Best Electric Stocks to Buy in India – List of Top 10 Electric Industry Shares of 2024
Last Updated Date: Jan 02, 2024In this article, we will mainly be providing you with a list of the best electric stocks to buy.
We will provide a brief overview of the sector, the list of electric companies in India picked by us, and the parameters based on which they were selected.
Then we have discussed all these companies, the top 10 in detail, and the last five in brief. We have also discussed how to select and invest in electric stocks.
Know about Electric Sector in India
Before we start discussing the top electric companies in India a brief introduction to the sector is a must.
The electric sector has been witnessing quite substantial growth in India.
This growth has resulted in a large number of people searching for good electric sector stocks to buy.
The generation, transmission, and consumption of electricity have witnessed continuous year-on-year growth for the last many years.
The manufacturing and consumption of consumer electronics have also been rising continuously.
A few reasons which are contributing to this growth are as follows.
- Growing middle-class functioning as an expanding market
- Increasing per capita income and decreasing poverty
- Government efforts to increase energy generation from renewable sources.
- Growing emphasis on electric vehicles both from the government and private sector.
- Government schemes targeted at promoting electronics manufacturing especially semiconductors.
- Digital India and Make in India
- Launch of 5G
- Growth of research and development
Best Electric Stocks in India – List of Top 10 Electric Sector Stocks to Buy Today
Here are the list of Best Electrical Stocks in India for Today, Tomorrow & Long Term Investment –
For the benefit of our readers, we have prepared the list of the best electrical shares in India. The list has been given in the table below, we have arranged the list as per market capitalization.
We have also mentioned the last traded price (LTP), changes in price in the different periods, 52 weeks high and low, and market cap in our table.
While making this list we also took into consideration top electric motor shares to buy.
The parameters we used to prepare this list are the fundamentals of the underlying company and the potential for future growth.
We analyzed the current fundamentals of the companies and the general profile of the company. We also considered the value of the stock of these companies.
The companies that performed well on these parameters were considered. We also have 5 stocks that didn’t make the top 10 but are still worth mentioning.
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Polycab India – Best Electric Stocks in India
Polycab India is an Indian electric company headquartered in Gujrat. The company traces its beginning in Maharashtra and has a history of 50 years.
The company traces its origin to an electric store in Mumbai established in 1964. This was established by the late Thakurdas Jaishinghani.
This evolved into a partnership firm with family members as partners. This further evolved to Polycab Industries with a manufacturing unit in Gujarat.
Soon Polycab Wires Pvt. Ltd was established and later Polycab Industries was merged in it. Today it is Polycab India Ltd.
Product & Services
The company is mostly known for the wires and cables segment, but as of now, the company has expanded to FMEG and telecommunication equipment.
In the wires and cables category, they cater to the retail consumer, communication sector, and large industrial needs like transmission and railway signals.
They also offer conduits and associated accessories. They also have offerings of switches, fans, lights, and other appliances for retail customers.
Also, they offer home automation solutions. Apart from these they also have products offering in the telecom and solar sector.
Why Invest in Polycab India Stock?
The reasons for including this share in our list of top electric shares to buy are many but let’s discuss the most important ones.
The most important factor was the constant debt restoration the company has shown, it is now at the position of almost being debt-free.
The promoters still hold around 68% stake in the company and have been with the company for multiple decades.
The fundamental factors not only show a stable present scenario but also indicate comfortable growth in the future.
This was also substantiated by an analysis of intraday indicators. Thus we were comfortable adding this to the best electric stocks in India.
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Sterlite Technologies – Best Electric Shares to buy
The next on the list of electric stocks in India we have is Sterlite Technologies. It is an Indian multinational company with its headquarter in Pune, Maharashtra.
The company was established as a copper wire manufacturing unit in 1988.
They quickly entered the optical fibre field and made a name for themselves for providing infrastructure solutions for networking needs.
They are mainly focused on networking products and solutions and also have very good research and development capabilities too.
Product & Services
As far as products and services go, acquiring Elitecore Technologies now offers an end-to-end solution for network needs.
Ranging from infrastructure to software needs, they have both wired and wireless solutions.
They also have full 5G compatible offerings for their clients.
They also have well-established research and development facilities, which results in them not only being at the forefront of the latest technologies but also having capabilities to be in the first place.
Also, they are capable of catering to the unique needs of their clients.
Why Invest in Sterile Technologies Stock?
Let us discuss why we considered this as one of the best electric shares to buy. The most outstanding factor is the high cash flow management this company has.
Also, the CCC or cash conversion cycle for this company is excellent. The promoters holding again is high and stand around 54%.
The company has given good returns to its equity holders in the past. The most fundamental factors indicate that this company is well suited for growth in the future.
The analysis based on technical indicators for the medium and long term investment also indicates a positive outlook.
KEI Industries – Top Electric Sector Stocks
The third entry in top electric sector stocks is KEI Industries. It is a wires and cables manufacturing company with its headquarter in Delhi.
It now has a presence in multiple countries and has become an established name in its field.
The company traces back its origin to a partnership firm, manufacturing switchboard cables, established in 1968.
The company today is the major supplier of wires and cables for several public and private organizations.
Product & Services
The company has a holistic portfolio of products and offerings. They are dealing in wires and cables ranging from low voltage power cables to extra-high voltage power cables.
The company focuses on providing end-to-end solutions to a unique requirement to its client. For this, the company also maintains robust research and development capabilities.
They also cater to retail customers by offerings under the house wire category. They also deal in solar cables and marine cables.
Why Invest in Kei Industries Stock?
The electric share price of this company has been showing a consistent upward trend for the last many years.
Along with the price, the profit of this company has also shown continuous growth. This translates to the growth of the company and the growth of investment in stocks of the company.
Apart from this one more factor that increases the confidence in this company is the healthy liquidity level the company has been maintaining for the past many years.
According to Kei Industries Stock Prediction, it is expected to provide decent returns.
Finolex Cables – Top Electric Companies in India
The company is a well-known name among the top electric companies in India.
Established in 1958 it can be considered as a manufacturing giant in comparison to its humble beginnings.
It is India’s largest when it comes to manufacturing wires and cables.
Recently it has also entered the market of consumer electrical goods and now has a wide variety of FMCG products.
Product & Services
Finolex Cables has a long list of products and offerings when it comes to insulated wires and cables.
They offer products suited for both retail as well as industrial customers in this category.
Apart from electrical cables they also deal in communication cables, solar cables, and optical fiber cable to name a few.
They also have product offerings in switches, fans, lightings, water heaters, etc. in the FMEG category for retail customers.
Why Invest in Finolex Cables Stock?
The electric share price of Finolex cables has been on an uptrend for more than 1.5 years.
The main factor which outshined this company during our analysis is that this company is almost debt-free.
Having virtually no debt for a company this size is no easy feat. At the same time, the company has high liquidity, combined with no debt which is a very good factor.
The fundamental analysis of this company also indicates a future of growth both for equity investors and the company.
Olectra Greentech – Top Electric Motor Stocks in India
Although we are looking at electric companies, if we narrow our search to top electric motor stocks in India this company cannot be missed.
Headquartered in Hyderabad, India this company is one of the rising names in electric motor vehicles in India. Previously known as Goldstone Infratech Ltd.
The company is now known as Olectra Greentech Lmt. Since July 2018.
The company is listed and traded both on the National Stock Exchange as well as Bombay Stock Exchange.
Product & Services
The main offerings of the company are electric buses and composite insulators. They are one of the largest suppliers of composite insulators in India.
As for electric buses, they have concentrated on unique requirements for Indian roads. They have designed the buses to achieve performance in Indian conditions.
The buses can give good performance on Indian roads under Indian weather conditions and traffic conditions. Currently, they are offering three variants of buses.
Why Invest in Olectra Greentech Stock?
Even by just comparing electric motor share prices this company stands out from others.
In addition to this, the company has been continuously decreasing its debt portfolio and is almost debt-free as of now.
This is being done while having and maintaining high liquidity. The company also has an above 50% promoter holding.
All this along with continuous and sustained growth in revenue makes it a fundamentally strong company.
Data Patterns India – Top 10 Electric Stocks
Next on our list of top 10 electric stocks is Data Patterns India.
Data Patterns is the leading company in India when it comes to electronics systems for defence and aerospace.
They have their main unit in Chennai, Tamil Nadu. They have a large number of PSU clients along with ISRO, linked to DRDO and Indian armed forces.
Also, they have the vision to establish themselves and India as a big player in the global defence market along with enabling India’s self-reliance.
Product & Services
They have a long list of products that come under the electronics system. Their products are mainly directed towards the aerospace and defence sectors.
They have products for applications in air, land, sea, and space. Along with electronics systems, they also provide testing services.
They are now offering electronics systems for avionics, missile, satellite, and launch vehicles for aerospace.
Alongside they also have systems for radars, electronic warfare, laser & optics, and communication to name a few.
Why Invest in Data Patterns Stock?
The company can’t be analyzed based on the electric share price as the IPO of this company was very recent. But other factors are quite promising.
The company has become almost debt-free by decreasing its debt by around 27 cr recently. The revenue growth of this company has also shown continuous growth for the last few years.
Add to that the company has gained much by ‘Make in India’ push in the defence sector. Also, the company has a large number of government contracts both new and existing.
Precision Wire India – Best Electric Stocks to buy
The next company on the list of electric shares in India is Precision Wire India.
This company was established in 1989 and has a long and successful history of manufacturing enameled copper wires.
They are currently the largest manufacturer of enameled wires in India.
They are also working on increasing the manufacturing capacity with multiple units under construction or in the pipeline.
Also, they started under Atlas Wire Ltd. and later established Precision Wire India Ltd. In 2001 both these companies amalgamate under Precision Wire India Ltd.
Product & Services
They offer products under four categories: enameled round winding wire, enameled rectangular winding wire, continuously transported conductor, and paper insulated copper conductor.
Under each category, they offer various variants with different specifications and suit different client needs. They mainly cater to the needs of big electrical companies.
They have a long list of clients ranging from PSUs like Bharat Heavy Electricals Ltd. to private players like Mitsubishi Electric.
Why Invest in Precision Wire India Stock?
The company fundamentals show a positive outlook, this was the main reason to include this in the best electric stocks to buy.
The company has excellent cash flow management. This is clear from the annual reports of the company as well as the fact that the company is almost debt-free.
The company also has a high promoter holding of around 60%.
If we analyze the performance based on the return on capital employed the company has shown consistent upward performance.
Centum Electronics – Top Electric Stocks to buy
Established in 1993 Centum Electronics is our next entry in electric companies in India. In 1997 Centum Electronics was demerged from Solectron Centum Electronics.
It has a large international presence with an establishment in Asia, America, and EMEA. The company has four business units.
These are Centum Adeneo Engineering, Centum Strategic Electronics, Centum Adetel Transportation Solution, and Centum Electronics Manufacturing Services.
Product & Services
They offer both designing and manufacturing services for advanced electronic systems.
They offer to build specification services for electronic systems and subsystems catering to a wide array of clients.
Also, they offer engineering services for hardware and software in electronics and to an extent in the mechanical domain too.
The manufacturing facilities are state of art units and they offer one of the best manufacturing services for electronics systems and sub-system manufacturing.
Why Invest in Centum Electronics Stock?
This company is no doubt one of the top electric stocks to buy. It has shown an impressive and continuous profit growth in the last 3 years.
Their profit grew by around 45% in the last 3 years. Their financial report clearly shows an excellent cash flow statement.
The promoter holding is also at a high level at around 58%. They have recently bagged a contract of more than Rs 4 cr from the defence sector unit.
They are well suited to benefit from govt initiatives to increase electronics manufacturing in India.
Hindusthan Urban Infrastructure Ltd. – Best Electric Companies in India
Hindusthan Urban Infrastructure Ltd. is one of the best electric companies in India. The company came into existence in the year 1959.
They are engage in the manufacturing of high-quality conductors and insulators.
They deal with a long list of clients which include both national as well as international companies.
This company was started as a part of the Hindusthan group of India under name of India Aluminium Cables Ltd. and is still a part of that group.
The name later changed to Hindusthan Vidyut Products Ltd., which further became Hindusthan Urban Infrastructure Ltd.
Product & Services
They offer high-grade conductors and insulators of global standards. They are considered one of the best providers of overhead T&D bare conductors.
Apart from their normal offerings they also cater to the customized needs of their clients.
Their offerings are mainly of overhead conductors and electro-porcelain high tension insulators.
Along with these their sister company Hindusthan Speciality Chemical Ltd. offers curing agents, specialized epoxy, and epoxy resin to name a few.
Why Invest in Hindusthan Urban Infrastructure Ltd Stock?
The stocks of this company aren’t overlook if you are looking for electric stocks to buy. The company has a very high shareholding of the promoter at around 75%.
This shows the confidence and continuous dedication of promoters towards the business and future growth.
The cash conversion cycle of this company stands at 75 days, which is quite excellent for companies in this sector.
The PE ratio of this company shows that the stocks of this company are undervalued at the current price.
Universal Cable – Top 10 Electric Shares to buy
This might be the last entry in our list of top 10 electric shares to buy but it is not to be overlooked. Universal Cable came into existence in 1962.
Initially, it manufactured paper insulated cables, but it has come to a long distance from that beginning. They were the first to bring XLPE technology to the country.
They have not only taken their wire and cable manufacturing to new heights but now they are a lead player in capacitor manufacturing.
Also, they have entered into multiple joint ventures with both national and international companies.
Product & Services
They offer cables ranging from low voltage capacity to extra high voltage cables. Under cables, they offer three variants: XLPE cables, PVC cables, and elastomeric cables.
Apart from cables they also offer capacitors of low voltage and high voltage variants. They also have services for the execution of turnkey projects.
Why Invest in Universal Cable Stock?
As to why the shares are one of the best electric shares to buy, let us look at determining factors.
If we look at the financials of the company, the DE ratio indicates the company has a low amount of debt. Which is a good indicator.
In addition, the company also has a high percentage of equity held by promoters. This increases the confidence in this company.
Websol Energy System – Electric Sector Stocks to buy
With the growing emphasis of the government on increasing the alternate sources of energy, companies related to solar energy have seen substantial growth.
Among them, the manufacturer of photovoltaic cells has gained the maximum.
In India when it comes to the manufacturer of photovoltaic cells and modules Websol Energy System is the leading player.
This company is consider a good electric sector stock to buy as it has shown, in the last three years, a profit of 142%.
Further, the financial report of the company indicates that the company has excellent cash flow management.
It has also been successful in decreasing its debt by Rs 43 cr.
Cosmo Ferrites – Electric Companies Stocks to buy
This company is unique in our list as most of its products are exported out of India. It was started in 1988. It is one of the leading companies in India producing ferrites.
Cosmo Ferrites is probably the first company to export soft ferrites out of India, and still is a leading exporter of soft ferrites.
We have placed this company in the list of electric companies stock to buy as it has shown a 40% growth of profit in the last 3 years.
The revenue has been growing consistently for the last few years. The cash conversion cycle of the company is at 33 days which is also excellent.
Swelect Energy – Electric Companies Shares to buy
Swelect Energy started functioning in 1984. Previously it was known as Numeric Power Systems.
It is one of the few companies that has taken advantage of growing popularity and emphasis on solar energy systems.
It has targeted retail customers and offered solutions for small-scale solar installation.
Although not in the top 10 it is a company with potential among other electric companies shares to buy. It has an excellent cash conversion cycle of 10 days.
The liquidity of the company is also very high. So, you should keep an eye on the stocks of this company for any future outbreak in an upward direction.
Salzer Electronics – Electric Companies in India
Salzer Electronics is quite a known name among electric companies in India. It was started in 1985 in collaboration with a German firm.
The company offers rotary switches, transformers, relays, and energy savers as products.
They are currently the market leaders in rotary switches. They also offer wires, cables, and wire harnesses.
Motor control products, control panels, and street light controllers are some other offerings.
This company has well-established full-fledged research and development wings recognized by the Department of Science and Industrial Research, GoI.
This research capability makes this company capable of being at the forefront of the latest development in the field.
BPL – Electric Motor Stocks in India
We have looked at various electric companies, solar-related companies, and electric motor stocks in India. The last entry of this list is BPL.
BPL has been active in the Indian market since 1963. The most popular product of this company was the television range it launched in tie-up with SANYO.
It still has a strong presence in many areas of the stock market. It is a leading player in medical systems like patient monitoring systems, cardiology, imaging, nebulizers, etc.
BPL at present has almost zero debt and also has a high promoter holding of around 63%. This indicates a strong fundamental.
How to identify good electrical stocks for trading?
Although we have given an exhaustive list of electric stock for you.
But if you want to figure out how to select stocks to trade in electric stocks let us discuss how you can do that.
- Check the fundamentals of the company. Choosing a fundamentally strong company is of paramount importance.
- Some fundamental factors you can look into are EPS, PE, PBV, DE, RoE, and current ratio.
- Check and understand the products and services offered by the company. The quality of the product and services should be high.
- The product and service should remain relevant for a long time in the future.
- You should also check the technical analysis of the company based on the price chart.
How to Invest in Electric Sector Stocks in India?
Now after you have a proper list of electric stocks and a brief overview of how to select stocks. Let us discuss how to invest in electric stocks.
1st Step. Select a stock broker. The stockbroker should be a reputed one and should not have any hidden charges/fees.
The various fees and brokerage should not be high. Prefer a broker where you can open an account online.
2nd Step. Apply for a trading and Demat account. The documents you will need are KYC documents, income proof like salary slip, ITR, or bank statements.
3rd Step. After your account is active, transfer money to your trading account from your bank account.
4th Step. Place an order of your preferred stock at your preferred price.
Best Electric Stocks to buy in India – Conclusion
Hope we helped in providing you with valuable knowledge about top electric companies in India.
This sector is a growing sector and if we take a cue from market and government policies, we can expect a good amount of growth from this sector.
If you invest your money with proper strategy and patience in the companies of this sector you can make good returns.
But like any sector, make sure you don’t invest in companies with bad fundamentals and performance. Choosing a good company should be your top priority.
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