The DOT (Department of Technology) has approved the trial of 5 G technology on the 4th of May.
Post successful trial of 5G technology in India, the company's stocks that offer the 5 G technology have seen high growth. As the news comes out regarding the auction of the 5G network in Q1 of FY22-23, stocks of these companies are growing at a large pace.
Due to COVID 19 outbreak, many people have to work remotely which has highlighted the importance of 5G technology.
Before talking about the companies that are launching the 5G Network in India, let's understand about 5G technology and the companies in India into its segment.
What is 5G Technology?
5G is the fifth generation mobile network that comes after the generations such as 1G, 2G, 3G and 4G It is a new global wireless standard network that is designed to connect virtually everyone and everything together that includes machines, devices, objects with people.
If we compare it to 4G, then the 5G network is much faster and more responsive than other generation networks. Also, 5G comes with a greater capacity that will be a real breakthrough for IoT or Internet of Things, AI, machine learning and automate network management.
Which countries have enabled 5G technology for consumers?
As per the latest reports from Global Supply Mobile Associations, the 5G network is active in 61 countries. Some of the countries which have enabled 5G technology for its users are Canada, China, Australia, South Korea, the USA and other European nations.
What is the Expected Market Size of 5G Technology Worldwide?
Currently, investments are going on in the 5G Tech in India. The total market size of 5G Tech and related services all over the world amounts to USD 54 billion. It is stated that the market size of 5G will surpass the current amount and will reach around 249.2 billion by the end of 2026, which is more than any countries’ GDP in a year.
Here are the top 11 Tech Stocks to Invest Which May Become Multi Baggers in the coming years:
1. Tejas Networks
Tejas Networks Limited is a manufacturing company that manufactures telecommunication equipment and has multiple licenses to export its products to several countries. The company designs develop and sell high performance and cost-competitive networking products to telecommunications service providers.
52 Week Performance
If you look at its past performance, the shares of Tejas Networks is standing at its 52 weeks high of Rs 221.5 from a 52 week low of Rs 28.50, thus giving 10 times return. On 11 May, trade experts recommended Tejas as a Buy with a target price of Rs 235 in its research reports.
2. Tech Mahindra
Tech Mahindra is an Indian multinational company known for offering IT and business process outsourcing services. The company’s shares are expected to rise post launching of 5G services in India.
52 Week Performance
If you look at the 52-week performance of the IT company; its 52 week high is Rs 1081.25 and 52 week low was Rs 501.5. Numerous stock brokers and research analysts recommended buying this stock.
The target price range of Tech Mahindra is from Rs 1100 to Rs 1140.
3. Himachal Futuristic Communications Ltd (HFCL)
HFCL is a leading manufacturer of optical fibre cables, optical transport, broadband equipment for the telecommunication industry. The company has a listed track record of more than 30 years. Also, the share price of Himachal Futuristic sets a hit record from a previous 20 years low. This indicates a growth in the company's share.
The scrip's 52 week low is marked as Rs8.70 while 52 weeks high is Rs 38.90.
Moreover, the company has outperformed Sensex Index by 202% and hence it gives 4 times returns from its 52 week low.
4. Bharti Airtel
Bharti Airtel is a blue-chip company and a renowned name in the communication industry that holds around 36% of the market share in the industry as a telecom service provider. Also, the company has already started its trial for the launch of the 5G technology which is the reason behind the stock’s growth.
The stock’s 52-week performance is given as Rs 394.52 week low and Rs 632.52 week high.
5. Reliance Industries
Reliance Jio which is a leading company in the telecom sector is all set to deploy its 5G and its related services such as the Internet of Things (IoT).
Jio is continuously raising its market share because of the company's outstanding performance. If you look at 52-week performance, then the company manages to reach Rs 1393.65 as a 52 week low and Rs 2368.8 as a 52 week high.
The stock is recommended by numerous trade analysts and stock brokers.
One of the most important things about the company is that it has the strongest balance sheet and soon it will be a leader in deciding 5G prices commercially.
6. Vodafone-Idea (VIL)
A company whose stock prices went down post-merger from Rs 30 to Rs, has given almost 6 times returns to its shareholders. Vodafone Idea Limited is the third largest telecommunication service provider for conducting trials of 5 G technology services.
The company’s 52 week low has been recorded at Rs 4.19 while its 52 weeks high is Rs13.8. The scrip of VIL has outperformed the Sensex index by almost 22%.
7. Indus Towers
The company is a merger of two renowned entities Vodafone PLC and Bharti Airtel, formerly known as Bharti Infratel.
Indus Towers has a majority holding of Bharti group, Vodafone group and global investors such as Canadian Pension funds, which makes the company the next Hindustan Unilever in its sector.
Indus tower’s stock performance has been improving day by day as its 52 week low Rs 161.3 and its 52 week high of Rs 282.
8. ITI
ITI is a telecom company that provides telecom equipment to BSNL, MTNL and other Defence departments. The company is known for manufacturing 5G enabled devices to smoothen the test trial of 5G deployment.
As there have been global tension and pandemic issues between India and China, the Indian government has started to promote ITI for its several telecom equipment’ procurements.
The 52 week low for the company is Rs 78.8 whereas its 52 week high Rs 151.6.
9. Smartlink Holdings
The company deals with the trading of telecom equipment goods through its subsidiaries Telesmart SCS Ltd, Digisol Systems Ltd and Synergra EMS Ltd. The company came to the notice because of its manufacturing services of cables and networking devices that will help deploy in 5G services. The company’s 52 week low is Rs 61.4 while it's 52 weeks high of Rs 107.45.
10. MTNL
MTNL is a government company, primarily known for providing telecom services in limited circles. A few months back, MTNL received permission to conduct 5G trials for deploying these services commercially. Its 52 weeks high is Rs 24.4 while its 52 week low was Rs6.68, which makes it a multi-bagger stock.
The Bottom Line
While previous telecom networks enabled the mobility boom, 5G technology is making devices more friendly and upgrading digitization every day.
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