The blockchain technology’s transparency and tamper-proof features make it an intriguing proposition for a variety of sectors. It will undoubtedly present a plethora of investment options in the years to come. The best blockchain technology stocks in India are expected to provide good potential returns and growth prospects to investors.
Also read: Best IT Stocks to Invest in India for 2024.
What is blockchain?
It is crucial to thoroughly comprehend what this technology is and why it is so significant if you are enthusiastic about blockchain stocks. Blockchain is a dispersed, decentralised ledger system that stores data in an open, safe way.
Just the relevant centralised authorities of the bank have access to the private, centralised server where a bank maintains a record of all customer operations and payment data. In contrast, blockchain is unique in that it is an unalterable public database that cannot be altered, safeguarding user data and information in an untraceable manner.
What makes blockchain compelling?
The curiosity towards blockchain is closely related to curiosity towards crypto.
Decentralised infrastructure
Just the relevant centralised administrators of the bank have access to the private, centralised server where a bank maintains accounts of all customer operations and payment data. In contrast, blockchain is unique in that it is an unalterable public database that cannot be altered, safeguarding customer data and recordings in an untraceable manner.
Low cost
Blockchain increases the efficacy and efficiency of several human processes, including data aggregation and insurance claim handling. Because there is less work and physical labour involved, many firms can save a significant amount of money and time.
Control over personal information
Blockchain technology allows its participants to make their own decisions. The strengthening of smart contracts determines the boundaries for exchanging this data.
Safety and confidentiality
In essence, blockchain technology uses end-to-end encryption to provide an irreversible history of transactions. This ensures that no middleman or third party may alter the exchanges or any of their leftover data, which blockchain’s decentralised structure eliminates from the procedures.
Due to increased customer authority over specific data, end-to-end encryption and data security from outside sources greatly lower crime and limit any type of unwanted behaviour.
Three best blockchain stocks in India?
Indian businesses are considering the enormous possibilities that blockchain technology offers. India is making significant progress toward digitalisation thanks to the blockchain. Let us take a look at the top blockchain technology stocks in India based on market capitalisation.
Reliance Industries Limited
During the annual general meeting (AGM) in 2019, Mukesh Ambani declared that the company has ambitious intentions to use blockchain technology.
One of the top blockchain technology stocks in India declared in August 2019 that it has set up one of the biggest blockchain systems in India, with a multitude of nodes.
The corporation has applied for a record 300 patents. Quantum Blockchain Network Technology was one of the main technological areas that the patents addressed.
Additionally, for US$5 million, Reliance Industries has a 5.56% ownership investment in the blockchain firm Vakt Holdings Ltd., situated in the UK.
TATA Consultancy Services Ltd.
One of the main businesses of the Tata group is Tata Consultancy Services. Financial businesses may investigate and take advantage of blockchain possibilities by utilising TCS’ Integrated Blockchain services. Under the organisation, TCS created a startup called TCS Quartz that provides clients with blockchain-based technologies.
TCS plans to define the blockchain plan. It wants to verify and create pertinent use case information specifically for the bank. TCS has decided to use checklists and the blockchain architecture framework as accelerators. The company performs trials and proofs of concept on an easy-to-use platform.
Infosys Ltd.
Finacle is a digital banking system that Infosys has under its belt. Finacle is a division of Infosys’s entirely controlled and owned product subsidiary, EdgeVerve Systems.
EdgeVerve Systems introduced its inaugural blockchain solution in 2016. Finacle Trade Connect, another blockchain-based product, was then introduced in 2018.
In 2019, Infosys introduced three decentralised blockchain applications for supply chain management, insurance, and government functions.
An Infosys subsidiary completed a blockchain solution prototype in July of 2024, intending to enhance the security, accessibility, and effectiveness of critical documentation in California.
Also read: Unveiling the effects of headlines on Adani stocks.
Stock comparison
The blockchain technology is on the rise. The financials of the top blockchain technology stocks in India are shown in the table.
| Name | P/E | Mar Cap ₹ Cr. | Div Yld % | NP Qtr ₹ Cr. | Qtr Profit Var % | Sales Qtr ₹ Cr. | ROCE % |
| Reliance Industries | 26.44 | 1793918.59 | 0.37 | 19323.00 | -4.78 | 231535.00 | 9.61 |
| TATA Consultancy Services Ltd. | 32.25 | 1552195.71 | 1.29 | 11955.00 | 5.00 | 64259.00 | 64.28 |
| Infosys Ltd. | 29.18 | 786310.97 | 2.02 | 6516.00 | 4.73 | 40986.00 | 39.99 |
Also read: 37 Financial Mistakes to Watch Out For.
Factors influencing investment in blockchain stocks
Blockchain can be an unknown territory to many investors. It is important to keep in mind the parameters listed below before investing in the best blockchain stocks in India.
Financial results
Assess the company’s liquidity, economic viability, and revenue growth using indicators such as return on equity (ROE/ROCE) and earnings per share (EPS).
Incorporation of Blockchain
Evaluate the business’s contribution to blockchain innovation as well as the consistency of using blockchain infrastructure in its activities, services, or goods.
Prospective market
Examine the blockchain industry’s status and development prospects while taking competitive advantage and future scalability into account.
The regulatory framework
Examine how the business’s blockchain projects may be affected by the regulatory atmosphere, taking into account any possible risks or benefits from compliance.
Bottomline
Blockchain implementation was initially sluggish in India. Now, the technology is welcomed favourably. Businesses are attempting to investigate the technology by integrating it into their routine operations.
Various sectors still don’t fully understand this technology. The main obstacle preventing the widespread use of blockchain technology is a lack of awareness. An investor in blockchain stocks will get a first-mover advantage.
FAQs
- Which crypto will boom in 2024?
This is a decentralised digital currency. Due to the lack of a regulatory framework, it is highly unpredictable. Many governments are averse to this form of investment and have levied high taxes. After a strong dip and the bursting of the crypto bubble, the currencies are having an uneven market time. It is difficult right now to pinpoint which currencies can perform well.
- Which stock will boom in 2025 in India?
India has had a thriving economy. The stocks are increasing rapidly while maintaining a safe cushion. Two sectors that are expected to perform well are IT and FMCG.
The blockchain technology is set to redefine the future. Although it is at its nascent stages now, blockchain solutions will be adopted in all walks of life. This will result in a strong performance of blockchain stocks.
- Which is the best blockchain company in India?
In India, blockchain stocks are appealing due to their characteristics.
Reliance has big plans to adopt blockchain technology. TCS founded TCS Quartz, a firm that offers blockchain-based technology to customers. Infosys is working closely on blockchain technologies for various sectors.
- Does blockchain have a future in India?
In India, blockchain adoption was slow at first. The technique is now being positively received in India. 46% of Indians are expected to have adopted blockchain technology. Companies are incorporating this technology into their daily operations to learn more about it.
- What is the India Blockchain Summit 2024?
The Talkatora Indoor Stadium in New Delhi, India, held the no-cost India Blockchain Summit 2024 on Saturday, 19 October 2024. Together with industry partners, Giakaa Capital the meeting. “Driving Net Zero & Empowering Women” was the summit’s topic.
