- Date : 04/09/2023
- Read: 3 mins
As the FinTech sector continues to grow in India, top FinTech stocks can produce great returns for investors. Here are some top FinTech stock picks.
FinTech shares for 2023
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The merger of finance with cutting-edge technology makes FinTech stocks a future-proof investment option. Although there are many companies trading in this sector, here’s a breakdown of some of the most important and strongest FinTech stocks you can buy in the Indian Stock Market.
Highlights
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FinTech sector in India witnessed 14% of global funding in 2022
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The sector has been rapidly expanding with new startups and companies
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As people become more financially literate and tech-savvy, the sector is expected to grow by a minimum CAGR of 10%
1. Bajaj Finance
Bajaj Finance is a reputed name in the world of financial stocks. The company provides several financial solutions like home loans, car loans and so much more.
It caters to around 50 million customers in the market with a significant presence in both rural and urban areas.
- Strengths:
Considerable gains in earnings over the past year.
20% expected earnings growth rate per year
- Revenue (June 2023): 22.94TCr (up 48.03% Y/Y)
- Market Cap: 4.4 lakh crore
- 1 year return: 1.14%
- 5 year return: 165.2%
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2. CDSL
The Central Depository Services Ltd was found in 1991. The company offers convenient depository services, such as asset dematerialisation. With 588 depository participants and more than 9 crore investor accounts, CDSL helps hold securities like stocks or bonds in safe electronic format.
- Strengths:
An almost debt free company with 21.6% CAGR over last 5 years.
- Revenue (June 2023): 173.86Cr (up 20.09% Y/Y)
- Market Cap: 12.06 TCr
- 1 year return: -10.88%
- 5 year return: 345.66%
3. HDFC AMC
HDFC AMC is an asset-management company that deals with mutual funds and portfolio management. Started in 2001, HDFC AMC currently has INR 4.4 trillion as assets under management.
- Revenue (June 2023): 732.62 Cr (up 37.48% Y/Y)
- Market Cap: 52.67 thousand crore
- 1 year return: 22.89%
- 5 year return: 47.11%
4. KFin Technologies
A leading FinTech company, Kfin has many services under its belt. With a clientele that includes mutual funds, asset managers and corporates, Kfin provides SaaS based end-to-end solutions to 27 out of 46 mutual fund AMCs in India.
- Strengths:
Earnings grew by 32.6% over the past year
- Revenue (June 2023): 186.82Cr (up 9.11% Y/Y)
- Market Cap: 7.55TCr
- 1 year return: 22.32%
- 5 year return: 29.19%
5. CAMS
CAMS is a mutual fund service provider company headquartered in Chennai. Its services include fund accounting, investor services, and transaction processing. It serves over 69% of India's average assets under management, as of June 2023.
- Strengths:
Earnings are expected to grow by 14% a year
- Reven return: 78.3%
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