Best 5G Stocks in India to Invest

best 5G stocks in India

In this article, let us understand the best 5G stocks in India which are suitable for investing ahead of the commencement of the 5G service. But before that let us know about the 5G technology.

What is 5G Technology?

5G is the fifth generation of mobile networks that is expected to revolutionize mobile connectivity and user experience. 5G is the new global wireless standard designed to connect everyone and everything virtually, including machines, devices, and objects.

Expected 5G market size 

The current market size for 5G is USD 53 billion, it is expected to reach USD 249.2 billion globally by 2026. There were several investments in 5G recently in India and other countries.

Which countries have enabled 5G technology for consumers?

According to a report by the Global Mobile Suppliers Association, 5G is active in 61 countries. Australia, China, Canada, the USA, South Korea and European countries have activated 5G. 

Best 5G stocks to invest in India 

The introduction of 5G technology will boost the businesses of telecommunication service providers and telecommunication equipment companies

1. Telecommunication Service Provider(TSP)

The telecommunication service providers use equipment to facilitate the uninterrupted flow of networks across the country. Let’s check out the best 5G related stocks in India.

Best 5G Stocks in India – TSP

Let us have a look at the best 5G stocks India. 

#1. Bharti Airtel – Best 5G stocks in India

Bharti Airtel (i.e Airtel) announced that it successfully conducted its first 5G trial in Kolkata, in partnership with Nokia in November 2021. It was allotted a test spectrum in multiple bands by the government for the validation of 5G technology and use cases. 

The Bharti airtel associates forces with major global companies such as Accenture, AWS, CISCO, Ericsson, Google Cloud, Nokia, Tata Consultancy Services (TCS) to work with industry-leading brands such as Apollo Hospitals, Flipkart, and several leading manufacturing companies to test 5G based solutions.

The company saw a 17% growth in revenue which stood at Rs. 116,547 Cr. But, it posted a net loss of Rs 4,255 Cr. 

Bharti Airtel dedicated Rs. 37,292 crores to acquire different bands across all the circles of the country to roll out 5G services. Moreover, increased capabilities in present bands for Rs. 7,792 crores.

Bharti Airtel – Fundamentals (As of 30-09-2022)

Face Value: ₹5ROE: 5.86%
Market Cap: ₹439,720CrNet Profit Margin: 6.16%
EPS: ₹9.48Current Ratio: 0.45
Stock P/E: 89.1Debt to Equity: 2.55
Dividend Yield: 0.39%Promoter’s Holdings: 55.9%

#2. RIL (Reliance JIO) – Best 5G stocks in India

Reliance JIO is not a listed company in the Indian stock market but it is a part of Reliance Industries Limited (RIL). Currently, it is one of the largest 5g network stocks in India.

JIO is looking forward to be the leader in the 5G segment. The company has successfully conducted trials of connected drones on its local 5G network. It has partnered with Qualcomm to manufacture the required equipment for the 5G ecosystem in India.

In FY21, RIL reported Rs 4,66,924 cr in revenues, of which Rs 90,287 cr was earned from JIO services.  The net profit of RIL was Rs 49,128 Cr for FY21. JIO has diversified into other verticals including JioMart, JioUPI, JioPOS, and many others.

In the auctions, Reliance Jio Infocomm spent Rs. 88,708 crores to obtain 220MHz airwaves in the expensive 700MHz band. The purchase amount is double what Airtel, the second largest bidder paid.

Reliance Industries Limited – Fundamentals (As of 30-09-2022)

Face Value: ₹10ROE: 8.16%
Market Cap : ₹1,573,148CrNet Profit Margin: 9.40
EPS: ₹99.5Current Ratio : 0.77
Stock P/E: 24.5Debt to Equity: 0.41
Dividend Yield: 0.34%Promoter’s Holdings: 50.6%

#3. Vodafone Idea – Best 5G stocks in India 

Vodafone Idea Limited (i.e. Vi) is India’s third-largest mobile telecommunications network telecom formed after Vodafone India merged with Idea Cellular. Vodafone Idea Limited stand 10th-largest mobile telecommunications network in the world.

Vodafone Idea has been deploying several technologies such as Massive MIMO, DSR, and Cloudification of Core, which is central to its future growth strategy. 

Vi has also initiated 5G trials with its major Network partners Nokia & Ericsson on the recently allocated 5G spectrum in 2 cities in India. It must be noted that the company still faces some issues and would require the government’s support to stay afloat.

Vodafone Idea saw a downfall in revenue which was Rs. 38,516 Cr in FY22. The company posted a net loss of Rs 28,245 Cr in the same year.

Vodafone Idea bought 6,228MHZ units of airwaves in different bands for Rs. 18,799 crores. Despite not being a strong operator, the purchase across 17 circles will boost Vi to provide 5G services across most of the country.

Vodafone Idea Limited – Fundamentals (As of 30-09-2022)

Face Value: ₹10ROE: –
Market Cap: ₹27,301Net Profit Margin: -74.0%
EPS: ₹-9.31Current Ratio: 0.28
Stock P/E: –Debt to Equity: –
Dividend Yield: –Promoter’s Holdings: 75%

#4. MTNL – Best 5G stocks in India

Mahanagar Telephone Nigam Ltd. (MTNL) is a subsidiary telecom company of BSNL. In terms of market share, MTNL is the largest internet service provider in Mumbai and Delhi, and the third-largest internet service provider in India though it has a presence just in two circles.

The MTNL has its global depository receipts on London Stock Exchange and American depository receipts on New York Stock Exchange.

The Department of Telecommunications has dedicated spectrum to MNTL for 5G trials in partnership with C-DoT in Delhi. After this announcement, the stock price surged and the MNTL shares have given around 124% return in the last year. 

In FY22, MTNL announced revenue of Rs 1,149 Cr and a net loss of Rs 2,603 Cr. The losses can be allocated to the cutting in revenue and increased competition leading to tariff reduction.

Mahanagar Telephone Nigam Ltd. (MTNL) – Fundamentals (As of 30-09-2022)

Face Value: ₹10ROE: –
Market Cap: ₹1,314Net Profit Margin: -226%
EPS: ₹-40.8Current Ratio : 0.43
Stock P/E: –Debt to Equity: –
Dividend Yield: –Promoter’s Holdings: 56.9%

2. Telecommunications Equipment Companies

Telecommunications equipment companies play a vital role by creating the infrastructure required for digital transformation into 5G. Telecommunications equipment companies are also the best 5g stocks to buy in India.

List of All the Telecommunication Equipment Stocks

Here is the list of the best telecommunication Equipment company stocks.

CompanyMarket Cap (Rs. Cr)
Indus Towers59,733
HFCL9,341
ITI11,048
Sterlite Technologies6,064
Tejas Networks7,553
Astra Microwave2,390
Black Box2,298
Optiemus Infra2,214
GTL Infra1,805
Vindhya Telelinks1,309
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