Semiconductor Sector Vs Infra Sector – Which Sector Leads?

The semiconductor sector leads in technological innovation, driving advancements in AI, IoT, and 5G, while the infrastructure sector focuses on building critical physical assets. Both are essential, but the semiconductor sector is crucial for future tech-driven growth and digital transformation.

Semiconductor Sector Overview

The semiconductor sector is critical for powering modern electronics, including computers, smartphones, and automotive systems. It involves the design, production, and assembly of microchips and integrated circuits, with applications spanning various industries like telecommunications, healthcare, and defense.

The sector is marked by continuous technological innovation, with advancements in AI, 5G, and IoT driving demand. As global economies transition to digital and smart technologies, the semiconductor industry is positioned for rapid growth, making it essential for technological progress and the global economy.

Infra Sector Overview

The infrastructure sector focuses on the development, construction, and maintenance of critical physical assets like roads, bridges, ports, airports, and energy systems. It plays a vital role in enabling economic growth, improving connectivity, and supporting industrial activities.

As economies grow, infrastructure needs expand, driving demand for projects in urbanization, renewable energy, and transportation. With increasing investment in green and sustainable infrastructure, the sector is expected to continue evolving, contributing significantly to job creation, economic development, and enhanced quality of life.

Best Stocks In The Semiconductor Sector

The table below shows the best stocks in the Semiconductor sector based on a 1Y return.

Name	Close Price (Rs)	1Y Return (%)
RIR Power Electronics Ltd	2,440.40	99.09
Dixon Technologies (India) Ltd	12,991.80	70.15
Moschip Technologies Ltd	146.31	41.21
ASM Technologies Ltd	1,275.30	34.38
Bharat Electronics Ltd	281.45	25.9
MIC Electronics Ltd	52.41	19.38
Solex Energy Ltd	728.1	13.26
SPEL Semiconductor Ltd	126.7	8.94
V Guard Industries Ltd	360.05	5.48
Surana Telecom and Power Ltd	18.55	3.92

Top Stocks In The Infra Sector

The table below shows the top stocks in the Infra sector based on a 1Y return.

Name	Close Price (Rs)	1Y Return (%)
Balu Forge Industries Ltd	654.45	244.54
ITD Cementation India Ltd	553.3	76.74
Welspun Enterprises Ltd	519.2	71.84
Skipper Ltd	466.1	47.24
Techno Electric & Engineering Company Ltd	1,052.55	42.75
Rail Vikas Nigam Ltd	371.55	42.66
Ashoka Buildcon Ltd	201.04	25.22
Indus Towers Ltd	349.05	23.06
HG Infra Engineering Ltd	1,121.50	22.76
KEC International Ltd	801.75	19.08

Fundamental Analysis Of Semiconductor Sector

RIR Power Electronics Ltd

RIR Power Electronics Ltd is engaged in manufacturing traditional semiconductor devices, including bridges, power modules, diodes, rectifiers, and thyristors. The company supports power electronics applications across industries with reliable, high-performance components and maintains a strong presence in the semiconductor sector.

Market Cap: ₹1,872.70 Crore

Close Price: ₹2,440.40

1Y Return: 99.09%

1M Return: 36.85%

6M Return: -38.41%

5Y average net Profit Margin: NA

5Y CAGR: 139.45%

Dividend Yield: 0.07%

Sector: Electronic Equipments

Dixon Technologies (India) Ltd

Dixon Technologies (India) Ltd, established in 1993, is a leading Electronic Manufacturing Services (EMS) provider. It operates across consumer electronics, lighting, home appliances, CCTVs and mobile phones. The company also manufactures security surveillance equipment, wearables, audibles and AC-PCBs, recently expanding into wireless audio solutions through a JV.

Market Cap: ₹78,258.30 Crore

Close Price: ₹12,991.80

1Y Return: 70.15%

1M Return: -9.88%

6M Return: -10.52%

5Y average net Profit Margin: 2.23%

5Y CAGR: 76.72%

Dividend Yield: 0.04%

Sector: Home Electronics & Appliances

Moschip Technologies Ltd

Moschip Technologies Ltd is a semiconductor and system design company specializing in Turnkey ASICs, Mixed Signal IP, and IoT solutions. It serves diverse sectors, including aerospace, defence, automotive, medical, consumer electronics, and telecommunications, with advanced semiconductor and product engineering services.

Market Cap: ₹3,690.68 Crore

Close Price: ₹146.31

1Y Return: 41.21%

1M Return: -18.56%

6M Return: -36.55%

5Y average net Profit Margin: -8.7%

5Y CAGR: 80.34%

Dividend Yield: NA

Sector: Software Services

ASM Technologies Ltd

ASM Technologies Ltd is engaged in semiconductor and system design, focusing on Engineering Services and Product R&D. With offshore centers in India and abroad, it has a global presence across the USA, UK, Singapore, Canada, Mexico, and Japan.

Market Cap: ₹1,501.56 Crore

Close Price: ₹1,275.30

1Y Return: 34.38%

1M Return: -6.64%

6M Return: -11.94%

5Y average net Profit Margin: 3.37%

5Y CAGR: 110.99%

Dividend Yield: 0.08%

Sector: IT Services & Consulting

Bharat Electronics Ltd

Bharat Electronics Ltd, incorporated in 1954, is a leading provider of electronic equipment and systems for the defense sector, contributing 81% of its revenue. It specializes in radar, weapon systems, communication and cyber security, with a growing presence in civilian markets.

Market Cap: ₹2,05,733.73 Crore

Close Price: ₹281.45

1Y Return: 25.9%

1M Return: -3.23%

6M Return: 0.43%

5Y average net Profit Margin: 15.94%

5Y CAGR: 66.27%

Dividend Yield: 0.78%

Sector: Electronic Equipments

MIC Electronics Ltd

MIC Electronics Ltd is a global leader in designing and manufacturing LED video displays, electronic and telecommunication equipment, and telecom software. Established in 1988, it holds notable achievements in true color display technology and solar-powered lighting solutions.

Market Cap: ₹1,263.14 Crore

Close Price: ₹52.41

1Y Return: 19.38%

1M Return: -18.03%

6M Return: -46.06%

5Y average net Profit Margin: -171.27%

5Y CAGR: NA

Dividend Yield: NA

Sector: Electrical Components & Equipments

Solex Energy Ltd

Solex Energy Ltd, incorporated in 1995, manufactures solar photovoltaic cells and modules. It offers EPC services and turnkey solar solutions across residential, commercial, industrial, and utility sectors. The company also engages in OEM and ODM partnerships with Indian and global brands.

Market Cap: ₹786.53 Crore

Close Price: ₹728.10

1Y Return: 13.26%

1M Return: -15.13%

6M Return: -53.89%

5Y average net Profit Margin: 2.14%

5Y CAGR: 115.46%

Dividend Yield: 0.06%

Sector: Industrial Machinery

SPEL Semiconductor Ltd

SPEL Semiconductor Ltd, incorporated in 1984, provides wafer sort, assembly, testing, and drop-shipment services for IC chips. The company supports global semiconductor supply chains by offering high-quality backend services in integrated circuit packaging and testing.

Market Cap: ₹584.31 Crore

Close Price: ₹126.70

1Y Return: 8.94%

1M Return: -19.73%

6M Return: -32.66%

5Y average net Profit Margin: -50.9%

5Y CAGR: 105.59%

Dividend Yield: NA

Sector: Electronic Equipments

V Guard Industries Ltd

V-Guard Industries Ltd, founded in 1977, is a leading Indian manufacturer of electronics, electricals, and consumer durables. Known for voltage stabilizers, it now offers a wide range of innovative products nationwide, focused on enriching lives and powering a stronger future.

Market Cap: ₹15,690.22 Crore

Close Price: ₹360.05

1Y Return: 5.48%

1M Return: 4.6%

6M Return: -18.7%

5Y average net Profit Margin: 6.21%

5Y CAGR: 17.39%

Dividend Yield: 0.39%

Sector: Electrical Components & Equipments

Surana Telecom and Power Ltd

Surana Telecom and Power Ltd, incorporated in 1984, is engaged in manufacturing and trading of solar-related products and semiconductors. The company is also involved in solar and wind power generation, contributing to India’s growing renewable energy sector.

Market Cap: ₹251.83 Crore

Close Price: ₹18.55

1Y Return: 3.92%

1M Return: -15.82%

6M Return: -16.37%

5Y average net Profit Margin: 18.21%

5Y CAGR: 46.49%

Dividend Yield: NA

Sector: Cables

Fundamental Analysis Of Infra Sector

Balu Forge Industries Ltd

Balu Forge Industries Ltd specializes in manufacturing fully finished and semi-finished forged crankshafts and components. The company is equipped to produce parts that meet new emission regulations and new energy vehicle standards, ensuring high-quality, precision-engineered solutions for diverse industrial applications in the evolving automotive and energy sectors.

Market Cap: ₹7,162.43 Crore

Close Price: ₹654.45

1Y Return: 244.54%

1M Return: 14.75%

6M Return: -18.9%

5Y Average Net Profit Margin: NA

5Y CAGR: 81.1%

Dividend Yield: 0.02%

Sector: Construction & Engineering

ITD Cementation India Ltd

ITD Cementation India Ltd provides design, engineering, procurement, and construction (EPC) services for infrastructure projects across India. The company specializes in delivering complex infrastructure solutions, contributing to sectors such as transportation, marine, and urban development, ensuring high-quality and efficient project execution with a strong industry presence.

Market Cap: ₹9,505.01 Crore

Close Price: ₹553.3

1Y Return: 76.74%

1M Return: 5.11%

6M Return: -1.3%

5Y Average Net Profit Margin: 1.95%

5Y CAGR: 82.88%

Dividend Yield: 0.31%

Sector: Construction & Engineering

Welspun Enterprises Ltd

Welspun Enterprises Ltd, part of the USD 2.7 billion Welspun Group, operates in the infrastructure sector with a focus on road and water projects. Specializing in Hybrid Annuity Model (HAM) projects, BOT-Toll, and EPC contracts, the company also has strategic investments in the oil and gas sector.

Market Cap: ₹7,098.18 Crore

Close Price: ₹519.2

1Y Return: 71.84%

1M Return: 8.59%

6M Return: -9.99%

5Y Average Net Profit Margin: 10.85%

5Y CAGR: 71.64%

Dividend Yield: 0.58%

Sector: Construction & Engineering

Skipper Ltd

Skipper Ltd specializes in manufacturing and selling transmission and distribution structures, along with pipes and fittings. The company also executes EPC projects in the infrastructure sector, contributing to power and water distribution networks. Its operations support critical infrastructure development across domestic and international markets.

Market Cap: ₹5,263.08 Crore

Close Price: ₹466.1

1Y Return: 47.24%

1M Return: 13.18%

6M Return: -1.43%

5Y Average Net Profit Margin: 2.01%

5Y CAGR: 93.04%

Dividend Yield: 0.02%

Sector: Power Infrastructure

Techno Electric & Engineering Company Ltd

Techno Electric & Engineering Company Ltd (TEECL) provides engineering, procurement, and construction (EPC) services, along with asset ownership and operations and maintenance solutions in the power infrastructure sector. The company plays a crucial role in strengthening India’s energy infrastructure through efficient project execution and technological advancements.

Market Cap: ₹12,241.11 Crore

Close Price: ₹1,052.55

1Y Return: 42.75%

1M Return: 4.89%

6M Return: -33.29%

5Y Average Net Profit Margin: 19.21%

5Y CAGR: 39.97%

Dividend Yield: 0.62%

Sector: Construction & Engineering

Rail Vikas Nigam Ltd

Rail Vikas Nigam Ltd (RVNL), incorporated in 2003 by the Government of India, specializes in executing rail infrastructure projects for the Ministry of Railways. Its operations include doubling, gauge conversion, new lines, railway electrification, major bridges, workshops, and freight revenue sharing under concession agreements with Indian Railways.

Market Cap: ₹77,468.92 Crore

Close Price: ₹371.55

1Y Return: 42.66%

1M Return: -2.03%

6M Return: -29.4%

5Y Average Net Profit Margin: 5.96%

5Y CAGR: 102.17%

Dividend Yield: 0.57%

Sector: Specialized Finance

Ashoka Buildcon Ltd

Ashoka Buildcon Ltd, a Fortune India 500 company, is a leading highway developer in India. It operates in EPC, BOT, and HAM models across highways, bridges, power, railways, buildings, and smart infrastructure. With 41 PPP projects, it has a strong presence in over 20 states.

Market Cap: ₹5,643.66 Crore

Close Price: ₹201.04

1Y Return: 25.22%

1M Return: 0.22%

6M Return: -17.2%

5Y Average Net Profit Margin: 5.82%

5Y CAGR: 35.11%

Dividend Yield: NA

Sector: Construction & Engineering

Indus Towers Ltd

Indus Towers Ltd is one of India’s largest telecom tower companies, providing infrastructure-sharing services to wireless telecom providers. It operates and maintains a vast network of towers, offering long-term access under shared agreements, ensuring seamless connectivity and network expansion across the country.

Market Cap: ₹92,052.76 Crore

Close Price: ₹349.05

1Y Return: 23.06%

1M Return: 4.76%

6M Return: -13.02%

5Y Average Net Profit Margin: 22.59%

5Y CAGR: 19.72%

Dividend Yield: NA

Sector: Telecom Infrastructure

HG Infra Engineering Ltd

H.G. Infra Engineering Ltd is a leading road infrastructure company in India, specializing in Engineering, Procurement, and Construction (EPC) services. It undertakes projects for roads, bridges, and flyovers, ensuring high-quality execution and maintenance of critical transportation infrastructure across the country.

Market Cap: ₹7,308.94 Crore

Close Price: ₹1,121.50

1Y Return: 22.76%

1M Return: 3.55%

6M Return: -27.48%

5Y Average Net Profit Margin: 9.44%

5Y CAGR: 52.35%

Dividend Yield: 0.13%

Sector: Construction & Engineering

KEC International Ltd

KEC International Ltd is a global infrastructure EPC major and the flagship company of the RPG Group. It operates across power transmission and distribution, railways, civil, urban infrastructure, solar, oil & gas pipelines, and cables, delivering large-scale infrastructure projects worldwide.

Market Cap: ₹21,342.59 Crore

Close Price: ₹801.75

1Y Return: 19.08%

1M Return: 12.62%

6M Return: -18.42%

5Y average net Profit Margin: 2.82%

5Y CAGR: 34.86%

Dividend Yield: 0.48%

Sector: Construction & Engineering

Semiconductor Sector Performance & Growth

The table below shows the Semiconductor sector’s performance & growth based on a 5-year net profit margin.

Name	Close Price (Rs)	5Y Avg Net Profit Margin (%)
Tata Elxsi Ltd	4,869.40	20.39
Tata Consultancy Services Ltd	3,292.95	19.22
Surana Telecom and Power Ltd	18.55	18.21
Infosys Ltd	1,428.80	17.42
Bharat Electronics Ltd	281.45	15.94
HCL Technologies Ltd	1,403.35	14.85
L&T Technology Services Ltd	4,102.15	13.36
Havells India Ltd	1,463.15	7.79
V Guard Industries Ltd	360.05	6.21
ASM Technologies Ltd	1,275.30	3.37

Infra Sector Performance & Growth

The table below shows the Infra sector performance & growth based on a 5-year net profit margin.

Name	Close Price (Rs)	5Y Avg Net Profit Margin (%)
REC Limited	444.45	24.72
Housing and Urban Development Corporation Ltd	209.11	23.88
Indus Towers Ltd	349.05	22.59
Techno Electric & Engineering Company Ltd	1,052.55	19.21
Power Finance Corporation Ltd	425.5	17.64
SBI Cards and Payment Services Ltd	854.5	13.36
G R Infraprojects Ltd	1,040.75	12.72
KNR Constructions Ltd	240.67	12.43
AJAX Engineering Ltd	590	11.83
Welspun Enterprises Ltd	519.2	10.85

Government Policies & Incentives For The Semiconductor and Infra Sector

Governments have implemented various policies and incentives to boost the semiconductor sector, recognizing its importance for technological growth. These include subsidies, funding for R&D, and tax incentives to foster domestic manufacturing, aiming to reduce dependency on imports.

In the infrastructure sector, governments are heavily investing in modernization and expansion. Initiatives like the National Infrastructure Pipeline (NIP) and significant funding allocations focus on developing critical infrastructure like transportation, energy, and urban development, ensuring sustainable growth and job creation.

Challenges Faced By Semiconductor and Infra Sector

The main challenges faced by the semiconductor and infrastructure sectors include supply chain disruptions, geopolitical risks, high capital requirements, and the need for skilled labor. These industries must navigate these hurdles while meeting growing global demands and maintaining sustainability.

• Supply Chain Disruptions: Both sectors are vulnerable to global supply chain interruptions, affecting manufacturing timelines, cost efficiency, and timely delivery.
  
• Geopolitical Risks: Political tensions and trade restrictions can significantly impact production, distribution, and market access in both sectors, limiting growth opportunities.
  
• High Capital Requirements: Developing semiconductor technologies and infrastructure projects requires significant financial investment, making it difficult for companies to secure funding and manage risks.
  
• Skilled Labor Shortage: Both industries face challenges in attracting and retaining skilled professionals, hindering innovation, and slowing down production or project timelines.

Future Outlook Of Semiconductor and Infra Sector

The semiconductor sector is poised for substantial growth, driven by advancements in AI, 5G, and electric vehicles. The increasing demand for chips in various industries will propel innovation, despite potential challenges in supply chain disruptions and geopolitical tensions.

The infrastructure sector is expected to thrive with significant investments in urban development, transportation, and renewable energy. Governments are prioritizing sustainable projects, fueling economic growth. Initiatives like the National Infrastructure Pipeline promise to bolster job creation and modernize key sectors, ensuring long-term development.

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Difference Between Infra Sector And Semiconductor Sector – Conclusion

• The semiconductor sector powers modern electronics, enabling advancements in AI, 5G, and IoT. With growing demand for digital and smart technologies, the industry is poised for rapid growth and technological progress.
• The infrastructure sector develops essential physical assets like roads, bridges, and energy systems, driving economic growth. With increasing investment in sustainable projects, it plays a vital role in job creation and development.
• Governments support the semiconductor sector through subsidies and R&D incentives, while the infrastructure sector benefits from initiatives like the National Infrastructure Pipeline, driving investment in transportation, energy, and urban development.
• Both semiconductor and infrastructure sectors face challenges such as supply chain disruptions, geopolitical risks, high capital requirements, and a shortage of skilled labor, which hinder growth and project timelines.
• The semiconductor sector is set for growth with advancements in AI, 5G, and EVs, while the infrastructure sector benefits from large investments in sustainable projects, driving economic growth and job creation.
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Semiconductor Sector Vs Infra Sector – FAQs

Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.