Home Finance Top Semiconductor Stocks in India 2023

Top Semiconductor Stocks in India 2023

by Ray Niklaus

I. Introduction
II. What are Semiconductor Stocks?
III. Best Semiconductor Stocks list
IV. Top Semiconductor Stocks: An Overview
V. Strategies for investing in Semiconductor Stocks
VI. The Indian Semiconductor Industry
VII. To Wrap It Up… 

Semiconductor stocks in India are gaining attention for their rapid growth potential as technology advances and digitalization becomes widespread. In this blog, we’ll cover essential information on investing in Indian semiconductor stocks.

What are Semiconductor Stocks?

Semiconductor stocks are shares of companies involved in designing, developing, and manufacturing semiconductors, essential electronic components that regulate electricity in devices like smartphones and computers.

They encompass various semiconductor chips, such as memory and microprocessors. In India, these stocks are pivotal for the technology sector’s growth, given the rising demand for electronic devices, driving continuous innovation within semiconductor firms. Semiconductor stock prices depend on this demand.

Best Semiconductor Stocks list

Here is a list of semiconductor stocks to buy in India.

Company Name Market Cap (in Cr)
Bharat Electronics Ltd ₹98,353.07
ABB India Ltd ₹92,094.32
Havells India Ltd ₹84,820.60
Polycab India Ltd ₹75,584.11
CG Power and Industrial Solutions Ltd ₹62,525.86
Bharat Heavy Electricals Ltd ₹41,332.09
Honeywell Automation India Ltd ₹35,472.68
Apar Industries Ltd ₹19,011.85
Hitachi Energy India Ltd ₹18,881.46
V Guard Industries Ltd ₹13,716.83

Top Semiconductor Stocks: An Overview

Let’s briefly overview the best Semiconductor companies in India.

Bharat Electronics Ltd

Bharat Electronics, a key Indian defense electronics company under the Ministry of Defence, designs, manufactures, and supplies advanced electronics systems like radars, sonars, communication gear, and weapons. BEL plays a vital role in bolstering India’s defense capabilities and electronics self-reliance.

ABB India Ltd

ABB India, a notable technology firm, specializes in power and automation solutions. It’s a subsidiary of the global ABB Group and provides a wide array of offerings, including robotics, electrification, industrial automation, and digital solutions, serving various sectors like utilities, manufacturing, and infrastructure.

Havells India Ltd

Havells, a renowned Indian company, excels in electrical equipment and consumer goods. It prioritizes innovation and quality while manufacturing a wide range of products, including switches, cables, circuit protection devices, lighting solutions, and home appliances. It caters to both domestic and international markets.

Strategies for investing in Semiconductor Stocks

Understanding and monitoring these factors are crucial for successful semiconductor shares investments.

  • Calculate semiconductor share prices by dividing the total market capitalization by outstanding shares. Factors like demand, market trends, economy, and tech advancements impact share prices.
  • When choosing semiconductor stocks, consider factors like financial stability, market performance, growth potential, and dividends.
  • Be aware of risks in the semiconductor industry, such as market fluctuations and global trade policy changes.

The Indian Semiconductor Industry

The Indian semiconductor industry is rapidly expanding. In 2022, its market value reached about $23.2 billion, with a projected growth to $80.3 billion by 2028 at a 17.10% CAGR.

The Indian government supports semi conductor stocks by:

  • Launching the $10 billion Semiconductor Fabs Incentive Scheme (SFMIS) to attract manufacturers.
  • Introducing the Production Linked Incentive (PLI) scheme for semiconductor and display manufacturing.
  • Establishing the India Semiconductor Mission (ISM) to coordinate industry development.

To Wrap It Up…

In conclusion, smallcap stocks in the semiconductor industry  in India provide substantial growth potential for tech sector investors. To succeed in this investment, understand the Indian semiconductor market, select the right manufacturers, and apply a sound investment strategy for profitable portfolio growth.

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