Best Metaverse Stocks in India

31 May 2024
8 min read
Best Metaverse Stocks in India
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(The stocks mentioned in the blog are as per Analyst Ratings and Market Capitalization)

The idea of the ‘Metaverse’, a virtual environment where users may communicate with one another in real-time, is gaining immense popularity across various industry segments.

In the upcoming years, businesses engaged in creating and managing these virtual worlds are anticipated to experience rapid growth. This blog is set to explore the metaverse world in India, some of the best metaverse stocks and factors to consider when you pick to invest. Let’s start!

Metaverse Industry in India - A Brief Overview

The concept of the metaverse is gaining significant attention globally, including in India. While people believe that the metaverse is limited to the gaming and entertainment industry, its evident inclusion in educational institutions, businesses, infrastructure and more has proved that it has multiple applications.

Leading tech companies in India have been substantially involved in developing metaverse-related solutions. But to regulate the same, a set of regulatory frameworks needs to be introduced. They can play a crucial role in shaping the metaverse industry in India.

Note, while the metaverse industry in India is still in its infancy, there are signs of growing interest and potential for development. With continued investments, technological advancements, and regulatory support, it can further flourish even more. However, you should be cautious while investing in metaverse stocks in India since their performance might be impacted due to cybersecurity threats, technological obsolescence, regulatory uncertainties, execution risks, etc.

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Best Metaverse Stocks in India 2024 as per Analyst Ratings

Now, have a look at the top metaverse stocks in 2024 according to the BUY analyst ratings provided by the I/B/E/S database. We have made a list based on stock ratings provided by the analysts as they do a complete market study before rating a stock-

S.No.

Best Metaverse Stocks in India (as per analyst ratings)

BUY Analyst Rating (in %)

1.

Reliance Industries

78%

2.

Nazara Technologies

67%

3.

TCS

51%

*Our stock selection criteria for top stocks based on analyst ratings are mentioned at the bottom of this blog.

Best Metaverse Shares in India as per Market Capitalization

Here’s the list of some of the top metaverse sector stocks as per market capitalization.

S.No.

Top Metaverse Stocks in India (as per Market Capitalization)

1.

Reliance Industries

2.

TCS

3.

HCL Technologies

4.

Wipro

5.

LTIMindtree

*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog.

Overview of Top Metaverse Stocks in India as per Analyst Ratings & Market Capitalisation

To understand how Indian companies are exploring metaverse, here’s a brief overview of the best metaverse stocks as per analyst ratings and market capitalisation-

1) Reliance Industries

Reliance Industries Limited (RIL) was established in 1973. It is a leading Indian company engaged in telecom, hydrocarbon exploration and production, retail and digital services, petroleum refining, fuels, renewables, and many more segments.

Also, some time back, RIL's Jio announced an investment of approx $15 mn in Two Platforms Inc., a company involved in the AR/AI segment. It is exploring new avenues and delivering solutions for the same.

2) Nazara Technologies

Nazara Technologies was founded in 1999 and is India’s only listed games company. It is mainly involved in diversified gaming and sports media platforms with 3 segments - Gaming, Adtech, and eSports. Some of its popular products include CarromClash, Kiddopia, World Cricket Championship, etc.

To expand its metaverse share, the company had acquired multiple VR companies such as Instasportz, PublishMe that are involved in developing AR and VR-related products.

Metaverse Fun Fact - Groww

3) TCS

Tata Consultancy Services Limited (TCS) is one of the most renowned companies in India. It is primarily involved in consulting, services, and business solutions. 

It has been actively exploring the possibilities of augmented reality (AR) and virtual reality (VR) technologies. It has created solutions that use these technologies to improve business operations and consumer experiences.

4) HCL Technologies

HCL Technologies is another player in the world of metaverse. With HCLTech Metafinity, it has been offering a number of solutions with cutting-edge platforms, blockchain integrations, reusable 3D assets, XR testing and support, avatar-as-a-service, and many more.

Apart from metaverse, the company is mainly involved in IT and Business Services, Engineering and R&D Services, HCLSoftware, etc.

5) Wipro

The next on the list is Wipro Limited. It is a technology services and consulting company principally engaged in IT products and services. From IT-enabled services to technology consulting, IT consulting, and even cloud and infrastructure services, Wipro has a line of offerings.

It is also one of the top global players in the metaverse and web3 spaces. With its seamless tech development, IT support services, and promising metaverse technology, it has developed numerous solutions.

6) LTIMindtree

LTIMindtree, a leading Indian company, has been very active in delivering metaverse-related products and services. It provides a range of services for the early adoption of Metaverse, such as architecture setup, technical implementations of AR/VR, Metaverse management, and many more.

Factors to Consider Before Investing in Metaverse Stocks in India

Investing in metaverse may attract some of you. But you should not miss to know the factors to consider beforehand while investing your hard-earned money in these stocks. Here, we have listed out some vital factors to look after-

  • Company Fundamentals

The first thing to do is check on the company fundamentals. You should assess its revenue growth, competitive positioning within the metaverse ecosystem, brand reputation, balance sheet strength, etc.

  • Regulatory Environment

Government regulations can have a direct impact on the operations and growth potential of the metaverse. Hence, keep an eye on the regulatory environment surrounding the metaverse industry in India. 

  • Risk Involved

Considering the risk involved is crucial, especially when thinking about investing in metaverse stocks. Due to the metaverse industry’s nature, it can easily get impacted due to cybersecurity scams, technology obsolescence, government regulations, etc.

  • Competition

You should also check the competitive landscape within the metaverse industry. Evaluate the key competitors and assess their strengths, weaknesses, brand reputation, offerings, and more.

  • Long-Term Perspective

You should consider opting for a long-term perspective when investing in metaverse stocks. Since the metaverse industry is still evolving. Its significant growth opportunities are likely to materialize over time. Therefore, stay cautious while investing.

Should You Invest in Metaverse Stocks?

Metaverse is still in the infancy stage in India. It is scaling day after day at a good pace due to many companies now showing keen involvement in augmented reality, artificial intelligence, virtual reality and many such facets.

Metaverse stocks have the potential to give good returns but still might be prone to market volatility, competition, and the government’s regulatory framework. Therefore, you should consider investing in such stocks with a long-term perspective.

The Bottomline

The Indian Metaverse stocks may be an exciting option to diversify your portfolio. While the metaverse is still new for retail investors to bet on, its performance till now has been positive.

However, since they are fairly prone to regulations and acceptance, their performance is likely to fluctuate. Therefore, simply evaluate your investment and risk appetite and check if these stocks fit your bill.

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*Stock Selection Criteria for Top Stocks Based on Analyst Rating

Investors must carefully read through the following information on stock selection criteria while running through the stocks based on analyst ratings-

These stocks have been shortlisted as per Analyst ratings provided by the I/B/E/S (The Institutional Broker’s Estimate System) database, further aggregated by Refinitiv. Ratings are determined by analysts' forecasts of company performance, taking into account metrics like earnings per share, sales, and net income. These ratings should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).  

Before investing, investors must conduct independent research and not solely rely on the information provided here. This will allow investors to make appropriate investment decisions based on their financial goals, investment objectives and risk tolerance.

*Stock Selection Criteria for Top Stocks Based on Market Capitalisation

These stocks are chosen based on their market capitalization, which represents the total value of a company's outstanding shares. The selection is arranged in descending order, placing the largest companies first and the smaller ones later. This helps prioritize stocks based on their market size. 

It is important to note that market capitalization in no way guarantees a company’s performance or the returns from its stocks. However, it can be used as a criterion for shortlisting companies from within a sector. Investors should recognize that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment. 

This stock selection should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here
Research Analyst - Aakash Baid

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Groww Invest Tech Pvt. Ltd. (Formerly known as Nextbillion Technology Pvt. Ltd) Ltd. do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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