Top 5G Stocks in India: Sector Overview, Recent Performance & More!

India is at the forefront of the 5G revolution, rapidly rolling out and adopting this transformative technology nationwide. The 5G revolution promises to transform various sectors, offering faster speeds, lower latency, and more reliable connectivity. The Ericsson Mobility Report projects that India will have 270 million 5G subscribers by the end of 2024, marking a substantial rise from the 110–120 million users reported in 2023. The demand for 5G technology in India is massive, significantly impacting the economy and society. This blog post highlights the top 5G-related stocks in India, chosen for their strong performance and potential.

Top 5G Stocks – Highest Market Capitalisation

Here is a list of the best 5G stocks in India based on their market capitalisation:

Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Note: The data on this list is dynamic and subject to change and is derived from the Tickertape Stock Screener. This is general industry data of companies associated with the 5G space.

🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

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Overview of the Top 5G Stocks in India Based on Market Capitalisation

Here is a list of the top 5G network companies in India based on different fundamental factors.

Bharti Airtel Ltd

Bharti Airtel is one of India’s leading telecommunications service providers, with a robust presence in the 5G domain. As a frontrunner in implementing 5G infrastructure, the company continues to enhance its network capabilities. Airtel’s extensive market share and innovative solutions, such as Airtel Xstream and Wynk Music, reinforce its position in the telecom sector. Over the last 5 years, the current ratio has been 48.43%, compared to the industry average of 38.05%. The company’s expected earnings growth of 156.50% for next year is significantly higher than the last 3-year CAGR earnings growth of 0.00%.

Vodafone Idea Ltd

Vodafone Idea is among the 5g telecom companies in India gearing up for a 5G transition. Despite facing financial challenges in recent years, the company has been investing strategically in technology upgrades and network expansion to compete in the 5G race. The company’s expected earnings growth of 37.38% for next year surpasses the last 3-year CAGR earnings growth of 0.00%, and it boasts a cash flow margin of 47.85%.

Indus Towers Ltd

Indus Towers, the largest telecom tower company in India, plays a pivotal role in supporting 5G expansion through its infrastructure services. This 5G network company has a diversified portfolio of towers across urban and rural areas, positioning it as an essential enabler of digital connectivity. Over the last 5 years, the debt-to-equity ratio has been 85.19%, significantly better than the industry average of 304.21%. The company’s expected earnings growth of 29.41% for next year is higher than the last 3-year CAGR earnings growth of 10.43%.

HFCL Ltd

HFCL Ltd, a technology-driven telecom infrastructure company, is actively involved in manufacturing 5G network equipment and optical fibre cables. Its contribution to India’s 5G ecosystem includes delivering innovative solutions for next-gen connectivity. Over the last 5 years, the debt-to equity ratio has been 35.06%, compared to the industry average of 55.22%, and the current ratio has been 174.54%, compared to the industry average of 121.38%.

Reliance Industries Ltd

Reliance Industries, through its telecom arm Jio, has revolutionised India’s digital landscape. Jio’s aggressive investments in 5G technology, coupled with its unmatched subscriber base, position it as a dominant force in the sector. Over the last 5 years, the debt to equity ratio has been 50.37%, better than the industry average of 66.21%, and the current ratio has been 107.03%, higher than the industry average of 89.43%.

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What are 5G Related Stocks in India?

5G, short for Fifth Generation, is the latest wireless standard globally. Unlike previous technologies, 5G efficiently manages large-scale connections at high speeds, enabling seamless integration of machines and devices alongside users. Its capabilities make it ideal for advanced applications like cloud computing, artificial intelligence, machine learning, Natural Language Processing, and the Internet of Things (IoT). 5G network stocks in India are stocks of companies manufacturing and assisting in the rollout of 5G technology in India. 

The Expected Market Size of the 5G Sector in India

As of 15th May 2024, 5G mobile subscriptions in India have crossed the 165 million mark and are expected to reach 860 million by the end of 2029. India has one of the highest average data usage per user in the world, paving the way for greater possibilities in the 5G sector in India.  

Budget Allocations for the Telecommunications Sector in the Union Budget of 2024-25

Finance Minister Nirmala Sitharaman presented the seventh consecutive Union Budget, outlining the Modi government’s economic plans for the year. Here are a few budget allocations for the telecommunication sector that may be relevant for the 5G industry in India:

1. Total Allocation for Telecommunications

The government has earmarked Rs. 1,11,876.67 crore for the telecommunications sector in the 2024-25 budget.

2. Funds for BSNL

Rs. 82,916.20 crore has been allocated for Bharat Sanchar Nigam Limited (BSNL). The funds are designated for capital infusion, technology upgrades, restructuring and implementation of a voluntary retirement scheme (VRS) for BSNL and MTNL employees.

3. Universal Service Obligation Fund (USOF)

An additional Rs. 17,000 crore has been allocated from the USOF. These funds will support the compensation to telecom service providers, BharatNet projects and research and development initiatives.

4. Telecom Ministry Projects

Proposed allocation for telecom projects and public sector firms: Approximately Rs. 1.29 lakh crore.

5. Non-Tax Revenue Estimates

The government’s non-tax revenue collection from the telecom sector is estimated at Rs. 1.2 trillion for 2024-25. This figure remains unchanged from the interim budget estimate and represents a 28.5% increase over the revised target of Rs. 93,541 crore for the same period.

6. Additional Allocations

• Pensionary Benefits: Rs. 17,510 crore for Department of Telecommunications employees, including those absorbed by BSNL and MTNL since 1st April 2014.
• MTNL Bond Payments: Rs. 3,668.97 crore for meeting MTNL’s bond payment obligations.

What to Look for When Investing in 5G Stocks?

To select the right 5G stocks, focus on these key factors:

• Market Share and Customer Base: Check the popularity and reach of service providers of the 5G sector stocks in India.
• Network Coverage and Quality: Evaluate the reliability and extent of 5G services offered by the 5 G related company that may interest you.
• Innovation in Products and Solutions: 5G companies that offer unique and advanced 5G solutions. 
• Financial Health and Growth Prospects: Examine the 5G company’s financial stability and potential for growth.
• Strategic Partnerships: Consider alliances with other industry players that allow 5G network company in India to build a strong foothold and enhance ecosystem presence.
• Share Price Trends: Monitor the 5G share price to gauge market sentiment and potential investment opportunities. A steady or rising 5G network share price in India may indicate a healthy outlook for the company within the 5G sector.

Features of 5G Stocks

5G stocks typically belong to companies directly involved in 5G infrastructure, such as 5G network companies in India, or those indirectly benefiting from the technology’s adoption. Here are some standout features of 5G shares:

• Innovative Growth Potential: 5G technology companies in India are at the forefront of transforming connectivity and enabling applications like IoT, AI, and AR/VR.
• Broad Industry Impact: From telecom giants to hardware manufacturers, the scope of 5G stocks includes both established corporations and startups, including 5G penny stocks in India.
• Global and Local Players: Investors can explore 5G company stocks in India and multinational firms leading the charge globally.

Advantages of Investing in 5G Stocks

Investing in 5G shares offers a range of benefits that align with the tech-driven future:

1. Early Adoption Edge: With 5G technology in its growth phase, investing early can lead to substantial returns, particularly with 5G penny stocks list options.
2. Diverse Investment Options: The market offers a mix of blue-chip stocks and 5G penny stocks in India, catering to different investment strategies.
3. Catalyst for Innovation: 5G networks fuel advancements across sectors, creating opportunities for 5G companies in India to grow and expand their market share.
4. Government Support: In India, government initiatives and policies are bolstering the rollout of 5G technology, boosting the prospects of 5G stocks India.

Risks Associated with Investing in 5G Stocks

While the potential for high returns is evident, investing in 5G company stocks in India and abroad comes with risks:

1. High Market Volatility: 5G penny stocks, while affordable, can experience significant price swings due to market speculation.
2. Regulatory Challenges: Government policies and spectrum allocation can impact the profitability of 5G network companies in India.
3. Technological Uncertainty: As 5G technology evolves, some companies might struggle to keep up, leading to underperformance of their stocks.
4. Global Competition: Indian 5G technology companies face stiff competition from international firms, which could affect market dynamics.

Factors to Consider Before Investing in 5G Stocks

To make informed decisions, investors should evaluate these critical factors when exploring 5G shares:

1. Company Fundamentals: Assess the financial health and growth prospects of 5G companies in India to ensure long-term viability.
2. Market Position: Choose firms that hold a strong position in the 5G ecosystem, including established players and promising 5G penny stocks.
3. Technological Edge: Focus on 5G technology companies in India and 5g tower companies in India with cutting-edge innovation and scalable solutions.
4. Diversification: Spread investments across various 5G company stocks in India and globally to minimise risk.
5. Regulatory Landscape: Stay updated on government policies affecting 5G network companies in India.

By understanding the features, advantages, risks, and considerations, investors can strategically tap into the potential of 5G stocks India and capitalise on the growth of this transformative technology.

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To Wrap It Up…

India leads in adopting 5G technology, providing ample growth prospects for investors. Key players in the Indian 5G market are Reliance Jio, Bharti Airtel, Vodafone Idea, MTNL, Tech Mahindra etc. However, investing in this sector entails risks, and it’s essential to conduct thorough research and evaluate your risk tolerance before investing.

Frequently Asked Questions About 5G Stocks in India

Stocks Under Budget

If you are looking for stocks under a particular price range, here’s the collection of stocks under a specifc budget:

Popular Group of Companies on NSE