IBS TIMES 227th ISSUE

TEAM IBS TIMES ANWESA NAYAK (EDITOR IN CHIEF) CHAITHANYA N REDDY (SENIOR EDITOR WEBSITE) PAYEL CHOWDHURY (SENIOR EDITOR MAGAZINE) AYUSHI JAIN H K AISHWARYA UNGARALA ISHA KRISHNA MEHAK BHOJWANI S. HIMASREE SANKET TIWARI SHIBASRADHA NAHAK SRIRAM RATHI DESIGNED BY ANWESA NAYAK CHAITHANYA N REDDY

EDITOR'S NOTE Finstreet IBS is an ICFAI Business school Hyderabad affiliated official capital market club which aims to research the capital market as a whole. At IBS Times we serve our readers information from in and around the world and keep them up to date. We try to aid our readers with information and gauge knowledge with better investment solutions. IBS Times encompasses an independent writers club with unbiased thought and wholesome views, fairness, and honesty. We have recognized that our work can influence decisions or perceptions of our readers towards the capital market.

Therefore, we commit to publishing our magazines and journals with the highest level of accuracy and impartiality. We strive to be humble and subtle in carrying out this work. Our team realizes that accuracy in the context provided to readers is imperative. Thus, we always strive to reach that level as best as we can.

This Magazine edition focuses on the avenues of investing in Fintech stocks.

Nowadays fintech as a sector is very popular and investors are attracted to the companies that provide fintech services or products. But the return percentages depend upon the company’s financials and its vision to grow into the future. Let’s take a deep dive and look into and understand some of the companies that are available for trading in the market. But choose wisely!! As with high returns comes high risk.

As an Editor, it gives me immense pleasure to hear from our readers. We intend to improve ourselves at every stage and would like to invite our readers to support the same. Keep following us on www.finstreetibshyd.in as well as. Please write to us and become a part of the discussion.

E-mail ID: editor.ibstimes@gmail.com Payel Chowdhury (Senior Editor, Magazine) POC, Team IBS Times.

CONTENTS OVERTUDE TO FINTECH BAJAJ FINANCE - ANWESA NAYAK

INTELLECT DESIGN ARENA - AYUSHI JAIN

KOTAK MAHINDRA BANK - CHAITHANYA N REDDY

PB FINTECH

- H K AISHWARYA UNGARALA

3I INFOTECH - ISHA KRISHNA

INFOEDGE

- MEHAK BHOJWANI

NIYOGIN FINTECH - PAYEL CHOWDHURY

CDSL

- S HIMASREE

ONMOBILE GLOBAL - SANKET TIWARI

CAMS

- SHIBASRADHA NAHAK

PAYTM

- SRIRAM RATHI

OVERTUDE TO FINTECH Fintech has become one of the most commonly used terms in today's startup scene, but few people really comprehend its evolution or can define its scope. Fintech refers to innovative technologies that aim to improve and automate the usage and supply of financial services. Services in this area range from mobile payment apps to cryptocurrency. When the word 'fintech' was initially used, it referred to the back-end technology systems of financial organizations such as banks, which included activities such as international money transfers and mobile check depositing. With time, the term's definition grew to include areas such as financial education, retail banking, non-profit fundraising, and investment management.

India has been one of the world's most rapid adopters of the fintech revolution.

According to the Fintech Market in India 2021 Report, India had the greatest fintech adoption rate (87%) in 2020, and the Indian fintech market is presently valued at $31 billion, with a forecasted value of $84 billion by 2025. Over 67% of India's 2,100+ FinTech companies were founded in the last five years. Over the last few years, India's Fintech sector has seen an exponential increase in capital, with investments totalling more than $8 billion already made across various phases of investment in 2021. Now fintech is not just limited to the Finance sector. It has seeped through healthcare, Education, and Telecommunication industries as well.

Because of the increase in the number of startups in the Fintech market, the Indian Fintech market is fragmented. Fintech startups funded by global investors are actively competing in the market and posing challenges to established market players in India. The market is being driven by government initiatives toward a cashless economy, smartphone penetration, and a variety of other factors.

But the sector is still in its nascent stage. To shape the future of fintech and push it in a productive direction, both entrepreneurs and regulators will need to work hard.

Only through collaborative and open practices based on global fintech intelligence can meaningful customization of tools and processes allow for the growth and scaling-up of fintech products, services, and approaches. We will now see some of the companies that have adopted fintech in different sectors and are listed in the stock market and how an investor can gain from investing in the same.

BAJAJ FINANCE

- Anwesa Nayak

"One Team, One Dream", sums up the philosophy of Bajaj Finance.

Bajaj Finance Limited is a non-banking financial organisation, which was originally incorporated as Bajaj Auto Finance Limited on March 25, 1987, with the sole purpose of providing financing for two and threewheelers. Headquartered in Pune, Bajaj Finance

Limited,

the

lending

and

investment arm of the Bajaj Finserv group, Rajeev Jain, Managing Director, Bajaj Finance

came into existence in September 2010 to serve consumers in the financial services industry.

With a strong presence in both urban and rural India, the organisation has a diverse lending portfolio, with over 38 million consumers nationwide, that includes retail, SMEs, and commercial customers. It takes both public and corporate deposits and provides a wide range of financial services to its clients. BFL is not just India's largest consumer durables financier, but it is also one of the most lucrative companies in the sector.

Bajaj Auto Finance Ltd announced its first public offering of equity shares on the BSE and NSE after 11 years in the auto finance business. As of today, Bajaj Finance Limited has 2,988 outlets across India, including 1,690 in rural areas.

It focuses on six broad categories, namely: 1. Consumer Finance 2. SME Finance 3. Commercial Lending 4. Rural Lending 5. Investment 6. Partnerships & Services

BAJAJ FINANCE

- Anwesa Nayak

Shareholding Pattern Shareholding Pattern

FY 2018-19

FY 2019-20

FY 2020-21

PROMOTERS

55.2

56.2

56.1

FII

20.7

21.2

24.1

DII

8.5

10.9

9.1

PUBLIC

15.5

11.5

10.6

OTHERS

0.2

0.3

0.2

In the shareholding pattern of Bajaj Finance Ltd, the majority of the shareholders are Promoters (56.1%) followed by the Foreign Institutional Investors (24.1%) in the year ended 31.03.2021.

In the past 3 years, the promoter’s shareholding percentage has been almost constant.

The Public’s stake in the company has been decreasing from FY 18-19 to 20-21.

Current Financials Industry P/E

50.61

Current Market Price (17/03/2022)

₹6996.85

P/E

69.99

EPS

73.58

P/B

11.53

Dividend Yield

0.14

Market Capitalisation

₹422,325.91 crores

Book Value

606.63

When comparing Bajaj Finance Ltd.’s P/E to the industry's P/E, we may conclude that the company is overpriced, and investors are willing to pay a bigger premium to purchase shares.

It has a P/B ratio of 11.53, indicating that the company is floating shares at a premium of 11.53 times its book value, indicating that there is a larger risk that the stock will correct for overvaluation.

The company has an EPS of 73.58, indicating that the firm is very profitable for shareholders and that the services it provides are in great demand.

BAJAJ FINANCE

- Anwesa Nayak

Ratio Analysis Financial Year FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 P/E

34.43

37.18

43.63

24.68

69.99

ROE

19.12

16.16

20.28

16.28

11.97

PB Ratio

6.69

6.15

8.86

4.11

8.39

Book Value

175.56

287.68

341.46

538.84

613.67

EPS

34.01

47.54

69.33

89.77

73.58

Dividend Yield

10.00

10.00

6.00

4.00

3.60

Investors frequently use the industry PE ratio as a benchmark for stock valuation. The P/E ratio steadily increased from the fiscal year 2016-17 to 2018-19, but it saw a fall in the year 2019-2020. But in the year 2020-21, it saw a significant increase to 69.99.

ROE assesses a company's profitability in relation to its stockholders' equity. The ROE of the company went on an increase-decrease trend for the past 5 years.

The price-to-book value ratio was on an increasing trend until 2018-19 when it hit a low point.

However, in 2020-21, the price-to-book value ratio is on the growing side.

The Book value has been on an increasing trend and looking at the trend for the past 5 years, we can assume it will keep increasing in future.

Higher earnings per share (EPS) indicates that a company is more valuable. Over the past 5 years, the EPS has seen a significant improvement.

Bajaj Finance (BAF) has increased its loan book at a CAGR of 35% and PAT at a CAGR of 33% during the last decade (FY11-21), with an average ROE of 20%.

Trend Analysis

BAJAJ FINANCE

- Anwesa Nayak

According to the trendline above, Bajaj Finance Ltd.’s stock hit a 52-week high of Rs.7929.30.

In addition, the stock has reached its 52-week low of Rs.4479.60, indicating that it is acting as a buying opportunity for all investors.

There is a positive trend going forward, as stock returns for the last 5 years are swinging upwards because purchasers are accumulating long positions to maximize their wealth, and the company's fundamentals are strong.

Given the exponentially greater growth rates it has generated, Bajaj Finance has always been highly respected. Following the announcement of the digital transition, investors began to value the company as a fintech, pushing its valuations even higher.

Future Outlook Smartphone penetration, an increase in internet users, the availability of data from several credit bureaus, and easy access to finance have all contributed to the emergence of multiple fintech businesses in recent years.

The new digital platform from Bajaj Finance Ltd is a step ahead in terms of offering services similar to those offered by fintech apps like Paytm, PhonePe, and Google Pay. While phase one of the business transformation journey focused on laying a firm foundation, phase two focuses on improving the customer experience by providing new features and expanding on existing capabilities.

Customers will be able to explore, compare, and buy a variety of items and services across the electronics, insurance, investments, and health categories via the app, which will be comprised of five different marketplaces hosted on a single platform. The five windows are The EMI shop The Insurance Marketplace The Investment Marketplace BFL Health the Broking App Customers will be able to check out with Bajaj Pay in addition to these five marketplaces. Bajaj Pay will accept all forms of payment, including its EMI card, QR code, UPI, and others.

The fintech environment in India is diverse, encompassing retail lending, insurance, brokerage and wealth management, payment wallets, and more, and BAF's five-in-one application will compete with several fintech competitors in these areas. The BAF app has already received 14 million downloads, with 8 million active users. Bajaj Finance is catching up to fintech firms in terms of the digital interface while maintaining profitability, and hence investors can stay optimistic about the company's development.

INTELLECT DESIGN ARENA

- Ayushi Jain

Intellect Design Arena Limited, commonly known as Intellect, is an Indian company that provides IT product solutions, especially in the financial and BFSI sectors.

Intellect, headquartered in Chennai, is a specialist in the FinTech domain of digital technologies for banking and insurance companies. Mr Arun Jain, (born 30 December 1959), a Chennai-based Indian industrialist, investor, and philanthropist, is the Chairman and Managing Director of Intellect Design Arena Limited. He has been designated the Chief Mentor of the Centre of Excellence for FinTech set up by the Arun Jain, Chairman and Managing Director, Intellect Design Arena Limited

Ministry of Electronics and Information Technology (Meity), Govt. of India. He is a Governing Council Member of STPI and a

Member of the Advisory Council of TechNet, a hatching office given by STPI-Chennai. He has held and keeps on holding, positions in CII, MMA, National Institute of Electronics and Information Technology (NIELIT), and the Indo-American Chamber of Commerce.

Its full-range set-up of items is presented under centred lines of business: Global Consumer Banking (IGCB), Central Banking, Global Transaction Banking (IGTB), Risk, Treasury and Markets (IRTM), and Insurance (Intellect SEEC). The Intellect set-up of items is based on powerful and contemporary digital technology. Mind items are exceptionally configurable based on presentday SOA and material and centre point innovation.

The company has more than 200 clients in around 40 countries worldwide, with almost half of the company's revenue being generated from America and Europe. The company has invested heavily in its leadership team and product development to penetrate large banks. It has won many marquee clients globally in the past two years and has implemented some critical projects.

INTELLECT DESIGN ARENA

- Ayushi Jain

Shareholding Pattern Shareholding Pattern

FY 2018-19

FY 2019-20

FY 2020-21

PROMOTERS

31.5%

31.4%

31.2%

FII

15.3%

21.6%

27.2%

DII

7.5%

4.7%

3%

PUBLIC

45.6%

42.3%

37.9%

OTHERS

0.1%

0%

0.7%

The Shareholding pattern of Intellect Design Arena has not seen much change where it concerns its promotors.

Foreign Institutional Investors have shown keen interest in the company and have witnessed an increase in investments.

The company has faced disinvestments from Domestic Institutional Investors and the Public stake has also been reduced.

Ratio Analysis Financial year

2020-21

Industry P/E

38.77

Market Capitalisation

₹10.23 Crores

Current Market Price as on 17th March 2022

₹764

Financial Year

FY 2016-17

FY 2017-18

FY 2018-19

FY 2019-20

FY 2020-21

P/E

-20.56

58.83

19.13

-22.95

47.34

ROE

-10.70

4.69

14.73

-3.50

17.47

PB Ratio

2.23

2.95

2.88

0.81

8.29

Book Value

51.57

55.95

70.59

67.48

89.20

EPS

-5.24

2.81

10.63

-2.37

15.63

Dividend Yield

0

0

0

0

0

INTELLECT DESIGN ARENA

- Ayushi Jain

The price-to-earnings ratio (P/E) shows whether a company's stock price is exaggerated or underestimated. The P/E proportion shows what the market will pay today for stock because of its past or future profit. A high P/E could imply that a stock's price is high compared with income and conceivably exaggerated. Then again, a low P/E could demonstrate that the current stock price is low compared with earnings. Indeed, it tends to be broken down that in the year 2016-17 the company showed negative returns, yet the following year the PE proportion saw a decent ascent. Well, this can be because in 2016 Intellect Payments Limited and M/s Intellect India Limited were incorporated as direct subsidiaries of Intellect Design Arena Limited. After that, there was a major decline for 2 consecutive years and was negative in the year 2019. But even after the pandemic outbreak, the company performed and managed to generate a high PE ratio in 2021, higher than the industry PE, indicating the company is doing well in the eyes of the investors.

Return on Equity (ROE) is a check of a company's benefit and how effectively it creates those benefits. A decent ROE goes from 15%-20%. In the years 2016 and 2020, the ROE was negative, demonstrating monetary trouble for the two years. In the year 2021, the company changed negative ROE over to positive as well as created great ROE demonstrating sound working and great benefits for investors.

The Price-to-book ratio is used by investors to check whether a company's stock expense is regarded suitably. High-development companies will regularly show a price-to-book ratio well above 1.0. The ratio has been on the ascent, showing development which drops in 2020. Be that as it may, the ratio rose definitely in the year 2021, i.e., 8.29. This demonstrates the company has performed and has a splendid future and is great for well.

Book value per share is the aggregate that investors would get if the firm exchanged, each of the substantial resources was sold and every one of the liabilities was paid. Notwithstanding, its worth lies in the way that investors use it to measure whether a stock price is underestimated by contrasting it with the company's reasonable worth per share. Assuming a company’s BVPS is higher than its fairly estimated worth per share, which is its market value, then the stock is viewed as underestimated. This stock is overvalued as compared to the current market price.

Only in the year 2019 did it decrease, indicating that investors had to pay a high price to buy the shares of the company.

EPS demonstrates the company's productivity by showing how much cash a business makes for each portion of its stock. The EPS is still up in the air by partitioning the company's net profit from its exceptional portions of not unexpected stock. Notwithstanding, it is considered the higher the EPS number, the more beneficial the company. For the years 2016 and 2019, the EPS has been negative and has not been very healthy for other years as well. It has still managed to outperform in 2021 from negative to positive, bringing a 90% increase in its value, and the highest in the last 5 years, indicating that the company is in the right direction and may give good returns to its investors in the future.

INTELLECT DESIGN ARENA

- Ayushi Jain

Trend Analysis

In the last 5 years, the company has witnessed a lot of fluctuations in terms of profit and returns. Financial years 2016-17 & 2019-20 have witnessed negative returns. But in the year 2021, the company has outperformed its records and is giving good returns to its investors. The company has experienced prices as low as ₹564.4 low to ₹892 high.

Future Outlook The Reserve Bank of India has awarded Intellect Design Arena Ltd. a large multi-million-dollar destiny contract (RBI). The Reserve Bank of India has chosen Intellect's upgraded Quantum Core Banking Solution to power the next stage of their digital transformation journey. To power the next stage of its digital transformation agenda, the RBI has decided to use an upgraded version of the award-winning Cloud-Native Intellect Quantum Core Banking solution. Intellect continues to be the Reserve Bank of India's trusted partner for the Central Banking Transformation.

Intellect Global Transaction Banking (IGTB) today launched iColumbus.ai, named after the pioneer whose discoveries eventually opened up the world to truly global international trade, according to Intellect Design Arena Limited. iColumbus.ai is on a mission to change the way banks do business by helping them differentiate themselves through digitalization, improve operational resilience, and champion sustainability. IColumbus.ai is a trade finance Artificial Intelligence powerhouse that enables the extraction, validation, remediation, and enrichment of machine-readable data while dramatically reducing the time, cost, and risk traditionally associated with manual compliance checks.

Since 2018, fintech has sparked maximum interest among venture capital investors, keen to put their money in Indian start-ups. The rising demand for technology-enabled fintech products across a fast-growing addressable market is the primary reason behind sustained investor confidence toward fintech start-ups during the past four years. India’s overall fintech market opportunity is estimated to be $1.3 Tn by 2025, growing at a CAGR of 31% during 2021-2025.

Although the industry has a good investment opportunity it is advisable for the investors to do detailed research work before investing.

KOTAK MAHINDRA BANK

In

today's

- Chaithanya N Reddy

world,

innovations

and

technological advancements are paving the road for practically everything in our lives to be available online. And this bank is no such

exception

to

this

advancement.

Commenced as a non-banking financial enterprise by self-made billionaire banker Uday Kotak, Kotak Mahindra Bank is one of India's fastest-growing banks and one of the most admired financial entities.

Mr Uday Kotak - MD & CEO

Kotak Mahindra Bank Ltd. is a private Indian bank with headquarters in Mumbai,

Maharashtra. It was established in February 2003, when the Group's flagship firm, Kotak Mahindra Finance Ltd. (KMFL), was granted a banking license by the Reserve Bank of India (RBI).

The bank has about 323 branches and more than 2.7 million customers. It is reshaping the reach and power of banking in India, not just in metros but also in Tier-II cities and rural India.

Currently, it is involved in commercial banking, stock brokerage, mutual funds, life insurance, and investment banking. Individuals and businesses can use it to meet their financial demands.

The bank has a global presence through its subsidiaries, which includes offices in London, New York, Dubai, Mauritius, San Francisco, and Singapore, and specializes in assisting foreign investors looking to invest in India.

Brief about the services A lot of us might be aware that the majority of large banks now provide some form of mobile banking, but were we aware that this form of banking falls under FinTech? Well, it does. And KMB provides much more than just mobile banking. It offers Net Banking (a handy way to bank from the convenience of your own home or office), WhatsApp Banking (enquire about key banking services through Whatsapp), SMS Banking along with insta services like KayMall, Pay your Contact, Cardless Cash Withdrawal, etc. Under Business and FinTech, they offer FinTech Collaboration, Kotak Payment Gateway, Bharat QR Solution, and Point of Sale Machine.

KOTAK MAHINDRA BANK

- Chaithanya N Reddy

Shareholding Pattern Shareholding Pattern

FY 2018-19

FY 2019-20

FY 2020-21

Promoters

30.0%

29.9%

26.0%

Public

18.2%

18.3%

16.2%

FII

40.3%

39.2%

44.2%

DII

11.5%

12.7%

13.5%

The majority shareholders in FY 2020-21 are FII investors holding 44.2% of the total shares. The promoters’ shareholding fell from 30% in FY 2018-2019 to 29.9% in FY 2019-2020 and to 26% in FY 20202021. The shareholding percentage for public and DII investors has almost been the same for FY 20202021.

Financials Financial Year

2020-21

Industry P/E

29.80

Market Capitalization

₹3,51,184 crores

Current Market Price (23/03/2022)

₹1,769.75

Beta

1.14

Kotak Mahindra Bank has a PE ratio of 34.69 which is higher than the industry PE ratio. This means that future earnings growth will be favorable, and investors will be willing to pay a greater price for it. It can also be considered an overvalued stock.

The Beta value of Kotak Mahindra Bank is 1.14 indicating that it is 14% more volatile than the overall market.

Ratio Analysis Financial Year FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 P/E

32.44

32.04

35.32

28.97

34.69

ROE

12.83

12.28

12.46

12.89

11.84

PB Ratio

4.17

3.96

4.41

3.72

4.12

Book Value

209.10

264.94

302.72

348.33

425.56

EPS

26.89

32.70

37.78

44.73

50.53

Dividend Yield

0.60

0.70

0.80

0.00

0.90

KOTAK MAHINDRA BANK

- Chaithanya N Reddy

The PE ratio of the company has been in the same range for the past five years indicating that the stock’s value hasn’t changed much. An increase was seen in FY 2020-21 to 34.69 which indicates that the company might have pioneered new trends or created novel productivity solutions as investors are ready to pay a premium for potential growth in earnings.

The Return on equity for KMB remained nearly the same for the last five years suggesting that the company is generating more or less the same amount of profits.

The price-to-book ratio has fluctuated on the same scale and since it is more than 1, it shows that the share price of the stock is trading at a premium value as compared to the book value of the company.

The book value is on an upward trend for the past five years indicating that the stock’s value has increased. It can also mean that the company is using the generated profits to buy more assets or to reduce liabilities.

Increasing earnings per share show that the company is making more income to distribute to its shareholders and also the company's efficiency in terms of its business opportunities.

Trend Analysis

In the above trendline, it can be observed that the stock had been bearish but went bullish to hit its 52-week high, ₹2,253.00 in October 2021, and went back to being bearish. The stock hit its 52-week low of ₹1,626.00 in August 2021. The stock is currently worth more than its intrinsic value. Also, the stock has been generating better returns than bank FD. Although the stock does not offer attractive dividend returns it is a good time to consider as it is not in the overbought zone. Investors can consider the stock for a long-term investment as long as the stock gave a 32.4% return in the past 3 years. The investors are advised to invest in and hold the stock for now.

KOTAK MAHINDRA BANK

- Chaithanya N Reddy

Future Outlook Kotak Mahindra Bank has opened up opportunities for tech companies to collaborate with it in areas like data analytics, AI, IoT, VR, Blockchain, etc to provide solutions that can digitalize the economy, increase productivity and boost businesses. The bank has tie-ups with digital lending platforms like EarnWealth Solutions, Paisabazaar, My Loancare Ventures, Sahas Technologies, etc and it is looking for more platforms to tie up with.

In collaboration with NASSCOM, Kotak Mahindra Bank (Kotak) announced the inauguration of an exclusive co-creation program for start-ups and fintech in 2018. This Program created a collaborative and innovative ecosystem for digital payments start-ups & fintech and allowed them to join the program to seek mentorship and a chance to work together with Kotak's Innovation Lab. Kotak Mahindra has remained afloat through several financial crises including the Great Recession of 2007-09. The main help to get through this was Mr Kotak's principle, "return of capital is more important than return on capital". And it doesn't hurt to follow this philosophy in our investing lives too!

PB FINTECH

- H K Aishwarya Ungarala

Using the power of technology, data, and creativity, PB Fintech Ltd created India's largest online marketplace for insurance and lending products. The company is raising awareness among Indian households about the financial consequences of death, sickness, and damage by providing easy access to insurance, loans, and other financial goods. It is enabling online research-based insurance and loan product purchases and promotes transparency, allowing consumers to make educated decisions, through their consumer-centric strategy. They are also assisting the financial services industry insurer and lending partners in innovating and designing tailored products for consumers.

On June 4, 2008, the company was incorporated as "Etechaces Marketing and Consulting Pvt. Ltd." To emphasise the nature of its fintech business, the company was renamed "PB Fintech Pvt. Ltd." on September 18, 2020, and it was transformed into a public limited company on June 30, 2021.

Yashish Dahiya , Chairman, CEO PB Fintech Ltd Yashish Dahiya started Policybazaar in 2008. He was the MD of ebookers.com, a pan-European online travel distributor and FTSE 250 firm listed on Nasdaq, before embarking on his entrepreneurial path. Dahiya earned a Bachelor of Engineering degree from IIT Delhi. He went on to get a Post Graduate Diploma in Management from IIM Ahmedabad, as well as an MBA from INSEAD.

Alok Bansal – Whole Time Director, CFO PB Fintech Ltd Alok Bansal oversees several responsibilities at P.B.Fintech such as corporate finance and controllership, tax, treasury, strategic planning, and analytics. Before joining Policybazaar, he held positions of increasing responsibility at Mahindra Group, iGate Global Solutions, and General Electric. In 2016, the CFO of India Magazine named him one of the top 100 CFOs in the country.

PB FINTECH

- H K Aishwarya Ungarala

Products In India, PB Fintech Limited runs an online platform for insurance and loans.

Insurance Web Aggregator Services and Other Services.

An online platform that allows consumers and insurance partners to compare, choose, and apply for personal, business, and home loans, as well as credit cards and loans against property.

Offers contact center and online healthcare services, as well as online marketing, consultancy, and support services.

Support services for motor vehicle claims and associated help.

What sets the company apart from its competitors?

The company offers a wide range of options, transparency, convenience, and the opportunity to study and access insurance and personal credit products offered by their insurers and lending partners. They have built strong brands in both Policybazaar and Paisabazaar that are recognized across India due to their consumer-centric strategy.

Service and Responsiveness - Using technological connections with their insurance and loan partners, they provide convenient service choices to the Consumers, backed up by experienced, skilled, and informed personnel.

Insurer and Lending Partners Collaborative Partner – they use technology and analytics to help their partners enhance their risk assessment models, fraud detection, and underwriting skills, as well as enable them to build tailored products, in addition to offering a low-cost platform to target the correct clients.

Asset-Light Capital Strategy – The Company uses an asset-light capital strategy, which means they don't underwrite insurance or keep credit risk on their books.

Shareholding Pattern Shareholding Pattern

FY 2020-21

Promoters

69.87

FII

16.29

MF

2.22

Others

11.6 Majority of the company’s shares are held by the public, while the promoters hold no shares in the company. The FIIs hold 16.29%, Mutual fund 2.22% and others at 11.6%.

Radhika Binani (CPO Paisabazaar) sold over 30k shares on the open market on November 17th 2021 for around $1,400 per share. This was the largest insider sell in the past three months. Insiders were net sellers in the last year, selling 260 million dollars more than they purchased.

PB FINTECH

- H K Aishwarya Ungarala

Ratio Analysis Financial year

2020-2021

Industrial P/E

66.65

Market Capitalization

₹34,445 Cr

Current market price as on 19/3/22

₹766.30

Financial Year

2016-2017

2017-2018

2018-2019

2019-2020

2020-2021

P/E

0

0

0

0

0

ROE

17.51

-5.07

-1.65

0.47

0.64

PB Ratio

-

-

-

-

17.3

Book Value

122,873.97

255,085.21

251,522.24

537,323.26

128,938.86

EPS

0.22

-0.13

-1,221.99

139.04

260.14

Dividend yield

0

0

0

0

0

Policy bazaar is currently unprofitable and is forecasted to remain unprofitable over the next three years. However, the company’s revenue growth at 29.4% per year is forecasted to grow faster than the market growth of 12.8% per year. The PE ratio is used for valuing a company that measures its current share price relative to its earnings per share (EPS). Since PB Fintech Ltd is unprofitable, we cannot compare its PE ratio to industrial PE. The P/B ratio compares a company's market value to its book value. Investors use the P/B ratio to find possible investments since the market value of the stock is often higher than the book value of a firm.P/B ratios of less than one are usually considered safe bets. Policy bazaar is overvalued based on the PB ratio at 17.3x as compared to the industry average of 7.4x. The company's short-term assets exceed the company’s short-term and long-term liabilities. It is debt-free and had no debt for the past 5 years which is good news as the company has no fixed cost and has a huge bandwidth to procure loans for the future.

Trend Analysis

PB FINTECH

- H K Aishwarya Ungarala

The shares of the company are currently trading at Rs. 766.3 per share with zero dividend payout. It enjoys a market capitalization of Rs. 34445 Cr. However, there exists a downward trend in the share prices of the company over the past year, and the prices have been highly volatile over the past three months.

Future Outlook Insurance is a long-term penetration that relies heavily on distribution. Although India produced Rs 8,30,000 crore in premiums in FY21, it has one of the greatest insurance 'protection gaps' among major countries. Policybazaar is projected to be at the forefront of increasing insurance penetration in the nation due to its monopolistic posture and extensive insurer coverage.

The insurance business is expected to grow at a 31% / 32% CAGR between FY21 and FY31. While a minor loss of market share in online distribution as a result of insurers' direct channel investments and newer competitors is predicted, this loss will be more than offset by the company's expansion in physical distribution.

Policybazaar is establishing a larger renewal base with greater contribution margins due to low CAC by generating incremental insurance premiums every month. At the same time, the company's AI initiatives are intended to save fulfilment costs by automating customer assistance and policy issuing. Operating profitability will be achieved by FY26 as a result of these variables combined with operating leverage.

The brokerage company has initiated a hold on the stock with a target price of Rs 1,270 and considerable medium-term upside risks. It values PB Fintech at 8x EV/Revenue and 35x EV/EBITDA as of Mar'30 to account for long-term growth while reducing the effect of near-term one-offs.

PB Fintech reported a consolidated loss of Rs 150.24 crore in FY21, a significant decrease from the loss of Rs 304.03 crore in FY20. Revenue from operations, on the other hand, had increased significantly, rising to Rs 886.66 crore in FY21 from Rs 771.3 crore in FY20, a 15% increase.

Though based on the current data, the company looks underperforming, the future holds promising results. Instead of jumping to quick conclusions, it is advised to observe the company more closely over the coming times and then invest accordingly to reap maximum profits. In case you already hold the company’s shares in your portfolio, hold on to them tightly and remain patient.

3I INFOTECH

- Isha Krishna

3i Infotech Ltd is an Indian information technology business based in Mumbai. 3i Infotech has been focused

on

delivering

business

value

across

numerous industry verticals since its establishment in 1993. 3i Infotech has emerged as a leading name in driving the current wave of digital transformation initiatives, with deep domain expertise across BFSI, Healthcare, Manufacturing, Retail, and Government sectors to drive digital transformation, powered by several emerging technologies, such as Artificial Intelligence

(AI),

Blockchain,

Robotic

Process

Automation (RPA), Low-code Development, Internet Thompson Gnanam, Managing Director & Global CEO of 3i Infotech

of Things (IoT), Cloud Computing, and Machine Learning (ML).

Thompson Gnanam is the managing director and global CEO of 3i Infotech. Following its debt restructuring process, which included a tenth reduction in capital base, the company was relisted on October 22.

Products and Services Insurance, banking, capital markets, mutual funds, asset management, wealth management, government, manufacturing, and retail are among the industries for which the company provides software, IT services, and business process outsourcing.

3i Infotech combines its products and services to build bespoke solutions that enable its customers to embark on a technology-driven business transformation that enables reorganization in today's dynamic digital business environment.

PREMIA Insurance Software Solutions Suite, KASTLE – Secure Banking Solutions, AWACS – Exchange Surveillance System – AWACS, MFund – Mutual Funds Solutions are a few of the available products.

3I INFOTECH

- Isha Krishna

3i Infotech provides various services; IT Infrastructure solutions & services BPO services Software services Testing and compliance I–Serv–Retail services eMudhra Digital Signature Certificates

Shareholding Pattern Shareholding Pattern

FY 2018-19

FY 2019-20

FY 2020-21

PROMOTERS

0

0

0

FII

0.2

0.1

0.1

DII

34.6

32.2

22.7

PUBLIC

65.2

67.7

77.2

OTHERS

0

0

0

The majority of 3i Infotech's shareholders (77.2%) are public, together with the DII (22.7%) The DII's shareholding proportion has decreased during the last three years. Also, the FII sector appears to be disinvesting, as the percentage fell from 0.2% in 1819 to 0.1% in 20-21. From FY 1819 to FY 20-21, the public's ownership of the corporation has risen.

Ratio Analysis Financial year

2020-2021

Industrial P/E

41.17

Market Capitalisation (Rs.)

950 Crores

Current Market Price (18/03/2022)(Rs.)

56.60

3I INFOTECH

- Isha Krishna

Financial Year

2016-2017

2017-2018

2018-2019

2019-2020

2020-2021

P/E

6.56

11.48

9.17

3.1

3.08

ROE

-31.87

34.09

22.09

18.25

53.29

PB Ratio

1.64

0.57

2.04

0.57

1.64

Book Value

-2.49

1.3

1.91

2.3

4.54

EPS

0.77

0.44

0.42

0.42

2.42

Dividend yield

0

0

0

0

0

When compared to companies with a lower P/E, a high P/E indicates that investors expect higher earnings growth in the future. From fiscal years 16-17 to 17-18, the PE ratio increased from 6.56 to 11.48, but then began to decline until fiscal year 20-21. According to industry norms, a lower ratio than the industry average indicates that the company is less expensive than its rivals, which may appeal to investors searching for bargains.

The return on investment (ROI) is particularly useful for comparing the performance of organizations in the same industry. Though the ROE was relatively stable in the fiscal year 201920, it grew in the fiscal year 2020-21. In terms of return on equity, stocks have consistently outpaced bank FDs. Investors should invest in the stock if the long-term average ROE is higher than the fixed deposit rate.

A high P/B ratio means the company is expensive, while a low P/B means the stock is undervalued. From FY 2016-17 to 2017-18, the PB ratio appeared to be decreasing but then increased in 2018-19. Finally, compared to the previous fiscal year, the PB ratio for FY 2020-21 increased.

The book value is the amount of money a company could get if all of its assets were sold at current market prices. Because stock prices are frequently greater than book value, a P/B ratio of less than 1.0 signals a good deal. A P/B of 3.0 is frequently used as a favourable criterion by value investors. From FY 2016-17 to FY 2020-21, 3i Infotech's BV has steadily increased. Because the stock is not overbought, it is a good moment to buy.

High earnings per share (EPS) show that the company is profitable and has more profits to offer to its shareholders. Companies can, however, increase their EPS by reducing the number of outstanding shares through stock buybacks. The EPS of 3i Infotech has increased from FY 201617 to FY 2020-21. A high dividend yield indicates that the company is in good health and has a bright future. The dividend yield on 3i Infotech's stock isn't declared.

3I INFOTECH

- Isha Krishna

Trend Analysis

3i Infotech Ltd. might be a good long-term investment (1 year). On 2022-03-19, 3i Infotech Ltd. is worth 56.650 INR. With some technical analysis, we can say that the "3i Infotech Ltd" stock price forecast for 2027-03-12 is 115.728 INR, indicating a long-term rise. The revenue is estimated to be around +104.29% after a 5-year investment. In 2027, a $100 investment may be worth $204.29.

Awards & Achievements The company received SEI CMMI Level 5 quality certification for its software business.

3i Infotech received ISO 9001:2000 quality certification for its BPO services.

It also received ISO 27001:2005 certification for its Infrastructure services.

Future Outlook 3i Infotech expects to hire around 1,000 workers this year for its international and Indian offices in Mumbai, Chennai, Noida, Bengaluru, and Hyderabad, including 100 professionals this quarter as part of a significant recruitment push. The company expects to see advancements in blockchain COE that will increase its ability to establish zero-trust risk and compliance management systems.

3i Infotech will be hiring artificial intelligence/machine learning engineers and data scientists shortly to help with 5G-powered cognitive services. The company had previously stated that it expects to grow organic sales by $1 billion by 2030. It employs approximately 4,200 people in 30 offices in 15 countries, and it serves over 1,000 clients in more than 50 countries.

The price of 3I Infotech Ltd is expected to rise somewhat in the short term, indicating that it is Semi Strong. However, before buying, it is recommended that you check the rating and conduct thorough research.

INFOEDGE

- Mehak Bhojwani

About Company Info Edge (India) Private Limited was founded on May 1, 1995, and became a public limited company on April 27, 2006. Info Edge began as an identified recruiting internet firm, naukri.com, and has gradually evolved and diversified. It is the market leader in online recruiting, matrimony, real estate, and educational platforms.

Recruitment: www.naukri.com, www.naukrigulf.com (a job site focused on the Middle East market), www.quadranglesearch.com (offline executive search), and www.firstnaukri.com(a fresher hiring site). Info Edge also offers value-added services (Naukri Fast Forward) to job searchers, such as resume writing.

Matrimony: www.jeevansathi.com is a matrimony site whose profits for the year 2020-21 were Rs. 986 million. It is among the top three leaders in this industry and has been able to get a leadership position in some of the communities in north and west India.

Real Estate: www.99acres.com is one of the leading real estate companies, which has covered almost all cities and agents across India. The net profits of the company were Rs.7369.34 crore for the quarter of September- December 2021.

Education: www.shiksha.com is an online portal for providing educational content. The company has evolved over the years and now earns good profits.

The company's major investments include 15% in Zomato Limited, a Leading Indian food delivery chain, and 13.5% in Policy Bazaar, India's leading insurance online platform and a fintech player globally.

Hitesh Oberoi Mr. Hitesh Oberoi graduated from IIT Delhi with a BTech in Computer Science in 1994 and a Post Graduate Diploma in Management from IIM Bangalore in 1996.

He is a member of several business forums and has about 18 years of expertise in the internet industry. He is a founding member of TiE, New Delhi, and the former Chairman of IAMAI, India's Internet and Mobile Association.

He is also a Founder of Ashoka University and a member of its Board of Trustees. In 2008, he earned the Ernst & Young – Entrepreneur of the Year award for Business Transformation with his partner, Mr. Sanjeev Bikhchandani.

INFOEDGE

- Mehak Bhojwani

Shareholding Pattern Shareholding Pattern

FY 2018-19

FY 2019-20

FY 2020-21

Promoters

40.8

40.5

38.4

FII

33.4

35.5

39.3

DII

15.2

13.4

11.3

Public

10.6

10.5

10.8

Others

0.1

0.2

0.2

In

the

financial

year

2020-21,

the

majority stake is with promoters and FIIs. 24.61% of the share is owned by Mr. Sanjeev

Bikhchandani

one

of

the

promoters, in FIIs the majority stake is held by Nalanda India Equity fund limited, Axis mutual funds and long-term equity holds the majority stake in domestic institutional investors. Also, ICICI prudential life and Aditya Birla life insurance and mutual funds are some of the investors of the company.

The shareholding pattern has not changed much over the years. Although over the years Foreign institutional investors have increased and Domestic institutional investors' and promoters’ percentage has decreased. A very less percentage of shares are available to retail investors which indicates that the company doesn’t want to dilute its control and authority and therefore the investors have a concentrated chance to earn from this company.

Ratio Analysis Financial year

2020-21

Industry P/E

18.53

Market Capitalisation

₹58,965.7

Current Market Price (17/03/2022)

₹4,614.85

INFOEDGE

- Mehak Bhojwani

Financial Year FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 P/E

-

34.6

86

-

8.8

ROE

-1.48

25.3

23.74

-10.82

25.77

PB Ratio

-

-

-

-

10.4

Book Value

163.78

173.32

189.06

195.63

355.13

EPS

-1.96

42.22

49.53

-19.46

111.51

Dividend Yield

4.50

5.5

6

6

8

The financials from the last five years are shown in the table above. We can see that the company's performance has improved over time, which is a positive sign for investors. The return on equity has fluctuated significantly throughout the years, but it now stands at 25.77%, demonstrating that the company is spending its shareholders' money and boosting earnings.

Looking at the book value, which has nearly doubled in the last few years, stock prices should rise in lockstep with the book value.

Earnings per share has nearly doubled in the last five years, indicating a significant increase in the company's value. As a result, shareholders who invested in the last five years have benefited as their wealth has increased rapidly. Moreover, the dividend payout has increased by double, providing greater value to stockholders.

Info edge limited has a diverse range of competitors in different segments of the market, here are a few of the major competitors of the company Zomato Limited, IRCTC, One97 Communications, FSN E-commerce India Mart Intermesh Ltd. The PE ratio of the company is good but when compared to its competitors it is very less, therefore if they want to attract more investors, they have to make more profits using the investments. The price to book ratio is 10 times which means the share is overvalued and also helps investors to earn but other competitors’ ratio is very high which means the customers can make profits investing there. The EPS of the company is the highest among the competitors which is an advantage to them and also, they are dividend to investors which grabs more attention to these shares.

Trend Analysis

INFOEDGE

- Mehak Bhojwani

In the last year, the company saw a bull run at the beginning of the year but towards the end, there is a continuous fall due decrease in profits compared to the previous quarter and uncertainty caused by Russia and Ukraine war which led to an increase in inflation and fall in global markets including India.

Looking at the yearly trend of the company we see a bullish trend, but in the past quarter the trend broke, there is a higher probability that after some more breaks the bullish trend will be observed looking at the profitability and growth of the company.

Future Outlook The company's vision is to develop and transform the digital world. These industries have a long-term outlook, which aids in wealth creation. Currently, the company has penetrated markets ranging from Naukri to real estate, with further investments in unicorns like Zomato and Policy Bazar. The firm has invested Rs. 21 crores in Adda247, a digital education platform, and Rs. 5 crores in Terralytics, a real estate start-up. The firm is investing in ventures that are either rivals or new businesses.

Over the last ten years, revenue has gone up significantly at 19.19% CAGR. As a result, several mutual fund firms, including Axis Mutual Funds, Aditya Birla Life, and ICICI Prudential Life, have invested in this company, demonstrating that it is a strong long-term investment.

NIYOGIN FINTECH

- Payel Chowdhury

Niyogin Fintech Limited is the brainchild of two friends - Amit Rajpal and Gaurav Patankar established on 1 February 1988.

Headquartered in Mumbai, it is a nongovernmental company listed in BSE in 2012 itself. The founders after extensive research found that India has the right atmosphere for small businesses to grow, but lacks a platform that can understand, support, and thus enhance the potential of these businesses on a large scale. To support and empower these MSMEs, Tashwinder Singh, MD & CEO

Niyogin was born. It excels in continuous development and evolution to reinvent the

future of MSMEs in India by applying technology, data, analytics, and human insights.

The company majorly provides 3 fintech services: Rural Tech: iServeU is one of Niyogin's flagship products in India that enables local retailers and distributors to provide digital financial services such as DMT gateway for a cash deposit, cash withdrawal, bank inquiry, bill payment, payment support Aadhar through AePS gateway, airtime recharge and micro-ATM. Credit Solution: Urban Tech, the company's aggregator platform, provides easy, all-digital credit access to MSMEs through a widely distributed network of financial professionals and the product range includes unsecured working capital loans, transaction-focused short-term loans, and secured loans.

Money Front: A direct-to-user digital platform for asset analysis and investment advisory platform that provides financial advisory services to its clients through an automated portfolio approach.

NIYOGIN FINTECH

- Payel Chowdhury

Shareholding Pattern Shareholding Pattern

FY 2018-19

FY 2019-20

FY 2020-21

Promoters

40.1

40.6

38.5

FII

21.2

19

17.3

DII

0

0.5

0.5

PUBLIC

38.7

39.9

43.7

OTHERS

0

0

0

In the shareholding pattern of Niyogin Fintech

Ltd,

the

majority

of

the

shareholders are Public (43,7%) along with the promoters (38.5%) In the last 3 years,

the

promoter’s

shareholding

percentage has been decreasing. Also, there seems to be disinvestment in the FII sector as the percentage decreased from 21.2 in 18-19 to 17.3 in 20-21. The Public’s stake in the company has been increasing from FY 18-19 to 20-21.

Ratio Analysis Financial year

2020-21

Industry P/E

49.44

Market Capitalisation

₹583 Crores

Current Market Price (16/03/2022)

₹62

Financial Year

FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20

FY 2020-21

P/E

-4.77

-2.65

-8.18

-23.29

-6.44

ROE

-40.55

-1.03

-2.56

-9.62

-2.24

PB Ratio

0.53

2.9

3.24

1.15

2.22

Book Value

32.67

31.94

30.37

28.15

30.65

EPS

-13.25

-0.46

-0.79

-2.72

-0.73

Dividend Yield

0

0

0

0

0

NIYOGIN FINTECH

- Payel Chowdhury

Even if the company is showing a negative PE ratio, it does not mean the company is losing money or is a sign of impending bankruptcy. It could be due to environmental changes that aren’t in control of the business, or any negative incidents within the business itself. Also, it is very common for tech stocks to have little to no revenue and high expenses. Although the PE ratio rose steadily from fiscal year 16-17 to 17-18, it was followed by a negative trend in 18-19 and 19-20. But in fiscal year 20-21, there was a significant improvement of 72.32% increase compared to year 19-20. Analyzing by industry standards, a lower ratio than the industry average means that the stock is less costly than its peers which can be attractive to investors who are looking for low-priced stocks.

For most firms, an ROE level of around 10% is considered strong and covers costs of capital.

While a negative return is rarely desired, it`s sometimes important to determine the causes of a negative return if possible. Most companies post a negative return in their early years, due mainly to the significant costs of start-ups, including capital expenditures – investments in equipment and other major assets. Also, the market rupture due to the pandemic is the reason the company posted negative returns. But operating profit has grown well for the company over the past 3 years: 3-year CAGR of 66.30% Value investors typically use ratios like the price-to-book value ratio to determine if a company's stock is overvalued or undervalued. It shows the relationship between the market's perceived value of a company's stock and the company's actual book value. A P / B ratio greater than 1 indicates that the market value is higher than the book value and the investors are willing to pay a premium due to expected future returns. The upward trend of the price-to-book value ratio can be seen until 2018-19 when there was a slump. Nevertheless, the price-to-book value ratio is on the rise in 2020-21.

The book value is used as an indicator of the value of a company’s stock, and it can be used to predict the possible market price of a share at a given time in the future. Although the BV has been on an increasing trend till 2018-19, it took a slight dip in 2019-20 followed by a recovery in 2020-21. Comparing it with the current market Price (Rs 62), and the PE ratio of the sector, we can say that the stock is overvalued. It means there is a possibility that the price will correct itself. But investors shouldn't panic. Because market value includes profitability, intangibles, and future growth prospects, it tends to be greater than book value.

EPS serves as an indicator of a company's profitability. Although EPS is negative due to loss posted in the last 5 years, a negative EPS does not mean a badly managed company as it is pretty standard for a technology-based company to display negative EPS due to heavy investments and marketing. Although there has been an improvement in EPS in the last 5 years from FY 2016-17(-13.25) to FY 2020-21(-0.73) of 94.49%.

NIYOGIN FINTECH

- Payel Chowdhury

Trend Analysis

Fintech is one of India's fastest-growing technology segments, with a predicted compound annual growth rate of 24.56% from 21 to 2026 (CAGR) and is expected to reach an 8.35 trillion Indian rupees market by then. According to the trendline above, Niyogin Fintech Ltd.’s stock has been in a bearish cycle for the past 12 months. Last year, Niyogin Fintech Ltd.’s volatility was 2.65% higher than the S & P BSE Sensex's volatility. However, there is a positive trend going forward, as stock returns for the last 5 years are 258.38%. Also, this company has a positive expansion plan and can be recommended as part of the investor's portfolio if the investor is ready to take a risk but the stock movements should be watched closely.

Future Outlook Niyogin Fintech, recently announced that its board has approved plans to invest Rs 100 crore to boost growth which will enable the company to expand the addressable market and add multiple products to make this the most comprehensive fintech infrastructure platform. Also, it had acquired a 51% strategic and controlling stake in iServeU for Rs 592 million. This is a step taken by the board to realize the company’s vision of a full-stack digital platform to bring bestin-class products and services on the platform using its unique platform through a network of financial professionals. This acquisition offers multiple product complementarities such as credit, digital wealth, and payments among others. Also, it had acquired a 50.1% stake in wealth management platform Moneyfront for ₹12 crores.

As per a NASSCOM report, in 2018 around 400 fintech companies were operating in India and the number is constantly growing. This sector is in its nascent stage but set to skyrocket in the years to come. This is the right time to invest in as a sector it’s still not overbooked. Although the fintech companies have huge investment potential, are low risk and lucrative compared to many other investment options, investors are advised to do proper research before investing the same.

CDSL

- S Himasree

Introduction Central Depository Services (India) Limited (CDSL) is a leading securities depository in India. BSE Ltd. initially promoted the company and later divested its stake to leading banks. CDSL is connected to all major stock

Mr Nehal Vora, MD & CEO

exchanges, including the BSE Ltd, National Stock Exchange, and the Metropolitan Stock Exchange of India.

Other online services provided by CDSL include e-voting, e-Locker National Academy Depository EASI (Electronic Access to Securities Information and Execution of Secured Transactions), and a mobile application (Myeasi m-voting).

Capital markets, mutual funds, and insurance firms are among the sub-sectors of the Indian securities and financial services industry for which the company provides

services. The fixed annual charges collected from registered corporations and transactionbased fees collected from Depository Participants provide CDSL with a high level of operating income stability. The depositories levy transaction fees, which are subject to SEBI approval.

Business Model CDSL operates under an asset-light business model with low fixed costs. CDSL has a high level of operating leverage and a 62% operating margin as a result of this (as per TTM data). As a result, any revenue growth will automatically improve net profit and return on investment.

Customers who make transactions in their Demat account are charged a fee by CDSL. The DPS (stockbrokers) levy these fees, which are then passed on to CDSL.

Shareholding Pattern Summary

MARCH'21

MARCH'20

MARCH'19

Promoter

20.00%

20.00%

24.00%

FII

8.00%

1.80%

3.10%

DII

33.90%

41.90%

42.40%

Public

38.10%

36.30%

30.50%

Others

0.00%

0.00%

0.00%

CDSL

- S Himasree

If you look at the shareholding pattern of the company, Promoters hold 20% of the shares of the company as of March’21. The percentage of shares

with

respect

to

2019(24%) has been decreasing.

Over the years the shares of Foreign Institutional Investors has been increasing from 3.1% in March’19 to 8% in March’21.

But the shares of Domestic Institutional Investors have decreased from 42.40% in March’19 to 33.90% in March’21 The shares in Public have also been increasing from 30% in March’19 to almost 38% in March’21.

Ratio Analysis Financial Year

FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21

P/E

23.12

28.65

22.37

21.14

34.25

ROE

18.03

14.67

15.46

15.55

23.44

PB Ratio

5.9

4.3

4.7

3.9

10

Book Value

44.2

48.1

51.9

54.5

65.3

EPS

8.21

9.87

10.86

10.16

15.32

We can see the increasing trend in PE ratios. Higher the PE ratio, the more money we are paying for each rupee of the earnings (costly stock). Considering the price to investing perspective we can say it is a negative sign.

EPS is a positive sign in CDSL. We can see a consistent increase in EPS from the past 4 years indicating a better distribution of profits to shareholders.

When it comes to revenues, serious revenues have steadily increased from rupees 105 crores in March 2015 to rupees 344 crores in March 2021, a very good CAGR of 21.9%. Profits at CDSL have increased from 44 crores in March 2015 to 200 crores in March 2021, a CAGR of 28.7%.

Take a look at the dramatic increase in profit over the last year.

CDSL

- S Himasree

Quarterly Net Profit at Rs. 83.73 crore in December 2021 up 55.96% from Rs. 53.69 crore in December 2020. EBITDA stands at Rs. 114.65 crore in December 2021 up 56.9% from Rs. 73.07 crore in December 2020. CDSL EPS has increased to Rs. 8.01 in December 2021 from Rs. 5.14 in December 2020. CDSL EPS has increased to Rs. 8.01 in December 2021 from Rs. 5.14 in December 2020.

CDSL shares closed at 1,573.95 on February 04, 2022 (NSE) and have given 18.04% returns over the last 6 months and 198.75% over the last 12 months. Net Sales at Rs 151.52 crore in December 2021 up 75.91% from Rs. 86.13 crore in December 2020.

The return on equity (ROE) is an important metric for investors. The return on equity (ROE) indicates to common shareholders how well their money is being spent after preferred shares have been deducted. The long-term average ROE should be more than 15%. CDSL's average two-year return on equity (ROE) is 18%.

The debt-to-Equity ratio varies across industries but many companies have a ratio larger than 1, that is they have more debt than equity. If the ratio is extremely high, borrowing more money may be difficult. Capital-intensive industries, such as auto manufacturing, typically have debt/equity ratios greater than 2, whereas IT firms have debt/equity ratios less than 0.5.

Trend Analysis

Central Depository Services (India) Limited can be a beneficial investment option if you're seeking high-yielding equities. On 2022-03-19, the Central Depository Services (India) Limited quote is 1533.700 INR. The "CDSL" stock price estimate for 2027-03-12 is 6339.950 INR, based on our forecasts of a long-term rise. The revenue is estimated to be around +313.38 percent after a 5-year investment.

CDSL

- S Himasree

Future Outlook While FinTech innovations have been lightning-fast, we have only scratched the surface of what is conceivable and expected to happen in the next years. FinTech is transforming our lives and habits by allowing us to trade, bank, and exchange money without having to deal with a human.

However, the financial sector faces several obstacles to overcome, particularly in the areas of regulation and data protection, to gain customer trust and completely overtake the market.

With big data, blockchain, AI, and a slew of other technological advancements already in use or on the horizon, company leaders should seize the moment and embrace FinTech.

ONMOBILE GLOBAL

- Sanket Tiwari

Onmobile Global Limited (OnMobile), a company saga that started in the year 2000, was merged on 27 September 2000 as Onscan Technologies India Pvt Ltd. OnMobile is a large Indian company with a white name label Value Added Services (VAS) for mobile, landline and media service providers based in Bangalore, India. The company offers Telecom

Mr Sanjay Baweja, MD & Global CEO

VAS, Voice Portals, Ringback Tones, Mobile Content Aggregation & Distribution, Interactive Media Portals, Mobile Advertising, 1-to-1 Direct Mobile Marketing, and M-Commerce. OnMobile has a large

R&D centre and network operations centre and has offices in Mumbai, Delhi, Singapore, Paris, Jakarta, London, Kuala Lumpur, Seattle, and Sydney. Onmobile Global Limited has seven directors, including Sanjay Baweja and Sanjay Kapoor.

The company's name was changed to OnMobile Asia Pacific Private Limited with effect from 10 April 2001. In November 2001 of that year, OnMobile acquired its first Telecom VAS customer.

The company launched a multi-modal voice communication platform and application in July 2002. A year later, in 2003, OnMobile acquired three more customers in the telecommunications industry. In 2004, the company introduced a range of products and services and began offering a range of models of services such as music jukeboxes, karaoke, and reservations. In the same year 2004, OnMobile introduced its services to public telecommunications service providers and was the first customer of international telecommunications service. In 2005, the company launched e-commerce services (train tickets) in India and started services for media customers for the first time.

OnMobile acquired IT Finite and is into Device Portal services and products in 2006. In July 2007, the company was awarded India's top VAS company 2007 according to V&D 100 survey. The company changed its name to OnMobile Global Limited and changed its status from private to the public domain. On August 21, the Registrar of Companies of Karnataka was issued a new installation certificate after the name change. By September 2007 of the same year, OnMobile had acquired 100% of VOX's shares.

The company debuted in the financial markets in January 2008 with an initial public offering (IPO) of 10,900,545 equity shares. By April 2008, OnMobile had completed the worldwide deployment of Nuance speech solutions for telecommunications-added value-added services.

ONMOBILE GLOBAL

- Sanket Tiwari

ONMO redefines the mobile gaming environment. With offices in Canada, Sweden, and India, ONMO integrates broadcasting, social media, sports, and AI into a unique mobile game offering.

We are a host of developers, product development, and marketing people from companies like Facebook, Electronic Arts, Ubisoft, Zynga, GSN Games, Swiggy, Ericsson, and a few game startups. ONMO B2C is a breakthrough on cloud gaming platforms. Host 1000+ short-selected games from some of the most popular games. ONMO is built on three major mobile game trends and two disruptive technologies. Teams from all over India, Canada, and Sweden are developing this product.

On Mobile provides mobile entertainment products and solutions such as tone and video and editing for mobile operators and media companies. Apart from these placement material products such as ONMO and Challenge Arena which we market through B2B D2C channels.

Shareholding Pattern Type/Year

2021

2020

Promoter

48.33%

49.08%

FII

0.25%

1.54%

DII

0.00%

0.01%

Public

51.42%

49.37%

In contrast to the YOY ownership trend of FIIs, they have substantially decreased their holdings to 0.25% from 1.54% in the previous year, and it indicates a negative sign for retail investors.

When it comes to DII's holdings, they have also reduced their stake from 0.01% to 0.00%, and it implies that the DIIs are looking for some other alternative investments.

Retail investors' stake has grown somewhat from 49.37% to 51.42%, indicating that there is more liquidity, which allows us for better trading chances.

ONMOBILE GLOBAL

- Sanket Tiwari

Ratio Analysis Industry P/E

35.35

P/E

28.65

P/B

1.97

CMP (in Rs.) (25/03/2022)

118.80

Market Capitalisation (Rs.)

1,251 Cr.

ROE

7.56%

EPS

4.05

Dividend Yield

1.29%

Book Value

59.12

Financial Year

FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21

P/E

63.24

66.70

40.60

35.42

28.65

ROE

6.28

5.47

4.51

-0.21

1.65

PB Ratio

5.18

4.83

3.74

0.77

1.97

Book Value

65.02

67.25

68.78

66.98

67.13

EPS

4.06

3.71

3.10

-0.14

1.12

Dividend Yield

1.50

1.50

1.50

1.50

1.50

On mobile has shown good move in last 5 years as EPS has increased from 1.12 to 4.06.

Also, PE is reducing continuously for the last 5 years which is a positive sign for the company’s growth.

The book value of the share also increased from 65.02₹ to 67.13₹ in the last 5 years.

A yearly 1.27% dividend is given by the company which builds faith within investors and leaves a positive impact.

Reported Standalone quarterly numbers for OnMobile Global are: Net Sales at Rs 54.53 crore in December 2021 up 9.35% from Rs. 49.87 crore in December 2020.

Quarterly Net Profit at Rs. 4.19 crore in December 2021 up 115.03% from Rs. 1.95 crore in December 2020.

EBITDA stands at Rs. 8.45 crore in December 2021 up 45.19% from Rs. 5.82 crore in December 2020.

OnMobile Global EPS has increased to Rs. 0.40 in December 2021 from Rs. 0.19 in December 2020.

OnMobile Global shares closed at 154.25 on February 08, 2022 (NSE).

ONMOBILE GLOBAL

- Sanket Tiwari

Trend Analysis

Onmobile is a 0-debt company with 1251 Cr. Market Capital and have shown good move in last one year, target for 2023 is around ₹166.50, it will be the best investment for next one year and target for next 5 years is around ₹384. Everyone should have this stock in their portfolio for getting good returns. The 52-week high of this share is ₹175.30 and 52 Week low is ₹87.80 which currently trading below its 52-week high. The relative strength index is in the mid-range and technically it is in the neutral stage. We can consider this stock for the long term and shortterm period for getting good returns.

Future Outlook Regarding future growth, an amount of contribution is based on the amount of contribution of Rs. 15.79 million. The defined benefit plan exposes the Company to actuarial risks such as longevity risk, interest rate risk and market (investment) risk. In the past few years company has achieved several milestones and has big plans for expansion in other countries as they have good clientele with them across the globe. The company will get an edge of 5G network in which VI, Jio, Airtel, BSNL, Phone-Pe etc. have done partnerships with Onmobile.

The company provides telecom value-added services in India and internationally.

Tones Services, Games Service, News Service, Sports Services, Videos Sevices, Quiz Services, and Music Services are the products and services of Onmobile.

The current status of Onmobile Global Limited is - Active.

The last reported AGM (Annual General Meeting) of Onmobile Global Limited, per our records, was held on 29 September 2021. The latest Board meeting was conducted on 8th Feb 2022 to take decisions and plan new strategies for the business.

CAMS

- Shibasradha Nahak

Introduction CAMS (Computer Age Management Services) is one of the leading mutual fund transfer agencies in India. It bestows its service

platform

to

investors,

distributors,

and

asset

management companies. The company was incorporated in 1988 by V Shankar, and this software venture got debuted on Dalal Street on 1st October 2020 with a listing price of Rs.1518 per share. And currently, it is directed under Mr Anuj Singh being CEO of the company.

CAMS is pre-eminent in providing service solutions to businesses starting from mutual funds, reconciliations, loans Anuj Kumar, MD & CEO against mutual funds, payments, account aggregators, and insurance companies.

Business Structure and Valuation CAMS has diversified its service business into sub-sections like CAMS KRA, CAMS Rep, Sterling software private ltd., CAMS Pay, and CAMS FinServ. With these sub-sections, the company was able to predominate in every tech-enabled service business in the B2B market. Also, the company is veering its technology to cater to technology-based product services.

While correlating CAMS valuation with industry competitors, it has well-diversified financials with a high dividend pay-out to its shareholders. But there is undoing in the market share of the company for over last 5 years, it got dropped down to 0.73% from 0.76%. Moreover, considering market share CAMS enjoys a total of 70% market share in terms of Mutual Fund Assets service. So, handling those sheer volumes by CAMS just off-sets the weakness in pricing and justifies its premium valuation. Also, CAMS is trading in a rich valuation of around 43 times the estimated earnings in FY23.

Shareholding Pattern Type/Year

2021

2020

Promoter

23.80%

31%

FII

30.40%

8.70%

DII

13.30%

28.20%

Public

32.60%

28.20%

CAMS

- Shibasradha Nahak

In contrast to the YOY ownership trend

of

FIIs,

substantially

they

grown

have their

holdings to 30.4% from 8.7% in the

previous

year,

and

it

indicates a positive sign for retail investors because these giant investors can uplift the share price multi-fold.

When it comes to DII's holdings, they have reduced their stake from 28.2 % to 13.3%, and it implies that the DIIs are looking for alternate investments.

Retail investors' stake has grown somewhat from 28.2% to 38.2%, indicating that there is more liquidity, which allows us for better trading chances.

Financials Industry P/E

32.75

P/E

56.61

P/B

22.45

CMP (in Rs.) (17/03/2022)

2373.35

Market Capitalisation (Rs.)

11,642 Cr.

ROE

38.89%

EPS

55.53

Dividend Yield

1.81%

Book Value

118.45

When comparing CAMS' P/E to the industry's P/E, we may conclude that the company is overpriced, and investors are willing to pay a bigger premium to purchase shares.

CAMS has a P/B ratio of 22.45, indicating that the company is floating shares at a premium of 22.45 times its book value, indicating that there is a larger risk that the stock will correct for overvaluation.

With a market capitalization of Rs.11,642 crores, the stock is more stable for investors and traders, with lesser volatility and higher liquidity.

The stock has a multi-fold ROE, indicating that the firm is very effective at generating profits from its current assets, and this aspect has enticed FIIs to raise their holding in the stock in a shorter time.

CAMS

- Shibasradha Nahak

CAMS has an EPS of 55.53, indicating that the firm is very profitable for shareholders and that the services it provides are in great demand.

A dividend yield of 2% implies that the firm was able to create bigger profits and that the distribution of these profits entices more shareholders to participate actively in trading.

Ratio Analysis Financial Year

FY 2019-20

FY 2020-21

P/E

57.67

42.63

ROE

33.54%

46.61%

P/B Ratio

-

19.2

Book Value

96.3

100.3

EPS

35.23

42.09

Dividend Yield

2.14%

1.81%

The P/E ratio has decreased over the last year, but this is due to a rise in earnings per share from 35.23 to 42.09, indicating that shareholders are profiting from their investment in this firm.

A high year-over-year ROE indicates that the firm was able to effectively employ its assets while also meeting investor expectations.

CAMS' dividend yield is greater than the industry's dividend yield, which attracts traders and investors since it provides a passive source of income in the form of interim dividends or final dividends.

Trend Analysis

CAMS

- Shibasradha Nahak

According to the preceding chart, the stock hit a 52-week high of Rs.4067.4 and then broke through the support zone, resulting in a 42% correction.

In addition, the stock has reached its 52-week low of Rs.1741.50, indicating that it is acting as a buying opportunity for all investors.

The stock is now trading in a consolidated phase, with a high likelihood of an upswing since buyers are taking long positions to maximize their wealth, as the fundamentals of the company are sound.

Future Outlook Recently, the firm announced the go-live and launch of the National Pension System's Central Record Keeping Agency (CRA) (NPS). As a result, one of the CAMS NPS platform's sub-sections will provide the subscriber services based on its robust technology and core expertise in serving consumers for pension account opening, record keeping, and maintenance.

In addition, the company is acquiring a majority stake in Fintuple Technologies Pvt. Ltd., which specializes in client digital onboarding, KYC, fund data, Fact sheets and analysis, and other digital support solutions for AIF and PMS, and this synergy can help solve industry problems and create frictionless business experiences. As a result of the CAMS AIF platform, the AIF and PMS industry is expected to develop at a CAGR of 20% over the next decade.

The mutual fund industry has risen drastically in the last five years. CAMS' mutual fund clients include four of the top five mutual funds. Because the entrance barrier to this industry is high, and replacing the firm is quite difficult, CAMS has a significant edge in this service business. As a result of this technological power, CAMS may be able to establish a monopoly in various B2B service businesses.

So, are you going to pay a higher premium for Fintech's future?

PAYTM

- Sriram Rathi

Paytm (a partial abbreviation for "pay through mobile") is an Indian multinational technology business established in New Delhi, India, that specializes in digital payment systems, ecommerce, and financial services. Paytm is currently available in 11 Indian languages and offers online services such as mobile recharges, utility bill payments, travel, movie, and event bookings, as well as in-store payments using the Paytm QR code at grocery stores, fruits and

Vijay Shekhar Sharma, MD, CEO & Chairman

vegetable shops, restaurants, parking, tolls, pharmacies, and educational institutions.

Paytm raised $1 billion in a fundraising round led by T Rowe Price, along with previous investors Ant Financial and SoftBank Vision Fund, on November 25, 2019. During the COVID-19 pandemic, Tata Starbucks joined Paytm in July 2020, allowing customers to order food online.

To conduct its first public offering, One97 Communications submitted a draught red herring prospectus with the Securities and Exchange Board of India in July 2021. (IPO). It went public in November 2021, raising Rs 18,300 crore (US$2.4 billion) at a US$20 billion valuation. It was India's largest initial public offering (IPO). The shares began trading on the NSE on November 18, 2021, at 1,950, 9.3% below the upper band of the IPO price range, and closed down more than 27% at 1,560, the largest decrease on a listing day in Indian IPO history

PAYTM

- Sriram Rathi

Paytm mini app Paytm has announced the opening of a DIY route for developers, allowing them to list their apps on the Paytm Mini Apps Store. The new procedure would make it easier for developers to create and host apps on Paytm's platform, allowing them to increase their business's reach.

Paytm claims that its Mini Apps Store has already aided hundreds of app developers in India in growing their businesses and reaching their target audiences. Small developers can use the Paytm Mini Apps Store to create low-cost, quick-to-build mini-apps utilizing Open-Source technologies like HTML and JavaScript. Paytm's payment interface can be used by apps to allow clients to pay with a variety of methods. Over 600 apps have been featured on the mini-app store in the previous few months, with another 1000 on the way.

Shareholding Pattern Share holding pattern

FY 2020-2021

Promoters

0

Fll

9.4

Dll

1.1

Public

89.6

Others

0

Financials Financial Year

2020-2021

Sector PE

66.56

Market Capitalization

₹ 38,720 cr

Current market price

₹ 634.05

In the quarter ended December 31, 2021, Paytm reported a four-fold increase in loan disbursals from its platform, both in terms of numbers and value. According to a regulatory filing, the company disbursed 44 lakh loans worth Rs 2,180 crore during the reported quarter, which is more than four times the 8.81 lakh loans for Rs 470 crore it disbursed a year ago. The company's gross merchandise value (GMV) more than doubled to Rs 2.5 lakh crore in the third quarter of 2021, compared to Rs 1.12 lakh crore in the same quarter the previous year.

With a gross merchant value of Rs 4,033 billion in the financial year 2021, it has India's largest payments platform. One97's revenue from operations fell 14% to Rs 2,802 crore in FY 2021, according to its annual report. However, this year's losses were reduced to Rs 1,701 crore, compared to a loss of Rs 2,942 crore in the fiscal year 2020.

PAYTM

- Sriram Rathi

Paytm, which is backed by SoftBank, Alibaba Group, T. Rowe Price, and others, generated $382 million in total operating revenue in FY21. It has decreased by 13% from FY19, owing to a declining share of commerce and cloud services revenue. Due to the pandemic, the company's sales from this division decreased significantly, with revenue share falling from 47.5 percent in FY19 to 25 percent in FY21. However, from 52.5 percent in FY19 to 75 percent in FY21, revenue from payments and financial services surged by 22 percentage points.

Trend Analysis

The stock is currently trading 72% lower than its all-time high of Rs 1,961.05. Rising geopolitical tensions between Ukraine and Russia, as well as soaring crude oil prices and uncontrollable global inflation, have dampened market sentiments. Paytm's share price was already in a downward trend, and it is currently experiencing its worst performance. Buying on dips is advised. It is an excellent opportunity for the market's long-term players. It does, however, require a little more consolidation at the lower levels. Short-term investors can now buy on dips for short-term gains, while long-term investors can accumulate on dips.

Conclusion Paytm is based on what is growing in India's internet ecosystem, what people want to do online, and what services we can provide to those customers, so that is how we look about our environment, which is a static ecosystem.

PAYTM

- Sriram Rathi

In India, there are numerous payment platforms such as Paytm. None, though, has been able to carve out a place for itself quite like this finance unicorn. Paytm is the market leader because to its extensive security measures. The Reserve Bank of India has approved the Paytm Wallet.

While demonetization created its dominance in the market on its own, its sheer ease of use, availability in multiple regional languages, user-centric experience, and simple interface are all elements that cannot be discounted in its appeal.

Paytm Karo is a phrase that many Indians have heard and an action that has been performed by over 330 million customers and 21 million traders. What began as a wallet has grown into a suite of payments and trading apps, and is now transforming into a financial marketplace that provides credit and a variety of services ranging from investments to insurance. With digital payments expected to expand from $ 20 trillion in 2021 to between $ 40 trillion and $ 50 trillion by 2026, Paytm has a lot of room to develop. Paytm is certainly a success story to watch and learn from. However, this does not mean that Paytm's initial public offering (IPO) is a viable investment opportunity. The two topics are vastly different.

FINANCIAL TRIVIA Money For Thought Fintech firms are upending industries all over the world, putting pressure on traditional industry heavyweights to adapt or collaborate. It is a rapidly evolving segment of the financial services sector that assists companies or start-ups in transitioning from traditional business models to digital financial services. From mobile payments to cryptocurrency exchange, there are numerous options available today for establishing a commercial enterprise and expanding its accessibility. It is an undeniable fact that India is currently undergoing a massive fintech revolution, emerging as the world's secondlargest fintech hub after the United States. Fintech stocks continue to be popular among investors. However, novice traders should be cautious whether the stocks are traded at a cheaper price or a bargain and it's important to check the financials of the company before investing as the sector is still in its nascent stage.

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