Best Semiconductor Stocks in India

  • 18 Apr 2024
  • Read 16 mins read

The semiconductor zone has grown exceptionally, because of the EV revolution and the 5G rollout. Semiconductors are vital to electric motors, telecommunications infrastructure, and different regular digital objects. Consequently, investing in the finest semiconductor shares in India may be a terrific idea. The combination of AI and semiconductor manufacturing in motion is growing into a transformational journey as semiconductors power everything from smartphones to independent motors. The article will cover the semiconductor stocks list, by further covering what are semiconductor stocks, what are the characteristics of semiconductor shares, selecting a semiconductor stock, and more.

What are Semiconductor Stocks?

A semiconductor stock is the share in organisations whose enterprise revolves around the manufacturing and design of semiconductor chips or integrated circuits. These are tiny electronic components, the fundamental building blocks of all current generations, from smartphones and computer systems to domestic devices and motors.

The semiconductor companies invest huge money into R&D to produce faster, efficient, and more advanced level chips. As technology keeps changing, the demand for such types of chips keeps growing, and thereby the semiconductor stocks go up.

Semiconductor stocks offer investors a very high reward, but on the flip side, carry a lot of risk. The business is extremely cyclical, with its set of booms and busts. The first thing that needs to be mentioned is that it is capital-intensive, starting from huge investments to construct manufacturing facilities and purchase equipment.


Top Semiconductor Stocks List 2024

This table provides an overview of some of the top semiconductor companies in India, including their current share prices and market capitalisations:


Company NameShare Price (in INR)Market Capitalisation (in Billion INR)
Polycab India Ltd5,254789.34
Bharat Electronics Limited228.71670
Bharat Heavy Electricals Ltd262914.58
Apar Industries Ltd7,175.00288.34
CG Power and Industrial Solutions Limited504769.93
Hitachi Energy India Limited7,499.00317.82
V Guard Industries Limited349151.6
Honeywell Automation India Ltd43,365.00383.41
Havells India Limited1,497.00941.21

Disclaimer: This list of semiconductor stocks contains data updated as of 10th April 2024. However, it's important to conduct detailed research before making any investment decisions in these stocks.

Overview of the Top Semiconductor Stocks

The above-mentioned companies are among the most liked performers in semiconductor stocks, but why so? Read on to know in detail about the achievements and working style.

  1. Polycab India Ltd.

    Impressively, Polycab India Ltd. has shown its financial performance in generating a huge operating revenue amount, coupled with maintaining a great annual revenue growth rate, healthy profit margins, and an outstanding return on equity. Polycab India Ltd enjoys a debt-free status with a solid financial position that offers them an opportunity to support consistent earnings growth over different business cycles.
  2. Bharat Electronics Limited

    Bharat Electronics Limited (BEL) was set up in 1954 and is an Indian Defence producer for defence communication objects, radars, naval structures, and avionics. BEL goes beyond this and into civil aviation, anti-drone structures, satellite TV, and scientific electronics. BEL is centred in Bangalore and, as such, its merchandise are exported globally to Europe, Asia, Africa, North America, and the Middle East.
  3. Bharat Heavy Electricals Ltd.

    The Bharat Heavy Electricals Ltd. derived a fabulous operating revenue over the year's 12 months. Even though the annual trends of the company's revenue are appreciable, the profit margins and return on equity are areas that require improvement. Bharat Heavy Electricals Ltd., on the other hand, is debt-free with a very strong financial standing, ensuring consistent earning growth despite business cycles.
  4. Apar Industries Ltd.

    Apar Industries Ltd. is a company that is listed at the National Stock Exchange (NSE). They display financial performances through their impressive Annual Growth Rate. The company enjoys  pre-tax profit margin coupled with remarkable returns on equity. In addition, Apar Ltd has a healthy debt to equity ratio; this will mean a balanced and stable structure of the company.
  5. CG Power and Industrial Solutions Limited

    CG Power and Industrial Solutions Limited launched in 1937. It is an Indian enterprise that deals with the designing, production, and advertising and marketing of merchandise for power era and transmission, distribution device, and supplies to the railways area. The business enterprise operates in two segments: Power Systems and Industrial Systems. The first sector manufactures electric gadgets for the 2 sectors, and the second manufactures and sells strength-conversion gadgets for Indian Railways.
  6. Hitachi Energy India Limited

    Hitachi Energy India Limited, installed in Bengaluru in 2019, is a main participant in the electricity technology region. Their solutions include asset management, cables and accessories, cooling systems, structures for energy storage, and generators. These solutions encompass services on the installation of an electric grid, assessment, protection, and upkeep of belongings similarly to their improvements or maintenance.
  7. V Guard Industries Limited

    V-Guard Industries Limited is a mass intake enterprise, primarily based in Kochi. The employer is into the enterprise of manufacturing and trading a bunch of electronics, electrical, and customer durables. Their product line includes voltage stabilisers, inverters, solar water heaters, distribution boards, and so on. Sunflame Enterprises Private Limited has emerged as an entirely-owned subsidiary of V-Guard in the 12 months of 2022-23.
  8. Honeywell Automation India Ltd.

    Honeywell Automation India Ltd. is a company listed at the National Stock Exchange (NSE) with a huge operating revenue generation. The company features impressive annual revenue growth, along with commendable profit margins and solid returns on equity, reflecting its financial strength. Honeywell Automation India Ltd. is debt-free and consistently achieving stable earnings growth across business cycles.
  9. Havells India Limited

    Havells India Limited is one of the leading Fast Moving Electrical Goods companies and producers, providing a gamut of merchandise starting from circuit protection gadgets, cables, automobiles, lovers, switches, and domestic home equipment. The agency has over 14,000 dealers and 35 branches across India, with retail outreach through 'Havells Connect' for door-shipping of strength-green merchandise.

Semiconductor Industry in India

India's semiconductor industry, worth USD 34.3 billion in 2023, is vital for the financial system and era zone increase. Currently, India is predicated on imports from Taiwan, China, Korea, and Vietnam. However, with increasing calls for digital gadgets, there's a need to reduce dependence. The Ministry of Electronics and Information Technology (MeitY) has released the India Semiconductor Mission (ISM) with a $10 billion commitment, such as incentives for manufacturing and the Design Linked Incentive scheme to assist semiconductor startups. The authorities 'Make in India' initiative and Production Linked Incentive scheme also provide incentives for semiconductor production centres in India.

Features of Semiconductor Stocks

The Semiconductor stocks offer several features that make them an appealing investment option. This includes:

  1. Diversification Opportunities:

    The industries span from healthcare, automotive, leading to consumer electronics, among other industries. One is able to diversify in that they are able to reduce the risks that come with investing in one sector by investing in semiconductor stocks India.
  2. Technological Innovation:

    The industry allows innovation in technology, such as Artificial Intelligence and 5G networks, to gain growth within this sector. This investment can give people exposure to the innovation and potential high growth that the semiconductor industry offers.
  3. Market Demand:

    The usage of electronic gadgets is increasing with each day. Such towering demand may drive up growth and profitability of semiconductor companies, thus good returns accrue to investors.
  4. Growth Potential:

    India's semiconductor industry is beginning to change quickly, and some of the biggest companies in this sector have the potential to return handsomely for their investors. That's the kind of possibility that companies might similarly rise to meet the increasing demand for semiconductors.
  5. Advanced Manufacturing:

    The process of semiconductor manufacturing, the techniques involved, and the high technology used requires innovation. So, the company leading in such a domain gets a competitive edge and may have increased profitability.

Why Invest in Semiconductor Stocks?

Indian semiconductor shares can resource in diversification and expose traders to a crucial enterprise riding technological improvements. One argument in favour of purchasing these shares is that semiconductor manufacturers are continually striving to create faster and higher chips. More effective chips are required due to the fact new technologies like synthetic intelligence and 5G networks lead them to importance. As those new technologies gain traction, there will continually be a want for better chips. 

Another justification for purchasing semiconductor organisation shares is their potential to make contributions to portfolio diversification. Having a varied portfolio that includes more than a few investment kinds will help you lessen risk. Semiconductor stocks are influenced by changes within the international economic system as well as changes in the technology area because of their unique asset class. Additionally, you can determine the general fitness of the producing and generation sectors with the help of looking at the performance of semiconductor shares. As a result of this industry's achievement, semiconductor businesses regularly see a growth in stock price.

How to Invest in Semiconductor Stocks?

Investing in semiconductor stocks in India can be performed via diverse methods. This consists of:

  1. Individual Stock Purchase:

    You can buy shares of particular semiconductor businesses listed on inventory exchanges in India. This method calls for gaining knowledge of and analysing agencies' financial overall performance, increasing prospects, and aggressive function within the enterprise.
  2. Semiconductor Exchange-Traded Funds (ETFs):

    ETFs are investment funds that keep a basket of semiconductor stocks. You benefit publicity to more than one group inside the enterprise, By investing in a semiconductor ETF. This will provide similarly diversification advantages. ETFs exchange like person shares and may be offered or offered all through the buying and selling day.
  3. Semiconductor Mutual Funds:

    Mutual finances are professionally controlled investment cars that pool cash from more than one trader and invest in a various portfolio of semiconductor stocks. They offer the advantages of expert control and diversification however may additionally have higher expenses in comparison to ETFs or individual inventory investing.

Risks Associated with Investing in Semiconductor Shares

The semiconductor enterprise is a crucial component of contemporary era's characteristics. However, the semiconductor industry consists of a few precise dangers and challenges. It is vital that you recognise and recognize those capability roadblocks before coming into this market.

  1. High concentration hazard because of focused production makes it vulnerable to supply chain disruptions.
  2. Technological/Cyber dangers because of fast chip development and capacity cyber-assaults on production centres.
  3. ESG dangers arise due to the enterprise's function in water, strength intake, and dangerous waste production, that could probably affect weather alternate.
  4. Geopolitical risks are because of the industry's widespread presence in Asia, with Taiwan and China being the most important producers.
  5. Financial dangers due to growing chip manufacturing prices, shortage of professional workers, and upward push of counterfeiting.

Factors to Consider Before Investing in Semiconductor Stocks in India

Before we get into individual stocks, let's look at some key criteria to consider while investing in the semiconductor industry: 

  1. Market Trends: Learn about the modern developments within the semiconductor marketplace. The want for 5G technology, synthetic intelligence, and electric automobiles all have a huge impact on semiconductor companies.
  2. Financial Health: Assess a corporation's financial overall performance, along with sales increase, profitability, and debt level. A regular financial state of affairs is essential for long-time period funding.
  3. Investigate an enterprise's R&D initiatives: Innovation drives development inside the semiconductor commercial enterprise, therefore corporations with robust R&D pipelines are probable to succeed.
  4. Global Supply Chain: Given the worldwide nature of semiconductor manufacturing, keep in mind supply chain disruptions and geopolitical issues.

Putting money into semiconductor stocks in India can be a smart choice for those wanting to make the most of the semiconductor field. When picking the top semiconductor stocks to put money into, it's key to look at things like how financially healthy the company is, trends in the industry, tech upgrades, and rules they must follow. By spreading your investments and keeping up with news on the semiconductor scene, you can likely enjoy the rewards of this area. Online trading apps in India offer convenient access to a range of semiconductor stocks, making it easier for investors to explore this investment opportunity.

FAQs on Semiconductor Stocks

Semiconductors can be a good investment opportunity as the demand for electronic devices and technology continues to grow globally. However, it is always suggested to do your own research before reaching any conclusion.

When choosing semiconductor stocks, look for companies with a solid financial track record, commitment to R&D, and the ability to capitalise on emerging industry trends.

Investing in semiconductor stocks provides exposure to the growing technology sector and can offer diversification benefits. As demand for electronic devices continues to rise, semiconductor companies are well-positioned to benefit from this trend and potentially generate good returns.

You can invest in semiconductor stocks through various methods, such as buying individual company shares, investing in semiconductor ETFs, or participating in semiconductor-focused mutual funds. Online trading platforms make it convenient to access and trade semiconductor stocks in India.

Semiconductor stocks can be volatile, with demand fluctuations, intense competition, and cyclical industry trends. Geopolitical tensions and supply chain disruptions can also impact their performance.