Top Semiconductor Stocks Listed on NSE to Buy in the Share Market in India
Semiconductor stocks in India have been a hot topic in the investment world lately due to their rapid growth potential. As technology continues to evolve and digitalization becomes the norm, the demand for semiconductor products has increased rapidly. This has made semi conductor stocks a great investment option for investors. In this blog, we’ll dive into everything you need to know about semiconductor stocks India and how to invest in them.
What are Semiconductor Stocks?
Semiconductor stocks refer to stocks of companies that design, develop, and manufacture semiconductors. Semiconductors are electronic components that control the flow of electricity in devices like smartphones, computers, and other electronic gadgets. There are different types of semiconductor stocks, called semiconductor chips which include memory chips, microprocessors, and other types of electronic chips.
Semiconductor stocks India are important for the economy because they play a vital role in the growth of the technology sector. The demand for electronic devices is constantly increasing, and semiconductor companies India are at the forefront of innovation to meet this demand.
Top Semiconductor Stocks List 2024
The best semiconductor stocks in India pave the way for transformative technologies. Therefore, we have listed down semiconductor stocks India to buy in 2024. The semiconductor share list includes semiconductor stock prices and market capitalization of companies.
| Stock Name | Market Cap (in Cr) | Share Price |
|---|---|---|
| Bharat Electronics Ltd | ₹1,41,371 | ₹189.25 |
| ABB India Ltd | ₹1,00,676 | ₹4,731.25 |
| Havells India Ltd | ₹86,206 | ₹1,305.6 |
| Polycab India Ltd | ₹65,104 | ₹4,361.7 |
| CG Power and Industrial Solutions Ltd | ₹69,025 | ₹449.35 |
| Bharat Heavy Electricals Ltd | ₹76,518 | ₹209.9 |
| Honeywell Automation India Ltd | ₹33,161 | ₹38,657.5 |
| Apar Industries Ltd | ₹21,847 | ₹5,628.9 |
| Hitachi Energy India Ltd | ₹25,644 | ₹5,673.3 |
| V Guard Industries Ltd | ₹12,726 | ₹292.9 |
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.
Note: The data of the semiconductor companies listed in India above is from 24th January, 2024. However, for real-time updates on stock prices and market trends, visit the smallcase stocks collection today!
Why Invest in Semiconductor Stocks?
Investing in the best semiconductor stocks in India presents a compelling opportunity driven by their integral role in advancing technology. As the backbone of devices spanning smartphones to high-performance computing systems, semiconductor companies India stand at the forefront of innovation. The sustained demand for their components, fueled by emerging technologies like artificial intelligence and 5G, underscores their enduring relevance in the market.
Moreover, the best semiconductor stocks offer diversification benefits within investment portfolios. Their performance is intricately linked to global economic trends and specific industry advancements, making them a dynamic asset class. Understanding the supply chain dynamics, including manufacturing capacities and geopolitical influences, provides investors with insights into potential market shifts. Semiconductor stocks in India also serve as valuable economic indicators, reflecting the health of technology and manufacturing sectors. Investors looking to enhance portfolio resilience and tap into the transformative power of technology should consider the informative role semiconductor stocks in India play in shaping investment strategies.
Semiconductor Industry in India – Overview
The Indian semiconductor industry is growing rapidly.
The Indian semiconductor market was valued at approximately $23.2 billion in 2022 and is projected to reach $80.3 billion by 2028, growing at a compound annual growth rate (CAGR) of 17.10% during the forecast period.
The government has taken several initiatives to boost the semiconductor shares market in India, such as:
- The setting up of the $10 billion Semiconductor Fabs Incentive Scheme (SFMIS) to attract semiconductor manufacturing companies to India.
- The introduction of the Production Linked Incentive (PLI) scheme for the semiconductor and display manufacturing sector.
- The setting up of the India Semiconductor Mission (ISM) to coordinate the development of the semiconductor stocks India industry.
How to Invest in Semiconductor Stocks?
You can invest in small cap semiconductor stocks in India through various methods, including purchasing individual semiconductor stocks India, investing in semiconductor exchange-traded funds (ETFs), or putting your money into semiconductor mutual funds. Investors should also conduct research and keep themselves updated on the latest trends and developments in the semiconductor industry in India to make informed investment decisions.
However, if you’re confused about which stocks to pick, you can explore smallcases:
- smallcases are readymade portfolios of stocks/ETFs, that are based on a theme idea or strategy
- They’re created and managed by SEBI-registered experts
- smallcase.com offers over 200+ stock portfolios, created by 180+ managers
- Some of the popular smallcases among new investors are as follows:
Disclosures for aforementioned smallcases
Semiconductor Companies India Stocks: An Overview
Let’s have a look at the best semiconductor manufacturing companies and a brief overview of the semiconductor shares India listed in the semiconductor share list above:
Bharat Electronics Ltd
Bharat Electronics is a leading Indian defense electronics company under the Ministry of Defence. It specializes in the design, manufacture, and supply of advanced electronics systems, ranging from radars and sonars to communication equipment and weapon systems. BEL plays a crucial role in enhancing India’s defense capabilities and self-reliance in electronics technology. This semiconductor stock in India is 2.47x as volatile as Nifty, with a market cap of ₹98,353 cr, the stock is ranked 58. It can be considered as one of the best semiconductor listed companies in India.
ABB India Ltd
ABB India is a prominent technology company specializing in power and automation solutions. As a subsidiary of the global ABB Group, it offers a wide range of products and services, including robotics, electrification, industrial automation, and digital solutions, catering to diverse industries such as utilities, manufacturing, and infrastructure. This stock is 2.56x as volatile as Nifty, with a market cap of ₹92,094 cr, the stock is ranked 65. It is is one of the top semiconductor stocks to buy in India NSE for 2024 investments.
Havells India Ltd
Havells is a well-established Indian company known for its electrical equipment and consumer goods. With a focus on innovation and quality, Havells produces a variety of products ranging from switches, cables, and circuit protection devices to lighting solutions and home appliances, serving both domestic and international markets. This semiconductor stocks in India is 2.04x as volatile as Nifty, with a market cap of ₹84,820 cr, the semiconductor stocks is ranked 70.
Polycab India Ltd
Polycab India boasts a robust financial performance, with a trailing 12-month operating revenue of Rs. 16,145.94 Cr. Notably, the company exhibits exceptional annual revenue growth at 16%, a healthy pre-tax margin of 12%, and an outstanding return on equity (ROE) of 19%. With a debt-free status and a strong balance sheet, Polycab is well-positioned to sustain stable earnings growth across business cycles.
CG Power and Industrial Solutions Ltd
CG Power and Industrial Solutions generated an impressive operating revenue of Rs. 7,553.74 Cr. in the past 12 months. Noteworthy achievements include a remarkable 26% annual revenue growth, a healthy pre-tax margin of 14%, and an exceptional return on equity (ROE) of 53%. The company maintains a debt-free status and boasts a robust balance sheet, facilitating stable earnings growth throughout business cycles. It has one of the best semiconductor companies in India share prices.
Bharat Heavy Electricals Ltd
Bharat Heavy Electricals Ltd generated Rs. 23,619.09 Cr. in operating revenue over the past 12 months. While the 11% annual revenue growth is commendable, the pre-tax margin at 2% requires enhancement, and the 1% ROE is considered fair but could see improvement. Notably, the company maintains a debt-free status and boasts a robust balance sheet, ensuring consistent earnings growth regardless of business cycles.
Honeywell Automation India Ltd
Honeywell Automation India (NSE) generated Rs. 3,903.69 Cr. in operating revenue over the past 12 months. The remarkable 18% annual revenue growth, coupled with a commendable pre-tax margin of 17% and a solid ROE of 13%, reflects the company’s financial strength. With a debt-free status and a robust balance sheet, Honeywell Automation India consistently achieves stable earnings growth, demonstrating resilience across business cycles.
Apar Industries Ltd
Apar Industries, listed on the NSE, generated Rs. 15,729.94 Cr. in operating revenue over the past 12 months, showcasing an impressive annual growth rate of 54%. With a pre-tax margin of 6%, the company demonstrates solid financial performance. A remarkable return on equity (ROE) stands at 28%. The debt-to-equity ratio, a key indicator of financial health, is a healthy 7%, reflecting a balanced and stable financial structure.
Hitachi Energy India Ltd
Hitachi Energy India generated Rs. 4,635.92 Cr. in revenue over the past year, showing a -9% annual decline. Improvement is needed in the -9% revenue decrease, the 3% pre-tax margin, and the 7% ROE. Despite this, the company maintains a debt-free status and boasts a robust balance sheet, allowing for consistent earnings growth throughout economic fluctuations.
How to Choose the Best Semiconductor Stocks in India to Invest in?
You can follow the following tips in order to choose the best semiconductor stocks in India available in the market right now in India 2024:
- Evaluate Financial Health: Begin by assessing the financial stability of potential semiconductor investments. Analyze metrics such as revenue growth, profitability, and debt levels to gauge the overall financial health of the NSE listed semiconductor companies India under consideration.
- Assess Technological Edge: Consider the technological prowess of each company. A robust history of research and development indicates innovation potential, a crucial factor in the ever-evolving semiconductor industry tied closely to technological advancements.
- Stay Informed on Market Trends: Keep abreast of market trends and global demand for the best semiconductor stocks to buy in India. Understanding industry shifts, geopolitical influences, and emerging technologies is essential for making informed investment decisions.
- Diversify Across Subsectors: Mitigate risks associated with market volatility by diversifying across subsectors within the semiconductor industry. Whether it’s memory chips or processors, a diversified portfolio can provide a buffer against sector-specific challenges.
- Consider Financial Metrics: Utilize financial metrics such as the price-to-earnings ratio and dividend yield. Consequently, gain insights into the valuation and potential returns of semiconductor stocks in India. However, bear in mind that historical performance does not guarantee future success.
- Stay Attuned to Regulatory Environments: Be aware of regulatory environments that may impact the best semiconductor stocks in India, both domestically and internationally. Changes in policies can have significant implications for the industry, influencing investment outcomes.
Advantages of Investing in Semiconductor Stocks in India
There are multiple reasons why you should invest in top semiconductor stocks in India. Thus, some of them have been listed below:
- High Growth Potential: Semiconductor stocks in India operate in a rapidly evolving industry. The demand for semiconductor stocks in India is constantly increasing due to the rising popularity of electronic devices. As a result, the top semiconductor stocks in India have the potential to generate high returns for investors.
- Diversification: Investing in the best semiconductor companies can help diversify your portfolio. Various industries, including healthcare, automotive, and consumer electronics, use manufacturing semiconductors. This diversification can help mitigate risks associated with investing in a single industry.
- Technological Innovation: Semiconductor stocks in India are constantly innovating to keep up with the demands of the market. Investing in these semiconductor manufacturing companies in India stock market can provide exposure to cutting-edge technologies, such as artificial intelligence and 5G.
Risks Associated with Investing in Semiconductor Shares
Here is a list of possible challenges while investing in the best semiconductor stocks in India.
- Volatility: The semiconductor bluechip stocks in India can be highly volatile. Changes in demand, technological advancements, and stock market trends often affect them. This volatility can make it difficult to predict future returns.
- Competition: India semiconductor market is highly competitive, with many Indian semiconductor companies vying for market share. This competition can lead to price wars and reduced profit margins, which can negatively impact stock prices.
- Cyclical Nature: The semiconductor manufacturing industries are cyclical, meaning that they go through periods of growth and decline of semiconductor penny stocks India. This cyclicality can make it difficult.
Factors to Consider Before Investing in Semiconductor Shares
Before diving into manufacturing semiconductor stocks to buy in India, considering the following factors are crucial.
- The semiconductor share price is the value of a single share of a semiconductor company. Calculate it by dividing the company’s total market capitalization by the number of outstanding semiconductor companies shares in India. Several factors can influence semiconductor companies share prices. This includes the demand for semiconductors, market trends, global economic conditions, and technological advancements.
- There are several semiconductors stocks to choose from. Investors should consider various factors when choosing the best semiconductor manufacturing companies. These factors include the company’s financial stability, market performance, growth potential, and dividend payout.
- Investors should also stay mindful of the risks associated with semiconductor business, such as market fluctuations in the semiconductor industry and alterations in global trade policies.
Understanding these factors and monitoring them is essential for successful investing in semiconductor shares. However, investors must do their own research and/or consult their financial advisor before investing.
Features of the Top Semiconductor Sector Stocks in India
When exploring the landscape of the best semiconductor stocks in India, understanding the distinctive features of the leading companies becomes imperative. These characteristics contribute to their prominence in the market without implying any specific investment advice.
- Technological Innovation: Top semiconductor and display industry shares are characterized by their commitment to innovation. Companies at the forefront continually invest in research and development, staying ahead in the rapidly evolving semiconductor industry.
- Global Presence: Leading semiconductor companies in India often boast a global footprint. Their products and services are not confined to the domestic market, showcasing a robust international presence and engagement.
- Financial Health: Examining the financial health of India semiconductor stocks is crucial. Market leaders typically demonstrate stable financials, including healthy revenue streams, manageable debt levels, and consistent profitability.
- Strategic Partnerships: Collaboration and strategic partnerships are key features of top semiconductor sector stocks. Aligning with other industry leaders or forging alliances with tech giants enhances their market position and facilitates mutual growth.
- Supply Chain Resilience: The resilience of the supply chain is a critical factor. Robust semiconductor companies have well-managed supply chains, mitigating potential disruptions and ensuring a steady flow of products to meet market demands.
To Wrap It Up…
In conclusion, semiconductor shares offer significant growth potential for investors looking to invest in the technology sector. Understanding the semiconductor market in India, choosing the right semiconductor manufacturers, and knowing how to invest in semi conductor stocks is essential for successful investing in this field. With the right research and investment strategy, portfolio investing of semiconductor shares can be a profitable investment opportunity for investors.
FAQs
Here are the best semi conductor stocks in India that you can invest in – Bharat Electronics Ltd, ABB India Ltd and Havells India Ltd. However, it’s important to do your research or consult a financial advisor before investing.
You can invest in Indian semiconductor stocks through a stockbroker or a mutual fund. Here are the steps involved:
1. Open a trading account with a stockbroker.
2. Fund your account.
3. Research semiconductor stocks to buy in India and choose the ones you want to invest in.
4. Place a buy order for the stocks you have chosen.
Yes, it is a good time to invest in semiconductor stocks in India, as the demand for semiconductors is expected to grow in the coming years.
Investors who have a long-term investment horizon and are willing to take on some risk should consider investing in semiconductor shares in India. Although, one should always be appraised of market conditions and stock performance before buying them.
All the factors are projected to drive the India semiconductor market to achieve a USD 55 billion valuation by 2026, with an anticipated compound annual growth rate (CAGR) of 20% during the 2022-2026 period.
Discover Other Collections:
Keep yourself informed and up-to-date on a variety of thematic sectors by reading the articles below:
