding Pattern

    Shareholder TypeDec-23Sep-23Jun-23Mar-23Dec-22
    Indian Promoter68.7568.9468.9669.0269.05
    DIIs16.2817.3017.1817.4716.72
    FIIs9.359.089.488.459.13
    Others5.624.684.385.065.10

    Peer Comparison

    ParticularsSBI Cards And  Payment ServicesBajaj FinservMuthoot FinanceAditya Birla CapitalL&T Finance Holdings
    Market cap (₹ Cr)64,9082,52,30353,19344,22636,612
    Revenue (₹ Cr)5,1601,01,9664,82218,2854,484
    Net Profit (₹ Cr)2,341.8414,838.954,294.582,561.572,181.04
    Net Margin (%)41.0714.5587.1013.9642.32
    RoE (%)25.816.0318.1411.9710.37
    Price to Earnings27.7132.3512.7916.3916.15
    Price-To-Book5.694.592.211.741.60
    (As of 28th March 2024)

    Read Also: Shriram Finance Case Study: Business Model, Financials, and SWOT Analysis

    SWOT Analysis of SBI Cards and Payment Services

    The SBI Cards and Payment Services SWOT Analysis highlights its strengths, weaknesses, opportunities, and threats, showcasing its market position and growth potential.

    SWOT Analysis of SBI Cards

    Strengths

    1. The company’s book value has improved over the last 2 years. Thus, reflecting a steady operational growth. 
    2. An increasing total income is a wonderful sign as it indicates high customer trust.
    3. Annual net profit has improved over the last 2 years. An increasing net profit reflects high management capability. 
    4. The company has a diversified product portfolio catering to different consumer segments.
    5. The company focusses on strong parentage and backing from State Bank of India, India’s largest commercial bank.

    Weaknesses

    1. The stock price has underperformed the industry growth. This reflects lower investor confidence. 
    2. The company’s revenue base is concentrated in India. This has led to an increased dependency on the Indian market for revenue generation.
    3. The company is vulnerable to economic downturns and fluctuations in interest rates.

    Opportunities

    1. The company must expand into new financial products and services in the marketplace. 
    2. The credit card industry has a lot of growth potential because of the increasing middle-income class. 

    Threats

    1. The company faces intense competition from domestic and international credit card issuers.
    2. The industry has witnessed substantial cybersecurity risks in the past year. These risks significantly impact customer loyalty. 

    Conclusion

    SBI Cards and Payment Services Ltd is the largest pure-play credit card issuer in India, offering a wide range of credit cards tailored to different customer needs, with a strong focus on providing value-added payment products and services. The company has experienced growth in Revenue and net profit. It has opportunities for expansion in new financial products and services. However, it faces competition from domestic and international credit card issuers and potential threats from economic downturns and cybersecurity risks. Therefore, it is advised that you perform a thorough analysis before making any investment decisions. 

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    Frequently Asked Questions (FAQs)

    1. Is SBI Cards a joint venture company?

      It is a joint venture between the State Bank of India and GE Capital. 

    2. Who is the CEO of SBI Cards?

      MR. Abhijit Chakravorty is the current MD and CEO of SBI Cards.

    3. What is the Market Cap of SBI Cards?

      As of 19th March 2024, the market cap. of the company is 64,908 Cr. 

    4. What is one of the weaknesses of SBI Cards?

      The company’s operating activities have produced negative figures for the past few years now. This can be considered as one of the major weaknesses of SBI Cards. 

    5. Who are SBI cards’ major competitors?

      SBI Cards faces tough competition from established players like Bajaj Finserv, Muthoot Finance, and Aditya Birla Capital.

  • AVP Infracon IPO: Overview, Key Details, Financials, Strengths, and Weaknesses

    AVP Infracon IPO: Overview, Key Details, Financials, Strengths, and Weaknesses

    Are you bullish on India’s infrastructure story? Today, we’ll be exploring a construction company’s IPO. Let’s understand its overview, clientele, and SWOT analysis.  

    AVP Infracon IPO Overview

    AVP Infracon Limited, earlier known as AVP Constructions Private Limited, was founded in 2009, and the founder was determined to make it India’s leading construction company. The company specializes in the construction of road projects and engineering, procurement, and construction methods.

    The company has partnered strategically as a joint venture with M/s Jawahar Constructions and M/s CDR & Co. Constructions. This will increase their efficiency in completing projects and strengthening their order book.

    Their projects generally include expressways, national highways, flyovers, bridges, irrigation projects, and urban development projects. As of December 2023, they have completed more than 40 projects, and the value of those projects is estimated to be around 313.21 crores.

    The company bids for projects mainly in Tamil Nadu and has its head office in Chennai.

    Clientele

    Their major clients include Greater Chennai Corporation, the National Highway Authority of India, the Tamil Nadu Public Works Department, the Tamil Nadu Highways Department, and the Ministry of Road Transport and Highways.

    Promoters

    The company’s promoters are Mr. B Venkateshwarlu and Mr. D Prasanna. They own about 86.5% of the business. The promoter’s pre-issue stake in the company is 86.5%, and their post-issue stake is expected to be 62.33%. 

    Details of the Issue

    AVP Infracon is planning an initial public offering (IPO) to sell 69.79 lakh shares and raise INR 52.34 crores. This is an entirely fresh issue. The initial public offering (IPO) price range is 71 to 75 INR per share. A minimum lot size of 1600 shares has been decided. 

    Key Details

    Face Value of ShareINR 10 Rs
    Price BandINR 71 to INR 75 per share
    Market Lot1600 Shares
    Total Fresh Issue Size52.34 Crores
    Total Number of Shares69.79 Lakh shares

    Timeline

    IPO Open Date13th March 2024
    IPO Close Date15th March 2024
    Finalization of Allotment18th March 2024
    Initiation of Refund & Credit of shares into Demat account19th March 2024
    Listing Date20th March 2024

    Allotment Size

    ApplicantMarket LotShareAmount (INR)
    Retailer (Min)11600INR 120000
    Retailer (Max)11600INR 120000
    High Net Worth Individual (Min)23200INR 240000

    Reservation

    Investor CategoryShares Offered% Offered
    Anchor Investor Shares Offered187040026.8
    Market Maker Shares Offered73120010.48
    QIB Shares Offered124800017.88
    NII Shares93920013.46
    Retail Shares Offered219040031.38
    Total Shares Offered6979200100

    Read Also: Exicom Tele-Systems IPO: Business Model, KPIs, SWOT Analysis, and FAQs

    Objective

    The proceeds from this issue will be utilized to purchase equipment, meet working capital requirements, and general corporate purposes.

    AVP Infracon IPO Financial Highlights

    Balance Sheet

    Particulars31st March 202331st March 202231st March 2021
    Non-Current Asset3314.951210.46831165.3077
    Current Asset11268.364681.82823752.0499
    Total Asset14583.335892.29654917.3579
    Total Shareholder’s Fund2496.141046.6482509.7684
    Long Term Liability3228.12002.74791769.1512
    Current Liability5972.652842.90042638.4384

    Income Statement

    Particulars31st March 202331st March 202231st March 2021
    Revenue from Operations11498.087094.90345080.8052
    Total Income11550.097174.20276362.1746
    Total Expenses10027.176785.86046120.3692
    Profit before tax1522.92388.3423241.8054
    Profit after tax1151.79276.8800170.0461

    Cash Flow Statement

    Particulars31st March 2023
    Cash flow from operating activities1339.85
    Cash flow from investing activities(1133.35)
    Cash flow from financing activities300.16

    Key Performance Indicators (KPIs)

    IndicatorsValues (2023)
    Return on Equity (ROE)25.05%
    Return on Capital Employed (ROCE)22.62%
    Debt-to-Equity Ratio1.96
    Return on Net Worth25.05%
    Price to Book Value (P/BV)3.96
    Profit after tax margin11.91

    Strengths

    1. The company has a great clientele, which also includes government agencies.

    2. The company has a solid revenue track record, as evidenced by the about 62% YoY increase in sales.

    3. The management has managed construction projects for more than 15 years, and thanks to their skills, they have become recognized as leaders in the field. 

    Weaknesses 

    1.  Since all of the company’s revenue originates from Tamil Nadu, any unfavorable government action could negatively impact business operations. 

    2.  Any delay in the project would increase the operating cost, impacting their profit margins.

    3.  A significant increase in the company’s current liability can be seen in FY 2023, which has increased by almost 110% on a YoY basis. 

    Risks of AVP Infracon

    Growth Potential

    The development of Indian roadways and highways is expected to have a cagr of 36% between 2016 to 2025. This is because the government focuses on infrastructural development by providing world-class roadways and highways in India. Since AVP Infracon has been a part of the industry for a considerable time, they have a huge opportunity. 

    Read Also: Enfuse Solutions Limited: IPO, Business Model, And SWOT Analysis

    Conclusion

    Infracon is a small and medium enterprise-scale company that is a dominant player in Tamil Nadu. The company’s profitability is increasing on a strong YoY basis with their revenue. However, it is important to know that before investing, you must understand the benefits and risks of investing in SME companies.

    Frequently Asked Questions (FAQs)

    1. What does AVP Infracon do?

      AVP Infracon is a Tamil Nadu-based construction company engaged in developing roads, bridges, flyovers, etc.

    2. Did AVP infracon give any listing gains?

      AVP Infracon gave a total of 5.33% of listing gains as it got listed at 79, more than the issue price of 75. 

    3. When was AVP Infracon IPO accepting applications?

      AVP Infracon’s IPO was open from 13th March to 15th March 2023, and an investor within these 3 days could apply for it.

    4. What was the minimum amount required to apply for an AVP Infracon IPO?

      To apply for one bid for the AVP Infracon IPO, a retail investor needs 1,20,000 INR.

    5. What does the company’s income statement say about the company?

      The topline figures have seen massive growth in the past 2 years, and expenses did not increase similarly. Hence, this led to a substantial increase in the company’s profitability. 

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

  • KP Green Engineering: IPO, Business Model, And SWOT Analysis

    KP Green Engineering: IPO, Business Model, And SWOT Analysis

    The Indian steel industry is brimming with potential, and steel plays a crucial role in construction, whether it is a cell phone tower or a mega sea bridge. KP Green Engineering Limited is not just a steel manufacturer; they are poised to take centre stage which is making strides towards exciting growth.

    Our blog explores KP Green’s promising opportunities, background, financials, and key IPO details.

    KP Green Engineering Overview

    KP Green Engineering Limited, formerly known as (KP Buildcon Private Limited) is an Indian company based in Vadodara, Gujarat. It was established by Dr. Farukhbhai Gulambhai Patel in 2001. The company initially focused on manufacturing hot-dip galvanized steel products.

    However, KP Green Engineering expanded its offerings over time to include a wider range of fabricated steel products. The company has experienced significant growth in recent years. With rising revenue and profits, it is a leading provider of steel structure manufacturing in India.

    Did you know?

    As of March 2024, KP Green Engineering IPO is the biggest SME issue in the history of Indian Stock Markets; the company raised app. INR 189.50 crore via this issue.

    Business Model

    Business model of KP Green Engineering

    The company generates revenue from the two major business verticals, i.e., Manufacturing and Services. Have a look at the detailed portfolio:

    Manufacturing Portfolio

    Under this vertical, the company offers fabrication and Hot-dip galvanised steel products to customers by their needs and requirements.

    1. Lattice Towers – These are a free-standing structure made of steel characterized by a web of intersecting metal bars that create a stable, geometric lattice pattern. These towers are used in various industries, including power transmission, telecommunications, and even as support structures for wind turbines.
    2. Substation Structure – This refers to a specialized infrastructure that manages electricity, which includes equipment for transforming voltage levels, distributing power, and controlling its flow. The company manufactures substation and switchyard structure which includes Gantries and Equipment support structure as per customer’s needs.
    3. Solar MMS Structures and Solar Tracker – Solar module mounting structures are the essential framework that secures solar panels and optimises their exposure to sunlight for efficient energy generation. These structures can be either ground-mounted or roof-mounted.
    4. Metal Beam Crash Barrier Structure – Crash Barriers act as a physical barrier, redirecting vehicles back onto the roadway and minimising the risk of dangerous run-off road incidents. The company manufactures crash barriers and vital safety features along highways, and bridges and offers high-risk roads.
    5. HV Disconnector Structure – High Voltage Disconnectors are essential components in power systems. They are used to isolate and disconnect sections of an electrical circuit for maintenance, repairs, or to ensure safety during equipment servicing.
    6. Cable Trays – Cable trays function as a support system specifically designed for managing and organising electrical cables and wires. They facilitate organised routing, act as overhead shelves and are used in places like offices, factories, and data centres.
    7. Roofing Channels – The company manufactures both types of C&Z purlins, which are also known as roll-formed structural steel sections, and are used for Pre-engineered Buildings as they provide structural support in the construction.

    Services Portfolio

    Services portfolio of Green Engineering

    Under this vertical, the company provides Fault Rectification Services w.r.t Optical Fiber Cables to various telecom service providers. Optical Fiber cables are crucial in ensuring telecommunication networks’ reliability and optimal performance.

    1. Fault Rectification Services – The company provides Fault rectification services concerning Optical Fibre Cables to various telecom service providers.
    2. Galvanizing Job Work – The company provides galvanising job work services to its clients.
    3. Comprehensive Repair Solutions – The skilled technicians of the company implement effective and durable repair solutions, which include splicing broken fibres, replacing damaged components, and addressing signal degradation.
    4. Solar Rooftop Installation Services – The company offers Solar Installation services and procures solar panels from manufacturers. Once installed, the company tests the entire solar system to ensure proper functionality and electrical connections.

    Key Customers

    The company boasts a diversified set of customers. Some of its key customers are:

    Siemens, SRF, Vodafone, Torrent Pharma, Wipro, ABB, Airtel, GMR, BSNL, etc.

    IPO Details

    IPO DateMarch 15, 2024 to March 19, 2024
    Price BandINR137 to INR144 per share
    Lot Size1000 Shares
    Total Issue Size13,160,000 shares
    Issue TypeBook Built Issue IPO
    IPO TypeSME IPO
    Basis of AllotmentWednesday, March 20, 2024
    Initiation of RefundsThursday, March 21, 2024
    Listing DateFriday, March 22, 2024

    Objectives of the Issue

    The following are the key reasons to raise capital via this IPO:

    1. To finance the capital expenditure towards setting up a new manufacturing unit to expand its current production capabilities.

    2. To expand the current product portfolio.

    3. General Corporate Purposes.

    Read Also: Pune E-Stock Broking Limited IPO: Key Details, Business Model, Financials, Strengths, and Weaknesses

    Financial Statement Analysis

    Have a look at the key metrics of the company (in INR crore):

    ParticularsFY 2023FY 2022
    Total Assets95.0683.48
    Total Borrowings18.0020.09
    Total Sales114.0278.42
    Total Expenses93.1768.08
    PAT12.394.46

    Cash Flow Statements

    ParticularsFY 2023FY 2022
    Net Cash from Operating Activities12.403.96
    Net Cash from Investing Activities(5.08)(1.63)
    Net Cash Flow in Financing Activities(5.56)(2.79)
    Cash & Cash Equivalent3.543.20

    SWOT Analysis of KP Green Engineering

    SWOT Analysis of Green Engineering

    Strengths

    1. KP Green Engineering benefits from the combined strengths of a passionate founder and a team of industry leaders, who deliver innovative solutions and exceptional customer service.
    2. The company can efficiently translate plans into actions. This execution advantage sets the company apart from its competitors. KP’s manufacturing facility in Dabhasa boasts an impressive annual production capacity of over 53,000 MT, which leads to smooth completion of projects and high-volume production.
    3. With a strong track record of financial success, KP Engineering has witnessed remarkable growth in Revenue, experiencing a CAGR of a staggering 71.98% over the past 3 years.

    Weakness

    1. The company’s market presence is limited outside the region of Gujarat, and this dependence on a single geographical area could pose a risk if economic conditions or industry trends in Gujarat take a negative turn.
    2. The observation of negative cash flows from operating activities in recent years showcases challenges in managing working capital or inefficient collection of payments from customers, which can limit their ability to invest in growth. 
    3. The company’s significant portion of its revenue comes from just a handful of clients, and if they lose a major contract, it could lead to financial difficulties.

    Opportunities

    1. The rising demand for solar energy solutions aligns perfectly with KP Green’s expertise in solar module mounting structures. They can leverage this trend to expand their market share and develop innovative new solar-related products.
    2. Government investment in infrastructure projects creates a demand for steel structures used in transmission lines, substations, and other infrastructure projects. The company can position itself as a reliable supplier for these projects.
    3. Moving beyond their current base to cater to a wider national market and exploring export opportunities for their products and services in other countries with growing infrastructure and renewable energy sectors can be lucrative avenues for expansion.

    Threats

    1. The company is currently involved in some ongoing legal disputes. The outcome of these is uncertain but can impact the business operations.
    2. Any changes in the Infrastructure Industry could adversely affect the business and financial conditions.
    3. Any kind of failure in the quality control processes can adversely affect the business and its further expansion.

    Read Also: AVP Infracon IPO: Overview, Key Details, Financials, Strengths, and Weaknesses

    Conclusion

    KP Green Engineering has established itself as a strong player in the steel infrastructure and fabrication industry. They boast a history of a history of innovation, a commitment to quality, and a proven track record of sound financial success.

    The company’s listing on the BSE SME platform signals an exciting new chapter for growth. The stock closed at INR 210 on the day of listing as opposed to the issue price of INR 144 (up almost 46%).

    Frequently Asked Questions (FAQs)

    1. What does KP Green Engineering do?

      KP Green manufactures steel structures, provides hot-dip galvanisation services and offers fault detection for OFC networks.

    2. When was KP Green Engineering founded?

      The company was founded in the year 2001.

    3. Is KP Green Engineering IPO a mainboard or SME IPO?

      The KP Green Engineering IPO was an SME IPO. The stock is listed on the BSE SME platform.

    4. How is KP Green performing financially?

      The company has experienced significant growth in recent years with rising revenue and profits.

    5. How did the company perform on the listing date?

      On the listing date, i.e., 22 March 2024, the company’s stock was listed at INR 200, almost 39% premium to its issue price of INR 144. The share opened at INR 200 and closed at INR 210, rising 5% further from the open price.

  • Swiggy Case Study: Fundings, Business Model, Financials, and SWOT Analysis

    Swiggy Case Study: Fundings, Business Model, Financials, and SWOT Analysis

    If you are a foodie who enjoys placing online orders for meals, you have probably used Swiggy, but have you ever thought about the operations of this company, including its earnings, profits, etc.? 

    Worry not because today’s blog will cover details about Swiggy’s business model, financials, and SWOT Analysis. 

    Swiggy Company Overview

    Swiggy is an Indian food delivery platform that offers customers the ease of ordering from their preferred restaurants while sitting at home. In addition, they offer an instant package delivery service known as Swiggy Genie and an on-demand quick-grocery-delivery business under the name Instamart.  

    Swiggy was established in 2014 in Bangalore. The founders are – Sriharsha Majesty, Nandan Reddy, and Rahul Jaimini. In 2015, the company launched its mobile application after securing its first round of funding. 

    In the beginning, Swiggy had six delivery executives and 25 partner restaurants. Today, they operate in more than 500 Indian cities and have more than 3 lakh restaurant partners, 10 crore deliveries, and more than 2 lakh delivery partners. 

    Funding

    Swiggy has raised a total of $3.62 Billion over 17 funding rounds. Some of its most prominent ones are given below:

    Date of FundingFunding AmountRound NamePost Money ValuationInvestors
    Feb 06, 2015$970KSeries A$4.02MElevation Capital
    Dec 31, 2015$35MSeries C$134MHarmony Partners, RB Investments, Accel, Norwest Venture Partners, DST Global, Elevation Capital
    May 29, 2017$80MSeries E$399MNaspers, Accel, Bessemer Venture Partners, Harmony Partners, Norwest Venture Partners, Elevation Capital
    Dec 20, 2018$1BSeries H$3.2BNaspers, Tencent, DST Global, Hillhouse, Wellington, Meituan, Coatue
    Apr 05, 2021$1.25BSeries J$5.25BProsus, SoftBank Vision Fund, Alpha Wave, Amansa Capital, Accel, Qatar Investment Authority, GIC, Naspers, INQ Holdings, Alpha Wave, Lathe Investment, Wellington, Goldman Sachs Investment Partners, SoftBank, Carmignac, Goldman Sachs, Think Investments

    Read Also: Swiggy Vs Zomato: Business Model, Marketing Strategies, Strengths, and Financials Compared

    Business Model of Swiggy

    The company serves as a middleman between customers and restaurants through its smartphone application. They permit customers to browse restaurant menus and place direct orders.

    Most restaurants the organization works with are chain restaurants and local eateries. The restaurant also helps them reach a wider audience and increase their visibility.

    They also maintain a network of delivery partners known as Swiggy delivery executives. Partners pick up orders from the restaurant and drive them to customers’ locations.

    Swiggy food

    Revenue Model

    The company earns revenue through 4 broad segments:

    1. Commissions – Swiggy charges commissions from restaurants for each order placed through the platform. Typically, the commissions fall within the range of 15 % – 25% of the order value.  
    2. Digital Real-estate fee – Swiggy charges restaurants to give them more visibility on the platform.  
    3. Delivery Fee – In exchange for delivering the food quickly, Swiggy charges customers a delivery fee. 
    4. Subscription Fee – Swiggy offers a subscription service to customers that allows users to deliver food without paying a delivery fee, along with other benefits. 

    Note – The company is not listed on any stock exchanges, so the financials are not released in the public domain. Therefore, we have estimated these segments based on the services offered. 

    Read Also: Blinkit vs Zepto: Which is Better?

    Financial Highlights of Swiggy

    Below are the Swiggy Financials:

    Balance Sheet

    Particulars31st March 202331st March 202231st March 2021
    Non-Current Assets5,26,6403,18,0701,31,580
    Current Assets2,21,12011,02,5002,02,400
    Total Assets11,47,76014,20,5703,34,670
    Equity9,80,990.0112,59,949.92,21,009.25
    Long Term Liabilities22,01028,41046,500
    Current Liabilities1,44,7601,32,210.167,160.5
    (Figures are in lakhs unless stated otherwise) 

    According to the above graph, the company’s non-current assets increased in value from Rs. 31,070 in FY 2022 to Rs. 5,26,640 in FY 2023. However, its current assets decreased significantly in FY 2023 compared to FY 2022. 

    Income Statement

    Particulars31st March 202331st March 202231st March 2021
    Revenue from operations4,65,3303,55,7102,00,800
    Total Income5,36,1304,04,6202,14,500
    Total Expenses8,88,6006,74,0903,31,050
    Profit before tax(3,75,760)(3,76,810)(1,31,360)
    Profit after tax(3,75,760)(3,76,810)(1,31,360)
    (Figures are in lakhs unless stated otherwise)

    The preceding table makes it clear that although the company’s revenue is growing year over year, its expenses are growing at the same rate, which means the business is still losing money.  

    Cash Flow Statement

    Particulars31st March 202331st March 2022
    Net Cash flow from operating activities(38,633)(24,729)
    Cash flow from investing activities33,395(1,07,276)
    Cash flow from financing activities(604)1,36,703
    (Figures are in lakhs unless stated otherwise)

    It is clear from the cash flow statement that the company’s cash flow from investing activities increased, indicating that it had received income from the sale of property. In contrast, its cash flow from operating activities declined further. The cash flow from financing activities should not be given much weight as it reflects the funding received from institutional investors.

    Note – As of 23rd March 2024, we could only find the past 2 years’ data for the cash flow statement.

    KPIs

    Particulars31st March 202331st March 202231st March 2021
    Debt Equity Ratio0.090.060.32
    Net Profit Margin (%)-70.09-93.13-61.24
    Return on Capital Employed (%)-65.58-26.27-57.51
    Current Ratio4.298.343.01
    Return on Equity (%)-38.30-29.91-59.44

    The company’s debt-to-equity ratio decreased in 2022 compared to 2021. However, it increased slightly in 2023, indicating a rise in debt, but the number is still far too low and thus should not affect the company’s operations.

    The company’s loss margins narrowed but still showcased the huge losses.

    Read Also: Blinkit Case Study: Business Model, Financials, and SWOT Analysis

    SWOT Analysis of Swiggy

    The Swiggy SWOT Analysis highlights its strengths, weaknesses, opportunities, and threats, showcasing its market position and growth potential.

    SWOT Analysis of Swiggy

    Strengths

    • Due to its widespread clientele and high popularity, Swiggy is regarded as one of the sector’s top providers of food delivery services. 
    • The company offers its customers a wide selection of cuisines thanks to its partnerships with various restaurants. 
    • Swiggy always strives to incorporate cutting-edge features into its mobile app.     The company has strong investors supporting it, giving it the money it needs to grow.  

    Weaknesses

    • Swiggy’s business relies heavily on its delivery partners; it may affect its earnings if they are unavailable or on strike. 
    • The business invests a lot of money in marketing and advertising to attract new clients and retain its current clientele. 
    • Despite their efforts, the company is not able to generate a profit as it has been experiencing losses for the last 3 financial years.
    • The company faces intense competition from other players in the market, such as Zomato.

    Opportunities

    • Swiggy hasn’t penetrated the tier 2 and tier 3 cities; therefore, concentrating on them could bring in new clients. 
    • They can diversify their product line beyond food and grocery items. 
    • They can form strategic alliances with cloud kitchens and other businesses, which will increase their income.
    • The business can package food products using environmentally responsible methods, drawing in customers who share its values.

    Threats

    • Their operations may be impacted by any modifications in the policies regarding labor welfare or food safety rules. 
    • The fees charged by them from restaurants are extremely high and thus could lead to restaurants switching to competitors. Such loss of partnerships could lead to reduced margins. 

    Read Also: Zomato Case Study: Business Model, SWOT Analysis, and Financials Explained

    Conclusion

    Swiggy is one of the biggest online food delivery services in India. Although the company has expanded quickly since its founding, it has been experiencing financial difficulties for a considerable amount of time. Though the food delivery industry is popular for its cash burn, Swiggy must find ways to turn profitable before the funding tap runs dry. 

    S.NO.Check Out These Interesting Posts You Might Enjoy!
    1Zepto Case Study: Business Model, Financials, and SWOT Analysis
    2Boat Case Study: Business Model, Product Portfolio, Financials, and SWOT Analysis
    3Rupay Case Study: Features, Timeline, Types, Growth, and Comparison
    4Gift City Case Study: Timeline, Management, and Development
    5IRCTC Case Study: Business Model, Financials, and SWOT Analysis

    Frequently Asked Questions (FAQs)

    1. Is Swiggy an Indian company?

      Yes, Swiggy is an Indian company founded in the year 2014 and has its headquarters in Banglore.

    2. What is the original name of Swiggy?

      The original name of Swiggy is Bundle Technology Limited. 

    3. Is Swiggy a profit-making company?

      Unfortunately, Swiggy is a loss making company and has been operating on periodic fundings.

    4. Who is the CEO of Swiggy?

      Mr. Rohit Kapoor is the CEO of Swiggy.

    5. Is Swiggy listed on the Indian Stock Exchange?

      No, swiggy is not listed on the stock exchange.

  • Enfuse Solutions Limited: IPO, Business Model, And SWOT Analysis

    Enfuse Solutions Limited: IPO, Business Model, And SWOT Analysis

    The country’s digital sector is constantly evolving, and businesses need cutting-edge solutions to stay ahead. Enfuse Solutions Limited is built on innovation and helping businesses across industries leverage data, analytics, and AI to achieve transformative results.

    In this blog, we will delve deeper into the SWOT analysis, business model, and key IPO details of Enfuse Solutions Limited.

    About the Company

    Business Model of Enfuse Solutions

    Enfuse Solutions Limited is an Indian company founded in 2017 that provides integrated digital solutions across various domains. The company works as a consultant for its clients.

    Business Model

    The company’s major source of revenue comes from providing digital services and integrated solutions. The company has a specialisation in:

    1. Data Management & Analytics

          The company helps businesses improve the quality and accuracy of their data to facilitate better decision-making. It ensures the highest standard of data integrity as well as availability with data management and data governance services.

          key components in Data Management & Governance that Enfuse Solutions offer are as follows: Master Data Management, Data Stewardship, Data Quality, Data Governance, Product Information Management (PIM)

          The company also partners with businesses to build and scale their analytics and AI capabilities, driving industry-wide transformation and analytics capabilities, including Product Analytics, Customer Analytics, Pricing Analytics, Campaign Analytics & Sales Analytics.

          2. E-commerce & Digital Services

            The company develops and manages custom e-commerce platforms to ensure a smooth online experience for businesses. E-commerce services cover a wide range of offerings designed to support and enhance online business activities, which include E-commerce Platform Management, Content Management, SEO and SEM Services, Digital Marketing, Web Analytics & Reporting, Customer Experience & Quality Assurance.

            3. Edtech & Solutions

              Enfuse Solutions also provides solutions in the education technology sector and other tech-related areas. Within Edtech, various solutions include Live Proctoring, Record & Review, Auto Proctoring, and artificial intelligence algorithms.

              4. Machine Learning (ML) & Artificial Intelligence (AI)

                The company offers AI and ML-enabled services, such as data tagging to improve content searchability and fuel other AI applications.

                Additionally, the company gets diversified revenue from multiple geographical locations across India and places outside India, including the USA, Ireland, Netherlands, Canada, etc. The company boasts around more than 150 clients and has successfully delivered 1000+ projects.

                Read Also: Exicom Tele-Systems IPO: Business Model, KPIs, SWOT Analysis, and FAQs

                Business Process

                The first step in the business process of Enfuse Solutions is identifying customers or prospects depending on their needs. This is a consistent process for generating new business.

                The incoming leads through websites or digital campaigns organised by the company. One thing to note is that customer references are considered the most important sources.

                After the customer identification, a detailed process to understand the requirement of the IT service required by the prospects in terms of efficacy, efficiency, and user interface is carried out. Once the needs of the customers are identified, the man hours required to achieve the requirement of the Client are estimated.

                The documentation and execution process with the client is completed and kept for record purposes. After end-to-end negotiation, the contract will be signed, carrying the terms and conditions agreed upon.

                Enfuse Solutions faces tough competition from several competitors offering similar products and services: Vertexplus Technologies Limited, Systango Technologies Limited,  eClerx Services Limited, etc.

                Key IPO Details

                IPO DateMarch 15, 2024 to March 19, 2024
                Price BandINR 91 to INR 96 per share
                Lot Size1,200 Shares
                Total Issue Size2,337,600 shares
                Issue TypeBook Built Issue IPO
                IPO TypeSME IPO
                Basis of AllotmentWednesday, March 20, 2024
                Initiation of RefundsThursday, March 21, 2024
                Listing DateFriday, March 22, 2024  

                Objectives of the Issue

                1. Repayment of certain borrowings availed by the company.

                2. To meet working capital requirements.

                3. For general corporate purposes.

                Enfuse Solutions Financial Statements

                Have a look at the key metrics of the Enfuse Solutions Limited (in INR crore):

                Key MetricsFY 2023FY 2022FY 2021
                Total Assets11.658.894.61
                Total Sales26.1025.5617.20
                Total Expenditure22.1322.8715.11
                PAT2.931.981.55

                Cash Flow Statements

                 ParticularsFY 2023FY 2022FY 2021
                Net cash flow from operating activities1.341.962.17
                Net cash flow from investing activities(1.36)(4.18)(2.36)
                Net cash flow from financing activities(0.10)2.28(0.04)
                Cash equivalents at the end of the year0.130.250.19
                *all figures are in INR crore

                Read Also: AVP Infracon IPO: Overview, Key Details, Financials, Strengths, and Weaknesses

                Enfuse Solutions SWOT Analysis

                SWOT analysis of Enfuse Solutions

                Strengths

                1. The company’s global presence as an IT solutions provider helps in the expansion of client-base across diverse geographical markets. Further, this international footprint keeps the company at the forefront of the technological innovation.
                2. A passionate leadership team and a highly skilled workforce have combined to drive impressive growth and a commitment to innovation.
                3. The company delivers a broad range of IT solutions to diverse industries by partnering with established players through subcontracting agreements.

                Weaknesses

                1. High dependence on sub-contractors might limit control over project delivery and quality.
                2. The company is relatively new and might have lower brand recognition than established competitors.
                3. The IT solutions market is competitive in India and needs constant innovation and differentiation.

                Opportunities

                1. Expanding into new geographical locations with high growth potential can be a significant opportunity.
                2. Emphasising on specific high-demand industry sectors can increase the company’s expertise and brand recognition.
                3. Staying informed about and capitalising on new technologies can lead to new service offerings and attract new clients.

                Threats

                1. The current revenue streams are concentrated in the US and Netherlands, and any adverse developments in these markets can affect the business operations of the company.
                2. A competitive market for technology services can put pressure on pricing, which can reduce the share of business from clients and can have a significant impact on revenues and profitability.
                3. The business could also suffer substantial setbacks because of cyberattacks or security breaches within the company’s system, or of the clients can adversely affect the business. 

                Read Also: Ullu Digital Case Study: Business Model, Financials, and SWOT Analysis

                Conclusion

                To sum it up, Enfuse Solutions is positioned for impressive growth in the ever-evolving IT landscape. Their global presence, focus on innovation, and skilled workforce empowers them to offer exceptional value to clients across diverse industries. By making an effort to stay ahead of the curve on emerging technologies and geographic markets, the company is well-equipped to transform businesses.

                Frequently Asked Questions (FAQs)

                1. What does Enfuse Solutions do?

                  Enfuse Solutions is a leading provider of integrated digital solutions, including data management, e-commerce, AI &ML, and education technology solutions.

                2. In which year the company was founded?

                  The company was founded in the year 2017.

                3. Is Enfuse Solutions a good investment option?

                  This depends on the investor’s risk tolerance and investment goals. It is a relatively new company, so do your research and consult financial advisor before investing. Further, it is an SME company; one can buy its shares in a lot only, and the lot size is 1200 shares (app. INR 1.35 lakhs).

                4. Where is Enfuse Solutions located?

                  The company is headquartered in Bombay, India but functions across multiple geographies.

                5. How did the company’s share price perform on the listing date?

                  On the listing date, i.e., 21 March 2024, the share price of Enfuse closed at around INR 115, which is almost 20% up from its issue price (INR 96).

              1. Krystal Integrated Services: IPO, Business Model and SWOT Analysis

                Krystal Integrated Services: IPO, Business Model and SWOT Analysis

                Did you know there is an Indian company recently listed on NSE and BSE, which provides integrated facility management services (FMS) such as housekeeping, sanitation, gardening, plumbing services, pest control, etc?

                The company is a nationwide provider of such services and offers a powerful combination of extensive geographic reach, exceptional service quality and unwavering expertise.

                But what truly sets Krystal Integrated Services Limited apart? Let’s dive deep into the key IPO details, company overview, financial statements, and SWOT analysis.

                Krystal Integrated Services Overview

                Krystal Integrated Services Limited is a prominent player in India’s facility management segment with a major focus on sectors like healthcare, education, public administration, railways, airports, etc. offering a range of services across various industries. The company was established in the year 2000 and has grown into a leader with a strong track record of success. The national footprint allows them to cater for the diverse needs of customers.

                Business Model

                Business Model of Krystal Integrated

                Krystal Integrated Limited offerings include soft services such as housekeeping, sanitation, landscaping and gardening, hard services such as mechanical, electrical and plumbing services, solid, liquid and biomedical waste management, pest control and façade cleaning and other services such as production support, warehouse management and airport management services (including multi-level parking and airport traffic management).

                The company also provides staffing solutions and payroll management to its customers, as well as private security and manned guarding services and catering services.

                Additionally, Krystal also offers solutions to the government sector has a track record of executing large contracts and is among select companies in India to qualify for and service large, multi-location government projects. Some of the company’s government customers include Maha Mumbai Metro Operation Corporation Limited and the Education Department, Brihanmumbai Municipal Corporation.

                Furthermore, the company offers services in 14 states and operates 21 branch offices across India.

                Key IPO Details

                IPO DateMarch 14, 2024 to March 18, 2024
                Price BandINR 680 to INR 715 per share
                Lot Size20 Shares
                Total Issue Size4,197,552 shares
                Issue TypeBook Built Issue IPO
                IPO TypeMainboard IPO
                Basis of AllotmentTuesday, March 19, 2024
                Initiation of RefundsWednesday, March 20, 2024
                Listing DateThursday, March 21, 2024

                Objectives of the Issue

                There are three key objectives of the issue:

                1. Repayment/prepayment, in full or part, of certain borrowings availed of by the company.

                2. Funding working capital requirements and capital expenditure for the purchase of new machinery.

                3. General corporate purposes.

                The promoters of the Company are Prasad Minesh Lad, Neeta Prasad Lad, Saily Prasad Lad, Shubham Prasad Lad and Krystal Family Holdings Private Limited. The pre-issue shareholding of the promoters was at 99.99%. Currently, i.e., after listing, the shareholding of promoters stands at 69.96%.

                Financial Statements Analysis

                Have a look at the key metrics of the company (in INR crores):

                Key MetricsFY 2023FY 2022FY 2021
                Total Assets343.46404.38338.47
                Total Borrowings51.0574.5368.39
                Total Revenue703.96550.85468.30
                Total Expenses641.94510.75447.88
                PAT38.4426.2716.82
                EBITDA66.5047.4531.10

                Basic EPS of the company for the FY 2023, 2022, and 2021 stands at 33.33, 22.69, and 14.45, respectively.

                Key metrics of Krystal Integrated Services

                Cash Flow Statements

                ParticularsFY 2023FY 2022FY 2021
                Cash flows from operating activities71.7819.987.95
                Cash flows from investing activities(32.00)(17.89)17.60
                Cash flows from financing activities(30.89)(3.05)(26.77)
                Cash and cash equivalents as of the end of the year9.370.491.45
                *all the figures mentioned above are in INR crores
                Cash flows of Krystal Integrated Services

                Inferences from the above figures:

                1. The revenue of the company has shown steady growth over the past few years, showcasing an increase in its market presence and operational scalability.
                2. The PAT has also seen impressive growth, i.e., roughly a two-fold jump in the past three years which suggests effective management of expenses.
                3. Positive operating cash flows signify the company’s ability to generate cash from its core operations, which is important for the financial health of the company.

                Read Also: Gillette India Case Study: Business Model, SWOT Analysis, and Financial Overview

                SWOT Analysis of Krystal Integrated Services

                SWOT analysis of Krystal

                Strengths

                1. With a diverse portfolio and extensive reach, Krystal Integrated Services stands out as a top pan-India facility manager.
                2. The company is a trusted partner for complex government projects, with a proven ability to handle large-scale contracts across multiple locations.
                3. By combining unwavering quality with cutting-edge services, Krystal fosters strong and lasting partnerships with its key customers.
                4. The company’s PAN India reach combined with expertly trained team, allows the company to tackle projects of any size.

                Weaknesses

                1. A significant portion of the company’s revenue comes from a limited number of clients, which makes them vulnerable and increases the concentration risk.
                2. While government contracts offer stability, securing them can be unpredictable. Additionally, changes in government regulations could negatively impact the company.
                3. The company relies heavily on a large workforce, which can be expensive and complex to maintain and any kind of labour shortages could hinder their ability to fulfil existing contracts.
                4. Delivering services across diverse environments needs constant adaptation to local needs. This can lead to inefficiency in maintaining quality control across different project locations.

                Opportunities

                1. The Indian facility management sector is poised for growth which will eventually create a fertile ground for KIS Limited to expand their service offerings and client base.
                2. By seeking new clients in several industries beyond government contracts, the company can reduce their dependence on a few customers. This would help them mitigate risks and open doors to new revenue streams.
                3. Embracing technological advancements like automation and data analytics can improve the company’s efficiency and streamline business operations.
                4. As environmental awareness grows, Krystal can develop eco-friendly facility management solutions that cater to businesses seeking sustainable practices.

                Threats

                1. The dependence on government contracts exposes the company to the volatility of the public bidding process, with no guarantee of future success.
                2. The company’s revenue from operations is highly dependent upon a limited number of customers.
                3. The diverse nature of the services across various segments requires constant adjustments, which can be disruptive and cause inefficiencies.
                4. The manpower-intensive nature of the business can create a significant risk of stagnation and it will become difficult for the company to attract and retain enough qualified personnel to keep pace with evolving industry demands.

                Read Also: AVP Infracon IPO: Overview, Key Details, Financials, Strengths, and Weaknesses

                Conclusion

                Krystal Integrated Services is well-positioned to capitalise on the burgeoning Indian facility management market. With their commitment to quality, adaptability, and a skilled workforce, they are poised for continued success.

                As they recently navigated through their IPO in an increasingly competitive landscape, their focus on client diversification and innovative service offerings will be important to watch.

                Frequently Asked Questions (FAQs)

                1. What does Krystal’s integrated services do?

                  The company is a leading Indian management company offering a wide range of services like housekeeping, security, waste management, staffing, etc.

                2. Does Krystal Integrated Services only work with the government?

                  No, while they have a strong presence in government contracts, the company also serves clients in several industries.

                3. What are some key challenges that the company can face?

                  Retaining skilled workers and dependence on a limited number of clients are the challenges that the company may encounter.

                4. When was Krystal Integrated Services established?

                  The company was established in the year 2000.

                5. What was the performance of the company’s share on the listing date?

                  On the listing date, i.e., 21 March 2024, the stock was opened at INR 785 (almost 10% up). However, stock is closed at INR 713, slightly below its issue price.

              2. Global Financial Crisis 2007-08: Causes, Key Events, and Impact on Indian Stock Markets

                Global Financial Crisis 2007-08: Causes, Key Events, and Impact on Indian Stock Markets

                We distinctly remember the aftermath of the Global Financial Crisis 2007-08, but very few of us know the reasons behind its occurrence. It was not a sudden event but rather a culmination of risky practices and vulnerabilities within the financial system. 

                What began as a seemingly positive trend in the housing market ultimately unraveled into a domino effect that weakened the global economies. 

                Today’s blog discusses the causes of the Global Financial Crisis, the unfolding drama, and its lasting impact.               

                Global Financial Crisis 2007-08

                The Global Financial Crisis, also known as the 2007-08 financial crisis, was a severe economic downturn that began in the United States and then spread throughout the world. It is regarded as the most serious economic crisis since the Great Depression.

                Global Crisis 2008

                Global Financial Causes 2007-08

                The causes of global financial crisis 2007-08 were not due to a single factor but rather a combination of systemic issues within the financial system. Here are some key causes.

                1. Subprime Mortgage Crisis

                One of the primary triggers was the collapse of the housing market bubble in the United States, fuelled by the issuance of subprime mortgages. These mortgages were given to borrowers with poor credit history or insufficient income to afford them and were often bundled together into complex financial instruments called mortgage-backed securities (MBS). The assumption was that housing prices would keep rising, making these investments safe. When many of these borrowers defaulted on loans, the value of mortgage-backed securities significantly declined.

                1. Lack of Regulation

                Financial Institutions were allowed to take on excessive risk with little oversight. There were lax regulations on mortgage lending practices and the creation of MBS, which masked the underlying risk. The risk profile of MBS products was downplayed to make them seem more attractive to investors and also opened the door to fraudulent practices like income falsification.

                1. Bubble Burst

                Fuelled by easy credit, housing prices soared in many countries, creating a bubble. When the bubble burst, house prices plummeted, and many homeowners defaulted on their mortgages. This triggered a wave of defaults on MBS, causing their value to collapse. Banks and investors also engage in short-term borrowings like overnight loans to buy illiquid assets, which is risky. This created a situation where they depended heavily on lenders constantly renewing these loans to avoid defaulting.

                Housing crisis 2008

                Global Financial Key Event 2007-08

                With trigger points in the US housing market causing a domino effect, the Global Financial Crisis (GFC) unfolded like a disaster movie in slow motion. 

                1. Low-interest rates and deregulation in the mortgage industry fuelled a surge in risky lending practices. 
                2. Subprime mortgages became increasingly common. Fuelled by easy credit, housing prices soared and people bought houses they could not afford.
                3. When interest rates started to rise and the housing market was at its peak, many homeowners defaulted, leading to a wave of foreclosures, with millions losing their homes.
                4. As the value of MBS dropped, financial institutions that held them faced massive losses. Banks became wary of lending to each other, fearing insolvency, which froze credit markets.
                5. The panic spread throughout the financial system. Major investment banks like Lehman Brothers collapsed, and stock markets around the world crashed.
                6. Businesses struggled to get loans, hindering their ability to invest and grow. This led to widespread layoffs and a global recession.
                7. To prevent a complete economic meltdown, governments around the world implemented bailout packages for banks and stimulus programs to revive the economy.

                The GFC’s impact was far-reaching, causing widespread unemployment, economic hardship, and a major loss of trust in the financial system. The recovery process was slow and uneven, highlighting the need for stricter regulations and a more responsible approach to lending practices.

                Read Also:  Trading For Beginners: 5 Things Every Trader Should Know

                Impact on Indian Stock Markets

                The GFC of 2008 had a significant impact on the Indian markets, even though India was not directly at the centre of the storm.

                1. As risk gripped global investors, FIIs pulled out funds from the Indian Stock Market. This exodus of foreign capital led to a sharp fall in stock prices.
                2. With global risk rising, the Indian Rupee depreciated significantly against the US dollar. It fell roughly 20% between April 2008 and November 2008, eventually making imports costlier. However, the RBI took measures to stabilize the situation.
                3. The BSE SENSEX witnessed a sharp fall, dropping over 56% between its peak in January 2008 and its trough in November 2008.
                indian market crash in 2008

                Corrective Actions Taken by the RBI

                The RBI could not single-handedly control the GFC since it was a global phenomenon. However, some important steps were taken to mitigate the crisis.

                1. The RBI injected liquidity into the financial system through open market operations which helped ease credit flow for businesses and individuals.
                2. The Repo rate was lowered (the rate at which RBI lends money to commercial banks). This made it cheaper for banks to borrow reserves and lend further.
                3. The RBI sold US Dollars from its foreign exchange reserves to support the rupee’s value during its depreciation phase.

                While the measures could not completely prevent the slowdown, RBI helped India bear the storm of the GFC.

                Read Also: How does the Price of Oil affect the Stock Market?

                Conclusion

                The GFC’s scars ran deep. It was not just a financial crisis but a turning point in our lives. It eroded public trust in financial institutions, widened the gap between rich and poor, and fuelled social unrest. 

                The long-term implications of the GFC can still be felt while shaping economic policies and understanding risk. Though the global economy eventually recovered, the GFC is a stark reminder of the importance of responsible lending practices and a commitment to financial stability.

                Frequently Asked Questions (FAQ)

                1. What was the Global Financial Crisis?

                  The GFC was a major financial crisis that began in 2007 and had severe repercussions globally. It originated from the US housing market collapse.

                2. In which year did GFC happen?

                  GFC happened in the year 2007.

                3. How did the GFC impact the global markets?

                  Stock markets worldwide crashed, with some indices dropping over 50%. Volatility surged and highlighted investors’ fear, and interbank lending came to a standstill due to fear of insolvency.

                4. What was the long-term impact of the GFC?

                  The GFC led to stricter regulations. The focus on risk management increased and investors became more cautious in emerging markets.

                5. How did GFC unfold?

                  GFC unfolded in multiple stages. It started from the Housing bubble and subprime lending in the middle 2000s, bubble bursts (2006-07), MBS unraveling and financial panic (2008) and global recession (2008-09).

              3. Bandhan Long Duration Fund NFO: Objective, Benefits, Risks, and Suitability Explained

                Bandhan Long Duration Fund NFO: Objective, Benefits, Risks, and Suitability Explained

                The Bandhan Asset Management Company is launching a new mutual fund offering in the debt category, the “Bandhan Long Duration Fund.” Let us begin by analyzing the New Fund Offer (NFO). 

                Debt Fund

                A debt fund is a mutual fund that predominantly invests in fixed-income securities such as government bonds, corporate bonds, debentures, treasury bills, etc. These are suitable for investors who are risk averse and want stable and consistent returns in their portfolio.

                Long Duration Fund

                This category of debt fund primarily invests in fixed-term securities with longer maturity, i.e., from 7 years to 20 years or more.

                Benefits of Bond Investing

                1.  The country’s current account deficit is decreasing, creating a stable interest rate environment and lowering the need to issue bonds to cover the deficit. 

                2.  The government aims for a 4.5% fiscal deficit by FY 26, which suggests that there will be a decrease in the bond supply, which will be beneficial for the market.

                3.  The country’s Core inflation remains below 4% as the government is effectively managing the food supply chain.

                4.  An extra 23–25 billion in foreign investment is anticipated to enter the Indian bond market due to India’s inclusion in global indices.

                5.  As global inflation eases, reduction in the rate of interest is expected.

                Bandhan AMC

                It was first founded as IDFC AMC in 2000, and by 2020, it was one of India’s top 10 AMCs in terms of AUM. In 2023, IDFC AMC was acquired by a group of institutions led by Bandhan Financial Holdings Limited. Bandhan ended up controlling 60% of the AMC, and thus rebranded it as Bandhan AMC. 

                The stakeholders include Chrys Capital (20%) and Singapore’s sovereign wealth fund, GIC (20%). 

                Bandhan Long Duration Fund NFO

                Read Also: What is NFO? Features, Types, & How to Invest in It

                Bandhan Long Duration Fund

                Bandhan Asset Management Company is coming up with a new fund offering named “Bandhan Long Duration Fund” which will open for subscription on 5th March 2024 and close on 18th March 2024.

                Investment Objective

                The company intends to diversify its portfolio into debt and money market securities in such a manner that the Macaulay duration of the fund is greater than 7 years. Thus, it intends to generate an optimum return over the long run.

                Key Points

                Date of Issue5th March 2024
                Closing Date18th March 2024
                CategoryDebt
                Sub-categoryLong Duration
                PlanRegular and Direct
                OptionsGrowth and Income Distribution Cum Capital Withdrawal (IDCW)
                Minimum Purchase AmountINR 1000
                Exit Load0%
                BenchmarkNifty Long Duration Debt Index A-III.

                Fund Manager

                Mr. Gautam Kaul, the senior fund manager of this fund, would supervise the fixed-income fund. Having managed over 27000 crores of assets using both active and passive techniques, he has a solid grasp of the fixed income securities market. 

                He worked for Edelweiss Asset Management Company before joining Bandhan Mutual Fund and received his MBA and B.Com. degrees from the University of Pune, where he focused on accounting and finance. 

                Benefits and Risks 

                Similar to any other NFO, the Bandhan Long Duration Fund NFO also holds its definite set of advantages and risks. Below mentioned are some of the key advantages and risks involved. 

                Benefits 

                1.  High-quality debt instruments with the lowest credit risk will be the fund’s primary investment focus. Thus making it suitable for risk-averse investors. 

                2.  Fund management will investigate opportunities in bonds issued by governments and corporations with maturities longer than seven years. Hence, long-term investors would benefit from this fund. 

                3.  The fund manager of the Bandhan Long Duration Fund has managed fixed-income assets for over 20 years. Hence, the investors would benefit greatly from the manager’s extensive work experience.  

                Risks

                1.  The fund needs to maintain a minimum duration of 7 years which will limit its flexibility in case of any adverse situation.

                2.  Putting money into a long-term debt fund will yield smaller returns. You won’t have the chance to earn larger gains if the stock market experiences a bull run. 

                Risks of Bandhan Long Duration NFO

                Suitability

                1.  Investors who are looking for higher returns in debt funds.

                2.  Investors who are looking for consistent returns.

                3.  Investors who want to reduce the risk associated with reinvestment by maturing their portfolio. 

                4.  Retired investors who can’t take on the risk associated with equities need a systematic withdrawal strategy to provide them with a steady income.

                Did you know? 

                After April 1, 2023, debt funds will no longer enjoy indexation benefits and thus will be taxed at applicable slab rates. 

                Read Also: Bandhan Bank Case Study: Business Model, Financial Statement, SWOT Analysis

                Conclusion

                In summary, long-term debt funds are a solid option for investors who want a consistent return without taking on too much risk and are wary of market fluctuations. After carefully assessing the risk involved, one can invest in this fund based on their investing horizon and risk tolerance.  

                S.NO.Check Out These Interesting Posts You Might Enjoy!
                1NFO Alert: PGIM India Large & Mid Cap Fund
                2What Is An IPO Mutual Fund? Should You Invest?
                3What is PSU Index? Performance, Comparison, Benefits, and Risks Explained
                4Top AMCs in India
                5The Rise of ESG Funds: Overview, Growth, Pros, Cons, and Suitability

                Frequently Asked Questions (FAQs)

                1. What is the Long Duration Fund’s tenure?

                  The tenure of a long-duration fund is more than 7 years (Macaulay Duration).

                2. Who is the fund manager of Bandhan Long Duration Fund?

                  The fund manager of the Bandhan Long Duration Fund will be Mr. Gautam Kaul. He has managed debt funds for the past 20 years. 

                3. Was Bandhan AMC named IDFC AMC before?

                  In 2023 Bandhan purchased IDFC AMC; as a result, it is now referred to as Bandhan Mutual Fund.

                4. When does Bandhan’s long-duration fund NFO close?

                  The NFO’s subscription period will end on March 18, 2024.

                5. Is it possible to use SIP to invest in Bandhan’s long-duration fund?

                  You may invest with a SIP of INR 1000 in the Bandhan long-term fund.

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

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