Best Semiconductor Stocks in India
Technological development and more specifically industries like the EV revolution and the 5G are fast transforming the semiconductor industry. These developments push the need for semiconductors as they are used in electric cars, telecommunication technologies and many gadgets that you may use in your daily lives.
Hence, it is possible to find potential in exploring some of the best semiconductor stocks in India for investment.
Semiconductor Industry in India
It is crucial to the economy of India since they define the growth of the technology industry particularly the semiconductor industry. At the moment, India imports semiconductors from Taiwan, China, Korea and Vietnam, with no production domestically. Nevertheless, due to the prolonged growth of the demand for such devices, there is currently a need to minimize this particular reliance.
Currently, the size of the Indian semiconductor industry is USD 34.3 billion and is projected to grow at a CAGR of 16.86 % year-ending 2032 due to the fast-growing market for smartphones, wearables, automotive components and computers.
To minimize this reliance on imported semiconductor, the Ministry of Electronics and Information Technology (MeitY) has come out with India Semiconductor Mission (ISM) for an investment of USD 10 billion. This entails manufacturing bonus schemes and the Design Linked Incentive (DLI) scheme for supporting semiconductor start-ups. Further, under the Government of India ‘Make in India’ policy and the latest Production Linked Incentive (PLI) scheme, to set up semiconductor manufacturing facilities in India.
Best Semiconductor Stocks in India
There are many Best Semiconductor stocks in India. Some Leading Semiconductor stocks are:
1. Bharat Electronics Limited
It is a Navratna Company which was established in the year 1954 as a central unit under the department of defense. The company offers solutions in the Defence Communication, Defence Electronics,rance, Space & Communication Markets; Defence Communication items & accessories;Land-based Radars;Naval Systems;Electronic Warfare Systems;Avionics and others.
Furthermore, BEL traditionally targets the defence sector, but the company is now looking at sectors such as civil aviation, anti-drone systems, satellite assembly & integration, medical electronics and many more. Government owned BEL which has its corporate office in Bangalore also sells its products to international countries like European, Asia, African, North American and middle east countries.
Moreover, BEL aims to expand its business beyond defence, focusing on sectors like civil aviation, anti-drone systems, satellite assembly & integration, medical electronics and others. Headquartered in Bangalore, BEL exports its products globally to regions such as Europe, Asia, Africa, North America and the Middle East. It is one of the best Semiconductor stock and Defence stock in India.
2. Hitachi Energy India Limited
Earlier known as ABB Power Products and Systems India Limited (APPSIL), Hitachi Energy India Ltd was incorporated as a Public Limited Company at Bengaluru on 19th February 2019. Today it claims to be a premier industry player in the power technology segment of diversified energy technology products.
It offers many offerings like asset and work solutions, cables and accessories, communications, cooling, energy storage, energy generation, circuit protection, semiconductors, transformers, surge protection products and services, etc. It also offers solutions like electric grid build and asset and work evaluation and protection services, maintenance, upgrades, repairs and more.
As in the market it is one of the leading semiconductor stocks in India.
3. Havells India Limited
Havells India Limited is the leading Fast Moving Electrical Goods (FMEG) company and a power distribution equipment manufacturing company of international fame. It offers absolute products including circuit protection devices, cables, motors, and fans, switches, home appliances and many others. It has established famous brands including Havells, Lloyd, Crabtree and Standard.
Today it has more than 14500 dealers and 35 sales branches in India, whereas the company’s products have an international market including more than 60 countries. But in the case of Havells more than 90 percent of the products are made in its factories and all the products have energy efficient features. Besides, there is ‘Havells Connect’, which means purchasing Havells’ products through doorstep delivery, and more than 700 Havells EBS across the country.
4. CG Power and Industrial Solutions Ltd
Crompton Greaves manufactures power and industrial solutions and was founded in 1937 the current one. It is an Indian Company which is engaged in manufacturing and exporting power equipment related to power generation distribution and transmission and railways.
One of the Influential Semiconductor stocks in India .
The company operates through 2 segments: Power Systems and Industrial Systems. The Power Systems segment develops and produces electric equipment for the power and the industrial market: transformers, reactors, and switchgear products. The above segment Industrial Systems is involved in manufacturing and marketing of power conversion products like medium & low voltage rotating machines, drives, stampings and equipment for Indian railways etc.
5. V Guard Industries Limited
V-Guard Industries Limited is a multi-divisional corporation in Kochi which operates in the mass consumption segment. It engages in the manufacturing and trading of electronics, electrical and consumer durables merchandise.There are voltage stabilizer, inverters, inverter batteries, solar water heater, distribution boards, wiring cable, domestic pump set, agriculture pump set, industrial motor/ fan, domestic gas stove etc.
V-Guard’s product line includes voltage stabilisers, inverters, inverter batteries, solar water heaters, distribution boards, wiring cables, domestic pumps, agricultural pumps, industrial motors, fans, gas stoves, domestic switch gears, industrial cables, induction cooktops, mixer grinders, etc. During the period 2022-23, the company has fully acquired the subsidiary namely Sunflame Enterprises Private Limited.
best semiconductor stocks in india
SI No. | Company | Share Price | Market Cap | Analyst Buy rating |
1 | Bharat Electronics Ltd. | Rs.305/- | 2.19 Trillion | 86 |
2 | Hitachi Energy India Ltd. | Rs.12265/- | 490.23 Billion | 60 |
3 | Havells India Ltd. | Rs.1711/- | 1.17 Trillion | 55 |
4 | CG Power and Industrial Solution India Ltd. | Rs.753/- | 1.15 Trillion | 67 |
5 | V Guards Industries Ltd | Rs. 419/- | 180.23 Billion | 62 |
Things to Know Before Investing in Semiconductor Stocks in India
The following are some essential factors to consider before buying the semiconductor shares in India:
Financial Performance
Assess the total reported stock financial performance ratios of the semiconductor company. When it comes to the overall position of a company, one has to analyze the data on financial, revenue growth, profitability and credit at the company level.
Be Aware of the Market Changes
Learn more about how the Indian domestic markets are performing and in terms of global demand for semiconductor stocks. Ensure you have your finger on the pulse of your industry, the global political climate and knowledge about the type of technologies that will soon be dominating strategic investment.
Diversification Strategy
Diversify investment in the semiconductor industry by investing in the different sub-sectors in order to reduce the effect of volatility in the market. When you invest in memory chips or processors, sector-specific difficulties can be overcome with a diversified investment.
Monitor Regulatory Environments
Consider some regulation shifts, which might affect the semiconductor stocks in India, and across the globe. Here, changes in policies have effects bearing the potential to alter future investment performance of the industry.
Supply Chain
Semiconductor market fluctuations on the other hand argue that any disruption of the supply chain results in increased sales and share prices of the semiconductors. Seasonally watch every stock and not to invest in such companies which are facing delay in launching their products, low revenues and high prices because of chain reasons.
Is It The Right Time To Invest In Semiconductors stocks ?
The one that especially presented itself given the fact that technology is employed in almost every facet of life and semiconductors are in one way or the other involved in modern day technologies is the semiconductor industry though as I have mentioned above, it comes with a bill on its side that has to be paid.
Firstly, semiconductor blue chip stocks, which is the focus of this work, in the Indian market can be highly unstable as their prices depend on changes in demand, new developments in technology and shifts in trends. This volatility keeps the future returns unpredictable and the investment decisions difficult to determine. Furthermore, India has been a competitive market for semiconductor industries, and many industries are approaching the market. This usually leads to price cutting, lower margins and in the process means that the stock market will also be affected.
However, considering semiconductor manufacturing industries as cyclical in nature, which indeed experience fluctuations in cycles. This cyclicality aggravates the volatility in the context of investing in the semiconductor industries in India through the associated stock markets. Thus, such risks should be evaluated cautiously and, perhaps, investing in semiconductor shares is better combined with diversification of investment portfolio.
FAQ'S
What are semiconductor stocks?
Stocks of a company which is involved in Designing, Manufacturing or Testing of a semiconductor chip which is used in Daily Electronics like TV, Washing Machine, Microwave, Etc. or Special Equipments like Defence, Satellites or Planes.
Why should you invest in semiconductor stocks in India?
Upcoming Future is going to be full of technologies in all terms from basic needs to advanced uses. Basic need of all tech equipment in Semiconductor. It has a lot of scope of growth in near future.
What industries benefit from semiconductors in India?
India is emerging as a hub for semiconductor manufacturing and design due to government initiatives like the Production Linked Incentive (PLI) scheme. With increasing global demand for chips, investing in semiconductor stocks offers high-growth potential.
What are the best semiconductor stocks in India?
Some of the top semiconductor-related stocks in India include:
Bharat Electronics Ltd. |
Hitachi Energy India Ltd. |
Havells India Ltd. |
CG Power and Industrial Solution India Ltd. |
V Guards Industries Ltd |
