We live in a digital age today. Practically every aspect of our life is now ‘online.’ Be it our work, children’s school, shopping or ordering food, etc.
Thus, anyone who needs to be connected requires good internet connectivity. This is both at an individual and enterprise level.
There are notable telecommunications companies in India that enable this. The Telecom sector comprises telephone and internet provider companies.
Stock exchanges in India list many telecom stocks to buy in India. As digitization is only set to increase and its reach is set to get wider, telecom companies have significant growth opportunities.
Thus, for the benefit of all investors, we have shortlisted some of the best telecom stocks to buy.
Know about the Telecom Sector in India
India is the second-most populous country in the world. This, of course, means that it has a broad subscriber base for telecom services.
Thus, India is Home to the second-largest telecommunications sector in the world. It serves nearly 1.16 billion subscribers.
This includes 795 million internet subscribers, most of whom are wireless users. The telecom sector has a whopping quarterly revenue of Rs.64,000 crores.
Scope for increased penetration, especially in rural areas, the launch of 5G services, and favourable government measures will boost this sector. This article brings you a list of the top telecommunication sector stocks to buy.
Top 10 Telecom Stocks to Buy in India- List of Best Telecom Shares to Buy
We have drawn out the list of best telecom shares to buy in India by considering their market capitalization as a base. As a result, the stocks have been ranked as the first rank to the Company with the largest market cap and so on:
Additionally, we have also listed the following 5 Telecom stocks to buy in our ‘honourable mentions’ category:
The list of top internet provider shares to buy includes companies that provide Internet and broadband services, telephone services, and supporting infrastructure for these companies.
Market capitalization is a good indicator of any stock’s value. It is calculated by multiplying the stock’s last traded price with the total number of its shares outstanding.
While market capitalization is important, several other stock parameters are important. These include their latest market price, range of last 1-year prices, price growth over six months and one year period, etc.
We will now get into the details of each of these listed Telecom stocks to buy.
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Bharti Airtel Ltd. – Best Telecommunication Stocks in India
Bharti Airtel Ltd ranks first in the list of best telecommunication stocks in India. It operates the popular telephone and internet service brand ‘Airtel.’
1995 is its year of establishment. Bharti Airtel is a multinational company with a presence across the globe – 18 countries apart from India. Its main office is located in Delhi.
It ranks 3rd amongst mobile service providers due to its extensive customer base. Its service offerings are diverse. Apart from basic mobile services, it also offers 2G, 3G, 4G, landline, broadband, and DTH services.
This Company alone has nearly 500 million subscribers. It has an annual revenue of Rs.6,43,259 Mn with a profitability of Rs.286,502 Mn.
Bharti Airtel is a large-cap company with a market cap of Rs.4,14,90.30 crores. The market price of its share is around Rs.704.
Why invest in Bharti Airtel Ltd?
- Its annual revenue has grown nearly 20%, and profits have grown at double this rate at 40%.
- It has a 5G-ready network and has been the first in the country to conduct a live 5G demo.
- Constantly innovating Company – has recently introduced Airtel Safe Pay, Airtel IQ, Airtel Secure, and Airtel IoT.
Indus Towers – Best Telecom Stocks in India
Indus Towers Ltd achieves the second rank amongst the best telecom stocks in India. It is a telecom infrastructure company.
The Company provides the infrastructure to mobile and internet service provider companies.
Indus Towers is a relatively new company, formed in 2006. It was earlier known as Bharti Infratel Limited. It, too, has its headquarters in Delhi. Indus Towers is India’s largest mobile tower installation company.
Its product and services offerings include – physical tower infrastructure, energy solutions to provide power to telecom providers, and hosting of telecom equipment.
The Company has 184,748 towers across 335,106 locations. It offers services to 22 telecom circles across the country. Its annual revenue is Rs.25,672 crores, with net profitability of more than 6000 crores.
Indus Towers has a market capitalization of Rs.67,21.10 crores today. Its share trades at around Rs.251.
Why invest in Indus Towers Ltd.?
- The Company is growing tremendously to achieve ‘Digital India’ – it added more than 10,000 towers in FY 2020-21
- It has a record uptime of 99.96% across all its sites in online trading.
- Indus Towers is expected to contribute significantly and be a beneficiary of the Indian Government’s Bharat Net program.
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Tata Communications – Top Telecom Sector Stocks
Tata Communications Ltd is next on the list of top telecom sector stocks. It is a telecom service provider to industries and businesses.
The Company is alone responsible for 30% of the world’s internet routes and networks businesses to 80% of global clouds and 4 out of 5 mobile users.
It operates from the world’s largest subsea Fibre optics and serves more than 190 countries. It has more than 7000 clients across India and the world.
Also involved in IoT – connecting 400mn people most prominent in India. Annual revenue of 17100 crores.
Tata Communications has a market cap of Rs.34,95.80 crores. Its telecommunication share price is approximately Rs.1214.
Why invest in Tata Communications Ltd?
- It has a vast, almost monopolistic market share both in India and the world.
- Tata Communications is a big player in the upcoming and fast-growing Internet of Things (IoT) segment.
- The Company is highly profitable and known to distribute healthy dividends to its investors.
Vodafone Idea – Top Telecom Companies in India
Vodafone Idea Limited is a telephone and internet service providing Company. It is one of the top telecom companies in India. The Company was formed by merging two leading telecom companies – Vodafone and Idea.
It is part of the Aditya Birla group. It provides its services under the brand name ‘Vi’. The headquarters of the Company are in Mumbai. Its service offerings include 2G, 3G, 4G, 4G+, Volte, and VoWiFi.
It has an India subscriber base of more than 255 Mn, corresponding to more than 25% market share. It has 4,52,650 broadband sites which are all 4G enabled. The Company’s annual revenue is Rs.41,938 crores.
Vodafone Idea has a market capitalization of Rs.3117.70 crores.
Why invest in Vodafone Idea Ltd?
- It is achieving economies of scale due to its recent merger- helping it consolidate its market share.
- It has undertaken a significant cost optimization project in the last year, leading to an annual savings of more than Rs. 40Bn. This savings is expected to have a huge impact on the Company’s profitability.
- It is expected to be a contributor to the upcoming 5G segment.
Tata Teleservices – Top Telecom Provider Stocks
Tata Teleservices Ltd ranks fifth in India’s top telecom provider stocks. It provides broadband, telecommunication, and cloud services to its customers.
The Company’s offerings include connectivity, collaboration, cloud, security, IoT, and marketing solutions. It is part of the large Tata Group.
The Company aims to be a one-stop shop for telecommunication services to its business customers.
It has 9.12 lac subscribers. Its network comprises the optical fibre of around 1,55,000 km spread across Maharashtra and Goa. Its annual revenue is Rs.1660 crores.
Tata Teleservices has a market cap of Rs.2413.30 crores. Its network provider share price is around Rs.124.
Why invest in Tata Teleservices Ltd?
- The Tata Group is focused on overhauling the business of Tata Teleservices. It has made many improvements to improve its service to Mid and small-capital business consumer segments.
- It has significant support and backing from its solid and stable parent company, Tata Sons.
HFCL – Best Internet Provider Stocks to Buy
HFCL Ltd is an upcoming and fast-growing telecom company. It provides the infrastructure to telecom service providing companies.
1987 is the year of incorporation of the Company. It manufactures telecom equipment, optical fibre cables, and intelligent power systems.
HFCL has modern production facilities at Sola, Goa, and Chennai. The Company has over 25,000 2G/3G sites and has rolled out 1,00,000 km of optical fibre networks. It has customers in India and across the world.
It provides several telecom-related solutions to its customers as well. Its annual revenue is Rs.4459 crores with a net profit of Rs.246.
This makes it amongst the best Internet company shares in India. HFCL has a market cap of Rs.1009.00 crores. It is amongst the best internet provider stocks to buy and trades at around Rs.72.
Why to invest in HFCL Ltd. stocks?
- It has recently invested significantly in several Greenfield expansion projects such as the setting up of CDMA and GSM networks, satellite communications, etc.
- It has recorded an impressive growth of more than 15% in its total revenue.
- HFCL has taken advantage of the Government’s plan for the telecom sector
- The Company has invested significantly in developing its 5G product and service portfolio.
ITI Ltd. – Top 10 Telecom Stocks
The next on the list of top 10 telecom stocks is ITI Ltd. It is one of the oldest companies on our list. 1948 is its year of establishment.
ITI is a Public Sector Undertaking. The Company manufactures equipment for the telecommunications industry. It has manufacturing facilities at Bengaluru, Naini, Rae Bareily, Mankapur, and Palakkad.
It also has an R&D centre in Bengaluru and 25 Marketing, Services, and Projects centres. The Company’s product portfolio is vast and diverse.
It includes intelligent energy meters, telephones for defence, handheld terminals, wi-fi equipment, set-top boxes, IoT products, etc. The annual revenue of the Company is 2578 crores.
ITI Ltd has a market cap of Rs.953.50 crores. Its network provider share price is approximately Rs.101.
Why to invest in ITI Ltd. stocks?
- Being a government-owned manufacturer, the Company is expected to benefit substantially from Make in India and PLI schemes.
- The Company has a long-standing contract for supply with the DRDO.
- It has recently received a significant Capex grant from the Government
- It has a good dividend and balance sheet track record.
Tejas Networks Ltd. – Top Telecom Stocks in India
The next on the list of top telecom stocks in India is Tejas Networks Limited. It is India’s largest R&D-driven telecom equipment company.
It manufactures cutting-edge fiber-optic networking equipment, broadband wireless equipment, and data networking products.
Tejas Networks supplies to more than 75 countries through 15 global offices. Its customers include mobile operators, internet service providers, and undersea bandwidth providers.
It has an annual revenue of Rs.515 crores and a profit after tax of Rs.38 crores. Tejas Networks is a small-cap company with a market cap of Rs. 482.70 crores. Its share price is around Rs.419.
Why to invest in Tejas Networks Ltd. stocks?
- Their deep R&D focus makes the Company innovative with a high growth rate.
- The Company has recently received considerable investment from a Tata Sons group company, indicating a positive future outlook.
- This Company will be a beneficiary of the upcoming 5G rollout.
Spice Communication – Best Telecom Companies in India
Taking the ninth position in the list of best telecom companies in India, Spice Communication Ltd. 1995 is the year of establishment of the Company.
It primarily provides mobile telephone services to its subscribers. It offers its services mainly in Punjab and Karnataka.
Spice Communications has a market cap of Rs.3915 crores. Its share price is reasonably priced, trading at around Rs.56.
Why to invest in Spice Communication Ltd. stocks?
- It is expanding its service network at a rapid pace for long term investment
- It will also be part of the rollout of 5G internet services to its subscribers
Hathway Cable and Datacom Ltd. – Internet Company Shares to Buy
Rounding off the list of internet company shares to buy is Hathway Cable & Datacom Ltd. It is a cable television service and broadband service, provider.
It has been an innovative company from the start and was the first cable operator to launch a digital platform.
Hathway Cable was also the first Company to provide Internet through the CATV network.
It is one of the largest multi-system operators in India. Its cable services have a network of 7.2Mn subscribers across 350 cities and towns.
It holds a PAN India ISP license for its broadband services and has more than 5.5mn home subscribers.
It offers an average of 1TB of data per month per subscriber. Its annual revenue is more than Rs.600 crores with Rs a high net profit. 200. The Company has a market cap of Rs.330.10 crores. Its share price is around Rs.18.
Why to invest in Hathway Cable & Datacom Ltd. stocks?
- They are pioneers in high-speed 200-500 Mbps plans; high-speed Internet is the need of the hour for investors.
- They are also the country’s first operator to introduce Gigabit Passive Optical Networks-Fibre to the Home.
- It is now part of hugely successful, Reliance group
Railtel Corporation of India – Telecom Sector Stocks to Buy
The first Company to make it to the honourable mentions list of telecom sector stocks to buy is Railtel Corporation of India Ltd. It is a PSU company and qualifies as a ‘Mini-Ratna company.
It is one of the largest neutral telecom infrastructure providers in the country. Its optical fibre cabling covers nearly 70% of India’s population. This puts it in a pole position.
It has a market cap of Rs. 320.20 crores. Its share price trades around Rs.99.
Black Box – Telecom Companies’ Stocks to Buy
Black Box Network Services Limited features next in our honourable mentions category of telecom Companies’ stocks to buy. It provides telecom-related products and services.
Their product line includes KVM switching and extension, cables and infrastructure, networking solutions, etc. Its service offerings include wired and wireless infrastructure, data services, etc. Its headquarters are in Mumbai.
Black Box has a market cap of Rs.292.60 crores, with its share price around Rs. 846.
GTL Infrastructure – Telecommunication Companies’ Shares to Buy
Coming in next in the list of honourable mentions of telecommunication companies’ shares to buy is GTL Infrastructure Ltd.
It is a telecom tower company. It has 28,000 towers spread across 22 telecom circles. 2004 is the year of establishment of the Company. It has an annual revenue of around Rs.1500 crores.
GTL Infrastructure has a market cap of Rs.207.00 crores. Its share price is low, around Rs.1.65. It is an innovative company; has been a pioneer in shared passive telecom infrastructure.
Astra Microwave Products Ltd. – Top Telecom Companies in India
Astra Microwave Products Ltd is also amongst the top telecom companies in India. It designs and manufactures subsystems for RF and microwaves systems.
1991 is the year of establishment of the Company. Its clientele is primarily governmental organizations like Indian Defence, ISRO, etc. It has three manufacturing plants in Hyderabad.
The Company has a market cap of Rs.168.50 crores. Its share price trades at around Rs.190. It has both Indian and global certifications for its products.
MTNL – Network Stocks in India
The last in our list of network stocks in India is Mahanagar Telephone Nigam Ltd. It is a subsidiary of BSNL.
1986 is its year of establishment. It provides telephone and internet services to subscribers in Delhi and Mumbai. It also provides its services in Mauritius.
Its market capitalization is Rs.147.10 crores, and its share price trades around Rs.23.
How to find Telecom stocks for trading?
With this complete list of 15 good telecom companies, you have sufficient information to trade in telecom stocks. Though a list of 15 stocks is quite long, it may not be feasible to invest in all of them.
You may want to narrow down this list and choose a few companies to access the telecom stocks to buy. For this purpose, we prescribe specific criteria that you can rely upon to make this selection:
Financial stability – Being profitable and having a healthy balance sheet is important. For this, you should regularly go through the companies’ annual reports and quarterly results.
P/E ratio – A stock investment will be profitable for its investors if they are fairly valued. The P/E ratio should be analyzed and compared with the industry average.
Innovation level – Telecom industry has a digital aspect and thus requires constant innovation to stay relevant. Therefore, those companies with good R&D capabilities for innovation could be selected.
Relevant industry news – Being up to date with all appropriate policy changes and industry news is important to select sectors that benefit.
How to invest in Telecom sector stocks?
To invest in telecom stocks, you will need a Demat account and an active trading account. In addition, your bank account will need to be linked to this Demat account.
Both financial services firms and zero brokerage houses provide such Demat services. KYC documentation is the essential requirement for opening a Demat account.
Once your Demat and trading account is successfully opened, you will be provided with a login ID and password. Once logged in, you can view your portfolio, track prices and invest in stocks.
Top Telecom Companies – Conclusion
Communication services will always be required, in some form or the other. Thus, the telecom sector is an evergreen sector. The telecom sector has recently received a significant boost from the Government of India.
They have announced Production Linked Incentives of Rs.12,195 crores to grow this sector. This will help the industry grow in the future.
The telecom sector is also rolling out 5G internet services, leading to exponential growth. 5G is expected to achieve a 27% market share by 2026.
The Government has also set up a 6G innovation group. This indicates that the top telecom companies will keep innovating and growing.
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