5paisa Capital Stock Research

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5paisa Capital Detail

5paisa Capital is in portfolio of Satpal Khattar. He is one of the top investors in India. The company belongs to Financial Services sector. 

As per the Company website it is the only discount brokerage firm listed on Stock Exchanges as of now. It is second largest discount brokerage firm only after Zerodha as of this writing. The Company heavily relies on 10 INR per trade offer which is less than 20 INR per trade offer of Zerodha at present.

It came into picture only in year 2016. Since then it has performed exceptionally well to get in second position. It also offers services like

  • Stock Services like Demat account, Trading platforms etc
  • Insurance services like Insurance advisor, Health Insurance and Term Insurance
  • Mutual Funds like Mutual Fund advisor, Fund Screening and SIP.

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

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5paisa Capital Stock Performance

The stock is new kid on exchanges getting listed towards end of year 2017 at listing price 360 INR. Note the Company came into existence in year 2016. So only after one year of operations it got itself listed on exchanges.

It is very early to say anything about the Stock as it is newly listed. So far it has not performed for investors. After initial movement up it has lost the momentum and is now trading well below 300 mark. So IPO investors if invested till date have not made any money in the Counter.

5paisa Capital My Opinion

5paisa Capital is a Financial Services sector Company. As mentioned above it is first discount brokerage Company listed on stock exchanges. It has grown at exception rate by becoming second largest discount broker in just 2 years from launch.

The Company focuses on digital mode of operation (like account opening and other things) which limits the cost of setup and office costs. Digital mode of operations is now preferred by Individuals as it helps them get rid of office visits. This is one reason why it has grown at phenomenal rate. Also no brokerage helped the Company and the discount rate is also lower compared to competitors.

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These Companies can make profit by increasing number of active traders and trades on the platform. More is adoption of platform and trading the more profit Company will have. The best part is Equity penetration in India is still very low as majority of people shy away from investing directly.

So there is lot of growth scope in terms of volume. Any company which have early mover advantage will get benefited. In these two years it has surely made a name for itself. I will be tracking the Company to get an idea about alternate revenue streams and future plans it has for revenue growth.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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