Top Semiconductor Stocks in India for 2025

(The stocks mentioned in the blog are as per Analyst Ratings and Market Capitalization)

With technological advancements like the EV revolution and the rollout of 5G, the semiconductor industry is experiencing significant growth and changes. These developments have led to an increased demand for semiconductors, as they are integral components in electric vehicles, telecommunications infrastructure, and many electronic gadgets that you may use every day.

As a result, investing in top semiconductor stocks in India could represent an exciting opportunity to explore.

Semiconductor Industry in India – A Quick Overview

The semiconductor industry is vital for India’s economy, significantly driving the technology sector’s growth. Currently, India relies heavily on imports for semiconductors, sourcing them primarily from Taiwan, China, Korea, and Vietnam. However, as the demand for electronic devices continues to surge, there is an urgent need to reduce this dependence.

In 2023, the Indian semiconductor industry was valued at USD 34.3 billion and is projected to reach USD 100.2 billion by 2032, propelled by growing demand for smartphones, wearables, automotive parts, and computers.

To address the reliance on semiconductor imports, the Ministry of Electronics and Information Technology (MeitY) initiated the India Semiconductor Mission (ISM), pledging USD 10 billion. This initiative includes incentives for manufacturing and the Design Linked Incentive (DLI) scheme aimed at supporting semiconductor startups. Coupled with the government’s ‘Make in India’ initiative and the Production Linked Incentive (PLI) scheme, there is a concerted push to establish semiconductor manufacturing facilities domestically.

Best Semiconductor Stocks in India 2025 as per Analyst Ratings

Here’s a curated list of the top semiconductor stocks in India to buy, evaluated based on analyst ratings. This criterion is critical as analysts conduct extensive studies before providing their ratings.

*Our stock selection criteria for top stocks based on analyst ratings are mentioned at the bottom of this blog.

Top Semiconductor Stocks in India in 2025 as per Market Capitalisation

Below is a table featuring the best semiconductor stocks in India for 2025, ranked by market capitalization:

*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog.

Overview of the Best Semiconductor Stocks in India

Here is a brief overview of the semiconductor stocks listed above:

1) Bharat Electronics Limited

Founded in 1954 under the Ministry of Defence, Bharat Electronics Limited (BEL) was established to cater to India’s specific electronic requirements for defense. By providing a wide array of products such as defense communication systems, land-based radars, naval systems, and avionics, BEL has carved a niche in the defense sector.

Moreover, BEL is expanding its focus beyond defense into sectors like civil aviation, anti-drone systems, and medical electronics. Headquartered in Bangalore, it exports products globally to Europe, Asia, Africa, North America, and the Middle East.

2) CG Power and Industrial Solutions Limited

Established in 1937, CG Power and Industrial Solutions Limited (formerly Crompton Greaves Limited) specializes in designing, manufacturing, and selling equipment for power generation, transmission, and rail transportation.

The company operates through two segments: Power Systems and Industrial Systems, offering products from transformers to switchgear and power conversion equipment.

3) Hitachi Energy India Limited

Formerly known as ABB Power Products and Systems India Limited, Hitachi Energy India Limited was established in Bengaluru in 2019. It is a pivotal player in the power technology sector, known for a range of energy technology solutions.

The company offers products including energy storage systems, cable accessories, cooling systems, and semiconductors, along with services such as asset maintenance and electric grid installation.

4) V Guard Industries Limited

Located in Kochi, V-Guard Industries Limited is a versatile player catering to the mass consumption market. The company manufactures a variety of electronics, electrical, and consumer durables.

Its product line encompasses voltage stabilizers, inverters, solar water heaters, and extensive wiring solutions. Recently, V-Guard also acquired 100% ownership of Sunflame Enterprises, enhancing its consumer goods footprint.

5) Havells India Limited

Havells India Limited is a distinguished power distribution equipment manufacturer and a leading Fast Moving Electrical Goods (FMEG) company globally. Their diverse product catalog includes circuit protection devices, cables, and home appliances.

With over 14,000 dealers in India and products available in over 60 countries, Havells emphasizes energy efficiency, manufacturing over 90% of its products in-house, and providing consumer support through ‘Havells Connect’ services.

Factors to Consider Before Investing in Semiconductor Stocks in India

Here are essential factors to consider before purchasing semiconductor shares in India:

1. Evaluate Financial Performance: It’s crucial to assess the financial health of semiconductor companies by looking at their revenue growth, profitability, and debt levels.

• Stay Informed on Market Trends:

Stay updated on market trends and the global demand for semiconductor stocks. Be aware of industry shifts, geopolitical factors, and emerging technologies for informed investment decisions.

2. Diversify Investments: Spread investments across various sub-sectors within the semiconductor industry to mitigate risks associated with market volatility. This approach provides a shield against sector-specific challenges.

• Monitor Regulatory Environments:

Keep an eye on regulatory changes impacting semiconductor stocks, both domestically and internationally, as policies can significantly influence the industry landscape.

3. Supply Chain Awareness: Disruptions in the semiconductor supply chain can impact sales and share prices. Monitor stocks carefully and avoid those associated with delayed product launches or lower revenues due to supply chain challenges.

Should You Invest in Semiconductor Stocks?

Indeed, while the semiconductor industry offers compelling opportunities due to its essential role in technology advancement, investors should keep the associated risks in mind before making decisions.

Semiconductor stocks can be volatile due to fluctuating demand, technological advancements, and market trends. Such volatility can complicate future return predictions. Moreover, the highly competitive landscape in India can lead to price wars and diminishing profit margins, impacting stock prices adversely.

Additionally, semiconductor manufacturing is cyclical, fluctuating between growth and decline—adding uncertainty for investing in these stocks. Therefore, it’s vital to evaluate these risks carefully and consider diversifying your investment portfolio before buying semiconductor shares.

Disclaimer

This blog is intended for educational purposes only. The securities/investments discussed here should not be construed as recommendations or investment advice.

*Stock Selection Criteria for Top Stocks Based on Analyst Rating These stocks have been shortlisted based on analyst ratings provided by the I/B/E/S (The Institutional Broker’s Estimate System) database, aggregated by Refinitiv. Ratings are based on earnings per share, sales, and net income forecasts. Investors should conduct independent research rather than solely relying on these ratings.

*Stock Selection Criteria for Top Stocks Based on Market Capitalization These stocks are selected based on their market capitalization, representing the total value of a company’s outstanding shares ranked in descending order.