Artificial Intelligence (AI) is becoming increasingly popular among Indian companies as a tool to improve business outcomes. Artificial Intelligence offers many opportunities to help people work better and improve their lives. Artificial Intelligence is no longer a thing of the future. It is right here and is present everywhere around us.
According to a BCG and Nasscom report, India’s AI market is growing at a CAGR of 25-35% and is projected to reach $28 billion by 2030. AI and ML were the highest category of expenditure by IT buyers in 2023. Globally the investment in AI has grown at a CAGR of 24% since 2019 with $83 billion invested in 2023. India has enormous potential for AI revolution with the third largest AI talent pool in the world and engineering talent. India is also a fast-growing domestic market for AI. By 2027 demand for AI from the domestic market itself could be $17 billion.
AI is linked to every aspect of our lives. Each of us is currently using this technology in some form or the other. From personal digital assistants like Siri, Google Assistant, Alexa to self-driving cars, it is being used very widely.
Its use is increasing daily in the rapidly growing healthcare, finance, e-commerce and manufacturing.
The artificial intelligence sector is rapidly evolving, from predictive AI to generative AI, and has opened new dimensions in the decision-making process and improved productivity. It will profoundly impact every sector of the economy and complement and supplement human intelligence.
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Artificial Intelligence stocks or AI stocks are quite the rage in international circuits. Some of the popular AI stocks listed in the US markets include NVIDIA Corporation, IBM, Micron Technology Inc. and Amazon Ltd. etc. But unfortunately, this craze is yet to catch on in the Indian markets. So, if you are looking for artificial intelligence stocks listed on NSE and BSE, then congratulations! You are already ahead of the pack. And you have come to the right place.
Overview Artificial Intelligence Stocks :
Here is the list of top Indian companies working on AI in Indian stock market.
1). Persistent Systems Limited:
Incorporated in 1990, Persistent Systems Limited is an Indian technological services company that engages in developing and maintaining software products and solutions. The company provides services like cloud and infrastructure, CX transformation, application development and management, data and analytics, consulting, intelligent automation, enterprise integration, software product engineering, enterprise IT security, etc.
Moreover, it also offers Persistent.AI solutions that help customers enhance software development, lower costs, reduce manual operations, stimulate faster growth of revenue and improve customer experiences. Its cloud and infrastructure section includes Persistent Intelligent IT Operations (PiOps), hybrid & multi-cloud transformation, data centre modernisation and cloud advisory services. Persistent Systems operates in the US, France, Singapore, South Africa, Australia and Japan.
2). Tata Consultancy Services Ltd:
Tata Consultancy Services Limited (TCS) is engaged in providing information technology (IT) services, digital and business solutions. Tata Consultancy Services (TCS) has developed one of the world’s largest and most AI-ready workforces, according to CEO K Krithivasan. In an email to employees marking the start of the new fiscal year (FY2024-25), Krithivasan highlighted that TCS is involved in over 200 GenAI projects with clients and expects a robust pipeline of future work across various industries.
3). Oracle Financial Services Software
Oracle Financial Services Software Limited (OFSS) is a subsidiary of Oracle Corporation. The company was incorporated in 1989 and is based in Mumbai, India. Oracle Financial Services Software Limited is a provider of IT solutions to the financial services industry.
The Company offers a suite of banking products catering to the needs of corporate, retail, investment banking and treasury operations. Oracle has introduced two AI-powered features in its Oracle Financials Cloud to enhance efficiency and accuracy in finance processes. The Intelligent Account Combination Defaulting for Invoices and Dynamic Discounting features offer significant advantages. However, it’s essential to consider whether these tools meet your organization’s specific needs and integrate seamlessly with your existing system.
Its clientele includes retail and corporate banks, financial crime detection, risk and finance departments, compliance management, and more. The current market capitalization of the company is around ₹64337.80 crores and it delivered a whopping 116.87% return in the past year.
4). Kellton Tech Solutions Ltd
Founded in 2009, Kellton Tech is a Hyderabad-based IT and outsourcing company with operations across the US, Europe, and Asia Pacific and a team of 1800+ Company caters to clients in Fintech, BGSI, Government & Education, Manufacturing, Automotive, Chemicals, Retail, E-Commerce & Distribution, Travel, Logistics & Hospitality, etc. Its key platforms are
The small-cap company Kellton Tech Solutions is a software development company that provides IT solutions, strategic technology consulting, and product development services. As of 26th April 2024, the company’s market capitalisation is Rs. 969.14 cr. and a stock price of Rs. 99.5. Kellton Tech Solutions Ltd’s 1-yr return is 16.22%, and the net profit margin is 32.15%.
In the past year, Kellton Tech Solutions has performed relatively well, but the positive momentum seems to cease, as the company’s profitability score is 5.7 on the Tickertape Scorecard.
5). Saksoft Limited
Saksoft is an IT company that provides digital transformation solutions in Europe, the Americas, Asia Pacific, and others. They have 2000 employees across 16 centres with 25 years in business. They cater to companies in the industry verticals of Fintech, Logistics & Transportation, Healthtech, and Utilities. They help clients with Application Engineering, Quality Assurance & Testing, Data Analytics, Cloud, Infrastructure and Cyber Security Services.
Saksoft offers Generative AI models customised to transform various business functions.
In FY ‘24, the company’s revenue was Rs 764 Cr with 15% compounded revenue growth in the last 5 years. Net Profit for FY ‘24 was Rs 96 Cr with a 22% compounded growth in the past 5 years. The company is almost debt-free and promoters hold a 66.64% stake in the company.
6). Zensar Technologies Ltd.
Zensar Technologies is known as one of the top artificial intelligence companies in India with more than 10,000 associates across 33 global locations. The company has filed multiple patents in AI and focuses on AI research through its R&D facility ZensarAIRLabs. The company is focused on disrupting through innovation and velocity efficiently and effectively across multiple industries such as hi-tech, manufacturing, insurance, healthcare, and many more. It is working on AI strategies of IoT, NEXT, Blockchain, and NLP.
In FY 2024, the company’s revenue was Rs 4902 Cr with 8% compounded revenue growth in the last 10 years. Net Profit for FY ‘24 was Rs 665 Cr with an 11% compounded growth in the past 10 years. The company’s debt has come down and it is almost debt-free. The dividend payout is a healthy 30.8%. Promoters hold a 49.18% stake in the company.
7). HCL Technologies
The company offers AI Labs as an extension of its Cloud Native Labs focused on building strategic partnerships to deliver AI enablement. It has collaborated with Amazon Web Services to accelerate the adoption of generative artificial intelligence at the company and by enterprises globally.
The company has very low debt, its stock is near 52-week high and above short-, medium- and long-term moving averages. The book value per share has also been improving for the past two years. The stock also showed positive breakout above first resistance and has earned upgrades from brokerages.
8). Bosch Limited
Bosch is a renowned name in the technology industry in India. Though it is a German multinational company dealing in engineering and technology, its Indian subsidiary has a predominant market share. Bosch offers services such as automation, industrial technology, and technology products for consumers.
The large-cap company Bosch is involved in the manufacturing and trading of automotive products. They are a leading supplier of technology and services in mobility solutions, industrial technology, consumer goods, and energy and building technology.
The company, as of 26th April 2024, had a market capitalisation of Rs. 85,239.71 cr. and a stock price of Rs. 28,901.05. Bosch Ltd’s 1-yr return is 35.82%, and the net profit margin is 28.08%. In the last 5 yrs, the company’s debt-to-equity ratio has been 0.5%, while the industry average is 73.51%.
Advantages of Investing in Artificial Intelligence (AI)
The first advantage of investing in these AI stocks in India includes the growth potential of these stocks. Since India is adopting digitalization, and there is huge room for the same now, the growth of these tech firms is inevitable. Therefore, investing in these future-led tech firms can be beneficial in the end.
As you can see in the table given above, many of these top artificial intelligence stocks delivered excellent returns in just one-year time. Some of the firms have even triple-digit returns, which is astonishing.
Another important factor that investors must check is the diversity in the clientele of the company. It is better to have clients from different sectors rather than from a single sector.
Investing in AI stocks means investing in the forefront of technological innovation, with AI playing a crucial role in shaping the future across various industries.
IT and tech companies are growing like mushrooms all over the country. Thus, the competition in this space is too high. For an investor, it is crucial to understand the ‘X’ factor of a company before investing in it.
AI is a rapidly growing industry, with a market size projected to reach USD 267 billion by 2027. As AI continues to transform industries such as healthcare, finance, and retail, companies. Essentially, that are leaders in AI technology can experience significant growth.
Features of Artificial Stocks in India
Artificial stocks showcase adaptability to evolving market conditions. Machine learning algorithms continuously learn from market behaviour, refining strategies to stay relevant in fluctuating environments.
These top AI shares in India often incorporate advanced predictive analytics models, enabling a data-driven approach to anticipate market trends and fluctuations, contributing to informed investment decisions.
AI related stocks in India leverage sophisticated algorithms for trading, allowing for precise execution and rapid decision-making based on real-time market data.
Artificial intelligence stock in India often come with automated portfolio management features, streamlining the process of balancing and diversifying investments based on predefined parameters.
AI-driven stocks are equipped with robust risk management mechanisms, which dynamically adjust to mitigate potential losses and optimize returns.
Factors to Consider Before Investing in Best AI Stocks in India
AI stocks offer promising opportunity to investors due to the massive size the market is expected to command in the future. But like any other investment, a person should consider various factors before putting in the money. Here are some of those factors:
If the valuation of an AI company is already very high, then one should be careful about investing in it. One should also look at other factors such as moving averages, support and resistance for each stock before investment decision.
Take the regulations governing AI technologies into consideration. Any changes in them can significantly impact the growth prospects of AI companies. So, stay informed about any regulatory developments or policy changes that may affect the industry domestically and globally.
Analyse the company’s financials, including profitability, debt levels, and overall financial health. A company with strong financials is better positioned to weather the turbulent markets and have the necessary funds to invest in future growth.
Conclusion:-
AI stocks represent companies that are leading the development of cutting-edge AI solutions, from machine learning to robotics to healthcare diagnostics and every other field. AI is set to revolutionise business processes and decision-making leading to changes that are as deep as the advent of computer or Internet itself. It is important for investors to key in on the drivers of this change and invest early.
Investing in artificial intelligence stocks can be fruitful for the future given the rise in AI and technology and it is not going anywhere in the near future. However, as an investor, you have to evaluate certain things before putting your money into these ai stocks so that you choose the right stock that can offer great returns.