Semiconductor Stocks to watch: CG Power, Kaynes Technologies

New Delhi: India aims higher as it strives to become a part of the semiconductor global supply chain. To achieve this, the Government of India has launched a semiconductor mission (India Semiconductor Mission). The mission aims to support companies to design and assemble semiconductors in India while simultaneously creating an ecosystem of innovation in this regard. Several big players like Tata, Micron, and Foxconn have taken a forward step in this mission. New chip assembling facilities and testing units are being set up rapidly in the country. In this regard, the article would be informing about two companies and their stocks that have ventured into semiconductors and are poised for future growth, as their order book is strong and futuristic.

CG Power, a Murugappa Group company, is a subsidiary of Tube Investments. It provides power and industrial solutions. It is also entering semiconductor chip manufacturing. It has received a subsidy of Rs 35.01 billion (Rs 3500 crore) under the India Semiconductor Mission (ISM). According to Equity Master, its order book in FY25 stood at Rs 106.31 billion, i.e., Rs 10,631 crore, registering a growth of about 66%. The company is building an ATMP (i.e., assembly, testing, marking, packaging) unit at Sanand in Gujarat with Japan's Renesas Electronics and Thailand's Stars Microelectronics at a cost of Rs 76 billion (Rs 7600 crore). The construction of the factory has started, and production is expected to start from FY26.

At the time of writing this article, the share of the company traded at around Rs 675.15. As per BSE data, though the past year's returns have been negative, pegging at around negative 8 percent (-8%), its 3-year returns have turned out to be impressive, pegging at around a whopping 234 percent. The price-to-earnings (P/E) ratio of the company is 107.88. The market capitalization (m-cap) of the company is over Rs 1 lakh crore to Rs 105139 crore.

Kaynes Technology is India's leading electronics manufacturing company that has a specialization in IoT (Internet of Things) solutions. It is one among the four OSAT (Outsourced Semiconductor Assembly and Test) facility units that are set to be built under ISM 1.0. Its subsidiary Kaynes Semicon is building a high-capacity OSAT facility at a cost of Rs 33 billion (Rs 3300 crore) in Sanand, Gujarat, which is expected to be completed by the end of 2025. As per the company, the first chip production is set to start in the third quarter of FY26 and is expected to launch at a commercial level in the fourth quarter. Additionally, the company has opened its first overseas chip design center in Muscat, Oman, which will focus on chip designing and training. As of March 31, 2025, the report says its order book stood at Rs 66 billion (Rs 6600 crore), providing a revenue stream for the company for over 2 year.

At the time of writing this article, the shares of Kaynes Technology India were trading at around Rs 6012 apiece. As per the data from BSE, the shares of the company have given a return of around 45 percent in the last year, whereas in the last 5 years, they have given a return of 672 percent.