In the last two years, the metaverse has taken the world by storm, but it feels like we’re talking about the internet in the 1970s or social media in the early 2000s. The market for Metaverse, a growing idea with almost limitless potential to revolutionize the way we experience things, is estimated to exceed $780 billion by 2024 [Source: Bloomberg]. This has prompted top brands from a variety of industries to make significant investments in this area.
What is Metaverse?
In its most basic form, the metaverse is a 3D realm established on the internet in which users can interact with the help of avatars and computer-generated items. It is essentially a virtual environment that makes use of the internet and virtual reality. When it comes to metaverse applications, social networking, training, online gaming, education, and entertainment are among the most popular. Its goal is to build a virtual world that is as similar to reality as feasible.
Metaverses are known for providing users with an entirely unique and exhilarating experience. With the largest global corporations investing in them, they are rapidly developing and evolving.
As the concept of the metaverse gains popularity, the number of companies working on this sector is likely to grow, as will the demand for their stocks. Let’s discuss the top metaverse stocks in India.
Top Metaverse Stocks in India
1. Reliance Industries
With its telecom and media companies becoming market leaders, Reliance Industries is ideally positioned to capitalize on metaverse popularity. In terms of market value, Reliance Industries is most likely India’s largest metaverse firm. RIL was the first firm in India to have its earnings call on metaverse last year.
Reliance Industries has also committed $15 million for a 25% interest in Two Platforms Inc, a Silicon Valley-based deeptech business. Two Platforms is an augmented reality firm that creates interactive and immersive AI experiences.
| Market Cap.(cr) | 16,51,280 |
| Dividend yield(%) | 0.33 |
| ROE(%) | 8.33 |
| CMP | 2,440 |
2. Triveni Engineering and Industries Ltd.
Triveni Engineering and Industries Ltd is primarily a sugar manufacturer. However, the company has expanded and invested in JetSynthesys. JetSynthesys has received investments from Sachin Tendulkar, Adar Poonawala, and the e-commerce giant Flipkart. In partnership with Wakau, a social media platform, the company provides over 300 interactive games in the entertainment and fashion areas.
| Market Cap.(cr) | 5,840 |
| Dividend yield(%) | 1.22 |
| ROE(%) | 24.8 |
| CMP | 266 |
3. Infosys
Infosys is one of India’s top IT firms, offering software development, consulting, and outsourcing services. Infosys also has a strong focus on developing technologies like as AR and VR, which may profit from rising demand in the metaverse industry.
Infosys has developed an augmented reality (AR)-based solution for the industrial industry that makes it easier for personnel to maintain and repair complex machinery.
| Market Cap.(cr) | 5,39,110 |
| Dividend yield(%) | 2.62 |
| ROE(%) | 31.8 |
| CMP | 1,299 |
4. Tata Consultancy Services
Tata Consultancy Services Limited, India’s premier IT conglomerate, is the most sought-after metaverse stock. The company has just released a special product portfolio consisting of nine horizontals in three schemes:
Culture (CUL)
Technology (TEC)
TAS stands for Time and Space.
TCS has also begun development on a virtual bank that will aid in NFT and retail transactions by utilizing its in-house blockchain infrastructure. The company will target education, packaged products, real estate, and retail with this offering.
| Market Cap.(cr) | 12,09,208 |
| Dividend yield(%) | 1.30 |
| ROE(%) | 46.9 |
| CMP | 3,303 |
5. Hindustan Media Ventures
Hindustan Media Ventures Ltd began as a traditional publishing house. However, it has recently entered the metaverse segment. In this list, it is the fifth best Indian metaverse company. Despite being a publishing company, it has just entered the metaverse market by purchasing interests in WURKR, a UK-based SaaS company. This company offers
software solutions to businesses that allow its employees to work from anywhere in the world via an interactive virtual platform.
| Market Cap.(cr) | 455 |
| Dividend yield(%) | 0 |
| ROE(%) | -2.59 |
| CMP | 61.6 |
6. Tata Elxsi
This is a technological firm that offers services in industrial design, engineering, and software development. The Tata Group company has expertise in developing AR and VR solutions for a variety of industries and could benefit from the metaverse industry’s expansion.
| Market Cap.(cr) | 43,810 |
| Dividend yield(%) | 0.60 |
| ROE(%) | 41 |
| CMP | 7,032 |
7. Nazara Technologies
Nazara Technologies is another successful Indian metaverse firm. It is a well-known gaming firm that has recently acquired several VR companies. It has purchased Instasports, a firm that installs virtual reality lounges in public spaces such as shopping malls and gaming zones. It also purchased PublishMe, a company that creates gaming IPs.
Late Rakesh Jhunjhunwala, the great bull, holds a whopping 32.94 lakh shares of the company, which is why it is the crowd’s choice.
| Market Cap.(cr) | 4,109 |
| Dividend yield(%) | 0 |
| ROE(%) | 3.79 |
| CMP | 621 |
8. LTI Mindtree
LTI provides a wide range of services for Metaverse early adoption, including advisory services for readiness and architecture setup, platform services, technical implementations of AR/VR, blockchain, digital twin solutions, experience services to design pod-as-a-service and UI/UX design, Metaverse Dojo co-creation, Metaverse management, and API management. The aforementioned are just a few of the services provided by LTI as a SI provider, but as Metaverse specialists remark, the possibilities are limitless.
| Market Cap.(cr) | 1,42,800 |
| Dividend yield(%) | 0.93 |
| ROE(%) | 34.7 |
| CMP | 4,826 |
Future of Metaverse
- Connection and Interaction: The Metaverse “brings people, processes, data, and things (real and virtual) together to make networked connections more relevant and valuable than ever before–turning information into actions that create new capabilities, richer experiences, and unprecedented economic opportunity for businesses, individuals, and countries.”
- Network Based System: It depicts a future in which billions of items are equipped with sensors to detect, measure, and assess their status, all of which are linked via public or private networks utilizing standard and proprietary protocols.
- Reforms in E-commerce: In e-commerce, the Metaverse creates a completely new revenue stream for digital items that is synchronous rather than the present standard 2D method of clicking and buying.
- Increasing Efficiency: Significant training resources will be used in human resources (HR) with virtual reality (VR) and augmented reality (AR) that overlay instructions in a real-world environment and give someone a step-by-step playbook on how to put a complex machine together, run a device, or try a new product, all with virtual objects at the heart of the Metaverse. Thereby Increasing efficiency at work.
Final Word
The Metaverse’s benefit is its interactions, which means that future virtual platforms will be a space for all organizations to co-exist and work, transforming the landscape of partnerships, brand collaborations, and joint ventures.
Another exciting opportunity in the Metaverse is that it will essentially be an extension of the internet, encompassing a full-fledged decentralized economy, allowing businesses to attract consumers and craft experiences tailored to audiences that would otherwise be impossible in a traditional financial economy.
