What are Semiconductors?
There are conductors, there are insulators and then there are semiconductors that position themselves between these two. A conductor is a material, usually a metal, which allows electricity to flow through it freely. On the other end, there are insulators that do not allow electricity to flow through them freely. In between, there are semiconductors that perform better than insulators and worse in comparison to conductors when it comes to allowing the free flow of electricity. Semiconductors can become less resistant to electricity if the temperature is increased. Semiconductors come with a lot of benefits, and there’s no doubt about it, and that is why the companies in this business are doing so well. That, in turn, has prompted us to quickly get going with an article about semiconductor stocks in India. And so next up is the list of semiconductor stocks that you must have in your portfolio.
Top 7 Semiconductor Stocks in India
As technology has advanced, electronic devices are everywhere. We are surrounded by devices that rely upon semiconductors to function properly. It makes semiconductors an important commodity and it is the reason why semiconductor stocks are booming in the market. Let us now begin our list of semiconductor stocks to buy in India.
1. HCL Technologies
As the name suggests, this is a tech company. The company has clients in more than 50 countries, and most of them belong to the Fortune 500 or Global 2000 list. The company provides its clients with IT and Business services, Products, and Platforms, and Engineering and R&D services. They are involved in many more businesses, and one of those fields is the semiconductor business.
Currently, the share is trading at 895.85 rupees. 69 is the dividend yield of this share. In the last two years, the share has given a profit of 10.04%. In the last 20 days, the average delivery of the stock has been 62.40%.
2. TATA Elxsi
Be it any stock list in the country, somehow one TATA stock is surely going to be a part of it. TATA Elxsi was founded in 1989 and belongs on this list of semiconductor stocks in India. The company has widespread business across various fields, and one of them is providing various semiconductor services to its clients.
Currently, the share is trading at 8857.10 rupees. 48 is the dividend yield of this share. In the last two years, the share has given a profit of 635.36%. In the last 20 days, the average delivery of the stock has been 33.74%.
3. SPEL Semiconductor Ltd
This company with semiconductor in its name itself was founded in 1984. In the field of semiconductors, SPEL is trusted by many companies, and that is why it also is a strategic partner for a lot of companies when it comes to manufacturing semiconductors on a contractual basis. Apart from that, it is also the first and India’s only company so far, that is a semiconductor IC assembly as well as a testing facility.
Currently, the share is trading at 59.55 rupees. Recently, the company’s net profit and profit margin both saw an increase. In the last two years, the share has given a profit of 533.51%. The company stock’s 52-day high is 99 rupees, which shows the potential that the stock has.
4. Vedanta
Those who know Vedanta Limited know it as a natural resource company dealing in Lead, Iron, and other such materials and might be shocked to see it on this list. However, Vedanta makes its way to the list on the basis of its recent investments in the field of glass and chip manufacturing. Within a few years, the company will be a force to reckon with in the semiconductor sector and you will have heard it here first.
Currently, the share is trading at 279.55 rupees. 10 is the dividend yield of this share. In the last two years, the share has given a profit of 115.04%. In the last 20 days, the average delivery of the stock has been 31.10%.
5. Moschip
Now we have a company with chip in its name, and its business operation includes being present in the semiconductor sector where it designs them, the system sector where it provides integrated engineering solutions and the IoT sector where it has M2M and end-to-end applications. It is among the best semiconductor stocks in India.
Currently, the share is trading at 71.85 rupees. On a year-on-year basis, the TTM EPS of the stock is up by 243.81%. In the last two years, the share has given a profit of 460.45%. The market cap of the company is 1,151 crore rupees.
6. Ruttonsha
The list gets a super strong performer from the semiconductor market in Ruttonsha which has been in collaboration with IRC of the US for 25 years. The company manufactures power semiconductors and a lot of other products, and surely more than deserves its spot on this list.
Currently, the share is trading at 208 rupees. 48 is the dividend yield of this share. In the last two years, the share has given a profit of 597.99%. The TTM EPS of the company is up by 22.46% on a year-on-year basis.
7. ASM Technologies
With 1,000 plus products released, this is the last name on our list, but not rank-wise. The company has a 50-50 joint venture with Hind High Vacuum to design/engineer and manufacture various parts related to semiconductors and the solar industry. Their current line of work includes consultation and product development services, and they do so in the field of engineering services and R&D of products.
Currently, the share is trading at 539.90 rupees. 57 is the dividend yield of this share. In the last two years, the share has given a profit of 594.85%. The company’s TTM EPS growth stands at an increased 77.03% year-on-year basis.
Purpose of Semiconductors
We know about semiconductors being the middle ground between conductors and insulators, but what exactly is the purpose of this object or device? Why do we need them and why are they so important? Let us find out.
First and foremost, they have been raised with replacing vacuum tubes, which is a job they have done well. It also has to act as a conductor as well as an insulator, depending on what is required of it. A semiconductor enables a one-way flow of electricity, which is not possible in the case of a conductor that allows two-way flow. When you want to amplify or switch current, you need a device called a transistor, and this device is made using a semiconductor. Most electronic devices today need an integrated circuit. Semiconductors form the base material required to create these microchips. Semiconductors react to heat and light, as this makes them less resistant to the flow of electricity. This makes them useable as a cooling agent used in various gadgets. In certain forms, semiconductors become capable of producing light and due to this property of theirs, they can be used in LED and OLED devices. When producing solar panels, you need Silicon, and you guessed it right: they are semiconductors, making them important for solar panel cells.
Semiconductor Stocks to buy in India
In the world, there are more than 50,000 semiconductor companies, and of them, close to 1,000 are from India. However, the sector for some reason still remains vastly unexplored or unrepresented in the stock market. When you look at BSE and NSE together, you would hope to come across at least 15 to 20 companies in the semiconductor sector, but that is not the case. The number of semiconductor stocks does not even hit the double-digit figures. If you search for semiconductor stocks to buy in India, you will probably come across the seven names here on this list and probably 1 or 2 more, and that leaves you feeling sad. It is not a personal loss, but it is a loss for a nation like India, monetary wise and otherwise as well. COVID-19 paved the way for the semiconductor shortage issue and that really showed how much growth potential this sector has. If that does not speed up Indian companies to enter this market, then nothing will. Also Read: 15 Best Chemical Stocks in India to Invest
NSE Listed Semiconductor Companies in India
With barely 1 percent of the total semiconductor companies being listed on the stock market, don’t have high hopes of seeing many names on the NSE listed semiconductor companies in India list, and that’s exactly how the situation is. On the list shared above, there are 7 names and from those companies, hardly 2 or 3 are on NSE. The rest are either listed on BSE or are yet to get into the semiconductor business full-fledged and, as of now, have just made investments in that sector. When you look at the list of stocks from various sectors like power, telecom, etc. you see names like TATA, Reliance, Adani, and a few more on multiple lists. But when this trend comes to the semiconductor sector only TATA keeps pace with it, while the rest of the big players are missing. Hopefully, this gap would be seen by others and they run to cover it, or there are always other small companies waiting in line to make their presence felt. Considering their multiple uses, you would be spared to think that they are doing well in the stock market and a lot of companies are into it, but that is certainly not the case. As time passes, hopefully, we will get more semiconductor stocks in India. Only time will tell if the semiconductor stocks list grows or not, but our job is done for today. We have brought a list of semiconductor stocks to buy in India for you. We wish next time, when we are covering NSE listed semiconductor companies in India, we have more names on this list and the competition to be on it increases so that the investors can reap more rewards.
