Best Quantum Computing Stocks in India 2023
Quantum Computing uses quantum mechanics to perform calculations much faster than other forms of computing. This helps when one has to deal with extraordinarily big numbers to find solutions. There are many companies in India that are trying their luck in quantum computing.
What are Best Quantum Computing Stocks?
Quantum Computing is still an evolving tool in India. Most of the work in the field is being done by either startups or divisions set up by IT majors of India. So, indirectly IT biggies make for best quantum computing stocks in the country.
List and overview of Top Quantum Computing Stocks to Buy
Infosys: The company has taken a leap into quantum computing through the launch of ‘Infosys Quantum Living Labs’ aiming at clients who would need such a technology. The stock of Infosys is trading above short and long-term averages and has got upgrades from some brokerages recently. However, the stock also saw a negative breakdown below first support in recent past.
TCS: India’s biggest IT company has started TCS Quantum Computing Lab on AWS to help its clients first pilot, and then the regularly use, quantum computing for challenges that may be too difficult for classical computers to solve in a timely manner. The stock of TCS is near 52-week high and has been above short-, medium and long-term averages too. Shares of India’s biggest software services company has seen upgrades brokers in the past three months.
HCL Tech: HCLTech has offered cloud-based Microsoft Azure Quantum toolsets and support through its Q-Labs to clients. The stock is near a 52-week high and its RoCE has been improving in the last two years, earning upgrades from brokers. MFs, however, have reduced their exposure to the stock in the last quarter.
Wipro: The company is working with Tel Aviv University’s Center for Quantum Science & Technology faculty members for to solve complex problems of its large organisational clients. The stock’s book value per share has been improving for last two years but it has seen a negative breakdown from first support level and has also seen waning support from mutual funds. The MF holding in the stock has also come down in the last quarter.
Mphasis: The company is leaning on its Mphasis EON (Energy Optimized Network), for which patent is pending, to get a foothold in the quantum computing industry. The stock is a 52-week high and above long-term averages. Fundamentals of the company have improved further with earnings matching expectations, earning upgrade from brokers on target price. The stock has also seen positive breakout from first resistance.
Tech Mahindra: The company has signed an MoU with IQM Quantum Computers for research in quantum computing. The stock of is near 52-week high and above short-, medium and long-term averages. It has also got upgrades from brokers in the recent past. MFs, however, decreased their shareholding in the company in last quarter.
Overview of the Quantum Computing Industry
The government approved the National Quantum Mission April 2023 with an outlay of Rs 60 billion that will be spent over the next six years. Most the money will spend on research and development in the field. Currently, the Indian Quantum Computing Industry is in the nascent stage, dominated mostly by startups and a few IT majors. But, time and again Indian companies have proven their mettle in quickly grabbing of a pie of any new technological developments.
Why to Invest in the Quantum Computing stocks in India?
Quantum computing companies in India are still to catch up to the rest of the world, but they are surely to stand out in future with their tie-ups with big companies and researchers in reg field. While being in nascent stage, quantum computing stocks offer a good platform for growth. Of course, each company has to evaluated on a standalone basis for their fundamentals.
Factors to Consider Before Investing in Quantum Computing Stocks in India
Tie-ups: Quantum computing is still nascent in India. One should carefully evaluate what each company is offering and their tie-ups with bigger companies or research institutes.
Fundamentals: Investment into a stock should be done only after thorough checks into the earnings, debt and other parameters of financial health of a company.
Competition: Invest into a company that has some kind of leverage over its peers and has gained substantial market share.
Client base: A company with a wider client base is better than one that leans heavily on few clients.
Performance Overview of Quantum Computing Stocks in India
Quantum computing is still evolving in India despite efforts by the government. Most of the work in the field is led by big IT companies that are trying to get a toehold in the sector through global tie-ups. Indian quantum computing stocks do offer a lot of growth opportunities, but one should carefully evaluate one's investment decisions until more clarity emerges on a breakthrough by any of the companies operating in the field.
Frequently Asked Questions
Quantum Computing Stocks
Most investment in Quantum Computing is being done by major IT companies of India.
What is the future of Quantum Computing in India?
Quantum Computing is set to take off on a high growth path and more and more Indian companies find clients looking for solutions to complex problems.
Is investing in Quantum Computing stocks good idea?
Yes, but due diligence is must before investing in individual stocks.
How can I invest in Quantum Computing Stocks using 5paisa App?
First zero in on the quantum computing stocks that you want to invest in and the amount of investment in each of them. Then log into 5paisa app, check the current market prices and then place buy order for the stocks.
DisclaimerInvestment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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