The world runs on chips, and the companies that make them – semiconductor companies are powering the future. Semiconductor stocks may offer a gateway to tap into the thriving semiconductor industry, known for its innovation and growth potential.
With semiconductor industry stocks gaining traction, you can diversify your portfolios by investing in semiconductor shares. Let’s discover the top semiconductor stocks in the market today.
What are Semiconductor Stocks?
Imagine the tiny brains inside your phone, computer, or even car. Those are semiconductors, and semiconductor stocks represent the companies that design, manufacture, or sell them. These chips are essential for everything electronic, making them a hot investment prospect.
Semiconductor Industry in India – Overview
India’s semiconductor industry is young but brimming with potential. Government initiatives and a booming domestic market are fueling its growth, making it an exciting long-term investment space. The semiconductor stocks list presents many semiconductor shares, which you can choose to invest in according to your investment goals and risk appetite.
Also Read: What is CMP in the Stock Market?
Top Semiconductor Stocks Listed on NSE
| Stock Name | Market Cap as of 4.03.24 |
| Bharat Electronics Ltd. | ₹1,19,092 Cr |
| ABB India Limited | ₹1,19,092 Cr |
| Havells India Ltd. | ₹97,271 Cr |
| Polycab India Ltd. | ₹71,984 Cr |
| CG Power & Industrial Solutions Ltd. | ₹71,531 Cr |
| Bharat Heavy Electricals Ltd. | ₹92,170 Cr |
| Honeywell Automation India Ltd. | ₹33,905 Cr |
| Apar Industries Ltd. | ₹25,015 Cr |
| Hitachi Energy India Ltd. | ₹25,879 Cr |
| V Guard Industries Ltd. | ₹15,108 Cr |
Top Semiconductor Stocks
Bharat Electronics Ltd
Bharat Electronics Limited (BEL), a prominent Navratna Defence PSU, has reported total revenue from operations at ₹4162.16 Cr for the 3rd Quarter of FY2023-24, indicating a marginal increase compared to the turnover of ₹ 4153.12 Cr recorded in the same period last year.
| Market Cap | CMP (as of 4th March, 2024) | All-Time High Level | PE Ratio | 5 yr CAGR Return | ROCE(FY 2023-24) |
| ₹ 153, 323 Cr | ₹210 | ₹213 | 43 | 46% | 29.9% |
Furthermore, the Profit After Tax (PAT) for the 3rd Quarter of FY 2023-24 stood at ₹ 859.58 Cr, exhibiting a robust growth of 40.22% compared to the PAT of ₹613.01 Cr recorded in the same period of the preceding year.
BEL has secured ₹695 Cr order from Mazagon Dock Shipbuilders Ltd for missile system spares. BEL’s total orders for the fiscal year now stand at ₹ 27,647.31 Cr.
ABB India Limited
ABB India Limited, a pioneering technology company, specializes in electrification, automation, and digitalization solutions.
| Market Cap | CMP (as of 4th March, 2024) | All-Time High Level | PE Ratio | 5 yr CAGR Return | ROCE(FY 2023-24) |
| ₹1,19,092 Cr | ₹5,620 | ₹5,663 | 95.3 | 38% | 30.5% |
As per the latest quarterly report ending on September 30, 2023, ABB India Limited has disclosed total revenue from operations of ₹2769.19 crores, marking a notable increase from 2119.74 crores reported in the corresponding period last year, reflecting a growth rate of 30.64%. The company’s PAT (Profit After Tax) surged by 84%, reaching ₹362.87 crores compared to ₹197.56 crores in the same quarter last year.
Havells India Limited
Havells India Limited is a leading electrical equipment company renowned for its diverse portfolio of products, including cables, fans, lighting, and appliances.
| Market Cap | CMP (as of 4th March, 2024) | All-Time High Level | PE Ratio | 5 yr CAGR Return | ROCE(FY 2023-24) |
| ₹97,271 Cr | ₹1552 | ₹1600 | 82.3 | 17% | 22.3% |
In the most recent quarter ending on December 31, 2023, the company’s total income reached ₹4469.75 crores, compared to ₹ 4167.21 crores recorded in the same quarter last year, reflecting a growth of approximately 7.3%. Profit for the quarter was ₹287.91 crores, compared to ₹283.52 crores recorded in the same period last fiscal year. The company registered a marginal growth of 1.6% in profits.
These figures suggest that Havells India Limited is maintaining profitability and experiencing moderate growth in its revenue.
Polycab India Limited
Polycab is one of India’s leading manufacturers of cables and wires and allied products such as uPVC conduits, lugs, and glands.
| Market Cap | CMP (as of 4th March, 2024) | All-Time High Level | PE Ratio | 5 yr CAGR Return | ROCE(FY 2023-24) |
| ₹ 71,984 Cr | ₹4792 | ₹5733 | 43.3 | – | 27% |
In Q3FY24, the company reported a total income of ₹4411.45 crore, up from ₹3,754.86 crore. The company achieved a profit of ₹45.93 crores, up by 28.44% compared to ₹35.76 crores recorded in the same period last year.
Honeywell Automation India Limited
Honeywell Automation India Ltd is India’s leading integrated automation and software solutions provider. Renowned for its innovative technologies, it caters to diverse industries, including oil and gas, power, manufacturing, and more.
| Market Cap | CMP (as of 4th March, 2024) | All-Time High Level | PE Ratio | 5 yr CAGR Return | ROCE(FY 2023-24) |
| ₹ 33,993 Cr | ₹38,454 | ₹44,150 | 73.1 | 12% | 19.5% |
The Company’s total revenue from operations was ₹1104.2 crores for the September 30, 2023 quarter. This was a significant 39% jump from the revenue of ₹794.3 crores in the same quarter last period. Profit for the period was recorded at ₹121.9 crores, a marginal increase of 3.4% from ₹117.9 crores registered during the same period the previous year.
Why Invest in Semiconductor Stocks?
Several factors make semiconductor industry stocks attractive:
- Rising Demand: The increasing number of electronic devices creates a constant need for chips, driving industry growth.
- Innovation: Continuous advancements in chip technology open doors to new markets and possibilities.
- Resilient Performance: Semiconductor stocks often outperform broader markets due to their essential nature.
- Dividend Potential: Many leading semiconductor companies offer attractive dividend yields.
How to Invest in Semiconductor Stocks?
There are two main ways to invest in semiconductor stocks:
- Individual Stock Purchases: Choose specific companies based on your research and risk tolerance.
- Mutual Funds or ETFs: Invest in funds focused on the semiconductor sector for diversification.
How to Choose the Best Semiconductor Stocks?
Here are some key factors to consider:
- Company Financials: Analyze revenue growth, profitability, and debt levels.
- Technology Leadership: Invest in companies at the forefront of innovation.
- Market Trends: Align your investments with emerging sectors like AI, 5G, and IoT (Internet of Things).
- Valuation: Ensure the stock price reflects the company’s true potential.
Advantages of Investing in Semiconductor Stocks in India
- High Growth Potential: The semiconductor market in India is anticipated to experience substantial growth in the forthcoming years.
- Government Support: Initiatives like “Digital India” and “Make in India” are boosting the industry.
- Undervalued Stocks: Indian semiconductor companies may offer lower valuations than global peers.
Risks Associated with Investing in Semiconductor Stocks
- Cyclicality: The industry is sensitive to economic downturns, impacting chip demand.
- Competition: Intense competition from established players can squeeze margins.
- Geopolitical Risks: Trade tensions and supply chain disruptions can affect production.
Investing in semiconductor stocks carries inherent risks. You should consult your financial advisor before making investment decisions.
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
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FAQ
Is semiconductors a good investment?
Investing in semiconductor stocks is driven by technological advancements and increasing demand for semiconductor products. With the expansion of sectors like artificial intelligence, automotive electronics, and 5G technology, semiconductor shares could be an option for seeking long-term gains. However, market fluctuations and industry competition require careful analysis before investing in semiconductor stocks.
Who manufactures semiconductors in India?
Various companies contribute to semiconductor manufacturing in the nation. Bharat Electronics Limited (BEL), a government-owned entity, specializes in cutting-edge electronic equipment for aerospace and defense. CDIL, based in Delhi, is another prominent Indian semiconductor manufacturer. Moreover, companies like Applied Materials, TSMC India, Micron Technology, and Solex Energy Limited significantly contribute to India’s semiconductor industry.
Who is the number 1 semiconductor company?
Bharat Electronics Limited (BEL) is India's premier semiconductor company, acclaimed for its cutting-edge electronic equipment for the aerospace and defense sectors. BEL is pivotal in India's electronics industry, substantially contributing to its expansion and development.
Who is the biggest semiconductor company in India?
As of now, the biggest semiconductor company in India is Tata Electronics, a subsidiary of Tata Sons. Tata Electronics has made significant strides in the semiconductor industry, with plans to establish a robust presence in semiconductor manufacturing and packaging. The Tata Group's entry into the semiconductor sector is part of a larger strategy to reduce reliance on imports and establish India as a key player in the global semiconductor supply chain.
Who will make a semiconductor chip in India?
Several companies have announced plans to manufacture semiconductor chips in India, aiming to bolster the country's semiconductor ecosystem. Notably, Vedanta, a leading Indian multinational mining company, has partnered with Foxconn, a major Taiwanese electronics manufacturer, to establish a semiconductor manufacturing plant in India. This joint venture is expected to significantly enhance India's semiconductor production capabilities. Additionally, the Tata Group, through its subsidiary Tata Electronics, is making substantial investments in semiconductor manufacturing and packaging, as part of a broader strategy to reduce reliance on imports and develop a robust semiconductor supply chain domestically. Another significant player is ISMC (International Semiconductor Consortium), which plans to set up a $3 billion semiconductor fabrication plant in Karnataka, focusing on analog chips essential for various electronic devices. Furthermore, Micron Technology, a global semiconductor leader, is exploring opportunities to expand its presence in India by setting up semiconductor facilities. These efforts are supported by the Indian government's Production-Linked Incentive (PLI) scheme, which aims to create a conducive environment for semiconductor manufacturing and position India as a significant player in the global semiconductor market.
Who is the father of semiconductor industry?
The “father of the semiconductor industry” is widely regarded as William Shockley. William Shockley, along with John Bardeen and Walter Brattain, co-invented the transistor at Bell Labs in 1947. This invention laid the groundwork for the modern semiconductor industry, as transistors are fundamental components of most electronic devices. Shockley's contributions extended beyond the invention of the transistor. In 1956, he founded Shockley Semiconductor Laboratory in Mountain View, California, which was the first company to manufacture silicon semiconductor devices. This company played a crucial role in the development of Silicon Valley as a hub for technology and innovation. Shockley's work not only earned him a Nobel Prize in Physics in 1956, along with Bardeen and Brattain, but also helped catalyze the growth and evolution of the semiconductor industry into what it is today.
I’m Archana R. Chettiar, an experienced content creator with
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