In contrast to the same period last year (Q2FY24), Bajaj Auto's Q2FY25 financial results demonstrate consistent increase across key measures. Here is a brief summary of the figures:
Q2FY25: ₹2,005 crore
Q2FY24: ₹1,836 crore
Estimates: ₹2,228 crore
Despite falling short of the estimated ₹2,228 crore, Bajaj Auto’s net profit rose by 9.2% compared to last year.
Q2FY25: ₹13,127 crore
Q2FY24: ₹10,777 crore
Estimates: ₹13,270 crore
Bajaj Auto achieved a significant 21.8% growth in revenue compared to Q2FY24, though it came slightly below the estimated ₹13,270 crore.
Q2FY25: ₹2,652 crore
Q2FY24: ₹2,133 crore
Estimates: ₹2,704 crore
EBITDA grew by 24.3% year-over-year but was marginally lower than the forecast of ₹2,704 crore.
Q2FY25: 20.2%
Q2FY24: 19.8%
Estimates: 20.4%
The EBITDA margin has shown improvement, increasing to 20.2%, close to the market estimate of 20.4%.
Overall, Bajaj Auto's financial performance in Q2FY25 demonstrates consistent growth in revenue, profitability, and margins compared to the previous year. However, it fell slightly short of analysts' estimates in all categories. This update reflects a robust performance for the company despite minor shortfalls in hitting projected targets.
Source: CNBC
The year 2021 was a remarkable year for India as the country raised more growth post-pandemic. Many companies went public in 2021 which was considered the major breakthrough of IPOs and SME IPO in the Indian stock market history. This year, many upcoming IPOs in 2022 are ready to hit the primary market.
However, there were some cases where IPOs such as Paytm experienced the biggest stock crash. If we talk about the year 2022, many companies are expected to go public as a result many of them have already submitted DRHP to SEBI.
It has been seen that SEBI has shown a lot of flexibility in approving DRHP, however, the companies make delays in launching their IPOs.
Here, we will mention some of the IPOs that will come in April 2022:
LIC IPO was all set to launch in the first month of this year, but somehow it got postponed. The primary reason behind the sudden delay of the LIC IPO is the Russia-Ukraine war.
Now, many sources have confirmed that the LIC IPO will come out on 12 May 2022.
Although a large number of companies are ready to go public, LIC IPO is the one that everyone has an eye on.
Company NameIPO Size (Approx)Expected IPO DateLIC IPO Rs 66000 CroreApril/May 2022National Stock ExchangeRs 10000 CroreApril 2022Oyo RoomsRs 8,430 CroreApril 2022DelhiveryRs 7,460 CroreApril 2022Ola CabsRs 7,300 CroreApril 2022PharmeasyRs 6,250 CroreApril 2022Bajaj EnergyRs 5,450 CroreApril 2022Emcure PharmaceuticalsRs 4,500 CroreApril 2022Go AirlinesRs 3,600 CroreApril 2022BoAt ElectronicsRs 3,500 CroreApril 2022Droom TechnologiesRs 3000 CroreApril 2022Jana Small Finance BankRs 2000 CroreApril/May 2022MobiKwikRs 1900 Crore April/ May 2022Arohan Financial BankRs 1800 CroreApril/ May 2022Northern Arc CapitalRs 1800 CroreApril/ May 2022IxigoRs 1600 CroreApril/ May 2022Utkarsh BankRs 1350 CroreApril/ May 2022Penna CementRs 1,550 CroreApril/ May 2022Fincare Small Finance BankRs 1,330 CroreApril/ May 2022Paradeep PhosphatesRs 1,225 CroreApril/ May 2022Sterlite PowerRs 1,250 CroreApril/ May 2022ESAF Small Finance BankRs 998 CroreApril/ May 2022Hexagon NutritionRs 600 CroreApril/ May 2022Skanray technologiesRs 400 Crore + OFSApril/ May 2022ESDS SoftwareRs 322 Crore + OFSApril/ May 2022
Here, we present a quick snapshot of the upcoming IPOs in India 2022 that will hit the primary market in April 2022
NSE is expecting to hit the primary market in April. This is because the top stock exchange company has received approval from SEBI to launch its IPO. According to SEBI guidelines, NSE cannot launch its IPO on the platform itself, hence NSE is seeking multiple listings on BSE and on other international platforms.
OYO Rooms is considered India’s one of the largest hospitality startups in the area of digital room business. The company submitted its DRHP to SEBI last year. Hence, it is looking forward to launching its IPO in the current month.
With the IPO, the company is planning to raise a capital of Rs 8,430 Crore. Of which, Rs 7000 Crore will be counted at freshly issued shares and the rest is through OFS.
India’s new-age logistics company is planning to launch its IPO of Rs 7,460 Crore. The IPO will come with a fresh issue of Rs 5000 Crore and OFS of Rs 2460 Crore.
India’s largest local cab booking service is planning to go public with an Rs of Rs 7,300 Crore. Since Ola filed for DRHP months ago, the company has decided to hold its pre-planned IPO for the next few months. Ola has selected City bank group, and Kotak Mahindra bank to manage its IPO.
It is an online portal that connects the pharma store and customers together and is considered the largest retailer in the pharma industry. PharmEasy also provides doctor consultations and online prescriptions.
Bajaj energy is a renowned thermal power generating company as it helps manage, develop, manage, and finance many thermal power plants in India. As per the DRHP filed with Bajaj Energy, the company is planning to raise Rs 5,450 Crore through its IPO.
Emcure Pharmaceuticals is a well-known name in the pharmaceutical industry. The company is planning to raise its IPO of Rs 4500 Crore of which Rs 1,100 Crore by way of fresh issue and Rs 3,400 Crore for OFS.
Go Airlines or Go Air is an ultra-low-cost airline based in Mumbai. The company hit the headlines just after it decided to launch its IPO of Rs 3,600 Crores. The public offer will include only a fresh issue of equity shares with a face value of Rs 10 per equity share.
boAt electronics has marked its name in the audio equipment and wearable industry. Its products include headphones, earphones, wireless speakers, wearables etc. The company now has decided to go public with an IPO of Rs 2000 Crore.
The lead managers of boAt IPO are Axis Capital, BofA Securities, Credit Suisse Securities and ICICI Securities.
Droom Technologies is a data science company that facilitates the transaction of automobiles through an online platform. The company has filed its DRHP regarding its IPO of Rs 3000 Crore. Of the total amount, the fresh issue comprises Rs 2000 Crore and Rs 1 Crore is for OFS.
The IPO boom is still on as many companies are seeking expansion and growth. After the 1st pandemic, many of them had gone through heavy losses and hence they are planning to launch an IPO to clear their debt and increase profitability for the organization.
The primary market acts as a boon for investors as they gain huge profits from the IPO release. Beginners also book profit from these IPOs by purchasing a “LOT” but most of them feel nervous as they are new in the stock trading arena.
The lot size plays a significant role in Futures and Options trading. If you need to get a clear understanding of Futures and Options, lot size is the primary concept you need to go through.
In this blog, we will figure out what a lot size is and how different derivative contracts have different lot sizes.
A lot size refers to a fixed quantity of shares one can buy or sell as per the contracts.
If you have been into trading for more than 6 months or more, you may have heard that a company has x number of lot sizes. This simply means that the company has fixed its shares a lot.
The Security and Exchange Board of India decides the lot size of stocks and indices that are traded on NSE and BSE. For instance, Nifty Future has a lot size of 50 which means if someone wants to buy Nifty Futures, he wants to trade in the multiple of 50 as the lot size of Nifty is 50.
Like Nifty Futures, equity futures also have a lot of sizes. For example, Reliance Futures has a lot size of 250. If someone buys a lot of Reliance Futures which are currently trading at Rs 5500, that means the value of Reliance Futures is 250*5500=1,375,000
SEBI is the apex body that decides the lot size of each company that is involved in stock trading. When Futures and Options trading came into existence, it was the regulatory body that had decided the notional value of Rs 2,000,00.
After deciding the notional value, SEBI fixes lot size to a certain number that would value more than 2 Lakh when multiplied by the market value. It was done to save the losses of small investors who try Futures and Options.
When SEBI noticed that more lots were purchased by the retail investors, it revised the lot value to Rs 5 Lakh. New additions were introduced after F&O, which kept the lot value to Rs 7.5 Lakh.
Also, the proposal came in front of SEBI to change the value of lot size to Rs 10 Lakh so that only risk-bearing investors can trade in the F&O.
When SEBI notices any major changes in the value of shares that would make significant divergence with the lot values, the regulator revises the lot sizes.
Let’s understand with an example: XYZ company has a lot size of 1500. The F&O trading price is Rs 555, hence the lot value is Rs 8,32,500.
Suppose the trading price of a share rises up to Rs 1000. As per the fixed lot size, the total value of the lot will become Rs 15 lakh which will be a big divergence from the decided lot value.
By seeing the case, the stock market regulator may take action to revise the lot size to a downward price which would be a better reflection of the lot value.
The reverse case also happens. In these types of cases, the lot size has been revised upward so that it is more compatible with the indicative value.
The primary reason to trade in lots in F&O is standardization. The standardization can be done in several ways. Futures and Options across indices come with 1 month, 2 months, and 3 months tenure.
Many of you have heard the saying “ Don't put all the eggs in one basket”.
This means if a farmer gets stumbled while carrying the egg basket, he could end up in a messy situation as all the eggs present inside the basket become messy which makes the whole basket dirty.
The meaning of the words perfectly said that don't risk all of your money on a single investment.
Diversification protects your investment as it allows you to invest in multiple asset classes which in turn saves you from losses that could happen in one particular sector.
Let’s understand with an example: Everyone knows about the equity crash that happened in 2008-09.
As per the reports, during the 2008-09 period, equities crashed by 39%. Had you invested all the money into equities, you would have probably been into major losses.
In any case, if you had spread all of your investment into different asset classes, such as equity trading, debt, commodity trading etc, you would have been saved from huge losses.
In 2008-09, gold gave outstanding stock trading returns of 24%. The same went for debt. In the next two years, post-2008-09, the equities were seeing a rising mode as it would go up by 24% while other asset classes stopped giving good returns.
Portfolio diversification refers to investing your money across multiple asset classes which not only helps your money grow but helps you mitigate your losses to a greater extent.
In diversification, you owe different stocks from multiple industries, countries, commodities and other investments such as gold, silver, bonds, government instruments, and real estate.
Investing money in various sectors minimizes the permanent loss of capital and the volatility of the overall portfolio.
The primary motive of diversification is to minimize risks. But no one can achieve that by investing in highly safe instruments such as government investment schemes like PPF, Treasury bills, RBI bonds, NSCs etc.
This is because investing all of your money into government schemes will significantly reduce your overall returns. For instance, investing all of your money in NSCs, and PPF debt options won't help you get outstanding returns.
The portfolio should be filled with equity-related instruments, only then you would be able to achieve handsome returns in less time.
For those who believe in government investment schemes, you should remember that most of these schemes have a high tax. Hence, your post-tax return would come out as very low.
Many of you would love to gain good returns over less period of time, that too without taking a risk. This cannot happen in real life. To get ample results from your investments, you need to take a reasonable level of risk.
An ideal portfolio should be one that has more than 5 asset classes.
Here are the tips for getting an ideal portfolio:
Investing in multiple sectors is the best way to build your portfolio. Stocks of multiple carry their own weightage which will increase your portfolio’s value. Also, stocks of different sectors will minify your risks at a certain level.
Suppose, if the stocks of IT keep on falling and other sectors of stocks of crude oil and pharmaceutical companies grow, will eventually balance your portfolio in a much better way.
Don't fill your stocks with one particular sector. It does look tempting to buy many stocks of the well-known giants, but it’s not a complete diversification.
For instance, if a sector gets affected by the economic slowdown, the company's shares would fall.
Many investors suggest putting a small portion of fixed income assets in their portfolios. Fixed income instruments like government bonds, may give fewer returns compared to equities but they will also reduce a portfolio’s risk profile and volatility.
The stock market is full of volatility. In many cases, we have seen where the investors lose a great amount of money by investing heavily in equities. In such cases, people find fixed income instruments a great way of investment as they provide them with easy and secured returns.
ETFs are the best example of fixed income securities.
Investors who want to make a strong portfolio should invest in real estate. It is seen that putting money into real estate not only increases your return but also minimizes your portfolio’s volatility.
Age is an important factor in asset allocation. Investment experts say that young investors need to invest a lot in the equity segment. Investors aged 25 to 35 should have equity allocations of 75% to 80% while people of age more than 35 years should have lower equity allocations.
Investors, especially the young ones, should have a willingness to take a certain risk during their investment journey. This is the time when you can learn a lot of things even from your failures.
Many people are often afraid of the term failure, but the term itself teaches you many lessons in real life.
If you are a beginner but want to earn a lot of wealth from the stock market, there are many things you need to learn. Stock picking is not the easy thing as it seems to be. It requires a lot of stock market research, analysis and most importantly knowing the market volatility.
For generating better returns, you need to put money into the stock market, then only you will get to know how the stock market exactly functions well.
New investors need to understand long term investing. Beginners think that 6 months or 1 year is the best holding period, however, it is not correct. One year of equity holdings will not give you satisfactory returns as there are taxes included in it.
For generating better wealth, you need to hold your equities for at least 5 years.
Many investors think that the more they add stocks to their portfolio, the more will be their wealth. Hence, they keep adding more stocks to their portfolio. Modern portfolio theory says that investors should keep 10-15 stocks of one sector in their portfolio.
Portfolio diversification doesn't mean that you will never incur any losses. The role of diversification is to mitigate risks against stock market volatility. Diversification can reduce the risk up to a certain level.
If you want to achieve huge stock trading returns, make the investment a long term journey. Maintain a good balance between risk and return, only then you will become an ace investor.
Compounding refers to the process where the returns earned on an investment generate additional returns over time. This means that investors not only earn returns on their initial investment but also on the returns accumulated in previous periods. The longer you stay invested, the greater the compounding effect, as your returns start generating their own returns, leading to exponential growth.
Compounding returns work by reinvesting your earnings back into the principal amount. Over time, these reinvested returns increase the overall value of your investment, leading to more significant returns in the future.
Example:
Staying invested for the long term allows compounding to work its magic. The more time your investment has to grow, the higher your compounding returns will be.
Example:
Many companies offer dividend payouts to shareholders. By reinvesting these dividends instead of cashing them out, you allow the dividends to start earning returns, adding to the compounding effect.
Example:
Adding more money to your investments regularly increases the base amount on which compounding occurs. This strategy accelerates the growth of your investment over time.
Example:
Growth stocks are companies that reinvest their earnings into expanding their business rather than paying dividends. These stocks tend to appreciate faster, and if held long term, they can offer substantial compounding benefits.
Example:
Starting your investment journey as early as possible gives compounding more time to work. Even small contributions made early can grow substantially by the time you retire.
Example:
The Rule of 72 is a simple formula to estimate how long it will take for your investment to double through compounding. Divide 72 by your expected annual return to find out the approximate number of years.
Example:
Compounding is a powerful strategy for wealth creation, especially when applied over a long time frame. By starting early, reinvesting earnings, and making regular contributions, you can take full advantage of compounding returns. Whether you invest in stocks, bonds, or mutual funds, the key to maximizing compounding returns is patience, discipline, and a long-term perspective.
A loan against securities or loan against shares is a loan facility given to customers in which the loan bearer needs to pledge its security as collateral to avail of a loan. It has multiple types such as loans against insurance, loans against MFs, loans against National Savings Certificates or more.
A loan against securities is popular among investors as it is an easy way to get a loan without compromising your security. Also, it allows you to receive a loan of up to 80% on multiple financial instruments.
This is a unique kind of service that enables the bearer to take advantage of dual service viz perpetuating ownership on your investment along with receiving their benefits.
A loan against security is generally offered as an overdraft facility in which you need to pay interest only on the loan amount you use and the period you use for it. This can be done immediately after the securities you offer for the collateral.
A loan against shares is considered one of the secured forms of loans that can be given against the securities present in your account. The following are the features of loans against shares:
Following are the eligibility criteria for Loan Against Securities
Banks and NBFCs have the authority to sanction loans against securities. Here, we will help you to identify your preferred creditor:
Area Bank NBFC Margin Requirement50% against equity/equity-oriented mutual funds and lenders’ discretion on debt/ debt-based mutual funds.50% against equity/equity-oriented mutual funds and lenders’ discretion on debt/ debt based mutual funds. Capitalization on Loan Amount 10 Lakh against physical shares, 20 Lakh against Demat shares No Cap on the amount of Loan Loan Processing Time consuming process Easy and Fast Process.
It is preferred to take a loan from NBFC as compared to a bank as it is the safe, fast yet most effective way to avail of a loan without much hassle.
There are different purposes for taking a loan against shares which can be mentioned below:
1) Working capital requirement for business:
Many SMEs take loans against securities just to expand their business. With this new loan amount, businesses usually fulfill their daily working capital requirement which in turn enhances their profits and growth.
2) Business Expansion:
This is the most valid reason SMEs take loans against their securities to increase scalability. This will help businesses to work on new products or open new branches in different cities.
3) Investment in Capital Market:
If you want to increase your investment capital and have confidence in your stock picks, then taking out a loan can be a good option for you as getting a loan on your present investment will help you raise future investments as well.
4) Other Personal Usage:
Loans against shares can also be used for personal purposes such as buying a home, a child’s education and marriage, etc.
Parameters for Credit Underwriting
The Bank or NBFC reviews your loan application to check your creditworthiness before giving you a loan. Here are the following parameters:
1) Checking Client’s Profile, Security Provider and more:
Lenders shall check for market reputation and decide the credibility based on the number of years you have been in a business that is known for vintage.
2) Security Analysis:
In security analysis, the creditors take a detailed insight into your financial securities. He determines the proper value of the security, keeping in mind the several fluctuations happening in the market.
3) Financial Statement:
You need to submit all the necessary financial documents such as the cash flow statement, balance sheet, income statement of your business.
Can I Get a Loan Against My Securities?
Yes, you can. A loan against shares is offered against the securities you want to pledge your holdings as collateral. This will help you to meet new investment and liquidity requirements.
What is the Concept of Loan Against Securities?
Loan against shares enables borrowers to get loans against financial securities such as bonds, stocks, mutual funds, insurance to meet your requirements. You can apply for a loan against shares for your business purposes or in case of urgent financial aid.
How many loans Can I Get Against Securities?
You can get a loan of Rs 20 Lakh against your securities.
Can I Get a Loan on Equity Shares?
Yes. you can get a loan on equity shares where you can pledge shares in the form of equity to avail the benefit of the loan.
Gold is considered a very precious commodity and that’s why investors always prefer Gold as a commodity trading instrument because it acts as a safe investment.
In India, gold holds a strong place in people’s hearts as Indian citizens believe it's an auspicious metal that is being worn on every occasion. Also, Indian citizens feel gold is a symbol of richness and power.
It has been seen that the importance of gold has significantly increased over the years as investors keep this metal as a hedging tool during market volatility and inflation.
The price of gold keeps on fluctuating due to several factors. It is interesting to know that the US dollar affects the gold price to a greater extent.
Gold puts strong value not only on a state's strong economy, but even on personal investments.
1) Demand and Supply
Gold prices heavily depend on demand and supply. When there is a huge demand, the price of gold rises or vice versa.
Since Gold is a commodity that is continuously in demand; factors such as demand and supply play an important role in the gold price.
2) Inflation
Whenever inflation is on the rise, the value of currency starts to decrease. As most financial instruments fail to generate better commodity trading returns, gold acts as a strong hedging tool.
3) Government Reserves
The Government of India holds reserves of gold. Here, the price of gold gets affected when RBI purchases more or sells more gold. If you wonder about the gold prices, government reserves could be one of the reasons.
4) Import Duty
Few of us know that India produces less than 1 per cent of global gold production. However, due to the high demand for gold in the country, the government imports a lot of gold from overseas to meet the demand. Hence, import duty plays an important role in increasing gold prices.
In 1944, 44 countries signed the significant Bretton Woods Agreement. The agreement is about international trading, import and export via the US dollar.
A country will sum up its total US dollar reserve at the end of a year. Then, the country goes to the International Monetary Fund (IMF) with that amount of US dollars.
That means the currencies are convertible to gold. Because of this agreement, the USA eventually took profit from all other countries obliged to trade against the US dollar.
During the pandemic time, Gold prices were increased. Why does this happen?
Because gold is a safe investment, people started investing in gold during the times of COVID to use it as a currency if they were in financial trouble.
Investors hold the gold as compared to currency. As a result, when Inflation in India is high, the gold price also increases and vice versa.
Due to high demand and less supply, gold prices get high, and the people who hold gold during inflation make a lot of profit.
If an RBI imports gold, it does affect the demand and supply of the currency in the country.
To import gold from another country, the RBI needs to print a larger number of notes to pay for it, and due to an excessive amount of currency notes, inflation is caused in the country, and hence the gold price will also be increased.
In India, many people buy gold in the form of jewellery, and they give gold as a valuable gift to their loved ones.
India depends on the import of gold as our production of gold is less than 1 per cent of the total world production. Because of the high demand in the festival season, we need to import gold from foreign countries.
During festivals like Diwali and Dhanteras, gold prices increase because of high demand and less supply.
India is increasing the production of gold mines to control the gold imports and fulfill our gold requirements.
The rupee-dollar equation plays a role in Indian gold rates, although it does not impact global gold prices.
India imports gold, and hence if the rupee is getting weaker against the dollar, it directly affects the gold prices.
So, a depreciating rupee may affect the demand for gold in the country. However, the change in rupee-dollar rates has no impact on gold rates denominated in dollars.
As we discussed factors that affect the gold price in India, Gold prices are volatile and considered a safe investment.
Gold is also a portfolio diversifier for stock market trading investors.
When the market falls, people start investing in gold to diversify their portfolios.
Commodity Trading is considered "sensitive" because stock market experts have seen frequent instances of price manipulation in the past 5 years.
Therefore it is suggested to take advice before starting trading in any commodity. Taking help from a reliable stock broking firm will always be helpful as they have strong stock market research reports and an experienced analyst team.
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