Top UPI Stocks in India – UPI Stock

The table below highlights the top UPI-related stocks in India based on the highest market capitalisation and 1-year returns. Leading the list is HDFC Bank Ltd, with a market cap of ₹13.96 lakh crore and a solid 1-year return of 13.48%. Bharti Airtel Ltd follows closely with a remarkable 56.89% 1-year return, reflecting the growth in the telecom sector and its UPI integration. 

Introduction To List of UPI Stocks In India

HDFC Bank Ltd

HDFC Bank Limited, a financial services conglomerate, offers a wide range of financial services including banking, insurance, and mutual funds through its subsidiaries. The bank provides various services such as commercial and investment banking, branch banking, and digital banking. 

Its Treasury segment comprises revenue from interest on investments, money market activities, gains or losses from investment operations, and trading in foreign exchange and derivatives. The Retail Banking segment focuses on digital services and other retail banking activities, while the Wholesale Banking segment caters to large corporates, public sector units, and financial institutions by providing loans, non-fund facilities, and transaction services.  

• Close Price ( ₹ ): 1826.30
• Market Cap ( Cr ): 1396180.56
• 1Y Return %: 13.48
• 6M Return %: 16.16
• 1M Return %: 3.84
• 5Y CAGR %: 7.78
• % Away From 52W High: 0.61
• 5Y Avg Net Profit Margin %: 19.96 

Bharti Airtel Ltd

Bharti Airtel Limited is an international telecommunications company that operates in five key sectors: Mobile Services, home services, Digital TV Services, Airtel Business, and South Asia. In India, the Mobile Services segment offers voice and data telecommunications using 2G, 3G, and 4G technologies. 

Homes Services provides fixed-line phone and broadband services in 1,225 cities across India. The Digital TV Services segment includes standard and HD digital TV services with 3D features and Dolby surround sound, offering a total of 706 channels, including 86 HD channels, 4 international channels, and 4 interactive services.  

• Close Price ( ₹ ): 1620.55
• Market Cap ( Cr ): 970247.5
• 1Y Return %: 56.89
• 6M Return %: 16.49
• 1M Return %: 2.01
• 5Y CAGR %: 29.17
• % Away From 52W High: 9.78
• 5Y Avg Net Profit Margin %: -6.94 

ICICI Bank Ltd

ICICI Bank Limited, an India-based banking company, offers a variety of banking and financial services through its six segments. These segments include retail banking, wholesale banking, treasury operations, other banking activities, life insurance, and other ventures. The bank also operates both domestically and internationally through its geographical segments.

• Close Price ( ₹ ): 1308.40
• Market Cap ( Cr ): 923325.9
• 1Y Return %: 32.00
• 6M Return %: 12.79
• 1M Return %: 1.44
• 5Y CAGR %: 20.77
• % Away From 52W High: 4.12
• 5Y Avg Net Profit Margin %: 14.15 

Axis Bank Ltd

Axis Bank Limited, an India-based company, provides a range of banking and financial services through its segments including Treasury, Retail Banking, Corporate/Wholesale Banking, and Other Banking Business. The Treasury segment involves investments in various assets, trading operations, and foreign exchange activities. 

Retail Banking offers a variety of services such as liability products, cards, online and mobile banking, ATM services, financial advisory, and services for non-resident Indians. Corporate/Wholesale Banking provides services to corporate clients including advisory services, project appraisals, and capital market support.  

• Close Price ( ₹ ): 1160.50
• Market Cap ( Cr ): 359117.94
• 1Y Return %: 3.10
• 6M Return %: -5.18
• 1M Return %: -3.08
• 5Y CAGR %: 9.61
• % Away From 52W High: 15.44
• 5Y Avg Net Profit Margin %: 11.46 

Kotak Mahindra Bank Ltd

Kotak Mahindra Bank Limited is a non-banking financial institution involved primarily in providing financing services for passenger cars and multi-utility vehicles to individual customers, as well as offering inventory and term funding to car dealers. 

The Bank operates in three key segments: Vehicle Financing, which includes retail and wholesale vehicle finance, and consumer durable finance; Other Lending activities, which offers financing against securities, securitization, debenture investment, lending in commercial real estate, and other loan services. 

• Close Price ( ₹ ): 1749.90
• Market Cap ( Cr ): 347908.84
• 1Y Return %: -3.77
• 6M Return %: 1.85
• 1M Return %: 0.67
• 5Y CAGR %: 1.22
• % Away From 52W High: 10.98
• 5Y Avg Net Profit Margin %: 19.32

IndusInd Bank Ltd

IndusInd Bank Limited is involved in providing a variety of financial services to individuals and businesses. The bank offers a diverse range of financial products, including microfinance, personal loans, vehicle loans, credit cards, and loans for small to medium enterprises (SMEs). 

The bank operates through different segments, namely Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. The Treasury segment encompasses various investment portfolios, foreign exchange transactions, equities, derivatives, and money market operations. The Corporate/Wholesale Banking segment deals with lending and deposits for corporate clients and tracks the segment’s earnings and expenses.  

• Close Price ( ₹ ): 998.35
• Market Cap ( Cr ): 77775.85
• 1Y Return %: -34.09
• 6M Return %: -34.74
• 1M Return %: -7.06
• 5Y CAGR %: -8.36
• % Away From 52W High: 69.73
• 5Y Avg Net Profit Margin %: 13.26  

One 97 Communications Ltd

One 97 Communications Limited is the owner and operator of the Paytm brand, a payment app that provides a wide range of payment services for consumers and merchants. Paytm’s offerings are categorized into segments including Payment, Commerce, Cloud, and other services. The company’s main focus is on payment and financial services, such as payment facilitation, consumer and merchant lending, and wealth management. 

Additionally, they offer commerce and cloud services, such as digital product aggregation, ticketing services, telecom voice and messaging platforms, and more.  

• Close Price ( ₹ ): 902.60
• Market Cap ( Cr ): 57508.06
• 1Y Return %: 5.52
• 6M Return %: 139.93
• 1M Return %: 18.08 
• % Away From 52W High: 5.25
• 5Y Avg Net Profit Margin %: -42.72 

RBL Bank Ltd

RBL Bank Limited, an Indian private sector bank, provides specialized services across five business verticals: Corporate Banking (C&IB), Commercial Banking (CB), Branch and Business Banking (BBB), Retail Assets, and Treasury and Financial Markets Operations. 

C&IB caters to enterprises and corporate entities, particularly large corporations, while CB addresses the banking needs of emerging enterprises and businesses. BBB offers a comprehensive range of products for retail customers, small business owners, non-resident Indians (NRIs), and retail institutions, with support from various electronic banking channels such as mobile banking, Chat pay, and ATMs.  

• Close Price ( ₹ ): 162.71
• Market Cap ( Cr ): 9888.81
• 1Y Return %: -32.89
• 6M Return %: -37.72
• 1M Return %: -10.50
• 5Y CAGR %: -14.96
• % Away From 52W High: 84.81
• 5Y Avg Net Profit Margin %: 4.77 

What are UPI Stocks?

UPI stocks refer to equity shares of companies that benefit from the Unified Payments Interface (UPI), a digital payment system in India. These stocks often belong to firms that leverage UPI for financial transactions, enhancing efficiency and customer convenience.  Investing in UPI stocks can provide opportunities for growth as the UPI ecosystem expands. 

Companies embracing this technology may see increased user engagement, higher transaction volumes, and improved revenue streams, making them potentially attractive options for investors looking to tap into the digital payment revolution.

Features Of Best UPI Stocks in India

The best UPI stocks in India are characterized by strong market capitalisation, consistent growth in transaction volumes, and the ability to innovate and adapt to changing digital payment trends. These stocks represent companies deeply integrated into India’s fast-growing digital payment ecosystem, offering high potential for long-term returns.

1. Strong Market Capitalisation: Leading UPI stocks often have substantial market capitalisation, indicating their robust financial health and industry leadership. These companies can weather market fluctuations and continue driving innovation in UPI-based payments, attracting investor confidence and offering steady returns.
2. Consistent Revenue Growth: A key feature of top UPI stocks is their consistent revenue growth, fueled by increasing digital payment adoption. Companies benefiting from UPI transaction fees, mobile banking apps, and fintech solutions demonstrate resilience in generating recurring income through scalable business models.
3. Technological Innovation: The best UPI stocks focus on technological advancement to enhance user experience and security. With constant upgrades in mobile banking infrastructure, these companies remain competitive, offering seamless UPI payment solutions while addressing security concerns in the fast-evolving digital payments space.
4. Strategic Partnerships: Top UPI stocks forge strategic partnerships with government bodies, banks, fintech startups, and retailers to expand their reach. These collaborations enhance service offerings, promote UPI adoption, and ensure sustainable growth as digital payments gain traction across diverse sectors.
5. Regulatory Compliance and Trust: Regulatory compliance is essential for UPI stocks. Companies prioritizing adherence to the guidelines set by RBI and NPCI gain trust among investors and consumers. Compliance ensures smooth operations and the long-term viability of their UPI-based services in a regulated environment. 

List of UPI Stocks Based on 6-Month Return

The table below shows the list of UPI stocks based on 6-month returns.

Top UPI Stocks in India Based on5-Yearr Net Profit Margin

The table below shows the top UPI stocks in India based on 5-year net profit margin.

Best UPI stocks in India Based on 1M Return

The table below shows the best UPI stocks in India based on 1-month return.

Historical Performance of UPI Stocks in India

The historical performance of UPI stocks in India based on 5-year CAGR.

Factors To Consider When Investing In UPI Stocks in India

The Factors to Consider When Investing in UPI Stocks in India, when investing in UPI stocks in India, it’s crucial to assess factors such as the company’s market share, growth prospects, technological capabilities, and regulatory environment. These elements contribute significantly to the potential for long-term returns and financial stability in the digital payments space.

1. Market Share and Dominance: A key factor when investing in UPI stocks is the company’s market share and position in the industry. Leaders with a dominant presence in digital payments have a higher chance of benefiting from the expanding adoption of UPI, which boosts future growth prospects.
2. Revenue Growth and Profitability: Investors should focus on a company’s revenue trajectory and profitability. UPI stocks that show consistent growth in transaction volumes, mobile banking services, and fintech solutions typically deliver better returns, demonstrating the strength of their business models and scalability.
3. Technological Advancements and Security: The pace at which a company adopts new technologies is crucial. Firms with advanced mobile payment platforms, strong cybersecurity measures, and user-friendly interfaces are more likely to capture market share and maintain user trust in the highly competitive UPI ecosystem.
4. Regulatory Environment and Compliance: Given the evolving nature of digital payments, companies must comply with regulations set by RBI and NPCI. Investors should assess whether a company is fully aligned with government policies and the potential risks that could arise from non-compliance or regulatory changes in the sector.
5. Partnerships and Collaborations: Strategic partnerships can significantly enhance the growth potential of UPI stocks. Companies that partner with banks, fintech startups, and retailers create opportunities for expanding their services, improving user acquisition, and increasing transaction volumes, all of which are vital for long-term success.

How To Invest In UPI Stocks in India?

Investing in UPI stocks in India involves choosing the right stock brokerage, conducting thorough research, and evaluating the financial health and growth potential of UPI-related companies.  

1. Choose a Reliable Stock Broker: To invest in UPI stocks, you first need to select a reputable stock broker like Alice Blue, which offers low-cost trading, a user-friendly platform, and access to various UPI stocks. Alice Blue also provides research tools, making it easier for investors to navigate the stock market.
2. Research UPI Stocks and Companies: Before investing, it’s essential to research companies that are heavily involved in UPI payments, such as banks, fintech firms, and mobile wallets. Focus on their growth potential, technological innovations, market share, and recent performance to make informed decisions.
3. Open a Demat and Trading Account: You’ll need a Demat and trading account to invest in stocks. After choosing a broker like Alice Blue, complete the KYC process and open these accounts. These accounts will allow you to buy, hold, and sell UPI-related stocks.
4. Analyze the Financial Health of UPI Stocks: Evaluate the financial stability and growth trajectory of the UPI stocks you are considering. Look at key metrics such as market capitalisation, revenue growth, profitability, and debt levels to ensure you’re investing in financially sound companies.
5. Monitor Market Trends and Track Performance: Once you’ve invested, regularly monitor market trends and the performance of your UPI stocks. Keep track of industry news, technological developments in the UPI space, and regulatory changes to adjust your portfolio accordingly and maximise returns.

Impact of Government Policies on UPI Stocks in India

The influence of government policies on UPI stocks in India is significant and multifaceted. Regulatory decisions, incentives, and initiatives can shape market dynamics, affecting investor sentiment and stock performance. For instance, policies promoting digital payments and financial inclusion have led to increased trading volumes and greater interest in UPI-related companies.  

Additionally, changes in taxation, subsidies, and infrastructure development can impact these stocks differently. Investors closely monitor government actions, as favourable policies can enhance stock valuations, while adverse regulations may pose risks, underscoring the intertwined nature of governance and market responses in this sector.

How UPI Stocks Perform in Economic Downturns?

Understanding their performance in such challenging periods can provide valuable insights for investors. Economic slowdowns often lead to decreased consumer spending and uncertainty in the market, which can adversely affect stock prices.  

UPI (Unified Payments Interface) stocks may show varying resilience during these fluctuations. Some companies could experience considerable declines, while others might adapt and capitalize on altered consumer behaviour. Analyzing industry trends and specific stock performances can help investors make informed decisions amid economic instability.

Advantages Of UPI Stocks in India

The primary advantage of investing in UPI stocks in India lies in their exposure to the rapidly growing digital payment ecosystem. With increasing smartphone penetration and UPI adoption, these stocks offer strong growth potential in a dynamic, expanding market.

1. Strong Growth Potential: UPI stocks are part of India’s fast-growing digital payments sector, driven by increased adoption of UPI across businesses and consumers. As more people shift to cashless payments, these companies stand to benefit from expanding transaction volumes and revenue.
2. Resilience to Economic Cycles: The digital payments industry, particularly UPI, remains resilient during economic downturns. Unlike other sectors, UPI stocks continue to perform well, as people and businesses increasingly prefer digital transactions. This creates a stable investment opportunity in volatile markets.
3. Government Support and Policy Boost: The Indian government actively promotes digital payments through initiatives like Digital India and UPI’s integration into government services. This ensures continued growth and institutional backing for UPI stocks, enhancing their long-term prospects in the market.
4. Increased Financial Inclusion: UPI is playing a significant role in enhancing financial inclusion by providing affordable and easy payment solutions. UPI stocks benefit from this trend as millions of previously unbanked people are brought into the digital financial ecosystem, boosting transaction volumes.

Risks Of UPI Stocks in India

The main risk of investing in UPI stocks in India involves regulatory changes and the competitive nature of the digital payments industry. While UPI adoption is growing, shifting regulations and intense market competition can impact stock performance and profitability.

1. Regulatory Changes and Compliance Risks: UPI stocks are heavily influenced by government policies and regulations. Any sudden changes in digital payment rules, fees, or government initiatives could impact company operations and stock prices. Adherence to RBI and NPCI guidelines is crucial for sustainability.
2. Intense Market Competition: The UPI sector is highly competitive, with numerous players vying for market share. Banks, fintech firms, and mobile wallets continuously innovate to capture users, leading to price wars, margin pressure, and reduced market share for some companies.
3. Technological Vulnerabilities: While UPI offers great convenience, its dependence on technology makes it vulnerable to cyber threats, security breaches, or system outages. Companies exposed to these risks can suffer reputational damage, legal penalties, and operational disruptions, affecting stock performance.
4. Dependence on Consumer Behavior: UPI stocks are directly impacted by consumer behaviour, including preferences for cashless transactions. Any changes in consumer sentiment, such as a shift back to cash or resistance to digital payments, could negatively affect growth and market share.
5. Economic Downturns and Slow Growth: In times of economic slowdown, spending on digital services, including UPI transactions, could decline. Reduced consumer spending or lower transaction volumes can impact the growth trajectory and profitability of companies involved in UPI, leading to weaker stock performance.

UPI Stocks GDP Contribution

UPI (Unified Payments Interface) has significantly influenced India’s economic landscape, particularly in terms of stock market engagement. By facilitating seamless and instant transactions, UPI has enhanced accessibility for retail investors, enabling them to participate more easily in the stock market. 

This increase in retail participation has led to a more vibrant trading environment, directly impacting the capital markets.  Moreover, the rise of UPI transactions has bolstered overall economic activity, fostering greater consumer spending. This uptick in economic engagement contributes positively to the Gross Domestic Product (GDP), illustrating the interconnectedness of digital payment systems and economic growth.

Who Should Invest in UPI Stocks?

Investing in UPI stocks is suitable for investors who are looking for exposure to the rapidly expanding digital payment sector in India. These stocks offer growth potential, but they also come with competitive and regulatory risks that should be carefully considered.

1. Investors Seeking Long-Term Growth: UPI stocks are ideal for long-term investors who believe in the continued growth of digital payments in India. As UPI adoption increases across businesses and consumers, these stocks are poised for substantial growth, offering strong potential over time.
2. Tech-Savvy Investors: Investors with a keen interest in technology and innovation should consider UPI stocks. Companies driving advancements in digital payments, mobile apps, and fintech solutions are part of an evolving sector, making these stocks attractive for those interested in tech-driven growth.
3. Risk-Tolerant Investors: Given the competitive and regulatory risks in the UPI space, these stocks may not be suitable for risk-averse investors. Those willing to accept short-term volatility in exchange for potential long-term gains will find UPI stocks appealing.
4. Investors Focused on Diversification: For those looking to diversify their portfolio, UPI stocks offer exposure to a booming sector within the financial services industry. Adding UPI-related stocks provides balance and growth opportunities, particularly for portfolios that are underweight in tech or financial sectors.
5. Income-Seeking Investors: Some UPI-related companies, particularly large banks and payment platforms, offer stable dividend payouts. Investors looking for a blend of growth and income may find UPI stocks a good option, as they can provide both capital appreciation and consistent dividend yields.

UPI Stocks in India – FAQs

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.