Bring in the profits! What does the rebound in new-age tech stocks mean? | UDGAM Portal for Unclaimed Deposits | 5 common SIP mistakes to avoid

In recent times, India’s emerging tech giants such as Zomato, Nykaa, and Paytm have achieved their most promising quarter since their stock market debuts, marking a significant development over the past couple of years. Investors and analysts are increasingly embracing these stocks.

Performance of new-age tech companies

The provided chart underscores the remarkable performance of new-age tech firms during the current financial year. However, it’s important to highlight that a handful of companies still find themselves trading significantly below their IPO price points further indicating a potential upside.

Why have these companies caught the eye of investors recently? Well, in the world of the stock market, there’s a saying that earnings and share price go hand in hand. If the earnings of a company improve share price will follow and create wealth for its investors and vice versa. This is precisely what has unfolded over the last few quarters for these modern tech platform firms. Take a look at the table below – it shows how these new-age tech companies have been making more money, getting more profitable, as time has gone on in the past few quarters.

Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) of new age tech companies:

Digging deeper, there are two main factors driving this renewed interest. Firstly, there’s a positive outlook for many of these companies to become profitable in the near future. Some of them have already achieved this goal. Additionally, their stocks have become more affordable after experiencing significant drops from their initial high prices during their IPOs. Take the example of Paytm: its shares dropped to a low of Rs 438 this year from its IPO price of Rs 2,150. However, since then, the stock has nearly doubled and has increased by more than 35 percent since the start of FY24. Notably, Paytm achieved operational profitability in the December quarter, with reduced net losses in the following March quarter. Similar progress is visible in other companies like PB Fintech and Delhivery.

We have covered a story on how Zomato became profitable???here .

For more on the analyst rating on new-age tech stocks, click here .

Things to know about RBI’s UDGAM Portal for Unclaimed Deposits

Rs 35,000 crores! That's the amount of unclaimed deposits public sector banks transferred to the Reserve Bank of India (RBI) as of February 2023.

Now, the RBI? has taken a step to help you find out if you have any unclaimed deposits through the UDGAM Portal.?

First, let’s understand what these deposits are, how does your money really become an unclaimed deposit.?

Unclaimed deposits are those forgotten accounts with no activity for ten years or more and often end up stashed away in banks. Here’s how it gets there:?

1. Savings and Current Accounts: If there's no activity for more than two years, these accounts become dormant.
2. Term and Recurring Deposits: If you don't claim the money after 2 years or more of the deposit’s term being completed, they become dormant
3. After 10 Years: If an account stays inactive for a decade, the money gets moved to the "Depositor Education and Awareness Fund" (DEAF) as unclaimed deposits.

Let’s now dive into the step-by-step guide on how to claim these deposits:?

1. Registration Process:?

• Enter your mobile number and set a password to register on UDGAM portal.
• Complete registration by entering the OTP sent to your mobile.

You can search for someone else's unclaimed deposits without needing their mobile number. For instance, you can use your mobile number to assist your parents.

2. Log in after registration:?

• Provide the account holder's or joint account holder's name.
• Choose relevant banks from the dropdown menu or select 'all banks'.
• Enter one of these details: PAN, voter ID, driving license number, passport number, date of birth, or address.
• Click 'search'.

3. Search Results and Access:

• The results display potential matched banks.
• Clicking on a bank's name directs you to their official website.
• Access the 'unclaimed deposits' section on the bank's website.

Here’s the link to the portal.?

RBI first announced the launch of this portal at its monetary policy meeting on 6 April 2023, to address the difficulties people encounter in tracing their money.

Currently, information from seven banks is available, including SBI, Punjab National Bank, Central Bank of India, Dhanlaxmi Bank, South Indian Bank, DBS Bank India, and Citibank for non-individual entities. More banks will be added in phases, by October 15, 2023.

The rise in unclaimed deposits is mainly attributed to individuals not closing their savings or current accounts when they're no longer needed. Similarly, instances arise when people overlook reclaiming their funds from banks after the maturity of fixed deposits.?

Another scenario comes up when the account holder passes away, and their beneficiaries- such as family or heirs may not initiate the process to retrieve the funds from the bank.

Up your finance quotient: What else needs your attention?

1) 5 Most Common Mistakes on SIP Investments that You Must Avoid

We unravel the secrets to successful SIP (Systematic Investment Plan) investments in this video. Learn from real-world examples as we highlight the top 5 mistakes that investors often make and show you how to steer clear of them. From avoiding delays in starting SIP to the importance of increasing investments with income growth, we've got you covered. Discover the key to consistent growth and safeguarding against market fluctuations.

2) Mark-to-Market: What is it and how to calculate it?

Evaluating the current value of a security or asset and adjusting it based on market conditions is called Mark to Market. Stocks, commodities, and other financial instruments can increase or decrease in value over time. This difference in value between the time of acquisition and the current value can impact traders, investors, and companies. Read the blog to know how to calculate it, and the factors to keep in mind.

3) Top Promoter Holding Stocks

Is high promoter holding a significant factor when making investment decisions?

Let’s decode.

First, who are promoters?

Promoters are the individuals who founded the company or have a major ownership stake in it.

When a promoter holds a large percentage of a company's stock, it can be a positive sign for investors.

Here's why.

-- It signals their confidence in the company's future prospects, shows the business's ability to create value over time.

-- Also, with high promoter holding, promoters are incentivized to make decisions that will be in favour of the long-term growth of the business and its profitability.

-- However, when promoters sell their shares in a company, it could mean that they have little confidence in the business or that they need to liquidate their holdings for other reasons.

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