Fundamental Analysis of Deepak Fertilisers – Future Plans & More

Fundamental Analysis of Deepak Fertilisers: As the world’s population grows, it will increase pressure on food supplies and demand for higher crop yields. To achieve that,  chemical companies will help farmers with a cost-effective way of improving the yield and the quality of their crops. One such chemical company is Deepak Fertilisers.

In this article, we will perform the Fundamental Analysis of Deepak Fertilisers and Petrochemicals Corporation Ltd. Keep reading to find out more

Fundamental Analysis of Deepak Fertilisers

We’ll start with a brief overview of India’s leading producers of fertilisers and industrial chemicals, then move on to a market overview, business segments, financial analysis, and future plans anticipated by the company to gain a competitive advantage over the rest of the market, and finally, a summary to wrap up the article.

Company Overview

One of India’s top manufacturers of industrial chemicals and fertilisers is Deepak Fertilisers & Petrochemicals. A multi-product Indian conglomerate founded in 1979 as an ammonia manufacturer with an annual revenue of over $500 million USD and a product line that includes industrial chemicals, bulk and specialty fertilisers, farming diagnostics, and solutions, fresh produce, technical ammonium nitrate, and value-added real estate, which includes India’s 1st & largest revolutionary concept retail destination for Home Interiors & Design.

DFPCL is the Leading manufacturer and marketer of Isopropyl Alcohol (IPA) in India and the Largest Manufacturer of Nitric Acid in South East Asia. In order to meet the unique needs of the industry and customers, the company is creating specialized grades of nitric acid and IPA.

DFPCL is one of the leading manufacturers of Technical Ammonium Nitrate in the world, it is the only producer of prilled TAN solids in India and also manufactures medical-grade Ammonium Nitrate. Best-in-class technical services have been launched by the company to boost downstream productivity for the mining industry’s end users.

Business Segments

The Company is engaged in the manufacture of Industrial Chemicals (Nitric Acid, Isopropyl Alcohol, Methanol, and Carbon Dioxide) Crop Nutrition (Nitro Phosphate, Nitrogen Phosphorus Potassium variants, Water Soluble Fertilisers, and Bentonite Sulphur), and Technical Ammonium Nitrate (Mining Chemicals).

Industry Overview

An important sector that significantly contributes to the nation’s agricultural production and general economic growth is India’s fertiliser and chemical industry.

The need for fertilisers has grown over time due to their importance in providing crops with needed nutrients. Between 2023 and 2028, the fertiliser market in India is anticipated to increase at a CAGR of 4.7%, with a forecasted value of USD 1160.18 billion at that time.

More than 80,000 commercial goods are produced by India’s extremely varied chemical sector, which may be generally divided into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilisers.

The Indian chemicals market was worth $178 billion in 2019 and is projected to grow by 9.3% annually to $304 billion by 2025. By 2025, the demand for chemicals is anticipated to increase by 9% annually, and by 2030, it is anticipated that the chemical sector would contribute $383 billion to India’s GDP.

Due to the increase in demand from end-user sectors including food processing, personal care, and home care, the specialty chemicals market in India is expanding. Specialty chemical producers in India are increasing their production capacity to meet the increased local and international demand.

India’s chemical industry has a chance to develop significantly as multinational corporations try to reduce the risk in their China-reliant supply chains.

Deepak Fertilisers – Financials

Revenue & Net Profit Growth

Deepak Fertilisers operational sales have increased at a CAGR of 10.88% during the previous five years, from Rs 6,742 crore in FY19 to Rs 11,301 crore in FY23. On low bases, the annualized increase of operating profit and net profit is considerable, at 36.49% and 74.96%, respectively.

The table below illustrates the company’s operational revenue, operating profit, and net profit over the preceding five fiscal years.

Fiscal Year	Operating sales(Cr)	Operating profit(Cr)	Net profit(Cr)
2023	11,301	2165	1221
2022	7,663	1356	687
2021	5,808	961	406
2020	4,685	465	89
2019	6,742	457	73
5-yr CAGR	10.888	36.49	75.66

Operating & Net Profit Margins

The firm aggressively explored new markets, decreased operational expenditures, and finally grew its top line by purchasing raw materials from cheaper sources, significantly increasing the company’s profits.

Fiscal Year	Operating Profit Margin(%)	Net Profit Margin(%)
2023	19.90	10.80
2022	15.26	8.97
2021	13.36	6.99
2020	7.38	1.9
2019	5.07	1.13

Return Ratios: RoCE & RoE

The profitability ratios have improved significantly over the years. The company has optimized its turnover, and effectively and efficiently they have used their capital effectively and efficiently by reducing unnecessary costs.

Fiscal Year	ROCE(%)	ROE(%)
2023	23.36	23.88
2022	17.95	17.46
2021	15.02	14.81
2020	7.8	4
2019	8.64	3.36

Debt/Equity & Interest Coverage

Short-term loans are usually required in the manufacturing business to pay suppliers, procure raw materials, and employees’ wages. Over the years, the company has successfully been able to reduce the debt-to-equity ratio by properly utilizing working capital, and the same applies to the interest coverage ratio.

Fiscal year	Debt/Equity	Interest Coverage(Times)
2023	0.71	11.55
2022	0.67	9.04
2021	0.87	4.13
2020	1.33	1.43
2019	1.44	1.49

Key metrics of Deepak Fertilisers

Before we hit the end, let us quickly revise the key metrics of the stock.

CMP	₹ 565	Market Cap(Cr.)	₹ 7,136 Cr
EPS	₹ 95.9	Stock P/E	5.90
RoCE	26.3 %	ROE	27 %
Promoter Holding	45.46 %	Book Value	₹ 401
Debt to Equity	0.73	Price to Book Value	1.45
Net Profit Margin	10.8 %	Operating Profit Margin	19.20%

Future Plans of Deepak Fertilisers

• The company has announced the demerger of its mining chemicals and fertilizers business eventually it will increase its profitability and cash injection.
• The company wants to shift its overall business to move from commodity to specialty, value-added, and innovative products.
• The company wants to expand the production and storage of its key raw material – ammonia in Q1 of  FY24 which will reduce the impact of volatile ammonia pricing and it will increase the margins.

In Conclusion

The government is educating farmers on the right use of fertilizers and pesticides to boost soil fertility, which is raising the demand for fertilizers.  The central government is offering subsidies to fertilizer manufacturers, which will help the fertilizer and chemical industries prosper in the next few years.

Deepak Fertilisers & Petrochemicals Corporation has huge potential to enter into new markets And the company has strong financials over the years.

With that, we complete our article on fundamental analysis Deepak Fertilisers and Petrochemicals Corporation. We hope you found this post useful and interesting. Good luck with your investments!

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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Best Debt Free Mid Cap Stocks in India To Add To Your Watchlist in 2023

Best Debt Free Mid Cap Stocks: The use of debt in capital structure gives financial leverage to high-growth companies enabling them to post higher returns on equity. However, it can also backfire if the earnings dry up in periods of downturns in the respective sectors.

Thus, a well-balanced portfolio with debt free mid cap stocks will help provide steady returns and protect the downside simultaneously. In this article, we’ll present you a list of such debt free mid cap stocks in India which you can add to your watchlists. 

Best Debt Free Mid Cap Stocks

For our study of debt free mid cap stocks, we’ll take a look at companies from different industries. We’ll learn about their businesses and key metrics. In the end, a table puts together a list of India’s best debt free mid cap stocks.

Best Debt Free Mid Cap Stocks #1 – KPIT Technologies

CMP	₹930	Market Cap (Cr.)	₹25,500
EPS	₹13.9	Stock P/E	66.5
RoCE	31%	RoE	26%
Promoter Holding	40%	Book Value	₹60
Debt to Equity	0.03	Price to Book Value	15
Net Profit Margin	12%	Operating Profit Margin	19%

Founded in 1990, KPIT Technologies is a prominent software company in India engaged in the business of software development and integration services to automobile companies. It has an international presence with its clients spread across the Americas, Europe, and India.

KPIT employs over 11,000 people worldwide who work together to build software-defined vehicles for leading auto OEMs and tier-1 companies across the globe.

The auto-tech company provides a broad range of services in the following areas: vehicle engineering & design, autonomous driving, advanced driver assistance systems, conventional powertrains, connected vehicles, cloud & analytics, and more.

The IT company runs 7 engineering centres around the world catering. It has an extensive portfolio of 75+ platforms, tools and accelerators to provide integrated services to its clients.

As a technology company, KPIT Technologies is a debt free mid cap stock with a high return on equity of 26%. Its topline grew at a CAGR of 18% from Rs 2,036 crore in FY21 to Rs 3,365 crore in FY23. During the same period, its net profit increased at a much sharper rate of 38% to Rs 387 crore in FY23.

Best Debt Free Mid Cap Stocks #2 – Deepak Nitrite 

CMP	₹1,930	Market Cap (Cr.)	₹26,350
EPS	₹62.5	Stock P/E	30.9
RoCE	30%	RoE	23%
Promoter Holding	49%	Book Value	₹300
Debt to Equity	0.02	Price to Book Value	6
Net Profit Margin	11%	Operating Profit Margin	16%

Founded over 5 decades ago in 1970, Deepak Nitrite Ltd. is a leading chemical intermediary company in India with market leadership in multiple product lines. It is the nation’s largest manufacturer of sodium nitrite, sodium nitrate, Phenol and Acetone.

The company was set up by C.K. Mehta in Gujarat. His son Deepak C. Mehta currently serves as the chairman and MD.

As of the present date, it has a large portfolio of 30+ products for 56+ applications. Its 6 production facilities serve over 1,000 customers based across 30 countries in 6 contents. 

Talking about the product lines of DNL, it makes basic intermediates like sodium nitrite, sodium nitrate, fine & speciality chemicals, performance chemicals and phenolics. These chemicals find uses in a broad range of industries such as petrochemicals, rubber, pharma, paper, automotive, and many more.

The chemical maker achieved a profit after tax of Rs 852 crore on sales of Rs 7,972 crore in FY23. The net profit was lower by 20% on a yearly basis on account of a sharp rise in raw materials. Deepak Nitrite is also a debt free mid cap stock with a market capitalization of Rs 26,350 crore. 

Best Debt Free Mid Cap Stocks #3 – Jubilant Foodworks

CMP	₹470	Market Cap (Cr.)	₹31,000
EPS	₹6.4	Stock P/E	73.6
RoCE	21%	RoE	25.6%
Promoter Holding	42%	Book Value	₹31
Debt to Equity	0.06	Price to Book Value	15
Net Profit Margin	10%	Operating Profit Margin	25%

Jubilant Foodworks Ltd. (JFL) was founded by Shyam Sunder Bhartia and Hari Bhartia in 1995. Over the years, it has emerged as the largest franchise of Domino’s Pizza (outside the US). 

JFL has exclusive rights to develop and operate pizza stores of Domino’s in India, Sri Lanka, Bangladesh and Nepal. In addition to this, it also holds exclusive rights to own and run Dunkin and Popeyes stores in India. What’s more? Recently, the company set up Ekdum and Hong’s Kitchen, its two in-house brands.

In total, JFL operates 1,928 quick-service restaurants under different brands. It has a strong retail foothold with a presence in over 387 cities of India making it the largest fast-food chain in India.

Additionally, the management of Jubilant has earmarked a CAPEX of Rs 900 crore towards the development of digital infrastructure, launching more outlets and setting up integrated back-end units. 

The company earned a profit after tax of Rs 353 crore on sales of Rs 5,158 crore in FY23. It has negligible debt and presently trades at a high P/E ratio of 73.6 and a P/B ratio of 15 times.

Best Debt Free Mid Cap Stocks #4 – Sona BLW Precision Forgings 

CMP	₹550	Market Cap (Cr.)	₹32,000
EPS	₹6.8	Stock P/E	80.4
RoCE	22%	RoE	18.6%
Promoter Holding	33%	Book Value	₹39
Debt to Equity	0.13	Price to Book Value	14
Net Profit Margin	15%	Operating Profit Margin	25%

Sona BLW Precision Forgings was set up in 1995. Over the last three decades, the company has grown into a leading auto ancillary company with an international footprint. In 2019, a new brand image was formed when Sona BLW acquired Comstar Automotive Technologies.

Sona is involved in the design, production and sale of critical auto components including differential gears, differential assemblies, BSG systems, EV traction motors (BLDC and PMSM) conventional & micro-hybrid starter motors and motor control units.

The auto ancillary player is well diversified in terms of geographical revenue sources, products and vehicle segments. The image below captures the well-diversified portfolio of Sona BLW Precision Forgings.

Source: Sona BLW Precision Forgings Q4FY23 Investor Presentation

The company employs over 3,500 people and has its manufacturing bases spread across India, the USA, Mexico, and China. It owns nine production and assembly facilities out of which 6 are located in India. Furthermore, it owns three R&D sites and eight warehouses.

Its net order book stood at Rs 21,500 crore at the end of FY23. This is 8 times the latest fiscal revenue. What’s more? The company is well-positioned to take advantage of the EV boom globally as it makes up a whopping 77% of the present order book of Sona.

The revenues of the company grew at an impressive CAGR of 30% over the last four years from Rs 1,220 crore in FY20 to Rs 2,676 in FY23. During the same period, global LCV declined at an annualised rate of -2% highlighting how the auto-components manufacturer stole market share from other companies.  

Best Debt Free Mid Cap Stocks #5 – Polycab India

CMP	₹3,400	Market Cap (Cr.)	₹51,000
EPS	₹84.8	Stock P/E	40.3
RoCE	28%	RoE	21%
Promoter Holding	66%	Book Value	₹443
Debt to Equity	0.02	Price to Book Value	8
Net Profit Margin	9%	Operating Profit Margin	13%

Almost 6 decades old, Polycab India Ltd. (previously known as Polycab Wires Ltd.) is the largest wires, cables and fast-moving electrical goods (FMEG) manufacturer in India. It commands an impressive 22-24% organised cables market in the country. 

The company has a large distribution network of 4,60+ dealers and distributors. It has 5 production sites across 5 locations with backward integration capabilities. 

Talking about the revenue segments, the wires & cables business brought in 89% of the total income in FY23. The FMEG is a fast-growing division for the company that clocked 9% of the total sales in the period. The copper & EPC sales share stood at a minuscule 2%.

The company plans to touch sales of Rs 20,000 crore by FY26. Polycab is a debt-free mid-cap stock with a high RoE of 21%. Additionally, it has a high promoter holding of 66.2%.

 Its top line grew at a CAGR of 17% over the past three fiscals from Rs 8,792 crore in FY21 to Rs 14,108 crore in FY23. During the same period, the bottom line expanded by 13% yearly to Rs 1,282 crore in FY23.

List of Debt Free Mid Cap Stocks in India

The table below puts together the names we covered above and a few others along with their current market prices, market capitalization and respective industries.

S.No.	Name	CMP Rs.	Mar Cap Rs.Cr.	P/E	Debt / Eq
1	HDFC AMC	1855.75	39621.55	27.83	0
2	Vinati Organics	1774.7	18238.68	39.82	0
3	General Insuranc	181.55	31869.07	5.05	0
4	Bharat Dynamics	1051.75	19266.09	54.71	0
5	United Breweries	1457.35	38532.33	114.33	0
6	New India Assura	119.85	19759.55	55.33	0

Conclusion

Above we learnt about some of the best debt free mid cap stocks in India. However, the use of debt in capital structure is not entirely a sin. The management can make use of debt in the capital structure of the company in proportion to the confidence they have in their cash flow. Furthermore, mid cap companies despite being large enough may need more funds to finance the whole CAPEX for the reserves.

In your opinion, should investors stick to only debt free stocks? Or stocks with small debt-to-equity ratios are also good bets? 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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Fundamental Analysis of Bajaj Consumer Care – Financials & More

Fundamental Analysis of Bajaj Consumer Care: How important is self-care to the Indian populace? To a population of 1.4 billion people, it’s quite important. The present decade has shown humanity on a global scale, the importance and necessity of healthy products. Recognizing that India is one of the largest markets for the healthcare and FMCG sector, major foreign entities have set up shop in India using subsidiaries.

In this article, we’re going to take a deep dive into one specific company – Bajaj Consumer Care. Read on as we do a fundamental analysis of Bajaj Consumer Care, covering all key financial metrics.

Industry Overview

Of the total FMCG sale, 50 percent comes from the household and healthcare products sector. These include products like soaps, detergents, deodorants, face washes, hair oils, etc. Within the FMCG sector, are different subcategories such as processed foods, health drinks, beverages, dairy, and personal care. If we’re going to quantify the importance of the self-care and consumer industry, take a look at some of the facts below:

• The Indian FMCG industry is valued at a market size of $56.8 billion (Dec 2022), making it the fourth largest sector in India. 

• The FMCG sector employs 3 million people in India or 5 percent of total factory employment. 

• Of the total FMCG sales, 50 percent is attributed to Household and personal care products. 

• 65 percent of FMCG sales came from the urban sector and the remaining 35 percent from rural regions as of 2022. 

Company Overview

Bajaj Consumer Care was incorporated in 2006 as Bhaumik Agro before subsequently being renamed to Bajaj Corp Pvt Ltd. The company turned into a subsidiary of Bajaj Resources in 2008, licensing its brand to itself. In 2019, the company renamed itself to what we know today – Bajaj Consumer Care.

The hair care company set up its first plant in Parwanoo, Himachal Pradesh in 2008. They manufacture, distribute, and market their hair oil products, such as the Bajaj Almond Drops, Bajaj Amla Aloe Vera, and Pure Coconut Oil. The company has 3 wholly owned plants apart from 8 outsourced manufacturing plants and 21 warehouses. 

Since its founding in 2006, the company has grown to launch different hair care products over the years. They have also diversified into the skincare and personal care products segment. Bajaj Consumer Care has a domestic presence across the country and an international export presence as well. 

Bajaj Consumer Care is part of the personal care category, operating in the hair and skin care segments. It is estimated that 94 percent of Indian households used hair oil in recent years. The sector saw a growth of 4.2 percent in value and 2.2 percent in volume in FY 22. These figures are close to their pre-pandemic levels. 

According to Nielsen Offtake, stated in the annual report of Bajaj Consumer Care (FY 21-22), the average consumption of hair oil per household is 1.2 liters. 

Fundamental Analysis Of Bajaj Consumer Care

Below we’ll take a look at the key metrics of Bajaj Consumer Care, including the company’s revenues, profits, debt, and more. 

Bajaj Consumer Care – Financials

Revenues, Operating Profit, and Net Profit Growth

Financial Year	Revenues (Rs In Cr)	Operating Profit Margin	Net Profits (Rs. In CR)
FY 2019	918	30.9%	221
FY 2020	852	26.8%	184
FY 2021	921	29.4%	223
FY 2022	879	23.5%	169
FY 2023	960	17.6%	139

Bajaj Consumer Care is a small-cap FMCG stock, with a market capitalization of ₹2,491 crores. As per the latest annual report, the company’s segment operation is concentrated on only one – Cosmetics, Toiletries & Other Personal Care products. 

For the financial year ending 2023, the company earned ₹960 crores in revenues, up from ₹879 crores last year and ₹918 crores in FY 19. However, operating profits have been falling year on year for the past 5 years.

Their FY 23’s OPM was 17.6 percent, almost half of its margins in FY 19 (30.9 percent). Margins are as important to a company as its revenues.

Even though revenue growth has been slow (3 percent in 5 years), a drop in OPM has directly affected the net profitability of the company. Hence FY 23 saw the company report both its highest revenues and its lowest net profits in the past 5 years. 

Return Ratios

Financial Year	ROE	ROCE
FY 2019	47.41	60.81
FY 2020	28.28	35.09
FY 2021	29.47	35.83
FY 2022	20.95	25.51
FY 2023	17.62	21.23

Bajaj Consumer Care’s return ratios (ROE & ROCE) peaked in FY 19, following which they have dropped year on year to their current figures of 17.6 (ROE) and 21.2 (ROCE). This should come as no surprise given that the company’s recent revenues and profits have more or less flatlined or dropped in recent years. 

Debt & Interest Coverage Ratio

Financial Year	D/E Ratio	Interest Coverage Ratio
FY 2019	0.05	242.82
FY 2020	0.03	53.98
FY 2021	0.01	202.11
FY 2022	0	210.59
FY 2023	0	183.14

Despite two years of uncertainty and economic turmoil worldwide, the company has managed its capital well, reducing debt to zero, while also maintaining safe levels of interest coverage, as seen in the table above. The company had a low D/E ratio, to begin with, and that figure has dropped to zero, indicating that the company is virtually debt free. 

Future Plans Of Bajaj Consumer Care

To grow within the personal and hair care industry, Fundamental analysis of Bajaj Consumer Care has identified its strengths and prioritized the following plans for its future:

• Extending the company’s flagship product line – Almond Drops beyond hair oil products. 

• Elevating their Bajaj Almond Drops Hair Oil products in the market as a premium product. 

• Upgradation of plants to improve capacity, and productivity along with the required safety and quality measures. They have implemented smart manufacturing processes to reduce cost, time and improve quality and customer service. 

Key Financial Metrics Of Bajaj Consumer Care

Here are the key financial metrics of Bajaj Consumer Care: 

CMP	₹ 172	Market Cap (Cr.)	₹ 2,491
EPS	₹ 9.63	Stock P/E	17.9
ROCE	21.1 %	ROE	17.4 %
Face Value	₹ 1.00	Book Value	₹ 54.6
Promoter Holding	39.4 %	Price to Book Value	3.16
Industry P/E	33.3	Dividend Yield	4.64 %
Net Profit Margin	14.5 %	Operating Profit Margin	14.7 %

Key Takeaway:

In the huge playing field that is the personal and hair care segment of the FMCG industry, Bajaj Consumer Care has managed to carve a niche for itself by selling hair care products. While it does have skincare product lines, the company has clearly stated in its annual report that it recognizes its business presence as a single segment, a fact that is reflected in its product lines and sales.

Despite setting itself up as a hair care brand, and concentrating on its core business, the company’s share price has taken a major beating in the past 5 years, giving a negative return of (-61.6) percent. 

The recent spike in holding by some top investors, including promoters might indicate that the company still has some steam left in the company. That’s all for our fundamental analysis of Bajaj Consumer Care. We hope you found it insightful. 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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Best Debt Free Small Cap Stocks in India To Add To Your Watchlist in 2023

Best Debt Free Small Cap Stocks: Both experienced and new investors are fascinated by small-cap stocks, the underdog of the stock market. Take a look at any ace investors’ portfolio. You’ll notice that their investment journey started with one or two companies that made the most wealth in their portfolio.

Combined with their significant growth potential and a generally unaware public, the small-cap stocks have hidden gems, capable of transforming the wealth of any investor. That said, we’ve compiled a list of some of the best debt free small cap stocks.

Best Debt Free Small Cap Stocks in India

Here are list of Best Debt Free Small Cap Stocks listed in NSE and BSE

Best Debt Free Small Cap Stocks #1 – Clean Science & Technology

CSIT is a chemical company, with chemical manufacturing business arms in the FMCG, pharmaceutical, agro, and performance chemical sectors. The company was incorporated in 2003 and innovates its products with its in-house research and development centers. The company got listed recently, in 2021, making it one of the more recently listed companies on our list. 

Financials Of Clean Science Technology:

CMP	₹ 1,486	Market Cap (Cr.)	₹ 15,784
EPS	₹ 26.8	Stock P/E	55.4
ROCE	46.6 %	ROE	34.9 %
Face Value	1	Book Value	₹ 82.3
Promoter Holding	78.5 %	Price to Book Value	18
D/E Ratio	0	Dividend Yield	0.23 %
Net Profit Margin	33.4 %	Operating Profit Margin	41.3 %

Clean Science is a small-cap chemical company, sized at ₹15,784 crores. As of FY 22, the company reported sales of ₹685 crores and a net profit of ₹229 crores. Five years prior, the company earned ₹241 crores and a net profit of ₹49 crores.

The company’s sales and net profits have been on a positive upward trend. It has a phenomenally high ROE of 34.9 percent and a ROCE of 46.6 percent. 

Another positive trait is that the company is debt free, with a D/E ratio of zero. The stock P/E of 55.4 is much higher than its industry P/E of 27.7. Promoters of Clean Science hold a 78.5 percent stake in the company, and there hasn’t been any recent stake sale as of March 2023.

Since listing in 2021, the company’s share price has slightly fallen, given a negative return of (-8.3) percent. 

Best Debt Free Small Cap Stocks #2 – GNFC

GNFC is a Gujarat-based chemical company, set up jointly with the government of Gujarat and the Gujarat State Fertilizers & Chemicals. Since beginning operations in 1982, the company has become one of the largest fertilizer companies in the world.

Their fertilizer products include urea, nitro phosphate, neem de-oiled cake, and Narmade Neem pesticides. Today, along with manufacturing fertilizers, the company has diversified into chemicals, petrochemicals, electronics, and information technology. 

Financials Of GNFC:

CMP	₹ 602	Market Cap (Cr.)	₹ 9,358
EPS	₹ 114	Stock P/E	5.28
ROCE	33.1 %	ROE	24.5 %
Face Value	₹ 10	Book Value	₹ 546
Promoter Holding	41.2 %	Price to Book Value	1.09
D/E Ratio	0	Dividend Yield	1.62 %
Net Profit Margin	19.7 %	Operating Profit Margin	22.3 %

GNFC is a small cap fertilizer company, being one of the biggest manufacturers of fertilizer in the country. As per the latest annual report (FY 22), the company earned ₹8,642 crores and a net profit of ₹1,704 crores.

A 5-year overview of the company shows that it has improved sales, operating profit margins, and as a result, net profits as well. To compare, FY 18 saw the company earn ₹5,837 crores in sales and ₹790 crores in net profits.

The operating profit margin has also improved from 24 percent (FY 18) to 28 percent (FY 22). The ROE and ROCE figures of GNFC are excellent, at 24.5 percent and 33.1 percent respectively.

Promoters of GNFC, Gujarat State Fertilizers & Chemicals, and Gujarat State Investments, own 41.18 percent of the company. As per the latest data, the promoters haven’t trimmed any stake in the company. GNFC has given a positive, but slightly underwhelming return of 24 percent in the past 5 years. 

Best Debt Free Small Cap Stocks #3 – CDSL 

As an investor if you’ve sold shares recently, especially shares bought from BSE, you might have heard of CDSL. In the Indian markets, there are only two depositories, of which one of them is listed – Central Depository Services Ltd (CDSL).

The company provides services to exchanges to clearing corporations, stock exchanges, investors, and depository participants. Set up in 1999, CDSL is the 2nd depository institution after NSDL. The company provides various investor services, including the maintenance of demat accounts, trade settlements, share transfers, account statements, and nominations, to name a few. 

Financials Of CDSL:

CMP	₹ 989	Market Cap (Cr.)	₹ 10,336
EPS	₹ 26.4	Stock P/E	37.4
ROCE	31.6 %	ROE	23.9 %
Face Value	₹ 10	Book Value	₹ 116
Promoter Holding	20.0 %	Price to Book Value	8.52
D/E Ratio	0	Dividend Yield	1.49 %
Net Profit Margin	49.7 %	Operating Profit Margin	57.4 %

CDSL is more or less a duopoly company, as there are only two major depository institutions in the Indian market. In the financial year ending March 2023, CDSL earned ₹555 crores in revenues and ₹319 crores in operating profits, translating to an operating profit margin of 57 percent.

Its net profits for the year were ₹276 crores, one of the highest profits in the company’s operating history. In FY 19 the company earned ₹196 crores in sales and ₹115 crores in net profits, with an OPM of 56 percent.

The company’s ROE and ROCE are great, at 23.9 percent and 31.6 percent respectively. Promoters of CDSL own a low stake of 20 percent in the company, with the public being the largest shareholder (46.8 percent).

CDSL is one of the best-performing debt free small-cap stocks on our list, giving a return of 251 percent in the last five years.

Best Debt Free Small Cap Stocks #4 – Mazagon Dock Shipbuilders

Of all the companies on our list of best debt free small cap stocks, Mazagon Dock Shipbuilders has the most interesting product range – Warships, Submarines, oil platforms, ferries, floating cranes, and almost every other industrial floating vessel you’ve seen on the open sea.

In the past 60+ years, Mazagon Dock has built over 800 vessels, including 27 warships and 7 submarines. Besides building ships and other sea vessels, the company also provides maintenance and repair services to domestic and international clients. 

Financials Of Mazagon Dock:

CMP	777	Market Cap (Cr.)	₹ 15,671
EPS	₹ 44.6	Stock P/E	17.5
ROCE	25.5 %	ROE	19.1 %
Face Value	₹ 10	Book Value	₹ 185
Promoter Holding	84.8 %	Price to Book Value	4.19
D/E Ratio	0	Dividend Yield	1.17 %
Net Profit Margin	10.4 %	Operating Profit Margin	9.30 %

Mazagon Dock Shipbuilders is a Ministry Of Defence company, under the government of India. It reported earnings of ₹5,733 crores for FY 22, and operating profits of ₹442 crores, translating to an OPM of 8 percent.

Their net profits for the year were ₹586 crores, the highest in the past 5 years of operations. Though the company is profitable and generating revenues, the growth has been slow in recent years. ROE (19.1 percent) and ROCE (25.5 percent) of the company are positive and quite high. 

The P/E of Mazagon Dock (17.5) is less than half that of its industry P/E of 36.3, showing signs of underpricing. The company has a D/E ratio of zero, as the company is almost debt free.

The government of India owns a substantial 84.8 percent stake in Mazagon Dock, making them the majority shareholder. Since listing in October 2020, Mazagon Dock Shipbuilders has given a triple bagger return of 356 percent. 

Best Debt Free Small Cap Stocks #5 – Shanthi Gears

Part of the generational business dynasty – The Murugappa Group, and a subsidiary of Tube Investments, Shanthi Gears is a small-cap engineering company. They design, manufacture, and supply gears and gearboxes to automotive companies. They employ over 1000 people and have three to four manufacturing facilities, supplying integral parts to major automotive companies. 

Financials Of Shanthi Gears:

CMP	₹ 371	Market Cap (Cr.)	₹ 2,849
EPS	₹ 7.79	Stock P/E	47.7
ROCE	23.7 %	ROE	17.0 %
Face Value	₹ 1	Book Value	₹ 37.8
Promoter Holding	70.5 %	Price to Book Value	9.82
D/E Ratio	0	Dividend Yield	0.81 %
Net Profit Margin	12.6 %	Operating Profit Margin	19.3 %

The latest financial year (FY 22) turned fruitful for Shanthi Gears, which reported an all-time high revenue of ₹377 crores and net profit of ₹59 crores. Another factor that makes FY 22 important is the sudden growth spurt in revenue, as the previous four years saw its sales and profits stagnate around the same levels.

For the financial year ending 2018, Shanthi Gears reported revenues of ₹214 crores and a net profit of ₹29 crores. The operating profit margin for the 5-year period has improved slightly from 17 percent to 18 percent. 

The company has a positive and reassuring ROE (17 percent) and ROCE (23.7 percent). The stock P/E of Shanthi Gears is 47.7, which is almost double that of its industry P/E of 24.6. This could indicate that the stock is overpriced at its current levels.

Promoters of Shanthi Gears, Tube Investments Of India own a 70.5 percent stake in the company, with no major increase or decrease recently. In the past 5 years, Shanthi Gears has given a multi-bagger return of 177.5 percent. 

List of Debt Free Small Cap Stocks in India

S.No.	Name	Mar Cap in Cr	CMP Rs.	P/E	Debt / Eq
1	Mazagon Dock	15401.07	763.6	17.14	0
2	Gland Pharma	15241.45	925.4	18.63	0
3	Clean Science	15236.76	1434.2	51.6	0
4	I D F C	15185.45	94.91	22.48	0
5	Nippon Life Ind.	14756.81	236.8	20.42	0
6	Lloyds Metals	14596.97	328.15	16.06	0
7	Gillette India	14210.85	4360.5	42.87	0
8	Finolex Cables	12976.91	848.5	23.45	0
9	Krishna Institu.	12849.27	1605.6	50.86	0
10	Triveni Turbine	12751.62	401.15	66.16	0
11	Lak. Mach. Works	12347.73	11558.3	32.12	0
12	NMDC Steel	11956.91	40.8		0
13	C D S L	10317.31	987.3	37.37	0
14	National Standar	9600.1	4800.05	1163.65	0
15	G N F C	9263.04	596	6.34	0
16	Rites	9240.86	384.55	17.03	0
17	Data Pattern	9002.53	1608.05	72.58	0
18	UTI AMC	8671.73	682.9	20.46	0
19	NBCC	7605	42.25	21.14	0
20	KSB	7602.14	2183.9	41.45	0
21	BSE	7243.62	535.5	35.23	0
22	Multi Comm. Exc.	6943.43	1361.45	46.64	0
23	G S F C	6371.64	159.9	4.89	0
24	Saregama India	5885.84	304.95	31.17	0
25	Mah. Scooters	5806.45	5080	29.75	0
26	Caplin Point Lab	5585.19	735.65	15.8	0
27	G M D C	5347.17	168.15	5.66	0
28	Avanti Feeds	5175.97	379.9	18.02	0
29	VST Industries	5165.6	3345.6	15.81	0
30	Kennametal India	5131.7	2334.9	52.78	0
31	Vesuvius India	4914.63	2421	36.01	0
32	Elantas Beck	4665.67	5883.55	48.68	0
33	JSW Holdings	4632.04	4173	15.45	0
34	NESCO	4327.28	614.15	14.88	0
35	Sharda Cropchem	4294.47	476	12.54	0
36	Infibeam Avenues	4030.08	15.05	29.57	0
37	Volt.Transform.	3988.86	3942.8	19.96	0
38	Kirl.Pneumatic	3751.07	580.35	34.53	0
39	NOCIL	3677.04	220.65	19.38	0
40	Brightcom Group	3277.07	16.24	2.4	0
41	MOIL	3264.87	160.45	11.09	0
42	Shanthi Gears	3248.15	423.4	48.49	0
43	TD Power Systems	3197.59	204.8	33.36	0
44	Ganesh Housing	3018.61	362	30.17	0
45	Kaveri Seed Co.	2885.56	516	10.6	0
46	Jai Corp	2830.17	158.6	159.36	0
47	I T D C	2815.36	328.25	47.48	0
48	Divgi Torq	2520.99	824.3	49.29	0
49	Hathway Cable	2414.42	13.64	33.94	0
50	Bhansali Engg.	2389.03	144	17.59	0
51	VST Till. Tract.	2305.44	2668.5	24.95	0
52	Honda India	2301.83	2270.05	23.76	0
53	Paushak	2173.17	7051	41.2	0
54	Swaraj Engines	2168.87	1785.65	16.26	0
55	Savita Oil Tech	2109.98	305.35	8.72	0
56	Cartrade Tech	2000.03	426.9	61.36	0
57	Butterfly Gan Ap	1998.98	1118	38.68	0
58	Paras Defence	1959.39	502.4	54.48	0
59	Wendt India	1836.99	9184.95	45.81	0
60	Vakrangee	1823.4	17.21	45.51	0
61	Panama Petrochem	1821.46	301.1	7.62	0
62	Tanfac Inds.	1775.51	1780	31.58	0
63	Seshasayee Paper	1739.75	275.85	4.36	0
64	Foseco India	1726.03	2701.15	35.96	0
65	Alembic	1723.25	67.11	8.58	0
66	Amrutanjan Healt	1715.83	587	41.03	0
67	Jyoti Resins	1700.1	1416.75	36.66	0
68	Sirca Paints	1649.77	301	35.75	0
69	Tide Water Oil	1566.08	898.8	13.32	0
70	BF Investment	1446.12	384	6.26	0
71	Goldiam Intl.	1442.28	132.35	17.08	0
72	Rel. Indl. Infra	1360.4	900.95	148.17	0
73	RPG LifeScience.	1251.43	756.65	18.5	0
74	Sh. Digvijay Cem	1246	85.81	21.54	0
75	Suven Life Scie.	1242.38	56.97		0
76	Disa India	1163.53	8001	39.05	0
77	Nalwa Sons Invst	1131.32	2201	12.32	0
78	Uniphos Enter.	1095.77	157.55	28.64	0
79	Raghav Product.	1077.64	939	41.69	0
80	EKI Energy	1075.38	390.85	3.1	0
81	Guj. Themis Bio.	1074.54	739.6	18.54	0
82	Likhitha Infra.	1066.93	270.45	17.72	0
83	Excel Industries	1063.48	846	13.29	0
84	Ksolves India	1048.01	884	42.12	0
85	John Cockerill	1046.32	2118	81.19	0
86	Cressanda Solns.	1038.89	26.07	532.75	0
87	G M Breweries	1022.47	559.4	10.77	0

Conclusion

In this article we got to learn about some of the best debt free small cap stocks. While a lack of debt or borrowings is an important investment filter, it should not be the only criterion when picking stocks. Especially small-cap stocks, which witness higher risk, volatility, and competition from industry leaders.

Apart from debt, you should also consider the return on equity, sales, profit growth, operating profit margins, and more. How important is debt when you pick stocks? Let us know 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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Zerodha Review 2023 – Is Free Investing Legit? (No 1 Stockbroker?)

A complete Zerodha Review 2023 (Brokerage, Trading Platform & More): Zerodha is the biggest discount broker in India and perfect for traders & investors looking for low brokerage, easy interface, and reliable trading platform. It offers a zero brokerage for delivery equity & direct mutual fund investments.

For all intraday, Futures & Options, currency, and commodity trades across NSE, BSE, MCX, it offers a brokerage of Flat ₹20 irrespective of the trading volume. It doesn’t matter whether you trade for Rs 1 lakh or 1 crore, you have to pay a flat low brokerage of Rs 20 per trade. Therefore, you can save a lot of brokerage charges on your trades using Zerodha as your broker.

In this Zerodha review, we will discuss the brokerage charges, account opening charges, maintenance charges, trading platforms, products, my personal experience of using Zerodha & more. By the end of this post, you’ll have a complete understanding of Zerodha trading services and whether this broker is right for you or not. Let’s get started.

Quick link to open a demat account with Zerodha.

Zerodha Review –Brokerage, Charges, Trading Platforms & More

1. Introduction

There are two types of stockbrokers in India. Full-Service brokers and Discount brokers. The full-service brokers offer a trading platform along with advisory. However, their brokerage charges are high. A few major full-service brokers in India are HDFC Securities, ICICI Direct, Motilal Oswal, etc.

On the other hand, discount brokers offer trading platforms with minimum brokerage charges. Nonetheless, they do not provide advisory services. The biggest advantage of a discount broker is that it saves a lot of brokerages for the traders/investors. On all other prospects, like performance, computerized trading systems etc- both offer similar facilities.

An important point to know here is that all the brokers- Full service or discount brokers are licensed and regulated in India by regulating bodies like SEBI.

Zerodha is a leading discount broker in India in terms of daily trading volume, growth and customer base. It is one of the most technologically advanced and cheap stockbrokers. Zerodha has over +1 Crore clients and contributes to over 15% of daily retail trading volumes across NSE, BSE, MCX.

Ironically, the term ‘Zerodha’ is derived from the fusion of an English and Sanskrit word. ‘Zero’+’Rodha’ where ‘Rodha’ means barrier. Overall, Zerodha means ‘Zero Barrier’.

It was started by Nitin Kamath, an Engineer by qualification, in 2010. Nithin bootstrapped and founded Zerodha in 2010 to overcome the hurdles he faced during his decade long stint as a trader. He was named one of the “Top 10 Businessmen to Watch Out for in 2016 in India” by The Economic Times for pioneering and scaling discount broking in India. Here are a few of the famous awards won by Zerodha recently:

— ET Startup of the Year (2020)

— National Stock Exchange (NSE) “Retail brokerage of the year 2019” (& 2018)

— Outlook Money “Retail broker of the year 2017”

— Ernst & Young “Entrepreneur of the year (Startup) 2017”

2. Zerodha Brokerage Charges 

Zerodha offers trading services to buy and sell stocks, futures & options in equities, commodities, and currency segment. Here are the Zerodha brokerage charges:

– Free equity delivery

All your equity delivery investments (NSE, BSE), absolutely free — ₹0 brokerage.

– ₹20 intraday equity and F&O trades

₹20 per executed order on intraday trades across equity, currency, and commodity trades across NSE, BSE, and MCX.

Type	Brokerage Charges
Equity Delivery	Rs. 0 (FREE)
Equity Intraday	Lower of Rs. 20 per executed order or 0.03%
Equity Futures	Lower of Rs. 20 per executed order or 0.03%
Equity Options	Flat Rs. 20 per executed order
Currency F&O	Lower of Rs. 20 per executed order or 0.03%
Commodity	Lower of Rs. 20 per executed order or 0.03%

Quick note:

1. You can use this Zerodha Brokerage Calculator to get more ideas.

(Zerodha Brokerage Calculator)

2. Apart from brokerages, there are also a few other charges that you have to mandatorily pay on your transactions like Exchange transaction charge, STT, SEBI turnover charges, GST, etc.

You have to pay these charges no matter which stockbroker you prefer to trade in stocks and that too on both sides of transactions i.e. while buying and selling. However, the brokerage cost can be controlled by choosing a discount broker. For example, in the case of Zerodha, you can notice the total brokerage of Rs 40 for both sides of Intraday equity trading, even though the total turnover is Rs 8.4 Lakhs.

You can have read this blog post to understand the different charges while trading in stocks.

3. Zerodha Account Opening Charges & AMC

Here are the account opening charges for Zerodha

1. Equity Trading Account: ₹200

You can open demat and trading for equity account at Rs 200. The demat account annual maintenance (AMC) charge is Rs 300 per year.

 4. Zerodha Products & Features

 Zerodha has built its own trading applications for the customers. It offers different trading terminals, websites, and mobile apps (Android/iOS) which are free for the customers.

— Kite 3.0

Kite 3.0 is a modern technology-based trading platform with streaming market data, advanced charts, an elegant UI, and more. It is a minimalistic, intuitive, responsive, light, yet powerful web and mobile trading application offered by Zerodha. Kite provides Bandwidth consumption of fewer than 0.5 Kbps for a full market watch, extensive charting with over 100 indicators and 6 chart types, advanced order types like Brackets and cover, millisecond order placements, and more.

Overall, Kite provides an excellent experience to the users through its groundbreaking innovations presented with hassle-free usability.

— Kite mobile

This is a mobile version of KITE for a seamless experience for mobile-users and available in both Android and iOS devices.

— Coin

Zerodha Coin is a platform that lets you buy mutual funds online directly from asset management companies. This platform is absolutely free since August 24, 2018. Here, you can make your investments without any commissions.

With the help of Zerodha Coin, you can have Direct mutual funds in DEMAT form, with the convenience of one portfolio across equity, MF, currency, etc. Moreover, it also provides a Single capital gain statement, P&L visualizations, and more. This Coin by Zerodha has made investments through SIPs really simple and flexible.

Other Partner Products

Apart from the above products, Zerodha also offers a few other partner programs:

1. Smallcase: This thematic investment platform is powered by Kite Connect APIs. Smallcase helps users to invest in different themes by intelligently providing weighted baskets of stocks in each theme.
2. Sensibull: This is an options trading platform which offers simplified options trading for new investors by providing powerful trading tools. Sensibull aims to make options trading safe, accessible, and most importantly, profitable for all.

Besides, Zerodha has also started a few educational initiatives to improve financial literacy and increase the participation of the common people in the financial world. Here are a few other products offered by Zerodha

1. Zerodha Varsity: An educational platform to educate people about investing and trading. Zerodha Varsity offers free modules on Technical analysis, fundamental analysis, futures, options, risk management, trading psychology & more. Recently, Zerodha Varsity also launched its Varsity mobile app.
2. Trading Q&A: An online forum powered by Zerodha to answer people’s most troublesome investing and trading questions.

5. Pros and cons of Zerodha Discount broker

Here are a few advantages and disadvantages of using Zerodha trading platforms:

Pros of Opening Account with Zerodha

1. Zero Brokerage Charges for Delivery
2. Flat Charge for Intraday (Rs 20 or 0.03% whichever is lower per executed order for everything else)
3. Same pricing for across all exchanges
4. No upfront fee or turnover commitment
5. Z-Connect, interactive blog, and portal for all your queries
6. Trading, charting, and analysis, all rolled into one next-generation desktop platform Pi.
7. Minimalistic, intuitive, responsive web-based trading platform Kite
8. No minimum balance required to open Zerodha trading account
9. Invest in direct mutual funds with same demat account through coin

Cons of Opening Account with Zerodha

1. No advisory services or research report.
2. 3-in-1 account (Saving+Demat+Trading) not available.
3. Online IPO investment not available. (Now, Zerodha customers can invest in IPO’s through UPI payment. Read more about Zerodha IPO applying process here)

Note: Zerodha has recently started offering Zerodha IDFC FIRST Bank 3-in-1 account. However, to open a 3in1 account at Zerodha, you need to have an existing account with IDFC FIRST Bank. Accounts can only be opened online. Read more here.

6. Is Zerodha a Reliable Stockbroker? And is Free investing legit?

Is Zerodha safe for long-term investments? This is one of the biggest questions that come in the mind of first-time investors. Obviously, HDFC Securities, ICICI Direct, SBI cap, Kotak securities, etc are big brands in the name of the broking industry and been in the market for decades. Hence, they have built greater trust compared to Zerodha, especially for the ones who have never heard its name before.

Anyways, Zerodha, the discount broker, originated only in 2010. Therefore, if you’re not involved in the share market investments/tradings in the last decade, it’s no surprise to say that you might have not known this broker. However, in the short span of around 10 years, this broker has been able to beat all the big traditional brokers. Currently, Zerodha is the biggest stockbroker in India, based on the number of clients (over 15 lakh users), followed by ICICI Direct and HDFC securities ranking second and third.

Now, answering your question, Yes, Zerodha is safe and reliable. In fact, since origin, Zerodha has never faced any case of major violations from SEBI or any of the other exchanges. It is a profitable private company with no debts or liabilities. Here are a few points why Zerodha is safe and reliable for investors and traders.

1. Zerodha is a zero-debt financial services company. There is no borrowing of any kind.
2. There is no credit risk, less than 5% of Zerodha’s own capital is lent to customers in any form.
3. Zerodha own funds in the business are greater than 25% of all client funds put together.
4. Their ratio of ‘complaints to active clients’ is among the least on the exchange.
5. Zerodha is profitable as a business and has enough reserves to sustain, even if there was an extended downturn in the economy.

Moreover, Zerodha is partnered with Central Depository Services Limited. CDSL’s main function is the holding securities either in certificated or uncertificated form, to enable the book-entry transfer of securities. Therefore, when it comes to the security of the shares in your demat account with Zerodha, you do not need to worry at all. The stockbrokers are just the agents of depositories.

Your stocks are actually held by central depositories and not by the depository participants (brokers). Therefore, even if something didn’t work out well with Zerodha, your stocks in the demat account are safely intact with CDSL. In short, Zerodha is completely legit and reliable for your trading or long-term investments in the Share market.

7. My experience of using Zerodha

It’s been over three years since I’m using Zerodha and I’m satisfied with the trading services provided by Zerodha.

Initially, I started with ICICI direct as my broker, but later I switched to Zerodha when I realized that I was paying way too much brokerages for my trading transactions.

Most beginners do not consider the brokerage charges while calculating the profits. I use to make the same mistake. And that’s why many times the final profits in my bank account (after deducting the brokerage and other charges) disappointed me as it was considerably lower than what I calculated in my head. I wish I had switched to a discount broker earlier as it could have saved me a lot of ‘unnecessary’ brokerages and moreover trading experience is even better on Zerodah. Nonetheless, I use Zerodha for making all my stock investments now.

Besides, there was one ‘cons’ of using Zerodha as a broker which bugged me in the past. And it was not having the facility for the customers to directly invest in Initial public offerings (IPOs) through the Zerodha dashboard. But this issue is also solved by Zerodha. Investors can now apply for IPOs directly within the Zerodha console. And the best part is that the process is really simple.

Finally, a lot of people complain that Zerodha doesn’t provide advisory services or buy/sell calls. I believe that one should never invest or trade based on the broker’s recommendation. There’s a conflict of interest here as the brokers will always make money when you trade and doesn’t matter whether you win or lose. Therefore, they might always motivate investors to trade frequently. Overall, Zerodha not giving advisory services doesn’t bother me. Moreover, they make us for these cons by providing educational initiates like Varsity.

8. How to open your trading & demat account with Zerodha?

Opening a demat and trading account with Zerodha is really fast and hassle-free. In fact, if you’ve all the documents, you can open your account and start trading within an hour.

Here are the documents required to open a demat and trading account at Zerodha: PAN CARD, Aadhar Card, 2 Passport size photos, Canceled cheque/ Saving bank account passbook. I will recommend keeping photocopies of all these documents ready before you apply for opening the accounts.

To open your trading & demat account at Zerodha, go to Zerodha website and click on ‘OPEN AN ACCOUNT’. Here is the direct link.

Note: You can find the detailed explanation on how to open your demat and trading account at Zerodha here.

9. Closing Thoughts

In the last decade, Zerodha has earned trust and respect among the trading population by providing reliable and technologically advanced trading services. It is definitely the largest discount broker in India. If you are looking to open your brokerage account with a reputable brand that offers low brokerages, and have a fast trading platform, Zerodha is definitely one of the best options.

That’s all for this post. I hope this Zerodha review is useful to you. If you have any additional queries regarding Zerodha or if you want to share your review of Zerodha, you can post it in our forum. I’ll be happy to answer your questions. Have a great day!

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