The recent surge in demand for semiconductors isn’t limited to India. It is a global phenomenon fueled by the revolution in electric vehicles and the rollout of 5G services. The semiconductor industry is witnessing unprecedented growth, with two major factors contributing: the ongoing pandemic and geopolitical tensions, particularly the conflict between Russia and Ukraine. As a response, the Indian government is actively supporting semiconductor manufacturing companies, introducing several initiatives. Today, let’s explore 5 Best Semiconductor Penny Stocks in India in 2024 that show promise for future returns.
Table of Contents
Overview of Best Semiconductor Penny Stocks
1. ASM Technologies Ltd.
- Current Market Price: ₹476.65
- Market Capitalization: ₹ crore
- ASM Technologies, founded in 1992, is a leading player in Semiconductor Penny Stocks, specializing in engineering, product development, and R&D services.
- Services cover automation, digital engineering, driver assistance systems, robotics, IoT, virtual reality, sustenance lifecycle, and IT infrastructure.
- Automation solutions include robots, mechatronics, and image-based solutions.
- Digital engineering services encompass mechanical design, electrical, electronics, embedded services, and overall product development.
- ASM Technologies stands out as a top choice in the Semiconductor Penny Stocks, offering diverse and cutting-edge services in the tech consultancy space.
2. Bharat Heavy Electricals Ltd.
- Current Market Price: ₹196.45
- Market Capitalization: ₹ 68,388 crore
- BHEL stands out as a prominent Indian government-owned power equipment manufacturer, even in the realm of Semiconductor Penny Stocks.
- Since its establishment in 1956 with Soviet technology and headquartered in New Delhi, BHEL has been a key player in design, engineering, manufacturing, and servicing across various sectors, including power, industry, and transportation.
- Operating through an extensive network with 16 manufacturing units, two repair units, and a multitude of regional and overseas offices, BHEL is not just a power giant but also has relevance in Semiconductor Penny Stocks.
- With the capacity to execute over 150 projects globally, BHEL annually delivers 20,000 MW, meeting the surging demand for power generation and making it a notable choice in the semiconductor penny stocks landscape.
- Efficient Cash Conversion Cycle at -171.14 days.
- Strong promoter ownership at 63.17%.
- Robust Operating Leverage at an average of 107.26, showcasing the company’s ability to boost earnings with revenue growth.
3. Moschip Technologies Ltd.
- Current Market Price: ₹107.75
- Market Capitalization: ₹ 2,023 crore
- Moschip Technologies Ltd is the second stock on India’s Semiconductor Penny Stocks list.
- Established in 2005, headquartered in Hyderabad, specializing in semiconductors and system design.
- Operates in aerospace, automotive, networking, telecom, and consumer electronics.
- Expanding into the IoT sector and actively involved in AI and ML.
- Financially sound: Revenue and sales consistently rising.
- Debt-to-equity ratio: 0.37%.
- Impressive 365% return for investors over the last 5 years.
- Potential investors should conduct one-time research before considering these Semiconductor Penny Stocks.
- Average Profit Growth: 29.92% in the last 3 years.
- Income Growth: Strong at 39.29% in the past 3 years.
- Efficient Cash Conversion: Ratio stands at an impressive 284.45.
4. SPEL Semiconductor Ltd.
- Current Market Price: ₹78.82
- Market Capitalization: ₹ 364 crore
- Leading Semiconductor Penny Stock in India, market cap: 361 crores, shares at ₹78.
- Founded in December 1984, initially focused on computer tape and disk packaging.
- Offers various services, set to benefit from India’s semiconductor manufacturing push.
- Actively exploring opportunities in IoT and automotive sectors, recognized globally as a reliable contract manufacturing partner.
- Future plans include strengthening its role in the semiconductor industry, embracing AI and ML.
- Profitable player in India’s semiconductor sector, consistent financial improvements.
- Despite declining revenue, optimistic about a turnaround.
- Promoters own a solid 59.17% stake in the company.
- The company shows strong operating leverage, averaging at 10.23, indicating its ability to boost earnings as revenue grows.
5. MIC Electronics Ltd.
- Current Market Price: ₹36.35
- Market Capitalization: ₹ 803 crore
- MIC Electronics, an Indian leader, focuses on designing and manufacturing LED video displays and lighting products, making its mark in Semiconductor Penny Stocks.
- Operating in three key segments: LED Products, Medical Appliances, and Automobiles.
- Specialized LED displays cover indoor, outdoor, mobile, and application-specific uses.
- Impressive financial highlights: 26.12% profit growth and 46.91% revenue growth over the past three years.
- Noteworthy in the Semiconductor Penny Stocks landscape with a high promoter holding at 74.63%.
List of Best Semiconductor Penny Stocks in India
| Name of Stocks | CMP | Market Cap (crore) | PE Ratio | EPS | Debt Equity Ratio | ROE |
| ASM Technologies | ₹476.65 | ₹523 | 372.38 | 1.28 | 1.03 | 1.90% |
| Bharat Heavy Electricals | ₹196.45 | ₹68388 | 982 | 0.20 | 0.35 | 0.27% |
| Moschip Technologies | ₹107.75 | ₹2023 | 244.89 | 0.44 | 0.33 | 3.90% |
| SPEL Semiconductor | ₹78.82 | ₹364 | 0 | -2.78 | 0.60 | 1.43% |
| MIC Electronics | ₹36.35 | ₹803 | 71.12 | 0.51 | 0.17 | 6.39% |
Note: The above figures have been taken from Google Finance.
Conclusion
Investing in semiconductor penny stocks, such as Moschip Technologies, SPEL Semiconductor, ASM Technologies, and MIC Electronics, opens doors to promising growth. These companies not only exhibit financial strength but also venture into emerging tech sectors like IoT and AI, adding to their appeal in the semiconductor penny stocks arena.
As you explore these opportunities, keep in mind the need for thorough research and a clear understanding of your risk tolerance. While the potential for returns is enticing, prudent decision-making is crucial in the dynamic landscape of semiconductor penny stocks.
Frequently Asked Questions (FAQ)
Semiconductors, those tiny chips in our gadgets, make everything tick. From smartphones to electric vehicles and even everyday items like ACs and rice cookers, these chips manage electricity flow. In Electric Vehicles, it’s not one but hundreds of these chips at play.
Demand for semiconductors is booming due to AI, IoT, and tech advancements. However, the industry faces challenges with supply chain constraints and a global shortage, adding stress to semiconductor production.
Consider investing in some of the best semiconductor stocks in India, including Bharat Electronics Ltd, ABB India Ltd, and Havells India Ltd. However, it’s crucial to conduct your research or seek advice from a financial advisor before making any investment decisions.
Now is a favorable moment to invest in semiconductor stocks in India. Anticipated growth in semiconductor demand over the upcoming years adds to the attractiveness of this investment opportunity.
Projections suggest that various factors will propel the Indian semiconductor market to reach a valuation of USD 55 billion by 2026. Anticipated growth indicates a substantial compound annual growth rate (CAGR) of 20% from 2022 to 2026.