Can you imagine daily life without using the fridge, an LED bulb, a TV or a smartphone? Not possible right? Do you know what is common between them all? The key is the semiconductors needed to manufacture them. The demand for semiconductors has been ever-increasing since the time of the technology boom. This sector is one of the most lucrative sectors in the current global economy and India is set to make the most of it. There have been many partnerships between Indian and global companies that are pioneers in this industry enabling India to be the semiconductor hub in the coming years and an attractive investment opportunity for investors. Check out this blog to know the top semiconductor stocks in India in terms of market capitalisation and their core details and be part of the semiconductor frenzy taking over the world.
Read More: Most expensive stocks in India
Top Semiconductor stocks in india based on market capitalisation
HCL Technologies
HCL Tech is a prominent global IT services firm, ranking among the top five Indian IT companies in revenue. Since its IPO in 1999, the company has prioritized transformative outsourcing, delivering a comprehensive range of services such as software-based IT solutions, remote infrastructure management, engineering and R&D services, and BPO. HCL Tech utilizes its extensive offshore infrastructure and presence in 46 countries to offer diverse services across key industry sectors.
The key details of the company are tabled below. Figures as of September 25th, 2023
| Category | Details |
| Market Capitalization | Rs. 3,45,585 crores |
| PE Ratio | 22.88 |
| Return on Equity | 23.84% |
| Debt Equity Ratio | 0.03% |
| Promotor’s Holdings | 60.81% |
| Share price | Rs. 1,261.60 |
| Dividend yield | 3.77% |
The trailing returns of HCL Technologies are tabled below
| Period | Trailing Returns |
| 1 year | 40.83% |
| 3 years | 16.97% |
| 5 years | 18.14% |
| 10 years | 16.75% |
Vedanta
Vedanta Ltd is a diversified natural resource group that explores, extracts, and processes minerals and oil & gas. Their operations encompass zinc, lead, silver, copper, aluminium, iron ore, and oil & gas in regions like India, South Africa, Namibia, Ireland, Liberia, and the UAE. Additionally, Vedanta is involved in power generation, steel manufacturing, and port operations in India, along with glass substrate manufacturing in South Korea and Taiwan. India contributes approximately 65% of their total revenue, followed by Malaysia (9%), China (3%), the UAE (1%), and other markets (22%).
The key details of the company are tabled below. Figures as of September 25th, 2023
| Category | Details |
| Market Capitalization | Rs. 83,879 crores |
| PE Ratio | 9.51 |
| Return on Equity | 26.10% |
| Debt Equity Ratio | 1.10% |
| Promotor’s Holdings | 68.11% |
| Share price | Rs. 224.85 |
| Dividend yield | 45.10% |
The trailing returns of Vedanta Limited are tabled below
| Period | Trailing Returns |
| 1 year | -19.57% |
| 3 years | 19.50% |
| 5 years | -0.44% |
| 10 years | 2.13% |
Tata Elxsi Limited
Tata Elxsi is a global leader in delivering design and technology solutions to various sectors, such as Automotive, Media, Communications, and Healthcare. Their comprehensive offerings span from research, strategy, and electronic/mechanical design to software development, validation, and deployment. They have a strong presence worldwide with design studios, global development centres, and offices, making them a versatile and well-supported service provider.
The key details of the company are tabled below. Figures as of September 25th, 2023
| Category | Details |
| Market Capitalization | Rs. 45,182 crores |
| PE Ratio | 17.67 |
| Return on Equity | 40.20% |
| Debt Equity Ratio | 0.00% |
| Promotor’s Holdings | 43.92% |
| Share price | Rs. 7,230 |
| Dividend yield | 0.95% |
The trailing returns of Tata Elxsi Limited are tabled below
| Period | Trailing Returns |
| 1 year | -18.37% |
| 3 years | 82.57% |
| 5 years | 41.79% |
| 10 years | 55.89% |
Dixon Technologies
Dixon Technologies (India) Limited is India’s largest domestically focused design and solutions company, specializing in manufacturing consumer durables, lighting, and mobile phones/smartphones. Their diverse product range includes LED TVs, washing machines, LED bulbs, tube lights, downlighters, mobile phones/smartphones, CCTV & DVRs, and medical equipment. Dixon also offers reverse logistics solutions, including repair and refurbishment services for set-top boxes, mobile phones/smartphones, and LED TV panels.
The key details of the company are tabled below. Figures as of September 25th, 2023
| Category | Details |
| Market Capitalization | Rs. 28.533 crores |
| PE Ratio | 102.98 |
| Return on Equity | 22.71% |
| Debt Equity Ratio | 0.11% |
| Promotor’s Holdings | 34.04% |
| Share price | Rs. 4,921.75 |
| Dividend yield | 0.06% |
The trailing returns of Dixon Technologies Limited are tabled below
| Period | Trailing Returns |
| 1 year | 14.08% |
| 3 years | 42.92% |
| 5 years | 56.76% |
| 10 years |
Moschip Technologies
Moschip Technologies Ltd. is a company specializing in semiconductor and system design. They have a strong emphasis on Turnkey ASICs, Mixed Signal IP, semiconductor & product engineering, and IoT solutions. Their services cater to various industries, including aerospace & defence, consumer electronics, automotive, medical, and networking & telecommunications.
The key details of the company are tabled below. Figures as of September 25th, 2023
| Category | Details |
| Market Capitalization | Rs. 1,668 crores |
| PE Ratio | 205.57 |
| Return on Equity | 8.43% |
| Debt Equity Ratio | 0.12% |
| Promotor’s Holdings | 51.22% |
| Share price | Rs. 88.90 |
| Dividend yield |
The trailing returns of Moschip Technologies Limited are tabled below
| Period | Trailing Returns |
| 1 year | 23.73% |
| 3 years | 87.62% |
| 5 years | 26.49% |
| 10 years | 51.24% |
Semiconductor Industry – Sector Overview, Government Initiatives, Investments and Futures prospects
The Indian semiconductor market, valued at approximately $23.2 billion, is poised for substantial growth, with projections indicating it could reach $80.3 billion by 2028. This growth is expected to maintain a strong compound annual growth rate (CAGR) of 17.10%. Recognizing the significance of the semiconductor industry, the Indian government has implemented various strategic measures and policies.
The ‘Make in India’ program, launched in 2014, promotes domestic manufacturing and positions India as a global manufacturing hub. To boost semiconductor production, the government introduced the $1.7 billion Production Linked Incentive (PLI) scheme for the electronics sector. India has a skilled pool of semiconductor design engineers, constituting roughly 20% of the global semiconductor design workforce. Construction for India’s first semiconductor assembly plant begins in October 2023, aiming for domestically manufactured microchip production by the end of 2024, supported by a $10 billion investment in chip manufacturing.
Conclusion
Semiconductor is the future and also the key part of developing any new technology. The increasing importance of this sector is echoed by the continuous investments from the public and private sectors alike and the growth opportunity for the colonies in this sector cannot be ignored. Careful analysis of the stocks for their core fundamentals and volatility to market fluctuations is however essential for any rational investment decisions.
