5G Penny Stocks In India: The stock market affects a range of individual businesses in an economy in several different ways. Given the daily movements across the board, there can be effects that could impact the performance in the long run.
Defined as a market in which equity shares are constantly bought and sold, the stock market tends to measure the aggregate value of all the companies which are publicly traded.
More often than not, the share market and economic performance are interlinked. Therefore, whenever the stock market performs well, it is a function of a growing and healthy economy.
There are several measures through which economic growth can be ascertained, but one of the most renowned measures is by following GDP numbers.
Apart from economic growth, sectoral performances too are of utmost importance. Individual stocks tend to replicate the performance of their respective sectors.
Therefore, most of the time, a telecom share will deliver a strong return if the telecom sector has performed well. Nowadays, there is a lot of buzz around telecom stocks, principally because of the advent of 5G technology.
Therefore, if investors want to exploit this opportunity, they can consider investing in some 5G penny stocks in India.
While there are several stocks which are available in India, telecom shares have seen solid interest from the investing community due to their promising future.
Therefore, this article will uncover some of the 5G penny stocks in India. Apart from this, the article will also highlight the key aspects of the telecom sector. Read on!
Telecom Sector – Industry Scenario
The telecommunications industry has been bifurcated into the following subsectors: Infrastructure, Equipment, MNVO (Mobile Virtual Network Operators), White Space Spectrum, 5G, Telephone service providers, and Broadband.
Over the last 7 years, the Indian telecom tower industry has seen a significant 65% growth. The number of mobile towers has risen from 400,000 in CY14 to 660,000 in CY21.
In the same way, the number of mobile base transceiver stations has seen a rapid growth of 187% and increased from 800,000 in CY14 to 2.3 million in CY21.
According to GSMA, India is on the pathway to becoming the second-largest smartphone market globally by CY25 with ~1 billion installed devices and is expected to touch 920 million unique mobile subscribers by CY25 which should include ~88 million 5G connections.
Research has suggested that 5G technology should contribute ~$450 billion to the Indian Economy between CY23-2040. India added more than 500 million new smartphone users in the last decade.
Experts believe that India should be able to add 850 million smartphone users by CY26, making up ~55% of the total population.
In the Union Budget 2022, the government highlighted that spectrum auctions will be conducted in 2022 for the rollout of 5G mobile services.
Apart from this, the budget mentioned that scheme for design-led manufacturing under PLI Scheme will be launched to come up with a solid 5G ecosystem.
5G technology focuses on offering seamless coverage, a high data rate, and a reliable communications system. 5G services should play a strong role to achieve the economic goal of making India a $5 trillion economy by CY24-25.
Next-gen 5G network should aid remote working. 5G-powered smart buildings should be able to offer a comfortable working environment for employees. As a result, this can help in boosting productivity and reduce costs.
With such huge growth expectations, let us now quickly look at 5G penny stocks in India.
5G Penny Stocks Listed In India
Economic benefits from 5G technology are quite solid. According to OECD (Organization for Economic Cooperation and Development) Committee on digital economic policy, it is believed that the 5G technologies rollout should assist in improving GDP, creating employment, and digitizing the economy.
Following are some of the 5G penny stocks in India:
1. Vodafone Idea (NSE Code: IDEA)
In India, there are only 3 competitors in the telecom sector – Reliance Jio, Bharti Airtel, and Vodafone Idea. Of the 3, only VI falls within the category of this blog.
Vodafone Idea is a company formed from the merger between Vodafone and Idea, two of the biggest telecom operators in India. The company is working extensively for preparing for the upcoming 5G spectrum for all its customers.
This includes testing, trails, and a whole ecosystem for the 5G spectrum.
As Of November 07, 2022, VI closed at INR 8.35.
2. Mahanagar Telephone Nigam Ltd (NSE Code: MTNL)
Mahanagar Telephone Nigam Limited (MTNL) is a wholly owned subsidiary of Bharat Sanchar Nigam Limited (BSNL). BSNL is under the ownership of the Department of Telecommunications, Ministry of Communications, Government of India.
MTNL offers services in the metro cities of Mumbai and New Delhi in India and in the island nation of Mauritius in Africa.
On Nov 7, 2022, the stock price of the company closed at INR21.25.
3. HFCL (NSE Code: HFCL)
Himachal Futuristic Communications Ltd is a telecom equipment & optic fiber manufacturing company. The company makes optic fiber cables, routers, wi-fi systems, and other equipment important for telecommunications with a 30-year history. They have a large network of operations with customers spread across 30 countries worldwide.
On Nov 7, 2022, the stock price of the company closed at INR 80.
4. GTL Infrastructure Ltd. (NSE Code: GTLINFRA)
GTL Infrastructure Ltd. has been categorized as a pioneer in shared passive telecom infrastructure in the country. The company deploys, owns, and manages telecom towers and communication structures that are shared by Wireless Telecom Operators.
It has a portfolio of ~26,000 towers which are located across all 22 telecom circles in India. Therefore, the company has emerged as India’s largest independent and neutral telecom tower company.
On Nov 7, 2022, the stock price of the company closed at INR 1.30.
5. Sterlite Technologies Limited (NSE Code: STLTECH)
Sterlite Technologies Limited has been categorized as one of the industry’s renowned integrators of digital networks providing all-in 5G solutions.
Capabilities across optical networking, services, software, and wireless connectivity have helped it in placing it among the top optical players.
On Nov 7, 2022, the stock price of the company was INR167.60.
To Sum Up
5G penny stocks in India can help in delivering strong returns in the long run. The rollout of 5G services in India should help open up the telecom sector in a strong manner.
Several firms have started ramping up their infrastructure and workforce. Research firms believe that telecom companies are expected to increase the pace of hiring during the October-December quarter.
Nowadays, investments are being made in rolling out of 5G network. Such investments stem from telecom operators, OEMs and system integrators, etc.
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