Introduction
Telecommunications in India has evolved to be one of the most developed in the world. GSMA also revealed that India will be the second largest market for smartphones by 2025 with 1 billion devices and 920 million unique mobile subscribers out of which 88 million will be 5G. For instance, 5G is expected to generate $450 billion in India’s economy between 2023 and 2040.
India is a competitive nation in this respect as it has shifted a number of places up in the global market and ranked second in mobile broadband traffic and international bandwidth. The country has successfully launched 5G connectivity in various states. At the same time, the availability of the service remains affordable as the costs of data have declined by more than 96% since 2014.
This blog is about the best communication stocks in India and the possibility of investing in a new and growing sector that is revolutionising the country.
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Best communication stocks in India
(NOTE: The stocks mentioned below are listed and arranged on the basis of market capitalisation.)
Bharti Airtel Limited is a global telecommunications leader operating across segments like mobile services, home services, and digital TV. The Digital TV segment comprises many channels, including High Definition and Three Dimensional channels with Dolby digital sound. Airtel Business provides ICT (Information and Communication Technologies) solutions to the business and government while South Asia operates in Sri Lanka and Bangladesh.
Financial Fundamentals as per 13 Nov, 2024
- Market Cap: ₹ 9,28,943 Cr.
- Revenue: ₹41,473.3 Cr.
- PAT as on Q2 FY25: ₹4,153.4 Cr.
- 52-week high: ₹ 1,779
- 52-week low: ₹ 936
Indus Towers Limited is an integrated telecommunications infrastructure company in India that provides tower, power, and space for telecom operators. The company is involved in smart cities, and it also uses green technology. It controls more than 2,29,658 towers with 3,79,236 co-locations.
Indus Towers offers different types of towers; lattice, hybrid, and camouflaged towers with grid electricity or diesel generator backup. It acquires tower sites on residential and business premises to guarantee effective coverage in the developed and the developing world. This infrastructure helps in installation of base transceiver stations, transmission links and microwave antennas for its clients.
Financial Fundamentals as per 13 Nov, 2024
- Market Cap: ₹ 85,860 Cr.
- Revenue: ₹7,465.3 Cr.
- PAT as on Q2 FY25: ₹2,223.5 Cr.
- 52-week high: ₹ 461
- 52-week low: ₹ 176
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Bharti Hexacom Limited is an Indian based telecom services company. It is a Joint Venture of Bharti Airtel Limited. The company mainly focuses on the northeastern states and Rajasthan to improve the tele-density in the uncovered areas.
The digital divide in the regions is one of the most significant issues for the development of the digital environment, the regions and overcoming the digital divide. Having a customer oriented approach and a good network, Bharti Hexacom is a key player in the continually expanding telecommunication sector in India.
Financial Fundamentals as per 13 Nov, 2024
- Market Cap: ₹ 71,373 Cr.
- Revenue: ₹2,097.6 Cr.
- PAT as on Q2 FY25: ₹253.10 Cr.
- 52-week high: ₹ 1,568
- 52-week low: ₹ 755
Vodafone Idea Limited offers business services that are aimed at large enterprises, government, small businesses, and new ventures. It provides voice, broadband and digital content services and entertainment services including sports and IVR contents.
Other services include WAP games, SMS services such as caller tune and expert services and utility services such as missed call alert and astrology. It has its subsidiaries such as Vodafone Idea Manpower Services, Vodafone Idea Business Services Limited.
Financial Fundamentals as per 13 Nov, 2024
- Market Cap: ₹ 51,648 Cr
- Revenue: ₹10,932 Cr.
- PAT as on Q1 FY25: ₹(7,176) Cr.
- 52-week high: ₹ 19.2
- 52-week low: ₹ 7.34
Tata Communications Limited is a digital business partner of enterprises, enabling them to transform their businesses through digital solutions. Its Voice Solutions segment provides international and domestic long distance services. The Data Services segment comprises core connectivity, digital platforms and connected services.
The company’s Payment Solutions offer full ATM outsourcing, POS terminals services, and core banking services. Its Transformation Services provide support to telecom network and Real Estate segment deals with lease rentals. Omnichannel communication solutions are provided through its subsidiary Kaleyra Inc.
Financial Fundamentals as per 13 Nov, 2024
- Market Cap: ₹ 49,738 Cr.
- Revenue: ₹5,767.35 Cr.
- PAT as on Q2 FY25: ₹227.27 Cr.
- 52-week high: ₹ 2,175
- 52-week low: ₹ 1,586
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Conclusion
In conclusion, the telecom sector is one of the most important sectors of digital India and there is a very good opportunity for investment. There are high expectations that with the assistance of 5G, a growing number of smartphone users, and government support, the sector will record a high growth rate.
Investment in best communication stocks provides an opportunity to be a part of an industry that is revolutionising the connected world, urban as well as rural India. However, this blog is for educational purposes only and should not be thought of as investment advice.
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FAQs
1. Which telecom stock is best in India?
The best communication stocks for investment then depends on the tolerance to risks of the investor as well as the investment goals and targets. Some of the market leaders in India are Bharti Airtel and Reliance Jio, famous for strong networks and new products. Opportunities can also be seen in the case of both Vodafone Idea and Tata Communications because of their focus on the enterprise business and 5G.
2. What is a telecom stock?
A telecom stock is a share in a telecom firm, which offers products such as mobile, broadband and digital content. These companies provide and control the platform through which data, voice and video are conveyed. Telecom stocks are usually classified under infrastructure, 5G or broadband and these stocks are famous for their consistent dividends and ability to adapt to the digital environment.
3. Is it good to invest in telecommunications?
Telecommunications can be regarded as a good investment opportunity because the industry has been steadily growing, and it is highly demanded, and there are new technologies, for instance, 5G. Telecoms provide bare necessities and thus ensure the consistent provision of sales. The sector has long term growth potential because of increasing internet usage and government policies in India but there are regulations and competition.
4. What are the sectors of telecom?
The telecom industry is divided into multiple sectors: Telecommunication Infrastructure, Telecommunication Equipment, Mobile Virtual Network Operators, White Space Spectrum, 5th Generation, Telephone Service Providers, and Broadband. Each sector is important in the overall development of the industry and the world at large, including the establishment of the networks and connectivity, the development of IoT and digital transformation in businesses.
5. What is the future of the telecom industry?
The future of the telecom industry is very bright due to 5G, IoT and digital services. As per the calculations, by 2040 5G will contribute $450 billion to the Indian economy. With the growth of the number of users of smartphones, government subsidies for broadband services in rural areas and data usage remain high, so the industry has a long-term and healthy development and innovation.
