Best Semiconductor Stocks In India to Buy in 2024

With technological advancement and growing dependency on electronic devices like computers, mobile phones, and other equipment, the demand for semiconductors is increasing rapidly. This high demand for semiconductor chips creates a buzz in the investment market. Semiconductor stocks in India are considered among futuristic investments with promising growth opportunities. 

In this blog, we have discussed everything you need to know to invest in semiconductor stocks in India and provided a list of the best semiconductor stocks to buy in 2024. 

What is a Semiconductor? 

A semiconductor is a material with conductivity between conductors and insulators. This means it can conduct electricity, but not as strong as conductors like copper or as poor as insulators like glass. Examples of semiconductors are silicon, germanium, gallium arsenide, and cadmium selenide. 

With the dropping process, semiconductors have become highly versatile and used for various electronic devices. 

Computer CPUs, GPUs, smartphone cameras, car entertainment and braking systems, X-ray machines, 5-G technology, and other electronic devices use semiconductors and depend on them for their functionality. 

Buying stocks in the semiconductor industry on which the entire modern technology world depends can offer great opportunities to gain financial growth.

What is a Semiconductor Stock?

Semiconductor stocks refer to those companies involved in designing, developing, manufacturing, and supplying semiconductors. Different semiconductor industry stocks are involved in producing memory chips, microprocessors, sensors, analog ICs, and other types of semiconductor chips. 

In India, semiconductors are usually imported from countries like South Korea, Taiwan, Vietnam etc. However, to reduce dependencies on foreign states, fulfil the supply and demand gap, and with the help of government initiatives such as the Semiconductor Fabs Incentive Scheme (SFMIS), India Semiconductor Mission (ISM), Production Linked Incentive (PLI), etc., India's semiconductor industry is growing. Multiple companies have come to semiconductor production. 

This results in the Semiconductor stocks India market booming. According to a customer market insights report, in 2023, the Indian semiconductor market was valued at $34.3 billion and is expected to reach $100.2 billion at a CAGR (compound annual growth rate) of 20.1%. 

List of 8 Best Semiconductor Stocks in India 

The best semiconductor stocks in India include the top companies in the semiconductor market. These semiconductor industries are adopting various strategies like mergers, acquisitions, expansion, alliances, new product launches, etc., to enhance their business and revenues. You can consider buying semiconductor stocks in India based on your market understanding, the company’s reputation, particular semiconductor companies’ future goals, market capital, and other significant factors.

Data is as of April 5th, 2024. To check the latest info. download the Gopocket app now!

Best Semiconductor Stocks Listed in India

1. Tata Elxsi 

Tata Elxsi is one of the leading companies in India engaged in semiconductor testing and design services. The company has collaborated with Renesas Electronic Corporation (a well-known supplier of semiconductor solutions) to set up a design centre in Bangalore to develop semiconductor solutions.

Data is as of April 12, 2024. Check the Latest Info. on GoPocket App

2. HCL Technologies 

HCL Technologies’ stocks are among the best semiconductor stocks in India. The company has a team of over 2,900 engineers and SMEs in the semiconductor industry. In 2021, Everest Group’s Semiconductor Engineering Services Peak Matrix Assessments recognized it.

Data is as of April 12, 2024. Check the Latest Info. on GoPocket App

3. Dixon Technologies

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Dixon Technologies is an Indian company offering the most extensive electronic manufacturing services. The company manufactures a wide range of products, including semiconductors. Dixon is best known for manufacturing and marketing Motorola phones.

Data is as of April 12, 2024. Check the Latest Info. on GoPocket App

4. Vedanta 

Vedanta Semiconductor Private Limited (VSPL) is a subsidiary body of Vedanta Group, established in 1965. The company is set up to manufacture semiconductor chips and is taking the initiative to make India self-reliant. Vedanta has signed Memorandums of Understanding (MoUs) with various semiconductors and display leading companies from Japan, Korea, and Taiwan.

Data is as of April 12, 2024. Check the Latest Info. on GoPocket App

5. HoneyWell Automation 

Honeywell Automation is among the top semiconductor stocks to buy in India. The company caters to the semiconductor market by providing a variety of toxic gas detectors and controller technologies and helps identify hundreds of gases.

Data is as of April 12, 2024. Check the Latest Info. on GoPocket App

6. ASM Technologies Ltd  

ASM is one of India’s leading technological service companies. The company caters to semiconductor equipment manufacturing companies. With a market capital of ₹1,100 Crore, ASM Technologies is one of the top semiconductor stocks in India.

Data is as of April 12, 2024. Check the Latest Info. on GoPocket App

7. Hitachi Energy India Ltd

Hitachi Energy Limited, formerly ABB Power Products and System, is a globally leading power technologies company.  Hitachi offers diverse semiconductor chips for e-vehicles, wind turbines, trains, and more.

Data is as of April 12, 2024. Check the Latest Info. on GoPocket App

8. Moschip 

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Moschip is the first Indian semiconductor company listed in the BSE 523407. The company is a pioneer in designing semiconductor devices using traditional and advanced techniques. 

Data is as of April 12, 2024. Check the Latest Info. on GoPocket App

Also Read: Best AI Stocks to Buy in India 2024

How to Buy Semiconductor Stocks in India? 

To buy semiconductor stocks in India, you can follow the below-mentioned steps: 

Step 1: Open a Demat Account

To buy semiconductor stocks, you'll first need to open a demat account if you don't have any. GoPocket is one of the leading online trading platforms powered by SkyRocket. Gopocket is available on the Play Store or on ioS. You can download the online trading app and create your demat account easily.

To open a demat account, you will require:

• Pan Card 
• Aadhar Card
• Income Proof
• Bank Details
• Photograph
• Signature `

Step 2: Build Market Understanding 

Explore different funds, study market trends, and develop an investment strategy. By giving proper time to learning, you must build a market understanding. Moreover, you can study about semiconductor stocks, the industry, prospects, and more. 

Step 3: Check Key Metrics of Semiconductor Stocks 

There are numbers of data for stocks to look at before investing.  Here is some the crucial metrics you can check include:

EPS (Earning per share)

The company's net earnings are calculated by dividing EPS by the average outstanding shares. The stock with the highest EPS is more profitable, and a steady EPS is more reliable to invest in. 

PE Ratio (Price to Earning Ratio)

It is calculated by dividing the stock price by EPS. It states whether stock is cheap or expensive.

ROE ( Return on Equity)

It measures the rate of return that the owners of common stock receive on their shareholdings. A higher ROE means that the company is capable of earning for its shareholders. 

ROA (Return on Asset)

ROA states how much a company generates with its assets. Companies with ROA over 20% are considered suitable for investing. 

ROCE (Return on Capital Employed)

The ROCE of the company is determined by dividing the company's earnings before interest and tax by capital—the higher the ROCE, the better the growth opportunities are. 

Apart from these ratios, other essential things to look at before investing in stocks are the 52-day high/low, market capital, dividend yield, current market price, ROI, etc. 

Step 4: Learn about the Company in Detail 

Once you check the metrics, it's time to do a detailed analysis of the prospective company. Check annual reports, latest updates, changes, company size, experience, and more crucial factors for your investment. While investing in semiconductors or any futuristic stocks, it’s important that you research properly. 

Step 5: Buy Stocks 

If you're satisfied with your research, make your next move by buying. Ensure that you buy stock according to your goal, risk-bearing appetite, and understanding of profit and loss. 

GoPocket is among India's best stock market platforms for investing in equity, commodities, IPOs, F&O, mutual funds, and more. With it, you can do market analysis before buying stocks, track your investment, check your portfolio, and gain all the information related to the stock market in one place. 

FAQs Related to Semiconductor Stocks in India 

1. What is the best semiconductor stock to invest in India?

Tata Elxsi, Honeywell, HCL Technologies, Dixon Technologies, and Vedanta are some of the best Semiconductor stocks to invest in in India. 

2. What is the future of semiconductor stocks in India?

The future of Semiconductor stocks in India is promising. According to reports, the semiconductor industry in India will grow at a CAGR of 20.1% from 2022 to 2032. 

3. What are the top 5 semiconductor stocks?

Tata Elxsi, Honeywell, HCL Technologies, Dixon Technologies, and Vedanta are the top 5 semiconductor stocks.