Best Semiconductor Stocks in August 2025: ASM, CG Power, Hitachi & More Based on 5-Year CAGR

Union Electronics and IT Minister Ashwini Vaishnaw announced that students from various IITs have designed 20 chipsets, of which eight have already been taped out the final stage before fabrication and sent to global foundries and the Semi-Conductor Laboratory (SCL) in Mohali for manufacturing.

Vaishnaw emphasised that India is on track to build a full-stack semiconductor ecosystem, from design and fabrication to capital equipment and materials.

Amid this backdrop, several Indian companies tied to semiconductor design, embedded systems, electronics manufacturing, and related infrastructure are gaining market traction.

In this article, we explore the top-performing semiconductor stocks in India based on 5-year CAGR, debt-to-equity ratio, and net profit margins for August 2025.

Best Semiconductor Stocks for August 2025 – Based on 5Year CAGR

Note: The best semiconductor stocks list in August has been first sorted based on Market Cap and then top 10 companies are sorted based on 5-Year CAGR as of July 23, 2025.

Overview of 5 Best Semiconductor Stocks in August

1. ASM Technologies Ltd

ASM Technologies is a small-cap semiconductor company engaged in engineering services, product R&D, and semiconductor solutions.

In Q4 FY25, the company reported a 156.81% year-on-year increase in consolidated revenue from operations, rising from ₹44.59 crore in Q4 FY24 to ₹114.51 crore. On a quarter-on-quarter basis, revenue grew 76.88%, up from ₹64.74 crore in Q3 FY25.

The company continues to strengthen its position in niche semiconductor design and engineering areas, focusing on innovation and service delivery across global markets.

Key Metrics:

Return on Capital Employed (ROCE): 25.95%

Return on Equity (ROE): -4.17%

2. CG Power and Industrial Solutions Ltd

Now part of the Murugappa Group, CG Power offers end-to-end solutions for electrical energy management. The company operates through two core segments: Power Systems and Industrial Systems.

Recently, CG Power secured a ₹641 crore contract from Power Grid Corporation of India Ltd (PGCIL) its largest single order to date, further strengthening its capabilities in power transmission and semiconductor-linked infrastructure.

Key Metrics:

ROCE: 31.93%

ROE: 27.62%

3. Hitachi Energy India Ltd

Hitachi Energy India, a key player in power transmission, has been awarded a major contract by PGCIL to supply 30 units of 765kV, 500MVA single-phase transformers, supporting India's transmission expansion.

The company is also a global leader in power semiconductors, offering technologies such as GTOs, IGBTs, IGCTs, Thyristors, and Diodes, serving various high-voltage and industrial applications.

Key Metrics:

ROCE: 39.66%

ROE: 12.72%

4. Bharat Electronics Ltd (BEL)

Bharat Electronics is actively involved in the semiconductor space through strategic partnerships, including a major collaboration with Tata Electronics. Together, they focus on chip design, fabrication, and testing, particularly for defense-grade electronic components.

This move aligns with India’s goal of achieving self-reliance in electronics and defense tech, positioning BEL as a critical player in the domestic semiconductor landscape.

Key Metrics:

ROCE: 40.63%

ROE: 26.37%

5. Dixon Technologies (India) Ltd

Dixon Technologies' recent Q1 FY26 results showed sub-100% revenue growth, with flat margins. Growth was driven by mobile segment volumes, increased contributions from telecom and IT hardware, and a ramp-up in export operations.

The launch of new Motorola products and robust smartphone sales (9.5 million units) during the quarter contributed significantly to the topline performance, reinforcing its position in electronics manufacturing with embedded semiconductor use.

Key Metrics:

ROCE: 76.36%

ROE: 24.32%

Best Semiconductor Stocks for August 2025– Sorted by Debt-to-Equity Ratio

Debt-to-equity ratio reflects how much a company relies on debt compared to its own equity to finance operations. The following semiconductor-linked companies are listed in order of their current debt-to-equity ratios.

Note: The semiconductor stocks listed above are sorted by debt-to-equity ratio as of July 23, 2025.

Best Semiconductor Stocks for August 2025– Ranked by Net Profit Margin

Note: The semiconductor stocks listed above are sorted by their net profit margin as of July 23, 2025.

Read More: India Aims for 5% Share in Global Semiconductor Market by 2030.

Conclusion

From chip design firms like ASM Technologies and Tata Elxsi to electronics and component manufacturers like Dixon, Bharat Electronics, and CG Power, these companies are playing a vital role in India’s growing semiconductor value chain.

While none of them are pure-play chip fabs, their capabilities in embedded systems, electronic manufacturing services, and power electronics make them important contributors to the semiconductor infrastructure ecosystem.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.