Best Communication Stocks in India 2023

Communication stocks are shares of companies that offer cable, wireless, wired, satellite, etc., communication services in India. These stocks play a crucial role in facilitating connectivity, boosting digital transformation and supporting the country’s technology progress. In this article, find out the best communications stocks in India in 2023, their benefits, who should invest, and more.  

15 Best Communications Stocks in India – 2023

Note: The best communications stocks in India in 2023 listed above are as of October 31, 2023. The stocks are sorted per the 5-year CAGR. 

Overview of Top 5 Communications Stocks

• Tanla Platforms

Tanla Platforms is involved in the business of telecom infrastructure and related services. The company helps enterprises communicate with their customers through various channels, including email, SMS, FB messenger, WhatsApp, Voice, and push notifications. It is a small-cap company with a net profit margin of 13.24%. 

• Tata Teleservices (Maharashtra) Ltd

This is a small-cap company that offers basic and cellular telecommunication services, i.e., both wireless and wired telecommunication solutions are offered. The net profit margin of Tata Teleservices (Maharashtra) Ltd is -101.94%. 

• ITI Ltd

ITI Ltd works in the telecommunication technology segment. The company manufactures and markets telecommunication equipment. It is a mid-cap company and recorded a net profit margin of -24.85%. 

• Tata Communications Ltd

This is a telecommunication company that offers voice solutions and data and managed services. Tata Communications Ltd is a mid-cap company and recorded a net profit margin of 9.86%. 

• Tejas Networks Ltd

Tejas Networks Ltd is a small-cap company that supplies optical networking equipment to telecom carriers across the world. The company has a net profit margin of -3.64%. 

Benefits of Communications Stocks

Investing in communications stocks can offer various advantages, including the potential for capital appreciation, consistent demand due to our increasingly connected world, and opportunities for portfolio diversification. These stocks can provide stability and have growth potential, making them appealing options for investors seeking long-term returns.

Who Should Invest in Communications Stocks?

Investing in communications stocks can be suitable for a wide range of investors, including those looking for steady income through dividends, growth-oriented investors seeking capital appreciation, and individuals seeking to diversify their portfolios with a sector known for consistent demand. These stocks are attractive for long-term investors willing to weather market fluctuations and believe in the ongoing importance of connectivity in our modern world.

Factors To Consider While Investing in Communications Stocks

• Market trends and growth: Evaluate current and future trends in the communications industry. Understand the growth potential, especially in emerging technologies and markets.
• Company fundamentals: Assess the financial health, management, and competitive position of the companies you are interested in. Look at factors like revenue growth, profitability, and market share.
• Regulatory environment: The communications industry is subject to various regulations. Stay informed about regulatory changes and their potential impact on the companies you are considering.
• Technological advancements: Keep an eye on innovations and advancements in the sector, as they can significantly impact the competitiveness of communication companies.
• Competition: Analyse the competitive landscape, including major players and their strategies. Consider how companies differentiate themselves in the market.
• Dividends and income: If you’re seeking regular income, evaluate the dividend history and yield of the stocks. Reliable dividend payments can be attractive for income-oriented investors.
• Growth prospects: For those focused on capital appreciation, assess the growth prospects of the companies. Look at their product and service pipelines, expansion plans, and potential for market dominance.
• Risk tolerance: Understand your risk tolerance. Communications stocks can be subject to market volatility. Ensure your investments align with your risk comfort level.
• Global exposure: Some communications companies operate internationally. Understand the implications of global exposure on their financial performance.

How To Invest in the Best Communications Stocks in India?

You can invest in the best communications stocks in India through Angel One by following the simple steps:

• Open the Angel One mobile app
• Log in with your credentials. 
• Once you open the app, click on the ‘Search’ icon and search for your preferred stock. 
• Click on ‘Stock Details’ if you want to know the technical and fundamental details of the stock.   
• Once you are sure about the stock, click on ‘Buy’.
• You can select the exchange, NSE or BSE as per your preference. Then, enter the number of shares.
• Once you enter the number of shares, you can also choose between order types, i.e., Limit Order or Market Order.
• Click on ‘Place Buy Order’ to place the order. 

Note: Before placing the order, ensure you have enough funds in your Demat or Trading Account. 

Conclusion

Investing in communications stocks can be rewarding for those who take the time to understand the market, assess their financial goals, and stay informed about industry trends. It’s essential to remember that all investments come with risks, and diversification is a key strategy to manage those risks effectively. 

To embark on your journey of investing in communications stocks, open a Demat account for free on Angel One today. 

Disclaimer: This article has been written for educational purposes only. The securities quoted are only examples and not recommendations.