Last updated on July 28th, 2023 at 03:02 pm
The best investors in the world invest with long term-visions. Semiconductor is the future of mankind. Here are the top 5 Semiconductor Stocks in India for 2022.
You must be aware of the shortage of semiconductors and how important they are to so many companies.
Several hundred semiconductor chips are required for even a basic electric vehicle. The issue started when there was a global scarcity of semiconductor chips.
This was caused by a number of factors, including the worldwide COVID pandemic, the Russia-Ukraine war, trade disputes, and others.
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All around the world, these chips have been a crucial component for several of the businesses & industries. Thus it’s a very good idea to invest in the best Semiconductor companies.
Thus in this article, we are going to share with you a list of top 5 NSE & BSE listed Semiconductor Stocks in India for 2022.
A semiconductor is a component designed to control the electricity flow in various gadgets.
Many electronic products, including computers, smartphones, gaming hardware, medical equipment, and even electric vehicles (EVs), contain semiconductor chips.
Memory, Micro components, OSD, Logic, and Analog are the primary parts of a semiconductor.
Electric vehicles, cellphones, smart TVs, and even everyday appliances like refrigerators and washing machines all employ semiconductors.
Additionally, they are utilized in the production of CPUs for computers and sensors for different equipment.
The global demand for semiconductors has been fueled by the advancement of artificial intelligence, the internet of things, and similar industries.
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The chips are used in more than just consumer devices; they are essential to the operation of trains, ATMs, and other infrastructural facilities.
Rank | Best Semiconductor Stocks | NSE/BSE Codes |
1 | Tata Elxsi | NSE: TATAELXSI |
2 | ASM Technologies | BSE: 526433 |
3 | Dixon Technology | NSE: DIXON |
4 | SPEL Semiconductor Ltd. | NSE: SPICELEC |
5 | Moschip Technologies Ltd. | BSE: 532407 |
Tata Elxsi was established in 1989. For a variety of clients, including those in the automotive, broadcast, communications, healthcare, and more, it offers design and technology services.
The company provides semiconductor services, such as FPGA design and development, functional safety, SDK & Reference design solutions, and multimedia reference frameworks.
The company’s strengths include its nearly debt-free status and its solid ROE track record of 29.95 percent. The firm’s operating margin, which is currently 28.67 percent, is likewise strong.
ASM Technologies is a multinational business that was founded in 1992. The company provides a variety of services, including engineering services, Internet of Things, and product life cycle.
ASM has extensive expertise working with reputable semiconductor manufacturing firms. The company is currently selling at a PE of 43.91, which is favorable in light of its strengths.
A high 5.27 percent dividend yield is also maintained. The business has had average profit growth of 51.52%.
The business was established in 1993. It offers services for the manufacture of electronics.
It produces consumer durables, specifically LED TVs, smartphones, household appliances, CCTV security systems, and other products.
In terms of strengths and weaknesses, the business has experienced strong revenue growth of 36.93 percent and profit growth of 38.66 percent during the last three years.
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The company has been sustaining ROE and ROCE at 22,60% and 30,83%, respectively, during the past three years. On the other hand, its PE of 159.95 is extremely high at the moment.
1988 saw the founding of SPEL Semiconductor. It is the first and only semiconductor IC testing and assembly facility in India.
The company has an effective cash conversion cycle of 85.20 days, which is one of its strongest points. Additionally, 59.17 percent of the company is owned by promoters.
The business has considerable operating leverage. On the other hand, the company’s profit growth, which was -0.65 percent, and revenue growth were both subpar.
It was established as an Indian semiconductor business in 1999. For their wide selection of products, they serve vendors and OEM providers.
Regarding strengths and weaknesses, the three-year CAGR for profit growth stayed at 22.65 percent. Additionally, throughout the last three years, the company has generated solid income growth.
On the other hand, during the past three years, the company has had a low ROE of -23.12 percent and a poor ROCE of -8.11 percent.
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