Best PSU Banks in India Strengths Financials & More Details

Best PSU Banks in India: The economy of every nation revolves around its financial sector. When India got its independence, it was necessary to establish a robust financial system to handle the growth of credit. The Indian government purchased and formed public sector banks to address this issue.

It enabled them to offer a wide range of support initiatives and offering interest at rates lower than private banks. In this article, we are going to analyse the best PSU banks in India. Keep reading to learn more about them.

What are PSU Banks?

The Public sector or nationalized banks are those in which the government holds more than half of the equity. Currently, there are  12 PSU banks in India.

The government formulates all the financial guidelines for public sector banks. The public sector banks operate under the government to inspire trust in the depositors that their money is safe. In those banks, the government has retained a majority of its share with the primary aim of protecting the public interest.

Industry Overview

The Indian banking system consists of 12 public sector banks, 22 private sector banks and 44 foreign banks. In addition to that, the country also has 43 regional rural banks, 1,484 urban cooperative banks, and 96,000 rural cooperative banks.

As of September 2022, the total number of ATMs in India reached 217,308 out of which 49.81% are in rural and semi-urban areas.

These 12 PSBs witnessed a 57 percent increase in total profit in FY23 compared to Rs 66,539.98 crore earned in 2021-22. As of 2022, Total Public sector banking assets stood at $1,353.10B.

As of June 01, 2022, the number of bank accounts—opened under the government’s flagship financial inclusion drive ‘Pradhan Mantri Jan Dhan Yojana (PMJDY)’—reached 45.60 crore and deposits in the Jan Dhan bank accounts totaled Rs. 1.68 trillion (US$ 21.56 billion).

The digital payments revolution will trigger massive changes in the way credit is disbursed in India. Debit cards have radically replaced credit cards as the preferred payment mode in India after demonetization.

In November 2022, Unified Payments Interface (UPI) recorded 7.30 billion transactions worth Rs. 12.11 trillion (US$ 148.63 billion).

Here are a few important metrics that you should know before analyzing a stock:

• Net Interest Income (NII): It is the difference between interest earned from a bank’s lending activities to its customers and the interest paid to account holders.
• CASA Ratio: It is a ratio of deposits in current and savings accounts to total deposits.  A high CASA ratio indicates a lower cost of funds.
• Credit Deposit Ratio (CDR): It is the ratio of how much a bank lends out of the deposits it has mobilized.
• Gross Non-performing asset (GNPA):  It is the total value of all unpaid loans that are classified as non-performing loans.
• Net Non-performing asset (NNPA): It is the amount remaining after deducting doubtful and unpaid debts from the GNPA.
• Capital Adequacy Ratio: It helps make sure banks have enough capital to protect depositors’ money.

Best PSU Banks in India

Now let us have a look at the Top public sector banking stocks in India.

Best PSU Banks in India #1 – State Bank of India

Face Value (₹)	1	ROE(%):	14.96%
Market Cap (Cr):	₹ 5,13,255	Net interest margin(%):	3.58
EPS (₹):	62.4	Credit deposit ratio(CDR):	73.13%
Stock P/E:	9.22	CASA Ratio:	43.80
Dividend Yield(%):	1.23%	Gross NPA(%):	3.0
Net NPA(%)	0.67	Capital Adequacy Ratio(%)	14.68
ROCE(%):	1.74	Price/BV	1.68

The State Bank of India (SBI) is the country’s oldest bank, with over 200 years of history and a premier position in terms of balance sheet size, number of branches, and market capitalization. It is also a part of the Fortune Global 500 list.

The PSU bank is strategically entering into many new businesses with strategic tie-ups in pension funds, general insurance, custodian services, private equity, mobile banking, etc., each of which has huge potential for growth. 

In 2019, SBI merged six nationalized banks, resulting in the availability of technology and expertise from the smaller banks, and acquiring a broad customer base.

As of march FY23, the bank had more than 480 million customers served through 22,405 branches and  65,627 ATMs. It is the third-largest company in India by market capitalization.

SBI earned a net interest income of Rs 1,44,841 crores in FY22-23 and a net profit of Rs 56,558 crore. In fact, the bank has been able to maintain consistent growth in its profits and revenue on a quarterly basis.

It has an extraordinary ROE and ROCE of 14.96 percent and 1.74 percent, respectively. The bank stock P/E of 9.33 is below its industry P/E of 10.8, indicating a slight underpricing of the stock.

Best PSU Banks in India #2 – Bank of Baroda

Face Value (₹)	2	ROE(%):	14.05%
Market Cap (Cr):	₹ 94,067	Net interest margin(%):	2.89
EPS (₹):	28.8	Credit deposit ratio(CDR):	78.04%
Stock P/E:	6.32	CASA Ratio:	42.25%
Dividend Yield(%):	2.98%	Gross NPA(%):	3.79
Net NPA(%)	0.89	Capital Adequacy Ratio(%)	16.24
ROCE(%):	2.05%	Price/BV	1.04

Bank of Baroda(BOB) is engaged in providing various services, such as personal banking, corporate banking, international banking, small and medium enterprise (SME) banking, rural banking, non-resident Indian (NRI) services, and treasury services.

As of  March FY23, The Bank has more than 30 million customers served through 8,178  branches and 9,200  ATMs,

BOB earned a net interest income of Rs 41,355 crore in FY22-23 and a net profit of Rs  14,688 crore. In fact, the bank has been able to maintain consistent growth in its profits and revenue on a quarterly basis, and it has maintained a healthy dividend payout of 19.1%.

In 2019, the Indian government approved the amalgamation of  Vijaya Bank and Dena Bank into the Bank of Baroda to increase market share and reduce the NPAs.

It has an extraordinary ROE and ROCE of 14.05 percent and 2.05  percent, respectively. The Bank stock P/E of 6.32 is below its industry P/E of 10.8, indicating underpricing of the stock.

Best PSU Stocks in India #3 – Canara Bank

Face Value (₹)	₹10.0	ROE(%):	14.25 %
Market Cap (Cr):	₹ 54,052	Net interest margin(%):	2.38
EPS (₹):	₹62	Credit deposit ratio(CDR):	70.47%
Stock P/E:	4.8	CASA Ratio:	33.48
Dividend Yield(%):	2.18%	Gross NPA(%):	5.35
Net NPA(%)	1.73	Capital Adequacy Ratio(%)	16.68%
ROCE(%):	2.12%	Price/BV	0.77

Canara Bank is engaged in Treasury Operations, Retail Banking Operations, Wholesale Banking Operations, and Other Banking Operations. Canara Bank occupies a premier position in the community of Indian banks.

In 2019, the Indian government approved the amalgamation of the syndicate bank into Canara Bank to build it as a globally competitive lender.

Canara Bank is the first public sector bank to tie up with NPCI Bharat Bill Pay to process cross-border inbound bill payments from Oman.

As of  March FY23, the bank had more than 108 million customers served through 22,627 branches, 3 branches overseas, and 10,726 ATMs.

The bank has launched an API banking platform to provide seamless banking services to our corporate clients. Canara Bank has launched the ‘Canara Digital Rupee’ mobile application as part of the Reserve Bank of India’s Central Bank Digital Currency (CBDC) pilot project.

Canara Bank earned a net interest income of Rs 31,436 crores and a net profit of Rs 10,808 Crore in FY22-23. In fact, the bank has been able to maintain consistent growth of its profits and revenue on a quarterly basis and  Bank has been maintaining a healthy dividend payout of 19.3%

Further, it has an extraordinary ROE and ROCE of  14.25 percent and 2.12 percent, respectively. The bank stock P/E  is 4.82  below its industry P/E of 10.8 indicating underpricing of the stock.

Best PSU Banks in India #4 – Punjab National Bank

Face Value (₹)	2	ROE(%):	3.25 %
Market Cap (Cr):	₹ 55,672	Net interest margin(%):	2.34%
EPS (₹):	3.04	Credit deposit ratio(CDR):	64.90%
Stock P/E:	16.2	CASA Ratio:	43%
Dividend Yield(%):	1.28%	Gross NPA(%):	8.74%
Net NPA(%)	2.72%	Capital Adequacy Ratio(%)	15.50%
ROCE(%):	1.56%	Price/BV	0.56

Punjab National Bank is one of the oldest banks in India, having a virtual presence in every important center of the country. The bank caters to a wide variety of audiences through a spectrum of services, including corporate and personal banking, industrial finance, agricultural finance, and international finance.

The core focus of the bank is on retaining and further improving low-cost deposits, lending to agriculture and small and medium enterprises, and repositioning subsidiaries and joint ventures.

As of  March FY23, the bank had served more than 180 million customers through 10,076 branches and  12,898 ATMs.

Punjab National Bank earned a net interest income of Rs 34,492 crores and a net profit of Rs 3,069 crore in FY22-23

Further, it has an ROE and ROCE of 3.25 percent and 1.56 percent, respectively. The bank stock P/E is 16.7 below its industry P/E of 10.8, indicating underpricing of the stock.

Punjab National Bank became India’s second-largest public sector bank in terms of branch network in 2019 after the State Bank of India, After the Indian government approved the merger of the Oriental Bank of Commerce and the United Bank of India.

Best PSU Banks in India #5 – Union Bank of India

Face Value (₹)	10	ROE(%):	10.80%
Market Cap (Cr):	₹ 47,939	Net interest margin(%):	2.57
EPS (₹):	12.4	Credit deposit ratio(CDR):	68.21%
Stock P/E:	5.64	CASA Ratio:	35.62
Dividend Yield(%):	2.67%	Gross NPA(%):	7.53
Net NPA(%)	1.70	Capital Adequacy Ratio(%)	16.04
ROCE(%):	2.05%	Price/BV	0.67

Union Bank of India is engaged in the Business of Banking Services, Government Business, Merchant Banking, Agency Business Insurance, Mutual Funds, Wealth Management, etc. The overseas offices of the banks are located in Hong Kong, Sydney, Abu Dhabi, Beijing, Shanghai, and London.

As of  March FY23, the bank had served more than 155 million customers through 8,580 branches and  10,835 ATMs.  Recently, Andhra Bank and Corporation Bank were amalgamated into Union Bank of India to increase the bank’s diversification and financial capacity.

The bank’s total business as of 31st March 2023 stood at Rs. 19,27,621 crore, comprising Rs. 11,17,716 crore of deposits and Rs. 8,09,905 crore of advances.

Union Bank of India has secured the first rank as per the report on the EASE reform index for Q3 FY 2022-23 published by the Indian Banks Association (IBA).

Union Bank earned a net interest income of Rs 32,765 crores and a net profit of Rs 8,430 crore in FY22-23.

Further, it has an ROE and ROCE of 10.80 percent and 2.05 percent, respectively. The bank stock P/E is 5.64 below its industry P/E of 10.8, indicating underpricing of the stock.

In closing

For many years, PSU banks have contributed significantly to raising financial inclusion so In the Indian banking industry, these PSU banks are regarded as pioneers. These banks have the ability to significantly contribute to India’s $5 trillion economy by integrating, reducing NPAs, and exchanging expertise.

That’s all for this article on Best PSU Banks in India. Happy investing!

By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions.

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HMA Agro Industries IPO Review GMP Date Financials & More

HMA Agro Industries IPO Review: HMA Agro Industries Limited is coming up with its Initial Public Offering. The IPO will open for subscription on June 20th, 2023, and close on June 23rd, 2023. In this article, we will look at the HMA Agro Industries IPO Review 2023 and analyze its strengths and weaknesses. Keep reading to find out more! 

HMA Agro Industries IPO – About The Company

Incorporated in 2008, HMA Agro Industries is one of the frozen buffalo meat products company from India that account for more than 10% of India’s total export of frozen buffalo meat. The company’s products are exported to over 40 countries around the world under the brand names  “Black Gold”, “Kamil” & “HMA”.

The company now operates four completely integrated packaged meat processing units in Aligarh, Mohali, Agra, and Parbhani, and is in the process of establishing a fifth fully integrated-owned meat product processing unit in Haryana. 

The company is also in the process of acquiring an additional factory in Unnao by the second quarter of FY23. By FY23, the total in-house meat product processing capacity is estimated to be more than 4,00,000 metric tonnes per year divided over six distinct owned units.

Products by the company:

Following are the different products sold by the company under different Brand Names:

1. Brand Name: “Black Gold”, Product: Frozen Buffalo Meat

2. Brand Name: “KAMIL”, Product: Frozen Buffalo Meat

3. Brand Name: “HMA”, Product Name: Frozen Buffalo Meat

4. Brand Name: “Fresh Gold”, Product Name: Frozen Fish

5. Brand Name: “Green Gold” Product Name: Basmati Rice

(Source: RHP of the company)

HMA Agro Industries IPO – Financial Highlights

If we look at the financials of HMA Agro Industries IPO we notice that their assets have grown from Rs.472.85 crores in March 2020 to Rs. 971.72 crores in December 2022.

Similarly, its revenue has grown from Rs. 2416.61 crores in March 2020 to Rs.3138.97 crores in March 2022. For FY23, the company has recorded a total revenue of Rs.2417.82 Crores until December 2022. 

Despite the decrease in the company’s revenue in FY21, there has been a YoY increase in companies net profits. Its profits have grown from Rs.45.98 crores in March 2020 to Rs.117.62 crores in March 2022. For FY23, the company has recorded a net profit of Rs.113.23 Crores until December 2022. 

It is important to note that the company’s borrowing has also increased from Rs. 169.17 crores In March 2020 to Rs. 295.17 crores in December 2022. 

The balance sheet of the company 

(Source: RHP of the company)

The Income Statement of the company 

(Source: RHP of the company)

Summary of Financial Information

(Source: RHP of the company)

Country-wise Revenue of the company 

(Source: RHP of the company)

Key Players in the Market

Below is the image of the key players in the industry along with their total annual production:

Strengths of the Company

• The company operates by mainly exporting its products to various countries. For this purpose, it has developed strong relations with various distributors that have also enabled them to achieve new markets.
• The company has focused on delivering high-quality products ever since its inception. This has enabled them to build well-established brands that carry brand recall values at the end customer level.
• The company exports its products to more than 40 countries which reduces the risk of the business and its dependence on single geography making this its core strength.
• The company has promoters who have significant industry experience and also a team of experienced personnel. The firm believes that it will enable them to take advantage of both current and future market opportunities.

Weaknesses of the Company

• The company generates a significant portion of its revenue from the meat business and any reduction in demand or in the production of such products could have an adverse effect on the business
• The company operates in a highly regulated, environmental and religiously sensitive business. Due to this, the company faces the risk of its plants shutting down or disruptions with respect to its processing plants which they have experienced in the past.
• The company does not have any long-term agreements with its suppliers for its raw materials which may lead to an increase in the cost of, or a shortfall in the availability of livestock raw materials. 
• Outbreaks of livestock diseases in general can significantly restrict the company’s ability to conduct its operations.
• The company relies on third-party transportation providers for both the procurement of raw materials and the distribution of the products. Any issues relating to the delivery of raw materials or the final products will disrupt the company’s flow of operations.

HMA Agro Industries IPO Review – Key IPO Information

Particulars	Details
IPO Size	₹480.00 Cr
Fresh Issue	₹150.00 Cr
Offer for Sale (OFS)	₹330.00 Cr
Opening date	June 20th, 2023
Closing date	June 23rd, 2023
Face Value	₹10 per share
Price Band	₹555 to ₹585 per share
Lot Size	25 Shares
Minimum Lot Size	1 (325 Shares)
Maximum Lot Size	13 (325 Shares)
Listing Date	July 4th, 2023

Promoters: Wajid Ahmed, Gulzar Ahmad, Mohammad Mehmood Qureshi, Mohammad Ashraf Qureshi And Zulfiqar Ahmad Qurashi.

Book Running Lead Manager: Aryaman Financial Services Limited

Registrar to the Offer: Bigshare Services Private Limited

The Objective of the Issue

Following are the Objectives of the issue by the company:

• Funding working capital requirements of the Company
• General Corporate Purpose

HMA Agro Industries IPO Review – GMP

Since GMP is not available, we will update the article once we recieve the information.

In Closing

In this article, we looked at the details of HMA Agro Industries IPO Review 2023. Analysts remain divided on the IPO and its potential gains. This is a good opportunity for investors to look into the company and analyze its strengths and weaknesses. That’s it for this post.

Are you applying for the IPO? Let us know in the comments below.

By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions.

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Fundamental Analysis of Gujarat Fluorochemicals Financials & More

Fundamental Analysis of Gujarat Fluorochemicals: They say corporate events such as buyouts, demergers, etc. can create valuable opportunities for investors. Perhaps, Gujarat Fluorochemicals have been one such case.

Over the last three years, the chemicals stock has advanced by 385%. Or is it because of the China Plus One strategy? Or the company was always undervalued? What can be future catalysts for the stock? We attempt to answer such questions by performing a fundamental analysis of Gujarat Fluorochemicals

Fundamental Analysis of Gujarat Fluorochemicals

In this article, we’ll start with learning about the business and the revenue segments of Gujarat Fluorochemicals. Thereafter, we’ll briefly read about the industry in which the company operates. Next, we’ll analyze the revenues, return ratios, and other numerical metrics. A highlight of the future plans of the company and a summary conclude the article in the end.

Company Overview

Founded in 1989, Gujarat Fluorochemicals Limited is a leading manufacturer of refrigerants, fluorospecialities, fluoropolymers, and chemicals. These products find their end use in various sectors. 

It is a part of the INOXGFL Group, a diversified conglomerate with business interests in wind energy, specialty chemicals, fluoropolymers, and renewables.

The company is headquartered in Noida and has three production sites in India. Additionally, it has a captive mine of Fluorspar in Morrocco and offices & warehouses in Europe and USA. Its facility at Dahej, Gujarat is one of the most integrated into the world.

Gujarat Fluorochem was incorporated on December 6th, 2018. Initially, the fluoropolymers and PTFE businesses were demerged from Gujarat Fluorochemicals to form a separate entity called Inox Fluorochemicals. 

Thereafter, Gujarat Fluorochemicals was renamed to GFL Ltd. and the name of Inox Fluorochemicals was changed to Gujarat Fluorochemicals. Thus the present entity got to keep the chemicals business and the name ‘Gujarat Fluorochemicals’.

Business Segments of Gujarat Fluorochemicals

Poly Tetrafluoroethylene or PTFE is the largest revenue segment contributing to 34% of the total operating revenue in FY22. PTFE is commonly used for non-stick coatings in cookware, wire insulation, surface coatings, and more.

Caustic soda and Chloromethanes are the second and third largest product-wise revenue divisions with 12% and 11.5% shares respectively. Refrigerant gases accounted for 8% of the total income.

As for the geographical breakup, India brings most of the business of the GFL with 51.5% of the sales originating domestically. Europe and the USA clocked 21% and 12% of the total operating income.

Thus we can say that the chemicals manufacturer is well-diversified in terms of product lines and geography. The next section of our fundamental analysis of Gujarat Fluorochemicals provides an overview of the fluoropolymers and PTFE industry.

Industry Overview

According to Astute Analytica, the international fluoropolymers market was pegged to be $ 7.9 billion in 2021. It is expected to grow at a CAGR of 4.3% to $ 10.2 billion by 2027. In the coming years, various industries will fetch the expansion in the demand for the products.

The primary demand will come from both types of industries:

1. Traditional: automobile, chemicals, medical, and construction. 
2. New age: EVs, 5G networks, IoT, solar energy, etc.

We read above that PTFE is a key product line of Gujarat Fluorochemicals. Thus, we have devoted a separate paragraph to it.

PTFE has properties such as non-wetting, high density, and resistance to high temperatures making it ideal for application in the electrical, electronics, healthcare, chemical, and industrial processing sectors. Analysts anticipate that demand will likely increase in the coming years from these sectors.

Also Read – Gujarat Fluorochemicals Vs Navin Fluorine – Future Plans & More

Financials

Revenue & Net Profit Growth

The reorganized entity of Gujarat Fluorochemicals came into existence in December 2018. Thus, the figures for FY18 are not available.

The operating revenue of the company grew by 49% year-on-year (YoY) to Rs 3,954 crore in FY22. As for the net profit, we can not provide a CAGR calculation.

The bottom line has remained volatile during the study period owing to operating margin compression in FY 20 and tax treatments in FY 19 and FY 21. 

Overall, the picture appears to be positive for the company. The table below presents the operating revenue and the net profit of Gujarat Fluorochemicals for the last four years.

Fiscal Year	Operating Revenue (Rs Cr)	Net Profit (Rs Cr)
2022	3,954	787.19
2021	2,650	-218.71
2020	2,606	189
2019	2,729	1,246

Margins: Operating Profit & Net Profit

As for the profit margins of Gujarat Fluorochemicals, the figures have improved in the recent fiscal after registering a decline in the pandemic-affected FY20 to FY21 period. 

The figures for net profit margin don’t coincide with the profit after tax in the previous section. This is because the NPM numbers exclude the tax pertaining to previous financial years and net deferred tax changes.

The table below highlights the operating profit margins and revised net profit margin of the chemicals manufacturer over the previous four years.

Fiscal Year	OPM (%)	NPM (%)
2022	29.528	19.62
2021	22.241	14
2020	12	7
2019	24	15

So far we have covered the business, revenue & profit figures, and profit margins of the company as part of our fundamental analysis of Gujarat Fluorochemicals. In the next section, we take a look at the return ratios of the stock.

Return Ratios: RoCE & RoE

A casual look at the return ratios of Gujarat Fluorochem will tell us that it is a good business with adequate return ratios. 

Furthermore, from the table below we can see that the return on capital employed (RoCE) and the return on equity (RoE) have improved over the past few years because of the growth in earnings.

Fiscal Year	RoCE (%)	RoE (%)
2022	20.65	20.03
2021	11.32	-6.15
2020	8.04	5.0
2019	19.1	12.0

Debt to Equity & Interest Coverage Ratio

The debt-to-equity ratio of the stock has slightly increased in recent financial years as the management took to the use of debt to fund its capital expenditure plans. Despite that, it was within safe limits with a debt-to-equity ratio of 0.36 and an interest coverage ratio of 16.95 in FY22.

Fiscal Year	D/E	Interest Coverage
2022	0.36	14.33
2021	0.45	5.28
2020	0.46	4.17
2019	0.26	12.68

Future Plans

So far we have only looked at the previous years’ data of the company. In this section, let us try to understand what lies ahead for Gujarat Fluorochemicals and its investors.

1. The management has earmarked a large capital expenditure (CAPEX) of Rs 2,750 crore during the 2022-2024 period towards battery chemicals and binders.
2. Furthermore, other product lines such as PTFE will also see capacity expansions along with backward integration and allied infrastructure as part of the CAPEX.
3. GFL will commission India’s first PVDF solar film project to meet the domestic and international demand for PVDF,  a specialty polymer commonly used as insulation on electrical wires.
4. In the long term, focus on green hydrogen, hydrogen fuel cells, and EV will result in a demand boom for PTFE and other fluoropolymers, GFL’s two significant revenue contributors.

Key Metrics

We are almost at the end of our fundamental analysis of Gujarat Fluorochemicals. Let us take a look at the key metrics of this specialty chemicals stock.

CMP	₹3,153	Market Cap (Cr.)	₹34,495
EPS	₹120.97	Stock P/E	25.97
Face Value	₹1.0	Dividend Yield	0.15%
RoCE	20.65%	RoE	20.03%
Promoter Holding	63.81%	Book Value	₹446.0
Debt to Equity	0.36	Price to Book Value	6.25
Net Profit Margin	20.8%	Operating Profit Margin	29.528%

In Conclusion

We are now at the end of our fundamental analysis of Gujarat Fluorochemicals. It has been an interesting case with rising sales and concurrent expansion in the profit margins. Going forward, volume growth and stability in the margins will be the key catalysts for the stock.

In your opinion, what can be key risks that can hinder the company’s growth? How about we continue this conversation in the comments below?

You can now get the latest updates in the stock market on Trade Brains News and you can also use our Trade Brains Stock Screener to find the best stocks.

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Fundamental Analysis of Tata Motors Financials Future Plans & More

Fundamental Analysis of Tata Motors: From the glory of its famous trucks to the failure of Nano to $4 billion in losses, Tata Motors has seen everything. The automaker finally posted a profit in FY23 after running into losses for four years.

Has the company put behind its worries? What can the investors of this Tata Group stock expect in the coming quarters? We’ll attempt to answer these and other questions by performing a fundamental analysis of Tata Motors Ltd.

Fundamental Analysis of Tata Motors

We’ll start off our study of the carmaker by getting ourselves acquainted with the business and the scale of its operations. Next, we’ll look in-depth at its various business segments. After that, we’ll equip ourselves with auto industry insights.

The sections later will race us through the financials of this auto stock. A highlight of the future plans and a summary conclude the article at the end.

Company Overview

Founded close to 8 decades ago in 1945, Tata Motors Ltd. (TaMo) is the largest commercial vehicle manufacturer and one of the top three passenger vehicle manufacturers in India. It is part of the salt-to-software conglomerate the Tata Group which holds a 46.4% promoter stake in the company.

Tata Motors is also referred to as the Tata Motors Group because of its large scale of operations. It has operations spread across India, the UK, South Korea and South Africa through its 86 subsidiaries, 10 associate companies, 4 JVs and 2 joint operations. As of the writing of this article, its market cap stood at Rs 1,88,500 crore.

In total, TaMo owns 19 production facilities and 7 engineering & design centres. Its product portfolio includes medium and heavy commercial vehicles (M&HCV), light commercial vehicles (ILCV), small commercial vehicles (SCV) & pickups, buses & vans, light passenger vehicles, SUVs, luxury passenger vehicles, and electric vehicles.

Tata Motors houses some of the best-known brands in the automobile industry including Jaguar, Land Rover, Nexon, Harrier, Ace, and more.

It has grown organically and inorganically over the years acquiring prominent companies like UK’s premium car producer Jaguar Land Rover and South Korea’s Daewoo (CV manufacturer). 

Tata Motors Problems

However, the carmaker ran into serious financial troubles in the last few years because of its overpriced acquisitions and dampened sales. It posted huge losses wiping out its equity base and pushing the company to the brink of bankruptcy. 

However, it has made a strong comeback with cost controlling and back-to-back hit launches across various segments. As a feather in its cap, the company controls a whopping 81.4% of the fast-growing PV EV market in India with its top-selling models such as Nexon EV and Tiago EV.

We got a good understanding of the company. Let us learn about its various business segments for our fundamental analysis of Tata Motors.

Segment Analysis

Broadly, TaMo organises its business into four segments for reporting purposes:

1. The commercial vehicle is the second largest sub-segment for the automaker under which it sells buses, trucks and other such commercial vehicles of different sizes.
2. Passenger vehicles range includes SUVs, hatchbacks, sedans, EVs, and cars for fleets. 
3. The vehicle financing segment holds two NBFCs through which the group provides financing for new vehicle purchases, dealer/vendor business and used vehicle refinancing/repurchases.
4. Jaguar Land Rover is the largest division of the company through which it sells premium cars and SUVs. China, Europe and North America are key markets for JLR.

The table below presents the operating revenue of different segments of Tata Motors.

Operating Segment	FY19	FY20	FY21	FY22	FY23
Commercial vehicle	58,137	36,329	33,104	52,287	70,816
Passenger vehicle	14,470	10,482	16,606	31,515	47,868
Vehicle financing	3,700	4,295	4,490	4,585	4,595
Jaguar Land Rover	223,514	208,040	193,823	187,697	222,860

(figures in Rs Cr)

We can learn from the figures above how JLR, which is the largest sub-segment for the company lost traction from FY20.

It is only recently in FY23 as its operating revenue has reached close to FY19 levels. Let us now move forward to understand the auto industry landscape for our fundamental analysis of Tata Motors.

Industry Overview

The global automobile industry registered negative growth in the last few fiscals because of a variety of factors including general economic slowdown, Covid-19 led pandemic, supply chain disruptions, and shortage of key components.

The production of light vehicles (LV) fell to 76 million (Mn) units in FY22 from 92 million units in FY19 to 76 Mn units in FY22. During the same period, the production of medium and heavy-duty (M&HD) trucks also registered a marginal decline to 2.2 Mn in FY22 from 2.5 Mn in FY19. 

Various industry research groups project a gradual increase in production for LV and M&HD to reach 94 Mn units and 2.6 Mn respectively.

Talking about the domestic automotive landscape, the sector has been struggling long before the pandemic struck. The production figures from the Society of Indian Automobile Manufacturers (SIAM) for various sub-segments throw light on India’s automotive industry.

Category	FY 2018-19	FY 2019-20	FY 2020-21	FY 2021-22	FY 2021-23
Passenger Vehicle	4,028	3,425	3,062	3,651	4,579
Growth (PV)	nil	-15%	-11%	19%	25%
Commercial Vehicle	1,112	757	625	806	1,036
Growth (CV)	24%	-32%	-17%	29%	28%

(figures in thousands)

However, the sector bounced back in the last two fiscals registering growth in double digits across different sub-segments.

In the coming fiscals, an increase in disposable incomes, better monsoons, easing of inflation and chip shortages, stability in fuel prices and a general fall in commodity prices will drive the automotive demand growth.

Tata Motors – Financials

Revenue & Net Profit Growth

The sales of TaMo have remained volatile in the last five fiscals. It is only in the recent two fiscals that the company has been able to increase its top line. During the same period, it reported heavy losses on account of impairment in the Jaguar Land Rover & passenger vehicle business and high-interest costs.

The automaker turned profitable in the recent fiscal with a profit after tax of Rs 2,960 crore. The table below presents the operating revenue and net profit/loss of Tata Motors over the last few financial years.

Fiscal Year	Operating Revenue	Net Profit / Loss
2023	342,875	2,690
2022	275,235	-11,309
2021	246,972	-13,395
2020	258,594	-11,975
2019	299,191	-28,724

(figures in Rs Cr)

Let us now move forward to study how the margins of Tata Motors have behaved in recent years.

Profit Margins

The automaker was able to post positive EBITDA margins in past but reported negative net profit margins. Thus, we can say that TaMo’s problems were not regular in nature. Even though the sales were declining, the company was able to produce cars and deliver them to its customers.

In addition to interest costs, its problems arose from the exceptional item of goodwill impairment for its overpriced acquisition of JLR and struggling passenger vehicle division.

The table below presents the EBITDA margin and net profit margin of Tata Motors for the last five years.

Fiscal Year	EBITDA Margin	Net Profit Margin
2023	10.7	0.8
2022	9.6	-4.1
2021	12.2	-5.4
2020	8.5	-4.6
2019	8.9	-9.6

(figures in %)

Return Ratios

The impact of losses of Tata Motors was huge on the shareholders’ equity wiping out the reserves of the company. Its return on equity (RoE) stood close to or more than 20% from FY19 to FY22. It is only in the recent fiscal the automaker delivered a positive return on equity of 5.6%.

The table below presents the return on capital employed (RoCE) and return on equity (RoE) over the last five fiscals. The positive RoCE with negative RoE tells us about the unusually high-interest costs of the company.

Fiscal Year	RoCE	RoE
2023	6.3	5.6
2022	1.6	-25.7
2021	6.1	-24.3
2020	-0.3	-19.1
2019	2.5	-47.9

(figures in %)

Mounting losses of the company significantly changed its capital structure. Let us learn more about this in the next section of our fundamental analysis of Tata Motors.

Debt Analysis

As it suffered losses, the company borrowed more to fund its operations while its equity base kept depleting. Thus, in the previous fiscals, TaMo had very low-interest coverage and a high debt-to-equity ratio. 

In FY19, promoter Tata Sons made a capital infusion of Rs 6,500 crore to support the company financially. The situation marginally improved in the recent fiscal when it reported profits and paid back some debt. The interest coverage ratio of debt to equity ratio of Tata Motors stood at 1.13 times and 2.96 in FY23.

The table below showcases the low-interest coverage ratio and high debt/equity ratio of Tata Motors for the last five financial years.

Fiscal Year	Interest Coverage	Debt / Equity
2023	1.13	2.96
2022	0.19	3.13
2021	1.49	2.46
2020	0.04	1.88
2019	0.66	1.68

Future Plans Of Tata Motors

So far we looked at the previous fiscals data for our fundamental analysis of Tata Motors. This section lets us understand what lies ahead for the company and its investors.

1. The management has earmarked a large investment of €15 billion for the next five years to accelerate electrification in Jaguar Land Rover.
2. The average revenue per unit of JLR has increased over the last five fiscals signalling a higher realisation in the coming quarters for the company.
3. The management is targeting a free cash flow of more than €2 billion in the near future and a reduction in debt to less than €2 billion by FY24.
4. As for its PV and CV business, TaMo is focused on scaling up the EV volumes and increasing market share in international markets.
5. The company has plans to make the recently acquired plant of Ford in Sanad operational in 12-18 months to increase its production capacity.

Fundamental Analysis of Tata Motors – Key Metrics

We are almost at the end of our fundamental analysis of Tata Motors. Let us take a look at the key metrics of the stock.

CMP	₹526	Market Cap (Cr.)	₹188,500
EPS	7.27	Stock P/E	75
RoCE	6.3%	RoE	5.6%
Promoter Holding	46.4%	Book Value	₹136
Debt to Equity	2.96	Price to Book Value	3.9
Net Profit Margin	0.8%	EBITDA Margin	10.7

Conclusion

Tata Motors has been a successful turnaround story from the house of Tatas. Its stock has generated multi-bagger returns of 600% in three years from the pandemic lows when its problems were most pronounced. However, at the present P/E of 75, the future gains seem to be discounted in the present stock price. 

Do you think TaMo will be able to sustain its growth rate in the coming quarters? What are your opinions on the company? How about we continue this conversation in the comments below?

By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions.

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Timken India Vs SKF India – Financials, Future Plans & More

Timken India vs SKF India: The Indian bearings market is dominated by two companies: Timken and SKF. And guess what? Both companies are Indian subsidiaries of foreign players.

Timken has replaced SKF as the largest company in the sector while rewarding its shareholders with an impressive 340% return in the past five years.

So, going forward, which one is better of the two? Or what should investors of each company expect in the future? We’ll attempt to answer these and other questions in our comparative analysis of Timken India vs SKF India.

Timken India Vs SKF India

We’ll begin our comparative study by getting ourselves acquainted with an industry overview of the two companies. Next, we’ll read about their businesses separately. Next, we’ll quickly run through the financials of both stocks. A highlight of the future plans and a summary conclude the article at the end.

Industry Overview

The bearings sector worldwide was valued at $ 60 billion in FY21 with India accounting for a small 3% of the total market. The sector globally is expected to grow at a CAGR of 9.1% between the 2014 and 2025 period owing to its critical presence in all types of equipment.

Talking about the domestic market, its value was pegged at $ 1.8 billion in FY21 and is projected to expand at an annualised rate of 10.9% to $ 3.4 billion by FY27.

The automobile industry and the industrial sector are major consumers of bearings across the world. As the effects of the Covid-19 pandemic subsided, the automotive and industrial sectors registered growth in the double digits in the past two financial years. Furthermore, market experts remain optimistic about the near-term prospects.

Furthermore, the ‘Atmanirbhar Bharat’ initiative launched by the honourable PM Narendra Modi has laid the foundation for the boom of the domestic bearings industry.

The government’s push has allowed domestic manufacturers to ramp up their capabilities and capacities to fulfil demand from Indian OEMs and industrial players. This is gradually aiding the industry to decrease its reliance on imports.

Company Overview

In the section above we briefly read about the sector in which the companies operate. Now, we’ll learn about the similarities and differences between their businesses for our Timken India vs SKF India study.

Timken India

Timken India Ltd. (TIL) is the Indian subsidiary of Timken Company, an American multinational corporation engaged in the manufacturing of bearings and power transmission products. The promoter presently holds a majority 67.8% stake in the business.

The domestic entity was set up as a joint venture between Tata Iron and Steel Company (TISCO) and Timken Co. in 1987. Later in 1999, the US parent acquired Tata’s stake in the company and became the only promoter.

Fast forward to the present day, TIL is a leading bearings (tapered roller, cylindrical roller, spherical roller and slewing) producer and seller in the country with two state-of-the-art manufacturing facilities at Jamshedpur and Bharuch.

In addition to this, it is also involved in the business of bearing repairs and allied mechanical power transmission services. 

It was a well-spread distribution network with 6 warehouses and sales offices in key Indian cities: Kolkata, Delhi, Bangalore, Pune, Jamshedpur and Chennai.

SKF India

SKF India is the Indian subsidiary of AB SKF, a Swedish multinational corporation engaged in the manufacturing of bearings and industrial seals. It entered India in 1923 and has grown from a ball bearings maker to a leading automobile and industrial solutions provider with multiple product categories.

As of the present date, SKF India offers a broad range of products and services including bearings and units, mechatronics, lubrication solutions and services. The company has a diversified manufacturing footprint with 3 plants. 

In addition, it has 12 offices and a large distribution network of 680 distributors powered by a workforce of 1,600+ employees.

Timken India Vs SKF India – Financials

Timken India vs SKF India – Revenue Growth

The operating revenues of Timken grew faster than SKF in the last five financial years at 11% against its Swedish counterpart of 7.2%. The higher growth rate can be attributed to a lower base effect for the US subsidiary.

The table below showcases the operating revenue growth of Timken India and SKF India for the last five financial years.

Fiscal Year	Timken India	SKF India
2023	2,807	4,305
2022	2,203	3,666
2021	1,411	2,671
2020	1,618	2,842
2019	1,664	3,035
5-Yr CAGR	11.02%	7.24%

(figures in Rs Cr except for CAGR)

Timken India Vs SKF India – Net Profit Growth

Talking about the net profit growth, it was also higher for Timken India at 21.3% against SKF’s 9.4% because of a lower base. The profit after tax of Timken India and SKF India stood at Rs 391 crore and Rs 525 crore in FY23 respectively. 

The figures below highlight the net profit growth of Timken India and SKF India for the last few fiscal years.

Fiscal Year	Timken India	SKF India
2023	391	525
2022	327	395
2021	143	298
2020	246	289
2019	149	336
5-Yr CAGR	21.33%	9.35%

(figures in Rs Cr except for CAGR)

But why does Timken’s growth seem to be much more than its counterpart? Let us take this up in the next section of profit margins of our Timken India vs SKF India analysis.

Timken India Vs SKF India – Profit Margins

The operating margin for Timken India was low at 13.6% in FY19 supporting our argument of low base. Overall, the margin declined for the company in the recent fiscal while that of SKF improved. The reason behind this can be differences in the product cost and pricing mix for both companies.

The figures below compare the operating profit margins of Timken India and SKF India over the last five fiscals.

Fiscal Year	Timken India	SKF India
2023	18.8	17.1
2022	20.0	14.5
2021	13.9	14.9
2020	19.1	13.9
2019	13.6	17.5

(figures in %)

The difference in the operating margins of the two players translates into PAT margins with the US subsidiary running at higher figures.

The table below highlights the net profit margins of Timken India and SKF India for the last few financial years.

Fiscal Year	Timken India	SKF India
2023	13.9	12.2
2022	14.8	10.8
2021	10.2	11.1
2020	15.2	10.2
2019	8.9	11.1

(figures in %)

We see that Timken boasts higher margins than SKF. Does it make it more profitable than SKF? Let us analyse the profitability of both the companies of our Timken India vs SKF India comparative study in the next section.

Timken India Vs SKF India – Return on Equity / Net Worth

The return on equity (RoE)/ net worth (RoNW) of Timken India and SKF India stood at 19% and 22% in FY23 respectively. The higher return of Swedish business with marginally lower margins signals a higher asset turnover meaning the company sells products in high volume although earning lesser margins.

The values below represent the return on equity (RoE) / net worth (RoNW) of the two companies for the past five fiscals.

Fiscal Year	Timken India	SKF India
2023	19	22
2022	20	23
2021	11	17
2020	16	16
2019	11	19

(figures in %)

We have not computed the return on capital employed as both companies are debt free. Let us read more about this in the next section.

Timken India Vs SKF India – Debt Analysis

We’ll keep our debt analysis of Timken and SKF brief as both are debt-free stocks. Furthermore, the nominal annual interest charges make their interest coverage ratios look ballooned at 218 times (Timken India) and 531 times (SKF India).

Timken India Vs SKF India – Future Plans

So far we looked at the previous fiscals’ data for our comparative analysis of Timken India vs SKF India. Let us learn about their future plans in this section and try to understand what lies ahead for the companies and their investors.

Timken India Future Plans

1. The company is setting up a manufacturing facility at a cost of Rs 600 crore in Bharuch, Gujarat for the production of spherical and cylindrical roller bearings. It used to import these products from the parent earlier. The production is anticipated to commence by 2025 and drive sales growth business.
2. Timken recently acquired GGB Bearings, a leading metal-polymer bearings maker to expand its product offerings.
3. In addition to this, the management is bullish on opportunities arising from electrification in Indian Railways and is expanding its portfolio along the same lines.

SKF India Future Plans

1. The management of SKF is planning to spend Rs 150 crore in FY23 towards capital expenditure, higher than Rs 91 crore allocated in the FY22 period.
2. Furthermore, the company is likewise optimistic about the high growth gaps emerging in the railway industry and EV industry.

Timken India Vs SKF India – Key Metrics

We are almost at the end of our comparative study of Timken India vs SKF India. Let us take a look at some key metrics of the stock other than the ones covered above.

Particulars	Timken India	SKF India
CMP	₹3,134	₹4,448
Market Cap (Cr.)	₹23,575	₹21,500
EPS	₹52	₹106
Stock P/E	60.3	41
RoE	19%	22%
Book Value	₹271	₹474
Price to Book Value	11.6	9.19
Promoter Holding	67.8%	52.6%

Conclusion

Going forward, Timken India looks to be better positioned than its counterpart because of its larger CAPEX plans and higher margins. The lower RoE of the US subsidiary might be on account of capacity expansion plans in play. In the quarters ahead, investors should closely track earnings growth and the margins delivery of both companies. Further, any CAPEX announcements can also help to drive stock value.

Do you think SKF has any plans up its sleeves like Timken? Or is it a slow-moving company against its competitor? How about you enlighten us with your views in the comments below?

By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions.

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6 Best Sites to Learn Virtual Stock Trading in India (Without Risking Your Money)

Best Sites to Learn Virtual Stock Trading in India: Entering the Indian stock market can be a tedious job for beginners. First, you need to open your brokerage account (Demat and trading account). This means that you have to pay the account opening charges and go through the complex documentation process. Further, as stock market trading involves market risk, you can always lose some money— especially, if you are a beginner.

So, how to solve this problem? How to Learn stock trading in India without actually risking any money. The answer is by using virtual stock trading platforms.

In this post, we are going to discuss how to use virtual stock trading platforms in India. It’s going to be an exciting post. Therefore, without wasting any time, let’s get started. Here are the topics that we’ll cover today:

1. What is Virtual Stock Trading?

Virtual Stock Trading (also known as Paper Trading) is similar to actual trading where you can buy and sell stocks. However, here no real money is involved. By providing the real market scenario or virtual trading facilities using simulators, these platforms offer learning opportunities to beginners without risking any money.

These virtual trading platforms provide real-time stock or financial data, which means that you can try out different strategies of trading in stocks just like the real-world stock market, but risk-free.

Also read: 7 Must Know Websites for Indian Stock Market Investors.

2. How do virtual stock trading platforms work?

It’s a really straightforward process to use a stock simulator to do virtual stock trading. Here are the steps required to start virtual stock trading in India (Paper Trading India):

1. Open a free account (using your email-id) on the paper trading platform (discussed below).
2. Get instant virtual money in your account.
3. Start buying/selling stocks like real trading scenarios.
4. Monitor your portfolio and track profit/loss.
5. Try different strategies and learn the trading basics.
6. When you get enough confidence and experience- move to real trading.

3. What are the pros and cons of using the virtual trading platform?

Nothing is perfect in this world. Although there are many advantages of using virtual trading platforms (especially for beginners), however, there are also a few disadvantages. Let’s discuss them- one by one:

— Advantages of using Virtual stock trading platforms

1. No need to open a demat/trading account or go through any documentation process.
2. No real money is required to start virtual trading.
3. Real-time market scenarios to try out different strategies and to learn the basics.
4. Risk-free trading practice.
5. Okay to make mistakes and take risks as there’s no real loss here.

— Disadvantages of using virtual stock trading platforms

1. There’s no emotional attachment as real money is not involved. 
2. You can quickly get bored as winning/losing virtual money is not much exciting.
3. The real market scenario might be a little different than the virtual trading environment. (In the virtual trading platforms, participants take extra risks and bets than they would actually take in a real scenario.)

Also read: 7 Best Stock Market Apps that Makes Stock Research 10x Easier.

#6 Best sites to learn virtual stock trading in India.

1. TradingView

TradingView is a popular charting and technical analysis website that also provides paper trading features using its virtual stock trading website/app in India. It is one of the best paper trading websites in terms of the facilities it provides like charts, technical tools are more. Users can sign up for free and connect to Paper trading to start virtual trading.

For budding traders, who want to practice live candlestick charts or technical indicators tools to make their trades, they should definitely try out Tradingview paper trading. Here’s a demo of how to do paper trading on the Tradingview platform:

2. Moneybhai

Moneycontrol website offers Moneybhai. It is a free virtual trading platform where you’ll get Rs 1 crore virtual cash on registration which you can use to invest in shares, commodities, mutual funds, or fixed deposits on the platform.

At Moneybhai, you can also compete with fellow Indian traders by joining different leagues. There’s also a free forum on this website where you can ask your queries or participate in the on-going discussion threads.

3. TradingLeagues

TradingLeagues is a fantasy stock market game founded by Raghu Kumar (Co-founder of Upstox) and Harsh Agarwal (Founder of AGacquisitions). This unique game app will cushion the introductory experience of the market for the Indian masses while also offering them the option of building trading skills and putting strategies to the test without big capital losses. 

The app currently offers more than 100 games that cover Indian stocks, US stocks, and Cryptocurrencies. A user can download the app and choose to play in one of the four-game leagues: Battle Leagues, Target Leagues, Selection Leagues, or Classic Leagues. With free sign-up credits of ₹50, any user can instantly enter TradingLeagues and participate in a game. The app offers games of various durations, winning functions, and prize pools, and winners can withdraw their winnings. 

With just 4 clicks to complete games, the games offer an effortless interface experience in a growing community of more than 300k gamers. 

TradingLeagues has been to make stock market skill building rewarding with no need for a brokerage account, no stress, and no risk.

4. TrakInvest

TrakInvest is a global trading platform that helps you to learn, develop and improve your investing skills. Currently, it provides curated market data and news from 10 exchanges. It also offers beginners’ guides and videos, certification courses designed by industry experts, and simulations for competing for rewards.

At TrakInvest, you can also track other traders and dig deeper into their trading activity (portfolio) where you can replicate their trades using the ‘Copy Trade’ facility. Overall, TrakInvest provides a simple and friendly platform for ‘Social’ virtual trading for beginners.

5. Dalal Street

Dalal Street Investment Journal (DSIJ) popular virtual stock trading platform in India which helps you to understand the different trading nuances and to test your investment strategies.

On registration, you’ll get virtual cash of Rs 1,000,0000 to create your portfolio. At DSIJ, you can also discuss strategies with like-minded participants in the discussion group.

New to stocks? Confused where to begin?  Here’s an amazing course on “Stock Market Investing Masterclass” offered by the FinGrad Academy. Click here to register.

6. Stockpe

StockPe is a virtual trading app that enables users to practice trading in different financial instruments including stocks without having to risk their own money. It’s an excellent opportunity for both experienced and novice traders to try new trading tactics without suffering losses.

Users of virtual trading platforms like StockPe can also use a number of tools to assist in market analysis and decision-making. These resources include news feeds, economic calendars, technical indicators, and charting tools. This app’s portfolio tracking and reporting tools allow users to monitor their progress and gauge their achievement. They can publish their trades on social media and compete against other traders on the leaderboards of the app.

StockPe is a great way for anyone interested in trading to learn and hone their skills without having to risk any real money. Before using real money to invest in the markets, it offers users a risk-free environment to test out various tactics and refine their skills. In order to buy and sell stocks, users of StockPe are given a virtual balance.

Users of the app can experience the same market conditions that actual traders do because the software simulates the buying and selling process using real-time market data.

Bonus: Other Popular Virtual Stock Trading Platforms

Bonus #1: Investopedia stock simulator

This is my favorite stock simulator.

Investopedia provides a FREE stock simulation platform where you can easily learn how to place trade orders (like market order, limit order, stop loss, etc), how to create a portfolio, how to create a watchlist and more. On registration, you’ll get $100,000 as virtual cash which you can use to trade. You can also compete with thousands of Investopedia traders/players on the same platform.

The reason why I didn’t place this platform in the top 5 is that you cannot trade in Indian stocks on the Investopedia stock simulator. Therefore, if you’re looking to learn virtual stock trading in India (Paper Trading India), then it might not be a good option. However, if you are comfortable with trading in foreign stocks like Apple, Google, Amazon, etc, then feel free to check out this simulating platform.

Bonus #2: Market Watch

Market Watch is yet another excellent paper trading platform that enlightens you on the basics of the stock market while also allowing you to see a real-time experience. Here, the players can build their portfolio and play in the real-time markets to make a spot on the top of the leaderboards.

A few great features of Market Watch stock trading game is Advanced Trading where the participants can enable advanced options like limit and stop loss orders, as well as partial shares and Custom Gameplay. This feature gives the users options to set the starting budget and can allow margin trading, short selling and more.

This virtual stock trading game will teach you all you need to know about the stock market basics, especially if you want to trade in US or foreign stocks. After a few days of using this platform, you will have a better understanding of all the important variables you need to know before buying and selling stocks with real money.

Bonus #3: Moneypot

Moneypot is another finest virtual trading simulators for the Indian stock market, offering traders, students, and even corporations the opportunity to learn the technical of the stock market. The money pot is a social trading platform that attempts to unite an online trading community. It’s a fun and helpful stock market simulation game that you may play on the internet.

One of the best parts of the Money Pot virtual trading platform is it is extremely simple to join up and register. Simply go to the website, look for the registration icon in the upper right corner, click it, and you’ll be ready to play the game. You will receive 2 lacks in virtual currency after signing up, which you may use to trade and invest in stocks, bonds, mutual funds, and other commodities.

During the game, the participant’s portfolios are measured against other players in real-time, and at the end of that game, the winners are those who have the highest returns relative to the other participants. The leading Traders can win cash prizes

Closing Thoughts on Virtual Trading

In this article, we discussed the best virtual stock trading websites in India, where you can evaluate your investing and trading skills for FREE without risking any money and with the least documentation required.

Virtual stock trading in India is an excellent way to learn the basics of trading in the stock market. Using these platforms, you can try different investment/trading strategies without any fear of losing your real money. It’s always advisable to try virtual stock trading (paper trading India) for a few weeks before directly jumping into the market.

You can now get the latest updates in the stock market on Trade Brains News and you can also use our Trade Brains Stock Screener to find the best stocks.

Frequently Asked Questions (FAQs)

1. Which is the best virtual trading app in India?

TradingView, TrakInvest, Dalal Street, and Money pot are some of the best virtual trading apps in India. Apart from that, there are certain websites that are good for virtual trading, like, Moneybhai by Moneycontrol, Investopedia Stock Simulator and Market Watch Virtual Stock Exchange.

2. How can I learn online trading in India?

You can learn online trading in India by reading and researching using platforms like MoneyControl, Economic Times, Investopedia, and Trade Brains. You can read books to understand the financial market and get financial knowledge regarding fundamental analysis and technical analysis. Further, you can create an account on virtual stock trading platforms, make a dummy portfolio, and try virtual trading, before you actually invest money. Finally, once you are confident enough, you can set up your demat and trading account and start online trading in India.

3. Does Zerodha provide virtual trading?

No, Zerodha does not provide virtual trading to clients on a daily basis. However, Zerodha’s partner platforms like Streak provide similar services. Zerodha’s Kite trading platform mostly focuses on active traders and investors.

4. Can I do virtual trading?

Yes, you can do virtual trading in India without investing any real money. Virtual trading in India is an excellent way to learn the basics, without using real money. It helps you to try different investment and trading strategies without any fear of losing your money.

5. How do I start virtual trading?

To start with virtual stock trading, you need to open a free account on a simulating platform. Once you’ve signed up, you will receive instant virtual money in your account. Then, you can start buying and selling stocks using different strategies., Monitor your portfolio and track profits and losses. Finally, you can find out what strategy works for you and move to real trading when you’re confident and have gained experience.

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