Investing

Mufin Green Finance Ltd., the New Delhi-based financing solutions provider for the EV ecosystem, will debut on the National Stock Exchange (NSE), as per a BSE exchange filing by the company on Thursday, 2nd November.

In the filing, the company said, “Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), we are pleased to inform you that the Company has received approval for the Listing of its Equity Shares on National Stock Exchange of India Limited with effect from November 6, 2023.”

About Mufin Green Finance

Mufin Green Finance is a subsidiary of Hindon Mercantile Ltd. Classified as a non-government company, Hindon is a technology organisation that provides income-generation loans to its customers.

Hindon is registered at ROC, Delhi. As of 31st March 2022, its total assets under management was Rs. 425 crores.

Mufin offers loans for income generation through swappable batteries, electric charging infrastructure and electric vehicles. According to its website, it has distributed more than Rs. 340 crores towards electric vehicles, affecting carbon footprint, financial inclusivity, income generation and women empowerment.

Stellar Performance On The BSE

On Friday 3rd November, shares of the small-cap organisation listed on the Bombay Stock Exchange (BSE) were locked in an upper circuit limit of 5% at Rs.129.30.

The 5% increase pushed the company’s market capitalisation to almost Rs. 1,950 crores.

Later, a profit booking was seen in the stock, and it dropped to Rs.118.65. The share traded at Rs.128 around 2:15 pm.

Following the approval of the NSE listing of equity shares, Mufin Green rallied during the last trading session of the week.

For the last five trading sessions, the stock has been hitting the upper circuit, rising around 27%. In the last one month, it gained 50%. In the previous six months, it gained 220%.

From its 52-week lows, it delivered a return of 300%.

NSE Listing

The NSE issued a statement, saying, “We are pleased to inform you that the equity shares of the company (Mufin Green Finance) shall be listed and admitted to dealings on the Exchange with effect from November 06, 2023 (Monday).”

The benchmark index has given the company the symbol “MUFIN.” A total of 1,50,99,5172 securities will be listed on the NSE.

The board of directors of Mufin Green Finance is set to meet on Thursday, 9th November, to assess and approve the financial results for the quarter ending 30th September.

The Reserve Bank of India recently gave the green signal to the company to operate as a pre-paid instruments (PPI) issuer. This will facilitate the launch of a “super app” by the company that will offer comprehensive financial services.

Why List On NSE Now?

According to globenewswire.com, the electric vehicle market in India is projected to reach $113.99 billion by 2029 at a compound annual growth rate (CAGR) of 66.52%.

With the NSE listing, the company hopes to attract more investors and leverage the growth potential of the industry in the immediate future.

FAQ

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Introduction

Are you tired of the daily grind and looking for ways to secure your financial future? If so, you’ve come to the right place. In this article, we’ll explore the world of income deficit, focusing on how to make it a reality in your life. Whether you want to grow your savings, pay off debt, or achieve financial independence, these strategies will help you unlock the door to free income and put you on the path to a more secure financial future on

Passive income is money earned with minimal effort or continuous work, making it a dream for many. Imagine earning money through sex, travel, or time with loved ones. The good news is that there are ways to make passive income. Let’s dive into 10 smart ways to make passive income a reality.

Strategy	Description	Examples
1. Investments	Invest your money in assets that generate returns over time.	Real Estate, Stocks, Bonds, Mutual Funds
2. Dividend Stocks	Purchase stocks of companies that pay regular dividends to investors.	Blue-chip stocks, Dividend ETFs
3. Real Estate	Invest in rental properties, earning rental income.	Residential properties, Commercial real estate
4. Create an App	Develop a mobile app or software that provides value to users and generates revenue.	Mobile apps, SaaS products
5. Blogging/Vlogging	Start a blog or YouTube channel, monetizing through ads and sponsorships.	Ad revenue, affiliate, marketing, sponsored, content
6. Online Courses	Create and sell educational courses on platforms or your site.	Udemy, Coursera,
7. Automated E-commerce	Design a system that automatically sells products online without constant supervision.	E-commerce stores, Dropshipping, Print-on-Demand
8. Dividend ETFs/REITs	Invest in dividend-paying Exchange-Traded Funds (ETFs) or Real Estate Investment Trusts	REITs (Real Estate Investment Trusts), Dividend ETFs
9. Licensing	License your intellectual property (e.g., art, software, patents) to others for a fee.	Artwork, software, patents, photography

1. Invest in dividend funds

One of the most popular ways to generate passive income is by investing in dividend funds. Many companies pay out a portion of their earnings to shareholders in equity. As a shareholder, you may receive regular dividends, and over time, these amounts can serve as an essential source of passive income.

2. Create a blog or website

If you have an interest or expertise in a particular niche, consider creating a blog or website. By creating high-quality content and attracting regular visitors, you can monetize your site through various channels, such as affiliate marketing, sponsored posts, and ad revenue.

3. Real estate investment

Investing in real estate, whether through rental properties or real estate investment trusts (REITs), is a reliable way to generate passive income. Rental income and potential property appreciation can provide a steady income stream, while REITs can invest in real estate without owning real property.

4. Create an online course

If you have valuable skills or knowledge, consider creating and selling online courses. Platforms like Udemy and Teachable offer the opportunity to share your knowledge and earn money when people enroll in your courses.

5. Invest in high-yield savings

While not the most lucrative way to earn, a high-yield savings account can provide a safe way to continue making passive income with minimal effort. The accumulated interest in these accounts may not be enough, but they are a great place to keep your savings or emergency savings.

6. Write an e-book

If you’re an author or have a story, self-publishing e-books on platforms like Amazon Kindle can be a lucrative venture. Once your e-book is published, you can earn a royalty on sales, and the best part is that your book can continue to sell for years to come.

7. Create a YouTube channel

YouTube is a powerful platform to showcase your creativity and skills. By creating engaging video content and engaging customers, you can monetize your channel by earning ad revenue, sponsorships, and merchandise.

8. Start an e-commerce store

Setting up an online store through platforms like Shopify or Etsy can be an excellent way to generate passive income. You can sell physical products or digital downloads, and with effective marketing, your store can become a consistent source of revenue.

9. Invest in a business or franchise

Investing in an existing business or franchise can be a great source of passive income. While this may require a significant upfront investment, it can provide a cash flow that does not require day-to-day management.

10. Automated online businesses

Automated online businesses, like dropshipping or affiliate marketing, allow you to generate income with minimal day-to-day involvement. By setting up efficient systems and marketing strategies, you can create a source of passive income that runs itself.

Sustainable passive income is an achievable goal for everyone. The key is to find the right option that fits your interests, resources, and purposes. Whether you want to invest in stocks, start a blog, or build an e-commerce store, the potential to make money effortlessly every day is real.

Remember that building passive income takes time and dedication. It’s essential to invest effort upfront to set the foundation for long-term financial success. By diversifying your income streams and continuously working to improve them, you can achieve the financial freedom and security you desire.

So, what are you waiting for? Start exploring these strategies, and you’ll be on your way to enjoying the benefits of passive income sooner than you think.

FAQ

From a KitKat break to a 2-minute Maggi, Nestle has built an indomitable range of products that are liked and enjoyed by people of all ages. Nestle is the world’s largest food and beverage company. It houses more than 2000 brands under its stable, ranging from global icons like KitKat, Nescafe, and Nestea to local favorites such as Maggi, Polo, Milkmaid, etc.

In this article, we will understand Nestle and its share price performance. Let’s get started.

Brief Overview of Nestle

Nestle is a Swiss multinational food and beverage corporation whose history dates back to 1866 when the Anglo-Swiss Condensed Milk Company was founded.

In 1867, Henry Nestle, who was not connected with Anglo-Swiss, made a breakthrough in the development of baby food. In 1905. Henry Nestle merged his company with Anglo-Swiss to form Nestle Group. By 1905, the company had more than 20 manufacturing facilities and selling products in Africa, Asia, Australia, and Latin America.

Between all the crises, the company continued launching new products. In 1938, Nestle launched its most iconic coffee brand, Nescafe, and in 1947, it added Maggi soups and seasonings.

The group’s Indian unit started operations on 28th March 1959 in New Delhi. Today, Nestle is one of the largest food & beverage companies in the country, with nine manufacturing facilities across India.

Business Overview of Nestle

Nestle has divided its food & beverages business into the following four categories:

1. Prepared Dishes and Cooking Aids: It includes the products sold under Maggi, such as instant noodles, ready-to-mix soup, and ketchup.
2. Milk Products and Nutrition: It includes all the dairy products and health drinks like Milo, Crelac, etc.
3. Confectionary: This category includes KitKat, Munch, and Milkybar.
4. Beverages: It includes ready-to-consume drinks and Nescafe coffee.

The following is the contribution to revenue of all four categories from January to December 2022.

Nestle has recently made a foray into the pet food business by acquiring Purina Petcare India Pvt. Ltd. Under Accounting Standard 108 on “Operating Segments,” the company reports all its revenue from operations within a single segment, namely “Food.”

Key Management Personnel

• Mr. Suresh Narayan has been the Chairman and Managing Director of Nestle India since 1 August 2015. Before joining Nestle India, he was Chairman and Managing Director of Nestle Philippines. Mr. Narayan joined the Nestle Group in 1999 as Executive Vice President for Sales in India. He is an Economics graduate from Delhi School of Economics and has participated in the leadership programs of the London Business School.
• Ms. Svetlana Boldina is the Executive Director- Finance & Control and CFO. She was appointed CFO on 1st March 2023 for five years. Ms. Boldina is a Russian national with an Engineering degree from Moscow Telecommunication University and an MBA in Accounting and Finance Technology from the Russian Academics of Economics. She has been with Nestle for more than 25 years and served in many geographies.
• Mr. Satish Srinivasan is the Executive Director of Technical and has substantial experience around different markets and zones. He is responsible for technical areas of the company, including all existing and future locations of factories. Mr. Satish joined Nestle in 1993 and has worked worldwide on various assignments.
• Mr. Anurag Patnaik is the Head of Human Resources at Nestle India. He joined the company as a Management Trainee in June 2005. Mr Patnaik has a B.Tech from Biju Patnaik University of Technology, Orissa, and a PM & IR, Human Resource from XLRI Jamshedpur.

Shareholding Pattern

Nestle India Financials

Nestle India has a fiscal year that runs from January to December.

Revenue

In 2022, Nestle’s total revenue from operations grew by 14.6% to 16,897 in 2022 from 14,740 in 2021. For the six months ending on 30th June 2023, the company’s revenue from operations grew by 18% to ₹9,489 crore compared to ₹8,038.3 crores during the same period the previous year.

Profit from Operations

In 2022, the company’s operating profit rose by 4.1% year-on-year to ₹3370 crores from ₹3230 crores in 2021. However, the profit percentage from operations to sales fell to 20% in 2022 from 22% in 2021.

Net Profit

In 2022, Nestle reported a 12.8% growth in net profit to ₹2,390 crores from ₹2,118.4 crores in 2021. For a six-month period that ended on 30th June 2023, the net profit of the company rose by 30% to ₹1,435 crores compared to ₹1,109 crores during the same period the previous year.

Key Financial Ratios

Current Ratio: At the end of 2022, the current ratio of the company increased to 1.1 times from 1 time at the end of 2021.

Inventory Turnover Ratio: The inventory turnover ratio 2022 declined marginally to 9.5 times from 9.7 times at the end of 2021.

Trade Receivables Turnover Ratio: The company’s trade payable turnover ratio improved by 6% to 93.8 times in 2022 from 88.6 times in 2021.

Trade Payables Turnover Ratio: In 2022, the company’s trade payables turnover ratio increased 6.4 times from 6 times at the end of 2021.

Net Profit Ratio: The net profit margin of the company in 2022 was 14.2%, declining marginally from 14.4% in 2021.

Return on Capital Employed (ROCE): The ROCE of the company in 2022 fell by 16% to 122.4% from 145.2% in 2021.

The debt-to-equity ratio and interest service coverage ratio are irrelevant as the company has negligible debt.

Nestle Share Price Analysis

The shares of Nestle were listed long back in India in around the 1980s and have been a consistent performer in the market. Nestle has done five bonus issues since its listing and recently announced a split in the ratio of 1:10. 100 shares issued at listing has now become 3600 shares.

Announcement	Face Value	Ratio	Number of Shares
Pre-bonus and split share	₹10	–	100
Bonus Issue- 18 July 1983	₹10	3:5	160
Bonus Issue- 18 July 1986	₹10	1:1	320
Bonus Issue- 18 July 1989	₹10	3:5	192
Bonus Issue- 30 September 1993	₹10	1:4	240
Bonus Issue- 23 April 1996	₹10	1:2	360
Share Split- 19th October 2023	₹1	1:10	3600

The company has a consistent track record of paying dividends to its shareholders. It paid ₹200 in 2021, ₹210 in 2022, and ₹242 in 2023 as dividends.

As of 28 October 2023, Nestle share price has given a CAGR return of 12% and 20% in the last three and five years, respectively. Nestle share price at an all-time high level is ₹23,600, which it made on 16th October 2023. The market cap of Nestle India as of 28th October 2023 is ₹2,31,947 crores.

Peer Comparison

Company Name	Nestle India	Hind Unilever	Britannia
Face Value	₹10	₹1	₹1
Share Price (as of 28th October 2023)	₹24,057	₹2482	₹4,514
P/E Ratio  (as of 28th October 2023)	80.2	56.4	51
Market Capitalization	₹2,31,947 crores	₹5,83,180 crores	₹1,08,735 crores
Revenue	₹16,897 crores	₹58,154 crores	₹16,301 crores
Operating Profit Margin (FY23)	20%	21.7%	16.3%
Net Profit Margin (FY23)	14.2%	17.1%	13.5%
ROCE (FY23)	122.4%	101.9%	47.33%
Distribution Network (FY23)	–	9 million retail stores	2.68 million retail stores

Key Highlights

• Nestle India has consistently recorded double-digit sales growth in the range of 10-14% over the last five years, except in 2020, when growth was impacted by COVID-19. Between 2016 and 2022, sales have grown at a CAGR of 10.7% and sales volume at 8.2%. And net profits have grown at a CAGR of 15.6% during the same period.

• The company is opening up its 10th manufacturing in Orissa with an investment of around ₹900 crores.

• Nestle is strengthening its distribution network and following a RURBAN approach by going deeper into smaller cities and towns. In 2022, it added 55,000 villages, totaling 1,65,376 villages. Rural India contributes ~20% to the total sales volume and value.
• Nestle is rapidly expanding its footprint in e-commerce, with the contribution of e-commerce to domestic sales increasing from 0.6% in 2016 to 6.5% in 2022.
• Since 2015, the company has launched 110 new products, accounting for more than 5% of total sales value. Currently, 30 new products are in the pipeline with millet-based products under the Maggi, Nestle a+, and Caregrow brands.
• The out-of-home professionals’ category is witnessing strong growth due to a revamp in strategy, resetting geography, channel, and sales priority. In 2022, the category recorded 39% year-on-year growth. The total number of Maggi and Nescafe branded kiosks at the end of 2022 reached 620

• The company board has approved a change in the financial year to April to March instead of currently following the January to December period. Hence, the company will be reporting 15 months of financial results for the current fiscal.

Brief Industry Overview

• The FMCG sector is the fourth-largest sector of the Indian economy and has a distinctive Indian advantage.
• The Gross Value Added (GVA) in the food processing sector was ₹2.24 lakh crores in 2019-20, contributing 1.69% of the total GVA in the country.
• According to the data shared by the Ministry of Food Processing Industry, the Indian food processing market is estimated to reach $535 billion by 2025, growing at a CAGR of 15.2%. Tier-2 and Tier-2 cities could mirror the similar consumption trend visible in metropolitan areas by consuming more processed foods in the coming years.
• Because of its enormous impact on the Indian economy, the food processing industry is supported by several government initiatives. For food products, the government has proposed a production-linked incentive scheme. It is expected to allow for an increase in food processing capacity of nearly ₹30,000 crore.
• The government has permitted 100% FDI into the food processing sector under the automatic route, further brightening the prospects of the Indian FMCG market. The Food Processing Sector received $709.72 million in FDI equity inflows from April 2021 to March 2022. From April 2000 to December 2022, the total FDI equity inflow into the sector was $ 11.79 billion.

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQ

The game-changer for the personal care segment, Mamaearth, has witnessed a slow start to its IPO today. The parent company of Mamaearth, Honasa Consumer, came up with its Rs. 1701 crore IPO on the last day of October, which has been subscribed to only 12%.

Honasa divided the distribution of shares in the IPO as follows

1. Retail Investors – 10%
2. QIB – 75%
3. Non-institutional Investors – 15%

Honasa Consumer Ltd. IPO Subscription Status

Out of the 10% allocated to the retail investors, 30% has been subscribed on day one. However, non-institutional investors didn’t turn up for the IPO, subscribing only 3% of the allocated portfolio on the first day of the Honasa Consumer IPO.

Qualified Institutional Buyers (QIBs) usually don’t turn up on the first day of an IPO, so their limited participation is nothing unusual. This segment received bids for around 1543254 shares out of the 75% of the issue allocated to them.

Honasa Consumer Ltd. IPO Allotment & Listing Date

People who are willing to subscribe to Honasa IPO must take note of these dates.

Basis for Allotment	November 7
Refunds	November 8
Credit of Shares in Demat a/c	November 9
Listing Date	November 10

Here are the details of the Honasa Consumer IPO you need to know

Total issue size	Rs 1701 Crores
Face Value	Rs 10 per share
Price Band	Rs. 308-324
Lot size	46 shares

How do you check Honasa Consumer Ltd. IPO allotment status?

Option 1: On the BSE Website

• Firstly, you have to visit the BSE IPO Allotment page
• In the menu, go to ‘issue type’ and click on ‘equity’.
• Then go to ‘Issue Name’ and click on ‘Honsasa Consumer Ltd.’.
• Now, enter your application number or PAN number.
• Enter the Captcha to verify
• Finally, click on the search button.

Option 2: On Link Intime India Private Limited’s Website (IPO Registrar):

• You can also open Link Intime IPO Status to check the allotment status
• First, you have to select “Honasa Consumer Ltd.” in the dropdown menu section
• Use one of these four to check the allotment status – PAN, Application Number, DPID/Client ID, or Bank Account/IFSC.
• Enter the details of the option selected above
• Click the “Search” button.

When will the basis of allotment for Honasa Consumer Ltd. IPO be finalized?

As intimated by Honasa Consumer, the basis of allotment will be on 7 November 2023, and you can expect your shares to be credited by 9 November. If you are supposed to get a refund, you can expect it by 8 November. As of now, the listing date has been confirmed as 10 November, and the stock will be listed on both NSE and BSE, which is a thing to consider.

FAQ

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Every parent shares the same goal: to save money for their child’s future. A corpus of one crore can give your child a lot of financial security and flexibility, whether for their child’s education, marriage, or any other purpose.

However, saving this massive corpus of one crore will be a challenge. Particularly when the effects of inflation and increased costs are weakening the roots of your ambitious tree. Regardless of the obstacles, you must save money for your child’s future. You cannot give up.

Now that we’ve set our sights on our goal, an important question arises:  How to save 1 crore in 20 years? Well, don’t get bogged down. We will cover every possible question in this article to keep you from the arduous process of calculating yourself.  For example, what are the investment options and methods to use? What amount should you save each month, and how can you improve your savings over time? We will also share examples and calculations to assist you better grasp the process.

So, if you want to save money and put up a 1 crore corpus, pay close attention to this article.

Why saving 1 crore for your child’s future is important?

Saving 1 crore for your child’s future is not just a number; it is a vision. A vision of providing your child with the best possible opportunities and experiences in life. A vision of securing your child’s financial well-being and happiness. A vision to save money to fulfill your parental responsibilities and aspirations.

But why 1 crore? Why not save money more or less? Well, 1 crore is not a random figure; it is a realistic estimate of the amount you will need to cover your child’s significant expenses in the future, such as education, marriage, health, and any other contingencies. Let us see how. Let me share with you a chart on the annual cost of education in India has changed from 2007 to 2018, which will make this discussion all the more relevant-

Considering the inflation rate in education of 4.46% (in 2021) to prevail over the next 20 years. Let us assume the average cost of higher education in India today as Rs. 10 Lacs. Then, in the next 20 years, you will need Rs. 24.17 Lacs for the same course. According to GOI, If you want to send your child to a reputed college or university in India, you must save Rs.24.17 lakh by 2043.

We have used the future value formula in the above calculation-

Future value = Present value x (1 + Interest rate) ^ Number of periods

Future value = 10 x (1 + 0.0446) ^ 20 Future value = 10 x (1.0446) ^ 20

Future value = 10 x 2.417 Future value = 24.17

Similarly, applying the same formula to calculate the average cost of marriage in India in the next 20 years. We have considered a CPI (Consumer Price Index) of 5% (as of September 2023) to remain constant over these years. And the average cost of an Indian marriage today is 15 Lacs. According to the government, you must save money to the tune of Rs.39.80 lakh for your child’s marriage by 2043.

Future value = 15 x (1 + 0.05) ^ 20 Future value = 15 x (1.05) ^ 20

 Future value = 15 x 2.653 Future value = 39.80

Explore: Financial Calculators

Apart from these two major expenses, there are other costs that you will have to bear for your child’s future, such as health care, travel, hobbies, emergencies, etc. These costs may vary depending on your lifestyle and preferences, but they can quickly add up to another Rs.20-30 lakh over the next 15 years.

So, if you add up all these expenses, you will get a rough estimate of Rs.80-90 lakh that you will need for your child’s future by 2035. However, this is not the final amount, as you also have to factor in the impact of inflation and taxes on your savings and investments.

Depending on your income bracket and investment type, you may have to pay different rates of taxes on your earnings and returns. If we assume that the tax rates remain constant for the next 15 years, then you will have to pay a certain percentage of your savings and investments as taxes to the government every year.

Therefore, considering the effect of inflation and taxes on your money, you will realize that you will need more than Rs.80-90 lakh for your child’s future by 2035. You will need around Rs.1 crore or more to meet your child’s future needs comfortably.

Hence, saving 1 crore for your child’s future is essential because it is a realistic and achievable goal that can help you provide your child with a bright and secure future.

How to Save 1 Crore: 5 Best investment options

Here, we will go through some of the best investment options to save money to build Rs. 1 Crore-

Stock Investment: To save money over a long term of 20 years, you can invest in stocks or shares of consistent or stable companies. If you are a beginner, the safest bet is to pick companies that you see on a day-to-day basis, like some biscuit brands like Parle G, Britannia, Sunfeast, Cadbury, etc. If the products have reached your home, these companies have deeply impacted a regular household and are considerably more reliable than choosing new companies we know less about. This way, you can benefit from the growth potential and dividends of the businesses.

However, stock investing also involves high risks, as the prices of stocks can fluctuate due to various factors such as market conditions, company performance, news, etc. Therefore, study the fundamentals and technicals of the companies before risking your money.  You must also have a long-term horizon and patience to withstand the market’s ups and downs.

Mutual Funds

To save money, mutual funds also are a good option. Mutual funds expose you to various asset classes, such as equity, debt, gold, etc., without managing them yourself.

Mutual funds are managed by professional fund managers who invest your money in a basket of securities according to the objective and strategy of the fund. You can choose from different types of mutual funds, such as large-cap, mid-cap, small-cap, multi-cap, sectoral, thematic, index, balanced, hybrid, etc., depending on your risk-return profile and goals. You can either make one-time payments or make regular investments through systematic investment plans (SIPs). SIPs allow you to invest a fixed amount every month and benefit from the power of compounding and rupee cost averaging.

EXPLORE OUR SIP CALCULATOR

Commercial Real Estate

Investing in commercial real estate, such as office spaces, shops, warehouses, etc., can give you high returns in rental income and capital appreciation. Commercial real estate is a booming industry these days, drawing the interest and attention of investors worldwide. The returns are generally more stable and profitable than residential real estate, as it has higher occupancy rates, longer lease terms, lower maintenance costs, and better tax benefits.

However, commercial real estate also requires a significant initial investment, which may not be affordable for everyone. Therefore, you can also invest in commercial real estate indirectly through real estate investment trusts (REITs), which are listed entities that own and operate income-generating properties. You can buy and sell REIT units on the stock exchange like shares and earn regular dividends and capital gains.

Bank Fixed Deposits

Traditional bank deposits can help you save money if you are a conservative investor with a limited risk appetite. Bank FDs provide set or guaranteed returns ranging from 6-8% based on the period and the bank/institution you invest in.

Some small finance institutions offer greater interest rates of up to 8-8.5%, but as the phrase goes in the finance sector, more rewards imply higher risk, so choose prudently. FDs, on the other hand, are safe and guaranteed by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to Rs. 5 lakh per depositor per bank, so you can save money by using these financial instruments as well.

Public Provident Fund (PPF)

PPF is a government-backed scheme that offers guaranteed returns. PPF has a fixed maturity of 15 years that can be further extended for 5 years. The ROI is decided by the Government of India and revised every quarter. As an icing on the cake, you also get a tax rebate of up to Rs. 1.5 Lacs on PPFs, which makes it a palatable investment option to save money for the long term.

EXPLORE OUR CAGR CALCULATOR

How to Save 1 Core With These Investment Options?

Formula Used: Future value = Present value x (1 + Interest rate) ^ Number of periods

	Investment in Shares	Mutual Funds	Commercial Real Estate	Fixed Deposits	PPF
ROI	15%	12%	10%	6%	7.1%
Min. investment amount (per month) to save Rs. 1 crore in 20 years	Rs. 13,492/-	Rs. 16,760/-	Rs. 20,462/-	Rs. 33,214/-	Rs. 30,544/-
Investment Amount	Rs. 32.38 Lacs	Rs. 40.22 Lacs	Rs. 49.11 Lacs	Rs. 79.71 Lacs	Rs. 73.31` Lacs
Interest amount	Rs. 67.62 Lacs	Rs. 59.78 Lacs	Rs. 50.89 Lacs	Rs. 20.29 Lacs	Rs. 26.69 Lacs

Key Takeaways

To save money for your child’s future is a noble and achievable goal that can give you peace of mind and your child a bright and secure future. However, it demands meticulous planning, consistent saving, and intelligent investing.

 You must consider your income, expenses, inflation, taxes, and returns and choose the best investment options and strategies that suit your risk-return profile and time horizon.

You must also monitor and review your progress regularly and make necessary adjustments to stay on track. If you go through these options given in this article, your question “How to Save 1 crore?” will be aptly answered.

Investments are also like your plants that bear beautiful fruits and flowers if water regularly. So, tips to save money would be to save regularly and be patient. Regular investment gives you the magical power of compounding, and patience helps you stride through rough market situations. Don’t underrate the importance of starting early, it always gets rewarded.

ALSO READ:

How to invest money like a pro?

Benefits of long-term investing

How to make passive income?

FAQs

If you follow the stock market regularly or business-related news, you will often find companies offering bonus shares. For instance, Sonata Software recommended a 1:1 bonus yesterday after its growth in Q2FY24. So why does a company offer bonus shares to its shareholders?

What is a Bonus Issue?

As the name suggests, Bonus shares are shares that a company offers its shareholders at no cost. Often, the bonus issue of shares is used as an alternative to dividends to distribute company profits amongst its shareholders.

If you take the example of Sonata Software, a 1:1 bonus issue means that for every 1 share held by the shareholders, they will get an additional share of the company.

Suppose you hold 500 shares of Sonata Software; you will get an additional 500, and your total holding will become 1000 shares in the company. However, there is a catch.

Even though the number of shares will increase in the shareholder’s portfolio, the investment value will remain the same. It is because the price of each share drops when the number of shares outstanding increases. Taking a cue from the above example of Sonata Software,

The price of each share before the bonus issue, let’s say Rs. 1000.

Therefore, the total investment value before getting bonus shares is Rs. 500*1000 = Rs.500000.

Now, once the bonus shares are issued, the price of each share will = Rs. (500000/1000) = Rs. 500

However, the value will remain the same as your investments = 1000 * Rs. 500 = Rs. 500000

This is why when a company issues bonus stocks, the price of its shares dips. The inverse relationship between share price and bonus issue of shares helps investors buy the stock at a lower price.

Seven Things to Know about Bonus Issue

1. Bonus shares are issued to the existing shareholders of a company. Here comes the ‘Ex-Bonus date,’ which is the date on which the shares of the company trade without the rights of receiving bonus stocks. For instance, Company A has declared a bonus issue, and the Ex-Bonus Date is 1 November 2023. So, anyone who has purchased and holds Company A’s stock until 31 October 2023 will be considered existing shareholders for the bonus issue. If you buy the stock on 1 November 2023, which is the Ex-Bonus Date itself, then you will not be entitled to receive any bonus shares.
2. The Bonus ratio determines how many bonus shares you will receive. The ratio depends on the bonus shares the companies give. For instance, if the bonus ratio is 5:1, then for every share you hold of the particular company, you will receive five additional shares.
3. Often, a company issues bonus shares instead of cash dividends as it serves the purpose of distributing its profits.
4. As the investment value remains the same after the bonus issue, the proportionate ownership of the shareholder also remains the same. For instance, if you held a 1% stake in a company, after a bonus issue of shares, though the number of shares you hold increases, the 1% stake will remain the same, as the market value or investment value will remain the same.
5. As an investor/ shareholder, your voting power increases with bonus issues. However, the best part is that dividend income can increase significantly as dividends are usually paid per share. For example, before the bonus issue of shares, a Rs.10 dividend per share for your 500 shares would have fetched you Rs. 5000, while now, as you have 1000 shares, you can earn Rs. 10000 from it.
6. The liquidity increases as the number of shares trading in the market increases of the bonus issuing company.
7. There are two other dates that you need to know when waiting for the bonus issue are –
   1. Record Date, which is the date on which the company determines the eligible shareholders to receive the bonus shares.
   1. Effective Date is when the bonus shares are credited to the shareholders’ account.

The recent five companies that have declared bonus issues, apart from Sonata Software, are –

Company	Bonus Ratio	Record date	Ex-Bonus Date
Venkatesh Ref	1:1	28-10-2023	27-10-2023
Maruti Interior	1:1	27-10-2023	27-10-2023
Krishana Phosch	1:1	25-10-2023	25-10-2023
Madhya Bharat A	1:1	20-10-2023	20-10-2023
Rudra Global	1:1	18-10-2023	18-10-2023

Thus, the Bonus issue not only helps the company to distribute its profit without paying any cash dividends but also helps in so many other ways. From increasing the liquidity quotient to lowering the share price, which can bring in new investors, increasing the voting rights of the investors and dividend earnings. All these purposes are served without disturbing the investment value or market capitalization.

FAQs

The healthcare sector is one of the largest sectors of the Indian economy. According to NITI Aayog’s 2021 report, this industry has witnessed a remarkable CAGR of 22% since 2016 and is expected to reach a market valuation of $372 billion by 2022. This impressive growth is also mirrored in the stock performances of pharmaceutical companies.

As of September 29, 2023, the Nifty Healthcare Index has given a return of 18.35% over the past year. Sanofi India, one of India’s oldest pharmaceutical companies, has given an impressive return of 24% in the same period.

In this article, we understand Sanofi India and check the historical performance of the Sanofi share price.

Brief Overview of Sanofi India

Sanofi is a French multinational healthcare and pharmaceutical company headquartered in Paris. Sanofi India is the group’s Indian subsidiary, founded in May 1956 as Hoechst Fedco Pharma Private Limited.

Over the years, the company has changed its name multiple times, and in 1994 it was renamed Aventis Pharma Limited. The name change resulted from a global merger between Hoechst AG, Rhone-Poulenc, and Marion Merrell Dow.

In 2004, Aventis Pharma Limited merged with Sanofi to form Sanofi-Aventis. Consequently, it adopted the name Sanofi-Aventis India Limited. Lastly 2011, the company underwent a name change and became Sanofi India Limited. The company is counted among India’s top 4 multinational pharma companies and has over 3,000 employees across India.

Business Overview of Sanofi Limited

Sanofi operates in various segments in India, including pharmaceutical products, vaccines, and consumer healthcare. It has a large-scale manufacturing presence in Goa, and 12 contract manufacturing organizations spread across different parts of India.

The company has a wide range of medicines for treating diabetes, pain care, cardiology, allergy, epilepsy, and thrombosis, and also present in the nutritional health segment. Some popular medicines from the stable of Sanofi include Combiflam for pain care, Cardace for hypertension, Allerga and Avil for controlling allergies, Tragocid in antibiotics, and DePura for Nutritional Health.

Leadership Team

Mr. Rodolfo Horsz is the Managing Director and joined Sanofi in 2017 as General Manager of Consumer Healthcare in Brazil. In a change in leadership, Mr Horsz was appointed the Managing Director of India business in June 2022. Before joining Sanofi, he had stings with multinational companies Procter & Gamble, Pfizer, Louis Vuitton, and Heineken, serving in commercial, marketing, and general manager roles.

Mr. Ramprasad Bhat is the Head of the Foundation, India and Sri Lanka for General Medicines. He has over 25 years of experience and has held several key roles as Director of Strategic Initiatives (South Asia), Senior Director of Business Excellence, Head of Diabetes Business in India, and many more. Before joining Sanofi, Mr. Ram worked with Wockhardt for 11 years heading their specialty business unit. He is a pharmacy graduate and did his MBA from ITM, Mumbai.

Mr. Vaibhav Karandikar was appointed Chief Financial Officer in Sanofi, India, in October 2020. He joined Sanofi in 2007. Mr. Vaibhav is a qualified Chartered Accountant and Company Secretary and has held multiple responsibilities at Sanofi in business controlling, mergers & acquisitions, and accounting. Before joining Sanofi, he was with Sandoz India, Tata Power, and Hindustan Ciba Geigy.

Mr. Gaurav Bhadur joined the company in April 2013 as Senior Director- Human Resources in India and South Asia. He has over 20 years of experience in human resources and has worked for multinational corporations such as Vodafone India, Yahoo India, and Philips. Before joining Sanofi, he was Executive Vice President of Human Resources at First Source Solutions Limited.

Shareholding Pattern

Sanofi, through its 100%  subsidiary Hoechst GmbH holds a stake in Sanofi India.

Financial Overview

Sanofi India operates on a calendar year basis, from January to December.

Revenue

In FY2022, Sanofi India experienced a degrowth of 6.3% in revenue from operations to ₹2,770 crores from ₹2,956.6 crores in FY22. And, for the six months ending on June 30, 2023, the company reported 2.5% growth in revenue to ₹1442.6 crores, up from ₹1406.3 crores in 6MFY23.

In FY22, the company generated 85% of its revenue from the domestic market and the remaining 15% through exports. The country exports its product to more than 60 countries, mainly to the regulated markets.

EBITDA

Over the last five years, the company’s EBITDA has increased at a CAGR of 2%, rising from ₹713.2 crores in FY13 to ₹775.9 crores in FY22. However, in the last year, the company’s EBITDA fell by 7.28%, from ₹836.9 crores in FY21 to ₹775.9 crores in FY22.

Profit After Tax

In FY22, the company’s profit dipped by 34.28% to ₹775.9 crores from ₹836.9 crores in FY21. And, in Q2FY22, the company’s profit increased marginally by 2% to ₹122.9 crores from ₹120.4 crores in Q2FY23.

The financial results of FY21 and FY22 are not comparable. During FY22, Sanofi India completed its divestment in Soframycin and Sofradex business, and the financial reports also include exceptional items.

 Key Financial Ratios

Current Ratio: At the end of 31st December 2022, the company’s current ratio declined to 2.17 times from 2.85 times on 31st December 2021.

Inventory Turnover Ratio: At the end of FY22, the company’s inventory turnover ratio declined by 13.5% to 2.97 times from 3.44 times in FY21.

Operating Profit Margin: The operating profit margin on 31st December 2022 was 24.37%, compared to 23.92% at the end of 31st December 2021.

Net Profit Margin: The net profit margin on 31st December 2022 was 21.84%, compared to 31.16% at the end of 31st December 2021.

Return on Capital Employed (ROCE): At the end of FY22, the ROCE of the company increased to 67.8%, compared to 56.59% at the end of FY21.

Return on Equity (ROE): The ROE of the company at the end of 31st December 2022 declined to 35.45% from 43.47% at the end of 31st December 2021.

Because the company has no debt, the debt-equity ratio and interest service coverage ratio do not apply.

Sanofi Share Price Analysis

The shares of Sanofi India were listed long back in the Indian stock market, initially under the name Hoechst India Limited in around the 1970s. Over the years, the company’s shares have traded under multiple names and are currently traded as Sanofi India in both BSE and NSE. In the last five and ten years, the company’s shares have failed to outperform and have generated 4% and 12% CAGR returns, respectively.

Sanofi India share price hit an all-time high level of ₹9,285 in August 2021. The company has a consistent track record of paying dividends to shareholders. It paid ₹377 in 2023, ₹683 in 2022, and ₹365 in 2021 as dividends to shareholders. As of 10th October 2023, the market cap of Sanofi India is ₹17,041 crores.

Peer Comparison

Company Name	Sanofi India	Pfizer	GSK Pharma
Face Value	₹10	₹10	₹10
Share Price (as of 10th October)	₹7399.50	₹3958.60	₹1547.50
1-yr Performance  (as of 10th October)	26%	-11%	12%
P/E Ratio  (as of 10th October)	30.82	32.54	42.83
Market Capitalization	₹17,041.05 crores	₹18,109.70 crores	₹26,215.58 crores
Revenue	₹2770 crores (2022)	₹2,338 crores	₹3,216 crores
Operating Profit Margin (FY23)	24.37% (2022)	29%	[8] 23.04%
Net Profit Margin (FY23)	21.84% (2022)	26%	[10] 18.79%
ROCE (FY23)	67.8% (2022)	31.74%	[12] 47.77%

Key Highlights

• Sanofi India is present in the therapeutic drug segment, diabetes, cardiology, central nervous system, allergy, multi-vitamins, and supplements

• The company maintains a leadership position in the market for its diabetes portfolio. In the oral anti-diabetes drugs segment, it maintained 5th position.

• Its Allerga and Avil brands are the leaders in the allergy category, accounting for 8% market share.

• Combiflam, its heritage product in the pain care segment, reached sales of ₹200 crores in 2022.

• Some of Sanofi’s products come under the NLEM- National List Essential Medicine category related to drug pricing. It directly impacts its earnings growth.

• Sanofi India depends on the R&D conducted by the Sanofi Group for new product commercialization. The Indian unit doesn’t have direct control over new product launches or have R&D capabilities.
  
  
• The company is demerging its consumer healthcare business, for which it has got approval from the Board. It will create a new entity, Sanofi Consumer Healthcare India Limited (SCHIL), and Sanofi India shareholders will receive 1:1 equity shares of ₹10 each for each equity shares owned. The demerger process is expected to be completed by the second half of 2024.
  
  In June 2023, Sanofi India sold its leading muscle relaxant brand, Myoril, for ₹234 crores to Ahmedabad-based Corona Remedies. Myoril had annual sales of ₹38 crores and was growing at a rate of 13% year-on-year.

Brief Industry Overview

• The Indian pharmaceutical industry is growing at an average rate of ~10%. IQVIA Prognosis Report (2022) projects that the market is expected to grow at a CAGR of ~9.2% between 2021-26 and reach a market size of ₹2,95,100 crores by 2026.

• The Government of India’s flagship program- Ayushman Bharat- Pradhan Mantri Jan Arogya Yojana health insurance scheme is likely to drive access to quality healthcare, affordability, and improve health outcomes.

• Indian generic medicine supplies accounted for ~20% of the worldwide supply by volume. It supplied ~40% of generic demand in the US, and ~25% of all medicine demand in the UK, according to the Indian Brand Equity Foundation’s Pharmaceutical Industry Report 2022.

• India has become the diabetes capital of the world. According to a study by ICMR- the country now has 100 million diabetics and 136 million pre-diabetic individuals needing prevention.

• Hypertension-related ailments are also on the rise. According to a study by WHO, one in four adults in India has hypertension, and only 12% of them have hypertension under control.

FAQ

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

In the world of investments, you may come across many opportunities to create wealth. Amid all the investment options available, one particular option has managed to captivate investors. This option allows you to earn unique returns and associate yourself with the company’s growth. Yes, it is the option to invest in unlisted shares!

As exciting and promising as it sounds, it is essential to understand what an unlisted share is, how it benefits you, and the risks involved with this type of investment. This blog will help you explore the world of unlisted equity shares and understand how to diversify your portfolio with this instrument. 

Understanding Unlisted Shares

Behind the formal stock exchange runs the market of unlisted equity shares. Unlisted shares refer to shares not listed and traded on the stock exchange. These are equities or financial instruments traded over the counter and called over-the-counter (OTC) securities. The shares belong to start-ups or small companies that have not yet complied with the stock exchange listing norms.

These shares are held by a limited number of people or entities, like founders,  promoters, strategic investors, or venture capitalists.

Difference Between Unlisted Shares and Listed Shares 

Shares not listed differ from listed shares on various parameters. Let us look at the crucial differences between the two.

Parameters	Unlisted	Listed
Ownership	A few private investors, such as founders and promoters, own the shares.	The ownership of listed shares lies in the hands of the public, promoters, and other entities.
Liquidity	These shares have low liquidity in contrast to listed shares. They might not always have immediate buyers, which makes it challenging for investors to exit their investments.	Listed shares have the advantage of high liquidity. You can purchase or sell these shares easily during trading hours. So you can get access to funds whenever you need it.
Regulatory Requirement	Unlisted companies have less rigid regulatory requirements. This gives them a flexible operating environment. However, this raises concerns regarding their transparency and governance.	The Securities and Exchange Board of India (SEBI) regulates listed companies. This ensures the market’s integrity and protects investors.
Investment Process	The investment process is straightforward. However, unlike listed shares, unlisted equity shares settle immediately.	While the investment process in a listed company is simple, it typically takes around trading +2 (T+2) days for the shares to settle.
Tax Implication	After indexation, the applicable tax slab rates are – Short-Term Capital Gains (STCG) – max 30%. Long-Term Capital Gains (LTCG) – 20%	Long-Term Capital Gains (LTCG) – 10% (without indexation) when they exceed ₹1 lakh in the financial year. Short-Term Capital Gains (STCG) – 15%
Prediction on Returns	The return predictability on unlisted shares is relatively low.	The return predictability on listed shares is relatively high.
Market Volatility	Stock market price fluctuations do not impact these shares. Investors seeking long-term growth find these shares appealing due to their lower short-term volatility.	Price fluctuations in the stock market, economic conditions, geopolitical events, and company-specific news actively influence the stock prices of listed companies.
Transparency	In contrast to listed companies, unlisted companies offer very limited information. You may have to rely on private sources or conduct research to evaluate the company’s true potential.	Strict regulatory requirements govern listed companies. This transparency ensures you obtain all the information regarding the companies’ performance, financial health, and governance practices.

After understanding the differences between listed and unlisted equity shares, the next step is looking at how investing in these shares can benefit you.

Benefits of Investing in Unlisted Shares

As an investor, you can benefit from investing in unlisted equity shares in the following ways:

1. Potential high returns: Investing in unlisted equity shares of promising start-ups can give you higher returns in the future.
2. Low valuations: You can purchase these shares early at lower valuations.
3. Diversification: By including these shares in your portfolio, you can diversify your investments and minimize the risk.
4. Access to companies with potential: Buying these shares allows you to invest in and benefit from some promising start-ups and businesses.
5. Pre-IPO opportunities: You can participate in Initial Public Offerings (IPOs) by purchasing these shares. Companies planning to go public usually offer pre-IPO shares to certain investors. This includes investors who have bought unlisted shares. If the IPO succeeds, you might be able to exit at a potentially higher valuation.

Risks of Investing in Unlisted Shares

Unlisted equity shares, though attractive and appealing, come with a few risks. Before investing, knowing the benefits and risks associated with these shares is crucial.

Listed below are a few of the risks:

1. No transparency: In an unlisted public company, you can access most of the information only at the end of the fiscal year. This limited information makes evaluating the company and the share price tough.
2. Not regulated: SEBI does not govern unlisted companies. Lack of regulations could increase the chances of fraudulent activities. This leads to a faulty valuation of the company as well.
3. Restricted liquidity: These shares cannot be easily sold; generally, they require completion of the holding period. The sale takes place when there are buyers or when there is an IPO.

Factors to Consider While Investing in Unlisted Stocks

When you purchase unlisted or pre-IPO shares, you can earn potentially higher returns than you can make from buying and selling listed shares. However, as discussed, this investment involves a considerable amount of risk in terms of transparency and regulations. There are a few factors that you must bear in mind when you decide to invest in such shares.

1. Performance: Before investing in any company, you must research and analyze the company’s financial statements. This provides an accurate picture of the revenue stream, the revenue generated, the profits, and the cash inflows. Since most of these firms are start-ups, research the management’s track record of success. This helps you understand the company’s current situation and its potential for future growth.
2. Valuation: You must research the company’s valuation. Valuation is the price you will pay for a particular company’s share. Conducting research helps you determine if you are dealing with an undervalued or overvalued company. Investing in an undervalued company is a fantastic opportunity because the share price may be lower than the company’s actual value.
3. Investment timeframe: These shares lack liquidity, i.e., you cannot buy or sell these shares quickly. This means, as an investor, you have to hold these shares for a long duration. Before investing in the shares of an unlisted public company, analyze your financial situation and be sure that you do not need liquid funds immediately.
4. Risk appetite: Investing in unlisted or pre-IPO shares involves risk. As an investor, assess your risk appetite and ensure you are ready to take the risk.
5. Lock-in period: If you choose to invest in pre-IPO shares, remember they come with a lock-in period. You cannot sell these shares for a set period following the IPO. If you invest in these shares, ensure you do not need funds shortly, as the lock-in period prevents you from withdrawing your funds.

Different Ways to Invest in Unlisted Stocks

You can invest in unlisted or pre-IPO shares in either of the following ways:

1. Purchase them directly from the promoters of the company
2. Purchase them from the employees of the company
3. Purchase them via trustworthy intermediaries
4. Participate in angel investing
5. Invest in venture capital funds that invest in unlisted or pre-IPO shares

Conclusion

Unlisted shares are an unchartered territory and a hidden gem in the world of investments. They not only give you access to some promising start-ups but allow you to earn potentially high returns on your investment. Though an attractive investment option that also helps in portfolio diversification, it is important to weigh the pros and cons before investing.

Additionally, you must assess your risk appetite and financial requirements before you take the leap of faith. So, whether you are an experienced investor or a beginner, remember that calculated risk and informed decision-making are essential to a profitable investment.

Know more about:
IPOs | Current IPOs | Upcoming IPOs | Listed IPOs | Closed IPOs | IPO Performers

FAQ

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

One of the seventh highest-priced Indian stocks, Nestle India, recently made headlines by announcing its first-ever stock split at a 1:10 ratio. This news comes as the company reported a whopping 37% increase in net profit for the quarter ending on September 30, 2023, as opposed to the trend set by other frontline companies that have reported weaker second-quarter results. 

But what does the Nestle India stock split mean for you? Let’s find out. 

Splitting the stock into a 1:10 ratio

The Nestle board’s approval for the stock split means that each share worth Rs 10 will be divided into ten equity shares, each having a face value of Re 1.  It means that the number of outstanding shares will increase, but the value of each share will be one-tenth of its previous value. 

As of the announcement, the share price (Rs. 24,389 today) and after the split could be Rs. 2412.2. However, note that this change will not affect the company’s market capitalization solely due to the stock split. 

Changes to Nestle India’s issued post-stock split

Changes to Nestle India’s issued post-stock split
No. of shares pre-stock split	No. of shares post-stock split	Face value pre-stock split	Face value post-stock split
9.64 crores	96.42 crores	Rs 10	Re. 1

Nestle India declares dividends for shareholders

Nestle India has also shared good news for its shareholders by declaring a second interim dividend of Rs 140 per share. This dividend, amounting to Rs 1,349.82 crore, will be paid starting November 16. This second interim dividend follows the company’s announcement of its first interim dividend of Rs 27 per share earlier in the year.

Solid financial performance is one of the top reasons for the Nestle India stock split.

Nestle India – Total Average revenue in the past 7 years
No. of years	Avg Revenue in (Rs)
1	16,997.96 Cr
3	15,107.79 Cr
5	13,898.07 Cr
7	12,721.43 Cr

For the September 30, 2023 quarter, Nestle India reported a notable 37.28% increase in net profit, reaching Rs 908.08 crore compared to Rs 661.46 crore during the same period the previous year. Sales during this quarter surpassed the Rs 5,000 crore mark, reaching Rs 5,009.52 crore, marking a 9.43% rise from the same period in the previous year. 

Nestle India’s Chairman and Managing Director, Suresh Narayanan, attributed the company’s growth to critical investments in brand equity and strong market penetration in small towns and villages. Key brands such as KitKat, Nescafe Classic, Nescafe Sunrise, Munch, and Milkmaid continued to ace the performance trend.

The company’s focus on rural penetration, innovation, premiumization, and entry into new categories like Purina Pet Care and Gerber’s for toddlers has contributed to its resilient performance.

Nestle India’s Stock Performance

What do analysts have to say about the Nestle India stock?

Analysts at Axis Securities talk positively about Nestle India’s consistent performance, citing various factors contributing to the company’s success. These include efforts toward rural penetration, market share gains, innovation, premiumization, and entry into new product categories.

Frequently asked questions

The recently popular renewable power company Suzlon Energy, based in Pune, India, has seen an exponential increase in its share price, crossing the INR 30 mark for the first time since April 2015.

In the last year, the stock has grown by 315%, resulting in a market capitalization of over ₹42,000 crore. Impressive, right? The question is, what led the stock to climb the ladder? And what does the future have in store for this stock?

Here’s a glimpse of how Suzlon Energy has been performing

Suzlon Energy’s share price was just ₹7.45 a year ago. Today, it has skyrocketed to ₹30, marking its highest level in nearly seven years. 

The stock has been on an upward trajectory since April, consistently delivering positive returns, with May and June standing out with impressive gains of 41.6% and 30%, respectively.

Let’s explore the factors driving Suzlon Energy’s recent success.

#1. The growing renewable energy sector

Of late, renewable energy stocks, including Suzlon Energy, have gained popularity among investors due to strong order wins and growing demand driven by government initiatives promoting clean energy.

India is committed to achieving ambitious renewable energy targets, including 500 GW of non-fossil fuel capacity by 2030 and 100 GW of wind energy installations. These goals provide a conducive environment for companies like Suzlon Energy, a growing player in the renewable energy sector.

#2. Business acquisition

Another factor contributing to Suzlon Energy’s stock price growth is the successful acquisition of multiple wind power projects and improved financial performance. This includes a 29.4 MW wind project for BrightNight and a 201.6 MW order from O2 Power Private Limited.

The company’s order book has grown substantially, providing revenue visibility for the next two years. Additionally, the company has also garnered support from brokerage firms, thanks to its strong order book and financial turnaround.

#3. When the debt is low, profits are higher

Suzlon Energy adopted a debt reduction strategy, replacing multiple lenders with two new ones and converting debt instruments. This move, combined with a recent qualified institutional placement (QIP), has led the company to become debt-free, further boosting investor confidence.

#4. Market outlook

Financial and business analysts expect substantial revenue growth and improved margins in the coming years, projecting a soar profit after tax for FY24 and FY25. JM Financial also highlights the company’s favorable positioning in the wind sector, benefiting from debt reduction and enhanced financial stability.

As the company works toward becoming debt-free and continues to secure new projects, its growth prospects appear favorable. Investors are taking notice of Suzlon Energy’s growth in the renewable energy market, making it a stock worth watching in the coming years.

Frequently asked questions

It wasn’t long before the Adani Group was in the spotlight earlier this year. A report by Hindenburg resulted in a massive dip in Adani Group’s stock prices, wiping out billions in market value. But what followed was an incredibly amazing comeback that saw several Adani Group companies recover and grow.

In this piece, we’ll explore the stock growth of the Adani Group and the factors contributing to their growth journey. Since early 2023, Adani Group companies have experienced an impressive revival.

Stock	% Growth from January low 2023 to July 2023
Adani Enterprises	146%
Adani Ports & SEZ	90%
Adani Green Energy	132%
Adani Transmission	28%
Adani Wilmar	26%
Adani Total Gas	6.40%
Adani Power	155%

• Adani Enterprises: Shares have surged by approximately 146% from their 52-week lows.
• Adani Ports & SEZ: Shares rallied 90% from their respective 52-week lows.
• Adani Green Energy: An astounding 132% increase in stock price.
• Adani Transmission: A notable 28% rise from their lows.
• Adani Wilmar: Gained 26% from their lowest point post the Hindenburg report.

• Adani Power: An impressive 155% gain, delivering solid returns.
• Adani Total Gas: Though slower in recovery, it still registered a 6.4% increase from its lows.

Four Reasons Behind Adani’s Growth

#1. Strong business performance: Adani Group’s diverse portfolio of businesses, spanning ports, power, and green energy, has performed exceptionally well in recent months. This has resulted in a sharp increase in profitability by up to 83%, which has attracted investors and boosted stock prices. The group firm has also raised its stake in two listed companies.

#2. Technical factors: Technical analysts have noted that Adani Group stocks are back with strong momentum and support levels. This indicates continuous growth.

#3. Market sentiment: Positive market sentiment has also affected Adani’s stock growth. Investors are constantly looking for investment opportunities in high-growth sectors. Adani Group’s strong business fundamentals and attractive valuation make it a compelling choice for investors.

#4. Improved financials: Adani Group companies have reported impressive financial results with healthy revenue growth and profitability margins in recent quarters. This has further strengthened investor confidence and boosted stock prices. For example, Adani Power reported an 83.25% rise in net profit in the last quarter.

Vaishali Parekh, AVP, Prabhudas Lilladher: “Adani Power has also rallied decently, finding resistance near the Rs 409 level and has slipped to some extent with near-term support at Rs 360 levels. The trend is strong and expects further rise after a short consolidation.”

Adani Group’s stock growth seems to have defied negative publicity. It is driven by solid business performance, technical factors, improved financials, and positive market sentiment.

Analysts’ insights provide valuable guidance for investors, who should conduct their research and consult with financial experts before making informed decisions.

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Frequently asked questions

 Introduction

In today’s world, pursuing economic freedom is a universal goal. Like men, women are looking for ways to take control of their financial future and have a stable and successful life. This article will delve into the essential steps women can take to achieve financial independence.

Whether you’re an entrepreneur, a stay-at-home mom, or someone, these strategies can empower you to make better financial decisions and work toward your goals.

Below are the various steps to achieve complete financial independence

Method	Description	Steps to Achieve
Employment	Secure a job or career in a chosen field	1. Identify career goals
		2. Build relevant skills
		3. Network and apply for jobs
Entrepreneurship	Start and run a business	1. Identify a business idea
		2. Create a business plan
		3. Secure funding if needed
Investments	Invest in stocks, real estate, or other assets	1. Learn about investment options
		2. Set up an investment account
		3. Diversify investments
Passive Income	Generate income streams from investments or assets	1. Acquire income-generating assets
		2. Create passive income strategies
Savings	Regularly save a portion of income	1. Set a savings goal
		2. Create a budget
		3. Automate savings
Education	Invest in education and skill development	1. Identify desired skills
		2. Enroll in courses or programs
		3. Continuously upgrade skills
Financial Literacy	Develop knowledge about personal finance	1. Read financial books/articles
		2. Attend financial workshops
		3. Create a financial plan
Freelancing	Offer freelance services in a specific niche	1. Identify freelance skills
		2. Create an online portfolio
		3. Market services

1. Set clear financial goals

Before embarking on the journey to financial independence, women need to set clear and specific financial goals. These goals vary widely, from saving for retirement, buying a home, earning an education, or starting a business. A clear strategy for your financial future will give you direction and motivation.

2. Make a budget

A well-planned monetary policy is the foundation for economic freedom. Women need to take care of their money, spending, and savings. This budget allows you to see areas where you can cut back on unnecessary expenses and allocate more money toward your financial goals.

3. Invest wisely

Investments are one of the most effective ways to build wealth over the long term. Women must educate themselves on investment strategies, including stocks, bonds, mutual funds, real estate, and retirement accounts. Diversifying your investments can help reduce risks and increase long-term returns.

4. Create an emergency fund

Economic freedom requires a safety net. Women should aim to build an emergency fund equivalent to at least six months of living expenses. This fund provides financial protection during unexpected medical emergencies or job loss.

5. Increase revenue

Women can seek opportunities to increase their income to accelerate their journey to financial independence. This may include pursuing higher-paying job opportunities, initiating side leave, or investing in skills that can lead to career advancement.

6. Educate yourself about finances

 Financial literacy is key to achieving financial independence. Women should take the time to educate themselves on personal finances, including things like budgeting, investing, taxes, retirement planning, and more. There are many online resources, courses, and books to improve women’s financial literacy.

7. To pay the debt

High-interest debt can be a major barrier to financial freedom. Women should prioritize paying off credit card debt and other high-interest debts as soon as possible. Once these debts are eliminated, the money saved on interest payments can be redirected towards investments and savings.

8. Planning for retirement

Retirement planning is essential for women at every stage of life. Whether you’re just starting your career or approaching retirement age, making regular contributions to retirement accounts like NPS is important. Take advantage of employer-sponsored retirement plans and consider consulting a financial advisor for a personalized retirement plan.

9. Network and seek guidance

Networking and mentoring can be powerful tools for women seeking financial independence. Connect with individuals who have achieved financial success and ask for their guidance. Joining professional organizations or online communities can provide valuable insights and opportunities.

10. Protect your property

 Insurance plays a pivotal role in protecting your financial independence. Make sure you have the right health, life, and disability insurance. In addition, consider creating a will and estate plan to protect your assets and help your loved ones. The above details highlight the ways in which women should control their finances and plan for the future.

Conclusion:

Financial independence is within reach for women willing to take proactive steps to secure their financial future. By prioritizing financial education, setting clear goals, building emergency savings, investing wisely, establishing multiple income streams, managing debt effectively, and planning for retirement, women can achieve economic empowerment and control over their financial destiny. Don’t let gender stereotypes or societal norms hold you back—take charge of your financial journey today.

FAQ

Who says that women and investing don’t pair well? Meet our new-age top female investors in India who are breaking all myths and shattering stereotypes. The Covid-19 pandemic has dynamically changed the rules of the investing game.

With the financial agony that Covid-19 brought into our lives, women needed to generate alternative income sources. Factors like growing economic instability, rising prices,  layoffs, and sinking deposit interest rates stimulated a new breed of female investors in India. Even working from home acted in their favor.

The stock market, which male investors have traditionally dominated, has begun to attract more female investors in India.  Women started investing their savings towards financial assets rather than physical assets such as cash and gold. This is supported by numbers from one of the largest brokerage firms, Zerodha.

Data suggests that in 2021, the number of female investors registered on their platform increased from 3.5 Lacs in 2020 to 7.5 Lacs in 2021, accounting for nearly 16% of its total members. Source: Forbes India

In this article, we will look at some of the top female investors in India. These financial masterminds are changing the investment game and inspiring others to follow in their footsteps. Apart from making money, these smart women investors are making a mark in the investing world with their skills, knowledge, and intuition.

Let’s start our tour to explore the top female investors in India.

The Top Women Investors in India

She is the founder and CEO of Saha Fund, India’s first-of-its-kind venture capital fund for promoting women’s talent.  This 37-year-old shepreneur is also the founder and managing director of StrongHer.

StrongHer Ventures is a platform that aims to create a global billion-dollar venture fund for women. She has also co-invested in multiple startups across Singapore, the U.K., and the U.S. apart from India. [ Source: Economic Times ]

She is the founder and managing director of Kalaari Capital, one of India’s leading early-stage venture capital firms. Thanks to the “Queen of Indian VC,” Kalari Capital ranks in the top quartile in the world, generating steady returns of 3x to 5x to its investors. Vani Kola has been a trendsetter in equity investing, backing companies such as Flipkart, Myntra, Dream11, and Curefit.

Her rise from a conservative middle-class family to a celebrated entrepreneur demonstrates her dedication, inventiveness, and endurance. Her remarkable story should inspire more female investors in India to embrace the complex yet rewarding investment realm. [Source: Forbes India]

Padmaja Ruparel is one of the top female investors in India that we look up to. She is the co-founder and president of Indian Angel Network (IAN), India’s largest and oldest network of angel investors. She is also the founding partner of IAN Fund, a seed and early-stage venture fund that invests in sectors like health care, education, fintech, and agritech.

She has transitioned from being a housewife to handling corporate responsibilities to being an eminent angel investor. IAN boasts of establishing a thriving startup ecosystem in India by assisting over 135 firms in 17 countries, with an internal rate of return of about 32%. Moreover, the incredibly low failure rate of roughly 15% is impressive. [Source: Forbes India Magazine ]

Renuka Ramnath has many accomplishments, including being a Harvard graduate, founding Multiples Alternate Asset Management, and becoming the first female chairwoman of the Indian Private Equity and Venture Capital Association (IVCA).

Multiples Alternate Asset Management, which she formed, is a private equity firm that has successfully navigated market turmoil caused by the epidemic to generate steady returns for its clients. She has also served as MD and CEO of ICICI Ventures, a specialty alternative asset manager that has risen to the ranks of India’s leading venture capital funds.

With over 30 years of experience in the Indian capital markets, she has invested in companies like PVR Cinemas and Arvind Fashions. She is on the list of top female investors in India. [Source: Fortune India]

Lakshmi Iyer, chief investment officer (CIO) at Kotak Mahindra Asset Management Co. Ltd, has been awarded one of Asia’s top 25 most significant women in asset management. Lakshmi has had a strange obsession with numbers from childhood, which she attributes to her rise to the list of top female investors in India.

When fintech was a new term to many, Lakshmi Iyer started tracking bonds and found her love in decoding the mystic relationship between finance and technology. Lakshmi Iyer has over 30 years of experience in venture investing, marketing, and financial services.

She is known for her depth and width of knowledge of the equity markets and her DIY approach to investing. She has a unique approach to investing, which focuses on the issuer’s quality, the instrument’s liquidity, and the security’s yield. She is one of the role models for aspiring female investors in India. Source: CIO Journeys, Bloomberg ]

Though we have several well-known female investors in India, the participation of women investors remains low.

Reasons for Low Participation Of Female Investors in India

Let us first figure out what prevents women from engaging in the investing scene-

Fear of being judged: Investing has long been a male niche, particularly in equity. Female stock investors in India face a lack of support from peers and family. Women are afraid of being judged for every financial decision they make. Mistakes are inevitable in this game, but women are often demotivated by every bad choice they make. They are not rewarded or motivated for the victories they achieve.

Gender Gap in Financial Inclusion: In India, women’s financial literacy is at an all-time low, though the numbers have improved. According to a Humanity Welfare Council poll, about 62% of women in India lack access to basic financial services. Furthermore, about 80% of Indian women lack financial awareness. So, a lack of financial and tech literacy widens the gender gap between male and female investors in India.

Pressure to Manage Multiple Roles: Female investors in India struggle to juggle their domestic and professional responsibilities. Women have to manage multiple roles in their personal lives, such as being a mother, a wife, a daughter, and a caregiver. On their professional front, challenges are no less. This adds to stress and exhaustion for women at times. Especially if they do not get enough support from their families.

Female Investors in India vs Male Investors: Difference in Investing Approach

Approach	Female Investors	Male Investors
Risk appetite	Women are behaviorally more risk-averse and conservative than male investors. Female investors in India prefer investing in safer and less volatile asset classes.	Male investors tend to be more risk-seeking and aggressive, opting for higher-risk and higher-return investment options.
Investment goals	Female investors in India tend to have more long-term and specific investment goals, such as retirement, children’s education, or home purchase.	Male investors tend to have more short-term investment goals, such as wealth creation or beating the market rather than generating stable returns.
Investment behaviour	Female investors in India tend to be more patient and disciplined in their investment decisions, sticking to their plans and avoiding frequent trading.	Male investors tend to be more impulsive and overconfident in their investment decisions, chasing trends and trading more often.

Top Female Investors in India Share These Three Qualities

1. Discipline and Patience – These women investors are more patient and rigorous in their approach than men. They take less risky steps and calmly hold on to their investment for the long term, unaffected by short-term gains or losses.
2. Cautious Investors– In India, women investors prioritize capital preservation above capital appreciation. To do this, they invest in less risky or short-term gains but more stable investments that provide consistent returns over longer periods.
3. Willing to Learn from Mistakes – These acclaimed women investors in India are unwavering and willing to learn from their failures and accomplishments. No investor can claim to have never lost money. Women investors prefer seeking advice from their peers or experts rather than blindly following market trends.

Key Takeaways

In this article, we learned how female investors in India are playing a vital role in shaping the future of the investing and startup ecosystem. They are making smart and profitable investments and positively impacting society by supporting women-led startups and inspiring other female stock market investors in India.

According to a recent survey, women between 18 and 25 are three times more likely than males to invest in a high-risk, high-return asset class such as equities rather than traditional options such as fixed deposits.

Padmaja Ruparel, Ankita Vasishta, Nita Mirchandani, and Vaani Kola are among the top female investors in India, having sponsored some of the country’s most successful entrepreneurs and demonstrating their decision-making acumen over time. There is a need to create a more inclusive and diverse environment for female investors in India to boost economic growth and achieve financial gender equality. [Source: Inc42]

FAQs

In a remarkable turnaround, Paytm, India’s leading fintech giant, made a successful comeback in its stock value, hitting a 52-week high with an astonishing 82% surge in 2023. This dramatic recovery comes after a tumultuous period in 2022 when Paytm’s shares plummeted by almost 70%. 

The global slump in tech stocks, a complex regulatory environment for fintech companies in India, increased competition, and the company’s mounting expenses posed a challenge. The expiry of the lock-in period for Paytm’s investors triggered substantial selling. Notably, Softbank, one of the major early backers, reduced its stake, leading to a domino effect of other investors offloading Paytm shares, adding to its woes.

A New Chapter

The turning point came when Paytm reported a decrease in year-on-year losses, starting in Q3 FY23. Furthermore, the growth in Paytm’s lending business played a significant role in boosting its stock price.

Zomato’s announcement of its maiden profitable quarter in Q1 FY24 bolstered the broader sentiment toward new-age tech stocks. This, in turn, contributed to Paytm’s recovery. As a testament to its resurgence, Paytm’s shares hit a new 52-week high in three consecutive days in 2023.

Paytm Stock Performance 2022-23

6 Reasons for the Rise in Paytm Share Price

Paytm’s Founder and CEO, Vijay Shekhar Sharma, highlighted the company’s significant achievements and commitment to sustainable growth.

1. Capitalizing on Digital & Credit Payments Opportunity

India’s massive potential for newer payment and credit disbursement solutions allowed Paytm to capitalize on this opportunity, generating revenue and tapping into attractive profit pools. As outlined in its earnings presentation, the company focused on innovation and growth, which helped significantly.

2. The Surge in Digital Payments in India

India is experiencing a digital payment revolution, and Paytm believes significant untapped growth potential exists. This includes the growth of the Unified Payments Interface (UPI), card payments, and EMI-led transactions, which are yet to reach the masses. The National Payments Corporation of India (NPCI) has driven UPI adoption, focusing on superior user experience, interoperability, and security.

Paytm established itself as a leading provider of UPI solutions. Moreover, they launched a new feature called UPI LITE. This feature enables users to make instant, small-value UPI payments of ₹200 or less, enhancing the user experience and simplifying bank statements.

3. Introduction of RuPay Credit Card on UPI

Paytm made it even more convenient for customers and merchants to make payments by introducing the RuPay Credit Card on UPI. This new feature lets customers enjoy the benefits of using credit cards, while merchants benefit from the increased business by accepting credit cards using assets such as QR Codes.

4. Massive Growth Potential

Paytm has set its sights on a future where India could potentially have 100 million merchant entities and over 500 million payment customers. The payment and other services subscriptions market is expected to grow substantially, further boosting Paytm’s growth prospects.

5. Foray Into The Lending Sector

Paytm aims to expand its presence in the lending sector by partnering with major Non-Banking Financial Companies (NBFCs) and banks to fully leverage the potential of small digital credit on the Paytm platform. In Q3 FY 2023, the value of loans disbursed by Paytm’s financial institution partners through its platform surged to ₹9,958 crore, an impressive growth of 357% year-on-year and 36% quarter-on-quarter.

6. Committed to RBI Compliance and Operational Excellence

Paytm is committed to working closely with the Reserve Bank of India (RBI), focusing on Paytm Payments Bank Ltd and Paytm Payments Services Ltd. The company will prioritize operational risk management and compliance for sustained success.

What’s Next?

Paytm faces increased competition with the entry of Jio Financial Services. Moreover, the RBI imposed a fine for violating KYC norms. The company could benefit from the growing adoption of digital payments in India, considering the subscription numbers for payment devices and payment volume on its platform are consistently rising.

Despite ongoing competition and regulatory challenges, Paytm’s stock performance reflects its determination and adaptability in the ever-evolving world of finance. Whether Paytm is successful in achieving its goal is yet to be seen.

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