The Telecom sector is slated to witness a major change as 5G has already entered the Indian market. The network was already functional in counties such as the USA and UK but it has recently chartered its way into Indian territory. 5G technology has a market capitalization of around $54 Billion. The onset of 5G in the market will bring a series of innovations and changes in the market. Such a period is the perfect moment to invest in 5G stocks.
Deep dive into the article inorder to gain insights about 5G technology stocks India.
Reliance Jio
Fundamentals:
- Market Capitalisation: 1688974.58Cr
- P/E Ratio: 25.96
- ROE: 8.26%
Reliance Jio isn’t listed privately in the market, instead it operates under the Reliance industries group. It was incorporated in the year 2016. It shook the telecom sector by revolutionising the 4G sector by reducing the market prices by around 95%.
Currently Jio has started operations in the 5G sector and has already occupied a dominant position in the market. The company’s 5G solution works in tandem with the cloud service with overall digital management.
Vodafone Idea
Fundamentals
- Market Capitalisation: 27365.26 Cr
- P/E Ratio: -0.87
- ROE: NA
Vodafone Idea currently operates as the 10th largest organisation in the telecom sector. It is a joint venture between Vodafone and Idea.
The organisation is moving towards incorporating 5G networks in its system. It has started putting in various systems such as MIMO and DSR. Apart from that they are working towards the cloudification process of its core which is a fundamental property required for 5G technology.
Bharti Airtel
Fundamentals
- Market Capitalisation: 4,51,138.12 Cr
- P/E Ratio: 81.16
- ROE: -2.07
Bharti Airtel Limited is the second largest telecom company operating in India. Its majority operations are situated in India and Africa. Apart from that it has its presence in 18 countries around the globe. The company is aggressively testing their 5G network connectivity across various cities. Apart from 5G presence across major cities, Airtel is swiftly expanding its 5G operations around the country. It plans to provide these services in the remotest corner of the country by March 2024.
MTNL
Fundamentals
- Market Capitalisation: 4,51,138.12 Cr
- P/E Ratio: 81.16
- ROE: -2.07
The DOT (Department of Technology) has provided BSNL which operates MTNL with the access to 5G network connectivity. Currently BSNL is accessible across two telecom circles. It has massive dominance across the telecom markets of Mumbai and Delhi. This dominance has positioned MTNL as the third prominent ISP (Internet Service Provider) across the Indian market.
HFCL
Fundamentals
- Market Capitalisation: 10298.74 Cr
- P/E Ratio: 39.25
- ROE: 12.28
HFCL ie. Himachal Futuristic Communication Limited operates in the telecommunication sector. The company currently manufactures various equipment such as 5G transport equipment and 5G RAN. These equipment will be manufactured for both Indian as well as European markets. The company currently manufactures various connectivity 5G based products focusing on providing efficient connectivity such as aggregation routers and cell-site routers.
Sterlite Technologies Ltd.
Fundamentals
- Market Capitalisation: 6402.90 Cr
- P/E Ratio: -89.14
- ROE: 2.87
This is a technology company based in India which focuses on production of a range of 5G connectivity based products such as optical fibres and software networks. Apart from that the company focuses on designing networks and their successful deployment.
The firm has a heavy presence across the USA, Middle East and various European markets. Currently the company is focused around weaving a 5G network around the country. The network aims to weave an integrated network of optical technology paired with wireless technology systems. The methodology used for this process will be focusing on virtualization paired with successful deployment of the network.
Indus towers
Fundamentals
- Market Capitalisation: 51500.25 Cr
- P/E Ratio: 9.49
- ROE: 33.45
Indus tower occupies a respectable position as a reputed tower provider in the global market. Vodafone Idea and Bharti Airtel occupy a partial stake in the company. The firm currently maintains its presence across 22 telecom circles across the Indian markets. It has erected 1,75,000 tower structures across the country. The organisation maintains a dominant position in the market by occupying a 31% stake in the global tower sector.
Tejas Networks
Fundamentals
- Market Capitalisation: 10583.80 Cr
- P/E Ratio: -0.98.02
- ROE: NA
Tejas Networks manufactures telecommunication networks and systems based equipment across the global markets. The company possesses various export licences which allows them to sell their products across global markets. Over the years the organisation has positioned itself as a dominant player in this market.
Do I recommend investing in 5G Telecom Stocks in India?
I personally keep myself away from investing in telecom industry as there are hardly any winners. However, if I had to invest in 5G telecom stocks, I would pick Bharti Airtel and Reliance, because technology wise they are much ahead of the competitors.
5G is a sector with lots of optimism seeped into it. However analyse and research the market fundamentals of any organisation before proceeding to purchasing the stocks of any company.
What did we learn?
