A decade ago, could you have imagined having your bank, postman, office, and shop all in one device made available to you all day every day? From wired phones to desktops and now to AI, we’ve come a long way with technology nowadays having the ability to track and study your behaviors, patterns, and routines to suggest the best solution for your problems. Today AI is a buzzword that is set to revolutionize critical areas like healthcare, defense, agriculture, and fintech among various other industries in India. In this blog, we will take a look at the best AI stocks in India, provide an industry overview, and discuss the risks involved. So let’s get started!
Here’s a comparative analysis of key metrics for the best Artificial Intelligence stocks in India and top AI stocks to buy:
Persistent Systems is a Pune headquartered leading software products, services, and technology solutions provider in India, North America, Europe, and Asia Pacific. It is one of the best AI stocks in India and it offers a wide gamut of services including cloud, digital and product engineering, digital transformation, artificial intelligence, analytics, data security, maintenance & support, etc. It caters to customers in varied domains like BFSI, insurance, healthcare, life sciences, healthcare, industrial, etc.
In the AI space, the company has a talent pool of 16,000+ AI professionals, and deep industry expertise to develop Gen AI use cases and partnerships across prominent AI platforms and industries.
In FY 2024, the company’s revenue was Rs 9822 crore and PAT of Rs 1093 Cr. The company is almost debt-free and has delivered healthy profit growth in the past with compounded revenue growth of 19% and profit growth of 16% over the last 10 years. The company’s dividend payout is 36.6% and the promoter’s holding is 31.02%.
Here is the overview of company fundamentals:
Bosch is a German conglomerate and leading supplier of technology and services for aerospace, automotive, energy, healthcare, etc.
Bosch has a dedicated research center for AI in Bengaluru that opened in 2017. Bosch integrates Artificial Intelligence (AI) and Machine Learning (ML) in several of its offerings in multiple domains across areas such as predictive maintenance, vehicle diagnostics, large-scale simulations, and more.
In FY 2024, the company’s revenue was Rs 16,727 Cr. with 7% compounded revenue growth in the last 10 years. Net Profit for FY ‘24 was Rs 2,490 Cr. with an 8% compounded growth in the past 10 years. The company’s debt has been reduced over the years and is almost debt-free. The company has a healthy dividend payout of 44.4%. Promoters hold a 70.54% stake in the company.
Here is the overview of company fundamentals:
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.
Here is the overview of company fundamentals:
Incorporated in 2011, Happiest Minds Technologies Limited is engaged in next-gen IT solutions & services. The Company focuses on industries in the Retail/CPG BFSI Travel & Transportation Manufacturing and Media space. In the AI space, it offers emerging technologies like blockchain, AI edge computing, drones, and computer vision across edutech, hi-tech media and entertainment, healthcare & life sciences industry, and manufacturing sectors.
In FY 2024, the company’s revenue was Rs 1625 Cr with 22% compounded revenue growth in the last 5 years. Net Profit for FY ‘24 was Rs 248 Cr with a 55% compounded growth in the past 5 years. The dividend payout is a healthy 32.5%. Promoters hold a 50.24% stake in the company.
Here is the overview of company fundamentals:
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 Ltd provides financial software, custom application development, consulting, IT infrastructure management, and outsourced business processing services to the financial services industry.
The artificial intelligence business segment of Oracle Financial includes the following for all cloud applications it offers to clients with AI integration.
Advanced state-of-the-art generative AI solutions
High-quality AI infrastructureAgra Stock
In FY 2024, the company’s revenue was Rs 6373 Cr with compounded revenue growth of 5% in the last 10 years. Net Profit for FY ‘24 was Rs 2219 Cr with a 5% compounded growth in the past 5 years. The dividend payout is a robust 94%. Promoters hold a 72.75% stake in the company. The company has almost nil debt and a good dividend yield of 3.18%.
Here is the overview of company fundamentals:
Tata Elxsi is amongst the world’s leading providers of design and technology services across industries including Automotive, Broadcast, Communications, Healthcare, and Transportation. Commencing business in 1989, Tata Elxsi has 12,000+ employees and 36 centers across the country.
Tata Elxsi runs the Artificial Intelligence Company Centre of Excellence (AI CoE) that enabled technology-based innovations over the past 25 years. From self-driving cars to video analytics solutions, it has a wide range of innovations enabled by AI and analytics. They have developed proprietary tools AIVA for Video analytics and SymanTEx for speech and audio analytics targeted to the media industry.
In FY 2024, the company’s revenue was Rs 3552 Cr with 16% compounded revenue growth in the last 10 years. Net Profit for FY ‘24 was Rs 792 Cr with a 27% compounded growth in the past 10 years. The dividend payout is a healthy 55%. Promoters hold a 43.92% stake in the company. The company has almost nil debt and a promising ROE of 37% in the past 3 years along with healthy profit growth.
Here is the overview of company fundamentals:
Affle is a global ad tech company with a proprietary consumer intelligence platform that transforms ads into recommendations helping marketers to effectively acquire, and drive transactions with their potential and existing users. Founded in 2005, the company provides reselling services for advertisement space for online publishing companies and mobile apps.
Affle uses an artificial intelligence-based rules engine to detect behavior analysis from various sources and uses that data to determine a user’s interests and fraudulent cases. With its data intelligence and AI ML capability, the company assists businesses in reaching out to the end user with customized solutions.
In FY 2024, the company’s revenue was Rs 1843 Cr with 49% compounded revenue growth in the last 5 years. Net Profit for FY ‘24 was Rs 297 Cr with a 44% compounded growth in the past 5 years. The company is almost debt-free and promoters hold a 56.92% stake in the company. There is nil dividend payout.
Here is the overview of company fundamentals:
Saksoft is an IT company that provides digital transformation solutions in Europe, the Americas, Asia Pacific, and others. They have 2000 employees across 16 centers 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 customized 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.
Here is the overview of company fundamentals:
Founded in 1988, Bangalore-based Mphasis Limited provides infrastructure technology and application outsourcing services and serves financial services, telecom, logistics, and technology industries. Mphasis was ranked #7 in India IT companies and overall #189 by Fortune India 500 in 2019. It was operated as an independent HP subsidiary until 2016.
Mphasis AI creates hyper-personalized interfaces for business workflows, and domain-centric solutions, enables intelligent decisions and implements automation In addition, Mphasis’ Gen AI Center of Excellence fosters innovation and delivers customized outcomes of cost, efficiency gains, speed, and service reliability.
In FY 2024, the company’s revenue was Rs 13,279 Cr with 18% compounded revenue growth in the last 10 years. Net Profit for FY ‘24 was Rs 1,555 Cr with an 18% compounded growth in the past 10 years. Promoters hold a 55.45% stake in the company. There is a healthy dividend payout of 66.9%.
Here is the overview of company fundamentals:Kolkata Investment
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
Audit.io- An end-to-end digital solution for retail businesses
KLGAME:- It is an IoT solution that leverages Bluetooth technology
Optima – Deploy on the cloud or on-premise, integrating IoT, Blockchain, and AI for data-driven energy decisions
Thrive – It is the company’s human capital management solution with a variety of automated tools
Kellton4Commerce Tailored e-commerce solutions offering prototyping, piloting, and dynamic pricing engines.
The company’s FY ‘24 revenue was Rs 983 Cr with 35% compounded revenue growth in the last 10 years. Net Profit for FY ‘24 was Rs 64 Cr. The compounded profit growth for the last 10 years is 33%. Promoters hold a 51.94% stake in the company. There is minimal dividend payout and the company’s sales growth has been abysmal 3% in the past 5 years.
Here is the overview of company fundamentals:
Founded in 2012, LTTS is an engineering services company that offers engineering, research, and development (ER&D), and digitalization solutions to companies in areas such as Transportation, Industrial Products, Telecom and Hi-Tech, Medical Devices, and Plant Engineering. LTTS’ customer base includes 69 Fortune 500 companies and 53 of the world’s top ER&D companies
LTTS plans to deliver scalable AI solutions to enterprises around the globe. The company is building a formidable pool of AI specialists and practitioners to implement AI solutions across various sectors, including manufacturing, automotive, and healthcare.
In FY 2024, the company’s revenue was Rs 8,679 Cr with 53% compounded revenue growth in the last 10 yearsJaipur Wealth Management. Net Profit for FY ‘24 was Rs 1258 Cr with a 70% compounded growth in the past 10 years. Promoters hold a 73.74% stake in the company. There is a healthy dividend payout of 41%.
Here is the overview of company fundamentals:
Also Read: Best Agriculture Stocks in India
In simple terms, Artificial Intelligence is an innovative technology that can enable computers to simulate human intelligence to accomplish tasks through a computer or machines with minimal human intervention. For example, self-driving cars, predicting future events using data, analyzing health risks, GPS, voice recognition, digital assistants, NLP, computer vision, generative AI like ChatGPT, etc.
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.
India’s AI market is expected to reach $7.8 bn by 2025. This growth will be driven by four major segments: Industrials & Automotive, Healthcare, Retail, and Consumer Packaged Goods. BFSI and Agri-tech are also currently emerging as important application areas for AI. Our article provides some of the trailblazing AI stocks list that have the potential to become stock market leaders of the future.
India has an unprecedented opportunity to drive economic growth. Countries that adopt the technology will have the chance to expand their expertise and push up economic growth.” Satya Nadella.
AI is the future technology with the potential to disrupt how business is conducted across sectors. The segment promises immense growth potential. If you have a long-term outlook, you can add AI stocks to your portfolio other than traditional IT stocks.
AI technology companies work with a multitude of clients across sectors. Artificial intelligence stocks can offer diversification and hedge against end-user industry risk.
Regulatory Landscape: AI is a new innovative concept in the initial phase, the regulatory and ethical considerations can affect players’ prospects and profits.
Intense Competition: Since AI is the future, there is intense competition with large MNCs and startups vying for business.
Unseen Future: As applicable to any new tech advancement, there is always an element of uncertainty, in how the future will unfold. This can make AI stocks very volatile and unpredictable.
AI holds the potential to create future multi-baggers, but before jumping into AI stocks, consider the company’s financial strength and gain basic knowledge about AI, ML and related technology. Do your own research about the company’s unique competitive strengths e.g. availability of data sets, ethical factors, and complimentary tech e.g. cloud computing. You can find all of these best AI stocks in India on the Rupeezy app and stay ahead of the markets as it offers comprehensive market analysis and real-time market data. Happy Investing!
Kanpur Investment