7 5G Stocks To Keep An Eye On In 2022 That May Turn Multibaggers In This Decade

1. Bharti Airtel:

The bluechip company commanding an aggressive share has been working hard for an early roll out of 5G and likewise has pegged an expenditure of Rs. 1.17 lakh crore in the next five years on its subsidiaries, namely Nxtra, Indus Towers, and Bharti Hexacom. This money is largely to prepare the digital infrastructure of India, which will help the telco in rolling out 5G services efficiently.

Scrip wise the company has been improving and commands a average operating margin of 34.72% in the last 5 years. Also, has a high promoter holding. The company's ARPU on rate hike implemented in November may provide for a 6% increase and effectively would mean that the company is turning profitable.

2. HFCL:

The telecom equipment will be another beneficiary. Also, the company's financials have been improving with growth in the net profit and increase in profit margin. Furthermore, the fact to be acknowledged is that both FIIs and MFs have raised their bets on the stock in the December ended quarter of Fy22.

Himachal Futuristic Communications (HFCL) is engaged in the business of manufacturing telecom products and provides turnkey solutions and basic telephony and ISP services.The company manufactures access equipment, optical fibre cables, accessories and terminal equipment.

3. Vodafone Idea:

Technically the debt ridden company is said to be in a sweet spot at least for now. The company's deployment of network slicing shall enable it to hastily add revenue streams. In late January this year, ICICI Securities has given a 'Buy' call on the stock for a price target of Rs. 12 while the stock last traded at a price of Rs. 10.95 per share.

4. ITI:

This is the country's first PSU set-up that pioneered in the domain of telecommunications. As of now the company contributes to 50% of the country's telecom network. Furthermore, government's holding in the firm is at a high over 90%. Also the company has maintained a strong revenue growth of close to 17% over the past 3 years.

The company will enable 5G deployment through its dedicated network system unit for the deployment as well as commissioning of communications networks.

5. Tejas Networks:

The company is actively establishing the country's 5G strategy and also is playing its part in the 5G standards. The small cap telecom equipment company is a leading provider of end to end optical transport solutions to telecom service providers. The company's clientele is telcos and enable customers to get future ready.

Coming to its scrip standing, the company is a debt free entity with an effective cash conversion ratio. The company however is currently trading at a higher valuation.

6. Sterlite Technologies:

This is a telecom cable manufacturing entity. The company is in fact one of the foremost indigenous concern with 100% home-grown 5G-ready solutions. Ever since the budget announcement there has been seen traction in the company with high demand for the scrip. Further, the company has been maintaining good RoE and RoCE. Also has a high promoter holding of over 50%.

7. Indus Towers:

The company holds the rank of being amongst the top 5G towers company globally. The large cap company's COO is of the view that 5G offers vast sea of opportunity and came into existence post the merger of Bharti Infratel Limited and Indus Towers. The company has maintained good revenue growth over the last 3 years and is also a high ROCE company.

5G stocks in India: Should you invest?

The 5G stocks will soon gain traction as the Union Budget has been supportive of the technology. Further the earnings from the space shall accrue in due time so one may consider the stocks from the category based on good fundamentals from the long term investment point of view.

Disclaimer:

The stocks listed in the story are not ti nudge investors or readers to buy into these scrips. Further, the stock market poses risk of financial losses and is exposed to heightened volatility.

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