Best Semiconductor Stocks in India 2024 (2024)

Best Semiconductor Stocks in India 2024 as per Analyst Ratings

Here is a list of the top semiconductor stocks in India to buy as per analyst ratings. We have taken analyst ratings as a criterion because these stock analysts run a comprehensive study before rating a stock-

*Our stock selection criteria for top stocks based on analyst ratings are mentioned at the bottom of this blog.

Top Semiconductor Stocks in India in 2024 as per Market Capitalisation

The table below highlights the best semiconductor stocks in India for 2024, ranked by market capitalisation:

*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog.

Overview of Best Semiconductor Stocks in India

Here is a brief overview of the semiconductor stocks listed above-

1) Bharat Electronics Limited

Founded in 1954 under the Ministry of Defence, Bharat Electronics Limited (BEL) was established in India to meet the specific electronic requirements of the Indian Defence. The company provides a wide range of products, including defence communication items, land-based radars, naval systems, electronic warfare systems, avionics and more.

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.

2) CG Power and Industrial Solutions Limited

CG Power and Industrial Solutions Limited (formerly known as Crompton Greaves Limited) was established in 1937. It is an Indian company that designs, manufactures and sells equipment for power generation, distribution, transmission and rail transportation.

The company operates through 2 segments: Power Systems and Industrial Systems. The Power Systems segment manufactures electric equipment for both power and industrial sectors, including transformers, reactors and switchgear products. The Industrial Systems segment focuses on producing and selling power conversion equipment which includes medium and low-voltage rotating machines, drives, stampings and equipment for Indian railways.

3) Hitachi Energy India Limited

Formerly known as ABB Power Products and Systems India Limited (APPSIL), Hitachi Energy India Limited was established as a Public Limited Company in Bengaluru on February 19, 2019. It is a key player in the power technology sector, known for its wide-ranging energy technology offerings.

The company provides various products and solutions, including asset and work management, cable accessories, communication networks, cooling systems, energy storage, generators, circuit breakers, semiconductors, instrument transformers, surge arresters, etc. Additionally, it provides services such as the installation of electric grids, asset assessment and security, asset maintenance, upgrades, repairs and more.

4) V Guard Industries Limited

Located in Kochi, V-Guard Industries Limited is a versatile company serving the mass consumption market. It manufactures and trades a wide array of electronics, electrical and consumer durables.

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 acquired 100% ownership of Sunflame Enterprises Private Limited, making it a wholly-owned subsidiary.

5) Havells India Limited

Havells India Limited is a renowned power distribution equipment manufacturer and a leading Fast Moving Electrical Goods (FMEG) company worldwide. It provides a wide range of products, including circuit protection devices, cables, motors, fans, switches, home appliances and more. The company owns renowned brands like Havells, Lloyd, Crabtree and Standard.

With a network of over 14,000 dealers and 35 branches in India, its products are available in 60+ countries. Over 90% of Havells’ products are manufactured in-house and are energy-efficient. Furthermore, it also provides doorstep service through 'Havells Connect' and runs over 700 Havells Exclusive Brand Stores nationwide.

Factors to Consider Before Investing in Semiconductor Stocks in India

The following are some essential factors to consider before buying the semiconductor shares in India:

• Financial Performance

Evaluate the financial performance of the semiconductor company stocks. Look at metrics like revenue growth, profitability and debt levels to understand the company's overall financial health.

• Stay Informed on Market Trends

Stay up-to-date with market trends and global demand for semiconductor stocks in India. Be aware of industry shifts, geopolitical factors and emerging technologies to make informed investment decisions.

• Diversification Strategy

Spread your investments across different sub-sectors within the semiconductor industry to mitigate risks associated with market volatility. Whether you invest in memory chips or processors, a diversified portfolio can protect against sector-specific challenges.

• Monitor Regulatory Environments

Be aware of regulatory changes that may impact semiconductor stocks in India, both domestically and internationally. Changes in policies can have significant implications for the industry, influencing investment outcomes.

• Supply Chain

Any disruptions in the semiconductor supply chain can drive up its sales and share prices. Monitor all the stocks carefully and avoid the ones associated with delayed product launches, reduced revenues and higher prices due to supply chain issues.

Should You Invest in Semiconductor Stocks?

While the semiconductor industry offers a compelling opportunity due to its integral role in advancing technology, it is crucial to understand the associated risks before making investment decisions.

Firstly, semiconductor blue chip stocks in India can be highly volatile due to changes in demand, technological advancements and market trends. This volatility makes it challenging to predict future returns. Additionally, the Indian semiconductor market is highly competitive, with numerous companies competing for market share. This competition often results in price wars and reduced profit margins, ultimately negatively impacting stock prices.

Moreover, semiconductor manufacturing industries are cyclical, meaning they go through periods of growth and decline. This cyclicality adds to the uncertainty of investing in semiconductor stocks in India. Therefore, it is crucial to carefully assess these risks and consider diversifying your investment portfolio before buying semiconductor shares.

Concluding Note

Investing in top semiconductor stocks in India can offer substantial growth in future due to its strong demand driven by technological advancements. With thorough research and careful consideration, investing in semiconductor stocks in India can help yield significant returns in the long run.