Best Small Cap Semiconductor Stocks in India
In today’s world, semiconductors are an essential component of devices we use in our everyday lives. From consumer electronics such as smartphones, computers, and laptops to automotive industries such as electric vehicles, advanced drive-for-assistance systems, and informant systems, semiconductors are everywhere. However, if you are thinking, is there any Indian company that manufactures semiconductors? The answer to this question is yes.
In this blog, we will give you an overview of top smallcap semiconductor stocks and the benefits and risks of investing in semiconductor stocks.
What are Semiconductor Sector Stocks?
The companies engaged in the semiconductor sector are those involved in manufacturing, designing, testing and distributing semiconductor devices and their related technologies. These companies’ products are essential components of electronic devices such as computers, smartphones, automotive sectors, and industrial machinery. The small chips which these semiconductor companies manufacture are designed in such a way that they can be used in a wide range of industries.
List of Small Cap Semiconductor Stocks 2024
The list of smallcap semiconductor companies is given below:
- MIC Electronics Limited
- Mindteck (India) Limited
- MosChip Technologies Limited
- ASM Technologies Limited
- Kernex Microsystems (India) Limited
- SPEL Semiconductor Limited
Market Information of Semiconductor Stocks
| Company | Current Market Price (₹) | Market Capitalization (in ₹ crores) | 52-Week High (₹) | 52-Week Low (₹) |
|---|---|---|---|---|
| MIC Electronics Limited | 85.9 | 2,071 | 115 | 32 |
| Mindteck (India) Limited | 299 | 953 | 368 | 135 |
| MosChip Technologies Limited | 225 | 4,296 | 327 | 83.5 |
| ASM Technologies Limited | 1,392 | 1,639 | 1,864 | 445 |
| Kernex Microsystems (India) Limited | 1,521 | 2,549 | 1,584 | 334 |
| Spel Semiconductor Limited | 191 | 881 | 268 | 68 |
Overview of Top Small Cap Semiconductor Stocks in India
An overview of the top smallcap semiconductor companies in India is given below:
1. MIC Electronics Limited
MIC Electronics was established in 1988 with an initial emphasis on electronic display systems. As a pioneer in India’s LED industry, the company focused on LED-based lighting and display technologies in the early 2000s. MIC Electronics Ltd is an ISO 9001 2000 certified company and is recognized by the Ministry of Science and Technology. In 1993, the company supplied colour day and night displays to Larsen & Toubro for installation at Jawaharlal Nehru Stadium in Chennai. In 2000, the company merged with Phoenix Telecommunication Ltd. and began its operations in the LED business. The company’s product portfolio includes LED displays, LED lighting, medical appliances, etc. The company’s headquarters is situated in Hyderabad.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 150.72% | 438.52% | 15,125.45% |
2. Mindteck (India) Limited
Mindteck (India) was founded in 1991 and initially started as a technology company focused on custom software development. In the early 2000s, the company expanded its operations globally and entered the US, Europe, and Asian markets. The company raised funds through an IPO and was listed on the Indian Stock Exchange in 2000. The company partners with engineering and embedded systems firms to develop products using the latest technologies. The company’s headquarters is situated in Bangalore.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 69.72% | 129.68% | 1,328.54% |
3. MosChip Technologies Limited
The company was initially known as MosChip Semiconductor Technologies Limited and was founded in 1999. Later, in 2019, the company changed its name to MosChip Technologies Ltd. The company specializes in semiconductor and system design services, chip design, embedded systems, and IoT solutions. Initially, the company was focused on developing network interface cards and USB devices; later, the company expanded their product portfolio and included chip design, system-level design, and embedded software to meet the growing demand. The company’s clients span the globe, including the US. The company offers end-to-end design and product development for next-generation electronic products. The company’s headquarters is situated in Hyderabad.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 134.23% | 201.80% | 2,043.84% |
4. ASM Technologies Limited
ASM Technologies was founded in 1992 as a technology consulting firm. To expand its business operations, the company raised funds through an IPO and was listed on the Indian stock exchange in 1994. Over the years, the company has offered services in cloud computing, artificial intelligence, and Industry 4.0 solutions. The company has a global presence and operates in various countries like the US, UK, Singapore, and more. The headquarters of ASM Technologies Ltd. is situated in Bangalore, India.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 193.05% | 185.36% | 3,804.84% |
5. Kernex Microsystems (India) Limited
Kernex Microsystems (India) was founded in 1991, and initially, it focused on embedded systems and industrial automation solutions. The company later focused on developing safety signals and other safety solutions for Indian railways and global railway operators. The company has invested heavily in its research and development department to provide high-quality safety solutions for railways. The company has secured various contracts for TCAS and signals that play a crucial role in modernizing the safety infrastructure of the Indian railways. The company offers railway safety systems such as automatic train protection systems, train collision avoidance systems, level crossing warning systems, and train monitoring systems. The company’s headquarters is situated in Hyderabad.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 149.84% | 1,609.75% | 7,132.25% |
6. SPEL Semiconductor Limited
SPEL Semiconductor company was founded in 1984 with a focus on providing semiconductor backend services. The company established India’s first semiconductor integrated circuit assembly and test facility. The company launched its IPO in 1986 and became a publicly traded company. The company provides services to various industries, such as communication, consumer electronics, computing, and automotive. The company has a consumer-centric approach and focuses on quality and technology, which has resulted in its growth and success. The company collaborates with international firms to provide advanced semiconductor solutions. The company’s headquarters is situated in Chennai.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 143.45% | 473.73% | 5,261.61% |
Key Performance Indicators (KPIs)
| Company | Operating Profit Margin (%) | Net Profit Margin (%) | ROE (%) | ROCE (%) | Current Ratio |
|---|---|---|---|---|---|
| MIC Electronics Limited | 23.37 | 113.31 | 50.70 | 10.42 | 3.32 |
| Mindteck (India) Limited | 8.92 | 7.08 | 12.37 | 15.24 | 4.65 |
| MosChip Technologies Limited | 5.90 | 3.36 | 3.68 | 5.68 | 1.71 |
| ASM Technologies Limited | -0.22 | -3.42 | -3.03 | -0.25 | 2.34 |
| Kernex Microsystems (India) Limited | -124.60 | -136.28 | -24.77 | -22.70 | 2.38 |
| SPEL Semiconductor Limited | -33.63 | -139.84 | -50.74 | -5.29 | 1.01 |
Benefits of Investing in Semiconductor Stocks
There are numerous benefits of investing in Semiconductor stocks, a few of which are mentioned below-
- Growth Potential – With the increase in digitalization and automation, semiconductor stocks have a huge potential to perform in the long run.
- Benefit of Government Sector – The government has introduced various PLI schemes to promote local semiconductor manufacturing companies.
- Diversification – Investing in semiconductor stocks will help an investor to diversify their portfolio and reduce risk.
- Innovative Technology – With the increasing dependence on technology, this sector is expected to have a steady demand, which indicates a long-term growth prospect.
- Export Opportunities – The demand for semiconductor chips is expected to increase globally, which will provide these companies an opportunity to export their products to other countries and increase their revenues.
Disadvantages of Investing in Semiconductor Stocks
The significant risks related to investment in semiconductor stocks are as follows-
- Competition – The semiconductor industry is highly competitive. Any new company with superior technology and products can reduce the market share of existing players.
- Disruption in the supply chain– Any disruption in supply chains due to various factors, such as geopolitical tensions, natural disasters, etc., can lead to a reduction in the profitability of the company.
- Volatility– The semiconductor industry is cyclical, due to which, during a period of slowdown, the stock prices can be negatively impacted.
- High capital industry – The semiconductor industry is considered an industry that requires high capital investments, which might cause a company to have high debt levels.
Future of Semiconductor Stocks
With an increasing demand for advanced technology such as artificial intelligence, 5G connectivity, autonomous vehicles, etc., the semiconductor industry is expected to grow or perform well in the long run. Due to this, the future of the semiconductor industry or stocks is optimistic, which is supported by technological progress and robust demand for semiconductors across the globe.
Conclusion
On a concluding note, the semiconductor sector has a strong growth potential and investments in these stocks can be a good way to diversify your portfolio and minimize the risks. However, investments in semiconductor stocks require proper research as there are some risks involved in it. However, it is advised to consult an investment advisor before making any investment decisions.
Read Also: List of Semiconductor Penny Stocks with Price
Frequently Asked Questions (FAQs)
What are the names of smallcap semiconductor stocks?
Some of the smallcap semiconductor stocks in India are MIC Electronics Ltd., Mindtek (India) Ltd., ASM Technologies Ltd., Kernex Microsystems Ltd., and Spel Semiconductors Ltd.
Are there any risks related to investments in semiconductor sector stocks?
There are various risks involved in investing in semiconductor stocks, such as volatility in stock prices, currency fluctuations, regulatory and policy risks, competition, technological obsolescence, etc.
Are semiconductor stocks a good investment?
Yes, semiconductor stocks are a good investment option due to the high demand for semiconductors across the globe. This sector has a high growth potential and a high-profit margin.
What does a semiconductor company do?
These companies manufacture semiconductors which are used in a wide range of electronic devices such as laptops, household appliances, smartphones, game consoles, etc.
Can I invest in semiconductor companies’ stocks without a Demat account?
To invest in semiconductor companies’ stocks, you must have a Demat account. If you don’t have a Demat account, you can open it with Pocketful.
Disclaimer
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