The semiconductor industry, vital to modern electronics like smartphones, EVs, and AI processors, is gaining traction in India due to rising EV demand and infrastructure growth. 

A low debt-to-equity ratio, particularly under 1, indicates a company’s preference for equity over debt, reflecting lower financial risk. Here are a few companies in the semiconductor business known for having low debt-to-equity ratios: 

1. CG Power and Industrial Solutions Ltd

With a market capitalization of Rs. 1,07,781.34 crores, CG Power and Industrial Solutions Ltd was trading at Rs. 705.95 apiece on Tuesday, 1.38% below its previous close of Rs. 715.85 per share. 

The company has a Debt to Equity ratio of 0.01, with a total debt of Rs. 14.21 crores and its stock is trading at a P/E of 122.75 with an EPS of Rs.5.87. 

In terms of financial performance for Q2FY25, the company reported a net profit decrease of 9.3% to Rs. 219.63 crores compared to Rs. 242.29 crores in Q2FY24, while revenue from operations marked an increase of 20.5% to Rs. 2,412.69 crores from Rs. 2,001.51 crores in comparison to the same period. 

The Company is a global enterprise providing end-to-end solutions to utilities, industries, and consumers for the management and application of efficient and sustainable electrical energy. The company has expanded into the semiconductor industry by establishing an outsourced semiconductor assembly and testing (OSAT) facility in Sanand, Gujarat. 

2. Kaynes Technology India Limited

With a market capitalization of Rs. 34,393.95 crores, Kaynes Technology India Ltd was trading at Rs. 5,373.15 apiece on Tuesday, 0.76% below its previous close of Rs. 5,414.05 per share.

The company has a Debt to Equity ratio of 0.27, with a total debt of Rs. 445 crores and its stock is trading at a P/E of 148.61 with an EPS of Rs. 37.09. 

In terms of financial performance for Q2FY25, the company reported a net profit increase of 86.35% to Rs. 60.21 crores compared to Rs. 32.31 crores in Q2FY24, while revenue from operations marked an increase of 58.5% to Rs. 572.12 crores from Rs. 360.85crores in comparison to the same period. 

The company is a leading end-to-end and IoT solution-enabled integrated electronics manufacturing player. The company has capabilities across the entire spectrum of electronics system and design manufacturing (ESDM). Kaynes Technology India provides services like conceptual design, process engineering, integrated manufacturing, and life cycle. 

3. Moschip Technologies Limited

With a market capitalization of Rs. 4,449.46 crores, Moschip Technologies Ltd was trading at Rs. 234.65 apiece on Tuesday, 0.10% below its previous close of Rs. 234.75 per share. 

The company has a Debt to Equity ratio of 0.31, with a total debt of Rs. 84.14 crores and its stock is trading at a P/E of 274.32 with an EPS of Rs. 0.88. 

In terms of financial performance for Q2FY25, the company reported a net profit increase of 168% to Rs. 9.73 crores compared to Rs. 3.63 crores in Q2FY24, while revenue from operations marked an increase of 74.8% to Rs. 125.63 crores from Rs. 71.85 crores in comparison to the same period. 

The company specializes in designing and developing system-on-chip (SoC) technologies and software solutions. The company serves diverse sectors, including aerospace, defense, consumer electronics, and IoT applications. 

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4. RIR Power Electronics Limited

With a market capitalization of Rs. 2,519.85 crores, RIR Power Electronics Ltd was trading at Rs. 3,425.00 apiece on Tuesday, 1.60% below its previous close of Rs. 3,426.00 per share.

The company has a Debt to Equity ratio of 0.54, with a total debt of Rs. 34.08 crores and its stock is trading at a P/E of 341.77 with an EPS of Rs. 10.53. 

In terms of financial performance for Q1FY25, the company reported a net profit increase of 46.15 % to Rs. 2.28 crores compared to Rs. 1.56 crores in Q1FY24, while revenue from operations marked an increase of 51.7% to Rs. 21.05 crores from Rs. 13.87 crores in comparison to the same period. 

It specializes in manufacturing high-power semiconductor devices in India serving various sectors, including defense, aerospace, and renewable energy. RIR Power Electronics manufactures high-power semiconductor devices capable of handling up to 9000 volts and 6000 amperes. 

5. ASM Technologies Limited

With a market capitalization of Rs. 1,712.81 crores, ASM Technologies Ltd was trading at Rs. 1,455 apiece on Tuesday, 0.57% above its previous close of Rs. 1,446.70 per share. 

The company has a Debt to Equity ratio of 0.58, with a total debt of Rs. 82.42 crores. 

In terms of financial performance for Q1FY25, the company reported a net profit of Rs. 2.85 crores compared to a loss of Rs. 0.3 crores in Q1FY24, while revenue from operations marked an increase of 3.2% to Rs. 52.62 crores from Rs. 50.95 crores in comparison to the same period. 

The company specializes in semiconductors, engineering equipment, and transportation. Its offerings include product design, reverse engineering, embedded software, and automation. 

Written By: Joseph pv

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