5 Semiconductor Stocks with Low Debt-to-Equity Ratios to Watch in 2024

Explore five semiconductor stocks with low debt-to-equity ratios that are well-positioned for growth.

Introduction

The semiconductor industry plays a critical role in powering the technologies that shape our daily lives, from smartphones to electric vehicles (EVs) and artificial intelligence (AI) processors. As demand for these devices continues to grow, the semiconductor sector is expected to see strong growth, especially in India, where the growing EV market and expanding infrastructure are boosting the sector. An important metric that investors often use to evaluate the financial health of companies is the debt-to-equity ratio . This ratio compares a company’s total debt to its shareholder equity and helps investors assess its financial stability. A low debt-to-equity ratio (less than 1) indicates that the company is relying more on equity financing rather than borrowing, which can reduce financial risks, especially in an uncertain economic environment.

techovedas.com/₹42245-करोड़-मोदी-सरकारें-बूस्ट-फॉर-इलेक्ट्रॉनिक्स-मैन्युफैक्चरिंग-5-स्टॉक-सेट-टू-सोअर/

 

key takeaways:

  • Low Debt Levels: All five semiconductor stock companies have a debt-to-equity ratio of less than 1, indicating strong financial health with minimal debt reliance.
  • Growth in Semiconductors: These companies are leading the way in expanding their presence in semiconductors, entering sectors such as energy, IoT, defense, aerospace, and automotive.
  • Strong Financial Performance: Each company has seen solid profit and revenue growth, reflecting effective management and strong market demand.
  • Diversification: Many companies operate in sectors such as energy, aerospace, and IoT, which offer stability and growth potential.
  • Strategic Expansion: CG Power and ASM Technologies are moving ahead by entering semiconductor assembly and testing, opening the door for future growth.

1. CG Power & Industrial Solutions Limited

Debt-to-equity ratio: 0.01
Market cap: ₹1,07,781.34 crore
Stock price (as of November 2024): ₹705.95

Overview:
CG Power & Industrial Solutions Ltd., a global player in energy management, has recently forayed into the semiconductor sector with a semiconductor assembly and testing (OSAT) facility at Sanand, Gujarat. Despite its low debt-to-equity ratio of just 0.01 , the company has maintained a solid financial position.

In Q2FY25 , CG Power reported a 9.3% decline in net profit to ₹219.63 crore, while revenue grew 20.5% to ₹2,412.69 crore. The company’s modest debt levels and strong revenue growth suggest that it is efficiently managing its operations while expanding into new areas such as semiconductors.

CG Power primarily focuses on providing solutions to optimize energy consumption for industries, utilities and consumers, including sustainable electrical power solutions.

techovedas.com/rapidus-faces-5-majar-key-challenges-in-the-race-to-2nm-chip-production/

 

2. Keynes Technology India Limited

Debt-to-equity ratio: 0.27
Market cap: ₹34,393.95 crore
Stock price (as of Nov 2024): ₹5,373.15

Overview:
Integrated electronics manufacturing company Keyence Technology is gaining recognition for its end-to-end services in electronics system design and manufacturing. With a debt-to-equity ratio of 0.27 , the company is well-positioned in the semiconductor sector, especially with its capabilities in the Internet of Things (IoT).

In Q2FY25 , Keyence reported an impressive 86.35% rise in net profit to ₹60.21 crore, along with a 58.5% rise in revenue to ₹572.12 crore. The company’s ability to provide solutions across the entire electronics value chain – from conceptual design to life cycle management – adds to its attractiveness for long-term growth.

techovedas.com/the-rise-of-arm-and-the-fall-of-intel-arm-ceo-perspective/

3. मोस्चिप टेक्नोलॉजीज लिमिटेड

ऋण-से-इक्विटी अनुपात: 0.31
मार्केट कैप: ₹4,449.46 करोड़
स्टॉक मूल्य (नवंबर 2024 तक): ₹234.65

अवलोकन: एयरोस्पेस, रक्षा और IoT जैसे क्षेत्रों के लिए सिस्टम-ऑन-चिप (SoC)
समाधान और सॉफ़्टवेयर में विशेषज्ञता रखने वाली मोस्चिप टेक्नोलॉजीज का ऋण-से-इक्विटी अनुपात 0.31 है , जो ठोस वित्तीय स्थिति को दर्शाता है। अपेक्षाकृत कम ऋण के बावजूद, मोस्चिप मुनाफे और राजस्व दोनों में उल्लेखनीय वृद्धि दिखा रहा है।

Q2FY25 में , कंपनी ने शुद्ध लाभ में 168% की वृद्धि दर्ज की , जो ₹9.73 करोड़ तक पहुँच गया, जबकि राजस्व 74.8% बढ़कर ₹125.63 करोड़ हो गया। सेमीकंडक्टर डिज़ाइन और विकास के लिए मोस्चिप का अभिनव दृष्टिकोण इसे कनेक्टेड डिवाइस के लिए तेज़ी से बढ़ते बाज़ार में एक प्रमुख खिलाड़ी बना रहा है।

techovedas.com/the-rise-of-arm-and-the-fall-of-intel-arm-ceo-perspective/

4. आरआईआर पावर इलेक्ट्रॉनिक्स लिमिटेड

ऋण-से-इक्विटी अनुपात: 0.54
मार्केट कैप: ₹2,519.85 करोड़
स्टॉक मूल्य (नवंबर 2024 तक): ₹3,425.00

अवलोकन:
आरआईआर पावर इलेक्ट्रॉनिक्स भारतीय सेमीकंडक्टर उद्योग में अग्रणी है, जो उच्च-शक्ति वाले सेमीकंडक्टर उपकरणों के निर्माण पर ध्यान केंद्रित करता है। 0.54 के ऋण-से-इक्विटी अनुपात के साथ , कंपनी एक अनुकूल स्थिति में है, जो ऋण और इक्विटी को अच्छी तरह से संतुलित करती है। यह 9,000 वोल्ट और 6,000 एम्पीयर तक संभालने में सक्षम उपकरणों का निर्माण करता है , जो इसे रक्षा, एयरोस्पेस और नवीकरणीय ऊर्जा जैसे उद्योगों के लिए एक महत्वपूर्ण आपूर्तिकर्ता बनाता है।

Q1FY25 में , RIR पावर ने शुद्ध लाभ में 46.15% की वृद्धि दर्ज की , जो कुल ₹2.28 करोड़ रहा, जबकि राजस्व 51.7% बढ़कर ₹21.05 करोड़ हो गया। उच्च-शक्ति अर्धचालक विनिर्माण में इसकी निरंतर वृद्धि और नेतृत्व इसे बारीकी से निगरानी करने वाला स्टॉक बनाता है।

$6.6 बिलियन: बिडेन प्रशासन ने CHIPS अधिनियम के तहत TSMC को अनुदान दिया | techovedas द्वारा | नवंबर, 2024 | मीडियम

5. एएसएम टेक्नोलॉजीज लिमिटेड

ऋण-से-इक्विटी अनुपात: 0.58
मार्केट कैप: ₹1,712.81 करोड़
स्टॉक मूल्य (नवंबर 2024 तक): ₹1,455.00

अवलोकन:
ASM Technologies सेमीकंडक्टर समाधान में एक खिलाड़ी है, जो इंजीनियरिंग उपकरण, उत्पाद डिजाइन, रिवर्स इंजीनियरिंग, एम्बेडेड सॉफ्टवेयर और स्वचालन प्रदान करता है। 0.58 ऋण-से-इक्विटी अनुपात वाली यह कंपनी सेमीकंडक्टर और स्वचालन क्षेत्रों में अपनी पहुंच का विस्तार करना जारी रखे हुए है।

Q1FY25 में , ASM Technologies ने पिछले वर्ष के घाटे को उलटते हुए ₹2.85 करोड़ का शुद्ध लाभ दर्ज किया। परिचालन से राजस्व 3.2% बढ़कर ₹52.62 करोड़ हो गया। सेमीकंडक्टर और इंजीनियरिंग सेवाओं पर कंपनी का ध्यान आने वाले वर्षों में विकास के लिए अच्छी स्थिति में है।

https://medium.com/@kumari.sushma661/dixon-technologies-stock-skyrockets-200-in-2024-fueled-by-गवर्नमेंट-इनिशिएटिव्स-ग्लोबल-डील्स-80c2d1eec6b5

ये स्टॉक क्यों महत्वपूर्ण हैं?

Investing in companies with low debt-to-equity ratios can provide stability, especially in volatile markets. These semiconductor stocks are not only showing strong financials but are also set to benefit from the growing demand for semiconductors across industries.

Whether it’s powering smartphones, EVs or AI, the semiconductor industry is likely to see rapid growth in the coming years.

For investors, these five companies — CG Power, Kenes Technology, Moschip Technologies, RIR Power Electronics and ASM Technologies — represent solid opportunities, combining financial prudence with growth potential in a fast-growing sector.

By keeping an eye on these companies, investors can position themselves in a sector that’s essential to the modern world, and in which a particular focus is placed on financial health and innovative growth strategies.

techovedas.com/broadcom-achieves-1-tillion-market-cap-as-stock-surges-24-on-ai-growth/

conclusion

The semiconductor industry is poised for remarkable growth, driven by technological advancements in various sectors such as electric vehicles, IoT, and artificial intelligence.

Semiconductor Stocks Companies with low debt-to-equity ratios offer attractive investment opportunities, as they are financially stable and less vulnerable to economic volatility. Five companies—CG Power, Kenes Technology, Moschip Technologies, RIR Power Electronics, and ASM Technologies— are well positioned to take advantage of the expanding semiconductor market .

By focusing on companies that prefer equity over debt, investors can minimize financial risks while also enjoying exposure to one of the most promising sectors in the global economy.

Kumar Priyadarshi
Kumar Priyadarshi

Kumar Joined IISER Pune after qualifying IIT-JEE in 2012. In his 5th year, he travelled to Singapore for his master’s thesis which yielded a Research Paper in ACS Nano. Kumar Joined Global Foundries as a process Engineer in Singapore working at 40 nm Process node. Working as a scientist at IIT Bombay as Senior Scientist, Kumar Led the team which built India’s 1st Memory Chip with Semiconductor Lab (SCL).

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