In recent years, India has emerged as a hotbed for financial technology (fintech) innovation, with companies revolutionising the traditional landscape of banking, payments, and financial services. The rapid adoption of digital technologies, increasing smartphone penetration, and a growing tech-savvy population have fueled the rise of fintech in the country.
In this article, we’ll explore India’s top 10 fintech stocks based on 1-year returns at the forefront of this transformative wave. But before that, let’s understand what fintech stocks mean.
Fintech stocks are companies that operate in the financial technology (fintech) sector. Fintech is a broad and evolving industry that leverages technology to improve and innovate financial services, disrupting traditional banking and financial institutions.
Fintech companies combine traditional finance operations with cutting-edge technologies such as artificial intelligence, blockchain, data analytics, and mobile applications to provide efficient, user-friendly, and often more cost-effective financial solutions.
| Stock | Market Capitalisation
(₹ crore) |
1 year return (%) | PE Ratio (x) | EBITDA Margin (%) | Return on Equity (%) | Debt to Equity Ratio (x) |
| One 97 Technologies Ltd (Paytm) | 58,604.54 | 109.34 | -33 | -14.69 | -13.1 | 1.32 |
| Angel One Limited Ltd | 24,772.36 | 97.44 | 27.84 | 40.44 | 47.52 | 36.42 |
| PB Fintech Ltd (Policy Bazaar) | 35,918.59 | 86.05 | -73.72 | -14.29 | -8.94 | 4.13 |
| Intellect Design Arena Ltd | 9,504.87 | 56.18 | 35.57 | 21.51 | 13.74 | 1.31 |
| Central Depository Services (India) Ltd | 18,727.45 | 41.45 | 67.87 | 61.97 | 23.06 | 0.19 |
| KFin Technologies Ltd | 8,741.19 | 40.99 | 44.66 | 42.79 | 23.91 | 18.37 |
| HDFC AMC Ltd | 60,923.00 | 34.32 | 42.8 | 77.47 | 24.46 | 0 |
| Infibeam Avenues Ltd | 5,850.22 | 29.36 | 41.91 | 12.1 | 4.56 | 0.25 |
| Computer Age Management Services Ltd | 13,710.82 | 21.38 | 48.07 | 44.87 | 39.89 | 11.92 |
| Bajaj Finance Ltd | 4,40,169.53 | 4.46 | 37.96 | 38.67 | 23.46 | 398.53 |
Note: The above list of fintech stocks is dated November 24, 2023. These stocks are sorted from highest to lowest based on the 1-year return. The following parameters were used to get the list:
Now, let’s look at these stocks briefly.
Founded in 2000 by Vijay Shekhar Sharma and headquartered in Noida, this company operates Paytm, a major player in India’s digital payments and financial services sector. It started as a mobile recharge and utility bill payments platform and has since expanded into a full-fledged financial services provider.
Paytm offers a wide range of services, including digital wallets, banking, lending, insurance, and wealth management. It’s known for its user-friendly mobile application, which caters to a massive customer base for peer-to-peer payments, shopping, and other transactions. As of recent data, the company had a revenue of ₹92.57 billion but a net loss of ₹12.08 billion.
Angel One Limited, formerly known as Angel Broking, is a prominent stock brokerage company in India. The Mumbai-based company was established in 1996. It offers various services, including stockbroking, depository services, commodity trading, and investment advisory services. The company is known for its robust trading platforms and a strong focus on technology-driven services. The firm rebranded to Angel One Limited in 2021.
This company, founded in 2008, owns Policybazaar and Paisabazaar. Policy Bazaar is a prominent online insurance aggregator in India. Policy Bazaar revolutionised the insurance sector by providing a platform for comparing different insurance policies.
It enables customers to analyse the features, benefits, and prices of policies from various insurance companies, aiding in informed decision-making. The company also offers a range of services in health, motor, life, travel insurance, and more. Policybazaar started as an insurance comparison website and has grown into a comprehensive online marketing, consulting, and technology service provider for insurers and lending partners.
Established in 2011 and headquartered in Chennai, Intellect Design Arena Ltd is a global leader in financial technology for banking, insurance, and other financial services. It specialises in digital banking, insurance, and financial technology solutions. The company emphasises innovation and client-centric solutions. It boasts the world’s largest cloud-native, API-led microservices-based multi-product fintech platform.
Founded in 1997, CDSL is India’s largest depository regarding demat accounts. Based in Mumbai, it provides depository services, data processing, and other related services. It was the first depository in India to open 60 million active demat accounts.
It facilitates the holding and transacting of securities electronically and enables securities transactions to be processed by book entry. CDSL’s services are crucial for the smooth functioning of the equity markets in India, providing secure and efficient depository services.
Incorporated in 2017, KFin Technologies Limited serves asset managers, including mutual funds, AIFs, pension, wealth managers, and corporates both in India and abroad. The company is headquartered in Rangareddi, Telangana.
The company is primarily engaged in providing registry and investment fund services. It serves asset managers and corporate issuers, offering solutions in mutual fund registries, corporate registries, alternative investment fund registries, and pension fund processing. The company is known for leveraging technology to provide seamless and efficient services.
HDFC Asset Management Company Limited (HDFC AMC) is the Investment Manager for HDFC Mutual Fund, India’s largest mutual fund with an AUM of ₹4,36,696 Crore as of March 31, 2023. It has a diversified portfolio in Equity and Fixed Income/Others, a nationwide network of branches, and a broad distribution network.
As of March 31, 2023, Housing Development Finance Corporation Limited (HDFC) owns 52.56% of HDFC AMC’s Equity Share Capital. HDFC AMC is a joint venture between HDFC and Standard Life Investments Limited (SLI). The HDFC group is a leading financial conglomerate in India, involved in housing finance, banking, insurance, asset management, real estate funds, and education finance.
Founded in 2010 and based in Gandhinagar, Gujarat, Infibeam Avenues is an Indian e-commerce company offering digital payment solutions and enterprise software platforms. The company’s flagship product is an e-commerce platform which provides comprehensive solutions for merchants and enterprises.
Infibeam Avenues Limited offers various services, including digital payment services, eCommerce platforms, digital lending, data cloud storage, and omnichannel enterprise software, catering to a diverse range of industries. Infibeam also provides payment gateway solutions under the brand CCAvenue, a popular payment gateway in India.
Known as CAMS, this Chennai-based company was founded in 1988 and went public in 2020. It’s a leading mutual fund transfer agency in India, serving a significant portion of the country’s average assets under management.
It offers a comprehensive portfolio of services, including transaction origination interface, transaction execution, payment, settlement, record keeping, and customer service. CAMS is recognised for its role in facilitating the growth of the mutual funds sector in India. As of June 2023, CAMS had a considerable presence with 227 branches and more than 70,000 distribution partners.
Bajaj Finance Ltd, headquartered in Pune, is India’s leading non-banking financial company. It offers diverse financial products and services, including consumer finance, SME finance, commercial lending, and wealth management. Bajaj Finance is known for its innovative and customer-centric products, and it has a widespread presence across India with a strong focus on using technology to enhance customer experience.
India’s fintech sector is on a meteoric rise, hitting $50 billion in 2021 and is projected to soar to $150 billion by 2025. The industry eyes a massive $1.3 trillion market by 2025, with assets under management and revenue expected to reach $1 trillion and $200 billion by 2030.
Key sectors within fintech, including payments, digital lending, insuretech, and wealthtech, are driving this growth. The payments landscape is set to achieve a transaction volume of $100 trillion and $50 billion in revenue by 2030.
India ranks as the second-largest insure tech market in Asia-Pacific, poised for a 15x surge to $88.4 billion by 2030. The country’s fintech sector has secured 14% of global funding, claiming the second spot in deal volume.
With an estimated market opportunity of $2.1 trillion by 2030, India boasts over 9,933 fintech startups, featuring industry leaders like Pine Labs, Razorpay, PhonePe, CRED, and Policybazaar. Regulatory oversight falls under RBI, IRDAI, and SEBI, covering banks, NBFCs, PSPs, and credit bureaus.
Government initiatives such as Digital India, Startup India, and the Unified Payments Interface (UPI) system actively support fintech growth, fostering an environment conducive to innovation and success.
The Fintech revolution in India shows no signs of slowing down, and investors are presented with many opportunities in this dynamic sector. The mentioned stocks represent a mix of established players and emerging stars, each contributing to the vibrant tapestry of India’s Fintech ecosystem.
As always, investors should conduct thorough research, consider their risk tolerance, and stay attuned to market trends before making investment decisions in the ever-evolving Fintech landscape. So, diversify your portfolio with fintech stocks today! Open your demat account with Angel One to start investing. After all, diversification is the key to long-term growth.
Disclaimer: This blog is exclusively for educational purposes. The securities quoted are examples and are not recommendatory.
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