Artificial Intelligence Stocks in India (2024)

Last Updated on Mar 15, 2024 by Harshit Singh

Everyone is aware of the numerous developments in the technology sector. And thanks to the Digital India program, which made the country adapt to technology quickly. Considering the massive demand for digital products, several companies have emerged, creating the most innovative artificial intelligence (AI) solutions in various sectors like health, finance, education, and more. In this article, let’s look into the best AI stocks in India and the industry’s future.

What is Artificial Intelligence (AI)?

AI is an intelligent system capable of completing tasks accurately and quickly. This need not require the intervention of human intellect. So, a system with AI can make choices on your behalf. A few examples of AI are Google Maps, face recognition unlocking on your phones, chatbots, Email (categorising spam messages), intelligent vehicles, and many more.

From starting our day by unlocking the phone using facial recognition to asking Siri or Alexa for weather updates or navigation, we all widely use artificial intelligence in our daily lives.

Overview of AI industry

India’s AI industry, a blend of startups and tech giants, is on the rise, backed by government support with a proposed Rs 10,000 crore AI plan. Post-COVID, 54% of companies have embraced AI to enhance operations, according to a PwC survey. India, contributing 16% to the global AI talent, is poised for a 20% market growth over five years, as per a Microsoft-IAMAI study. This growth is fueled by tech leaders and AI-focused firms innovating and collaborating on AI solutions.

What are AI stocks?

Numerous publicly traded Indian tech firms have recognized the opportunities presented by AI. They’ve responded by either establishing new AI-focused departments within their organisations or forming partnerships with international entities to secure a share of the AI market.

Additionally, it’s anticipated that many startups will go public in the near future to secure funding for their operations and provide returns to their investors.

Investments in AI stocks are directed towards the advancement of AI technology or its application across different sectors.

Best AI stocks in India (2024)

Best AI stocks	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio (%)	1-yr Returns (%)	Net Profit Margin (%)	5-yr CAGR (%)
Oracle Financial Services Software Ltd	71,946.82	8,301.80	39.83	156.53	30.66	19.19
Zensar Technologies Ltd	13,390.07	591.00	40.87	112.82	6.62	22.13
Kellton Tech Solutions Ltd	1,100.95	113.60	-8.68	112.34	-13.79	24.13
Cyient Ltd	21,832.76	1,987.75	42.44	109.35	8.44	24.37
Persistent Systems Ltd	63,541.88	8,372.10	68.99	71.15	10.94	67.13
Saksoft Ltd	2,406.11	238.90	29.35	69.37	12.14	51.84
Bosch Ltd	87,009.19	29,501.00	61.04	57.56	9.25	9.80
Tata Elxsi Ltd	47,870.34	7,686.75	63.39	21.24	23.46	51.57
Affle (India) Ltd	15,346.02	1,095.10	62.74	6.23	16.43	–

Note: The data of best AI stocks in India is as of 7th March 2024. The stocks are sorted according to their 1-yr return.

Oracle Financial Services Software Ltd

The mid-cap AI stock, Oracle Financial Services Software, provides 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.

This AI stock generated the highest return of 156.53%. The company’s debt-to-equity ratio is 0.97%, while the industry average is 11.01%.

Zensar Technologies Ltd

Zensar Technologies is a software and infrastructure services company providing various information technology services and solutions. This small-cap AI stock shows promising signs of profitability onTickertape’s ‘Scorecard,’ and the debt-to-equity ratio has been 13.48%, while the industry average is 13.65%.

Kellton Tech Solutions Ltd

The small-cap company Kellton Tech Solutions is a software development company that provides IT solutions, strategic technology consulting, and product development services. 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.

Cyient Ltd

Cyient offers software-enabled engineering and geographic information system (GIS) services. The company’s segments include data and network operations, engineering, manufacturing, industrial products, and realisation.

This small-cap AI stock is showcasing good signs of profitability on the Tickertape ‘Scorecard’, as a result the price upside of this stock is 20.34%, which you can view under ‘Forecast & Ratings’.

Persistent Systems Ltd

The software service provider Persistent Systems is involved in building software products. The company offers complete product life cycle services. The company is showing promising signs of profitability as its market share has increased exponentially from 11.78% to 15.08% in the last 5 yrs.

Saksoft Ltd

The small-cap IT company Saksoft offers business intelligence, testing, and software solutions across various industries and verticals. Despite recording 7.4/10 on profitability, the company has a moderate number of red flags, which can dampen the mood around this company’s growth.

Bosch Ltd

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.

In the last 5 yrs, the company’s debt-to-equity ratio has been 0.5%, while the industry average is 73.51%.

Tata Elxsi Ltd

Tata Elxsi, the mid-cap stock from Tata Group, is involved in designing and developing computer hardware and software. The company operates in two segments – System integration and support and Software Development and Services.

With 8.2/10 on profitability, the company has witnessed revenue growth and net income increase in the last 5 yrs.

Affle (India) Ltd

The mid-cap stock Affle provides marketing consulting services. The company uses a consumer intelligence platform that delivers user engagement and transactions through mobile advertising.

This AI stock is showcasing good signs of profitability and growth, which can be reflected in the double-digit price upside.

Advantages of Investing in AI Stocks in India

Growth Prospect: The AI industry in India is expected to experience rapid growth, with projections indicating a significant increase in market size, making it a potentially lucrative investment sector.
Diversification: AI stocks offer exposure to various sectors, including healthcare, finance, and technology, which can help diversify investment portfolios and reduce overall risk.
Innovation and Future Potential: 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.

Risks of Investing in AI Stocks

Market Volatility: AI stocks can be susceptible to rapid price fluctuations due to market dynamics, technological advancements, or regulatory changes.
Technological and Competitive Risks: The fast-paced evolution of AI technology means that companies must continuously innovate to stay competitive, posing a risk to investors if a company falls behind.
Regulatory and Ethical Challenges: The AI sector faces potential regulatory changes and ethical considerations, which could impact AI companies’ profitability and operational capabilities.

Usage of artificial intelligence in other industries in India

The usage of artificial intelligence across various industries is huge.

AI can help with data protection, theft protection, and more regarding online security.
While looking into the education sector, Byju offers learning via AI-powered devices.
AI robots are already popular in several industries like logistics, healthcare, hospitality, etc.

Factors to Consider Before Investing in AI Stocks in India

Financial Strength and Stability: Review the financial health of AI companies, including their balance sheets, cash flow, profitability, and debt-to-equity ratios.
Data Availability: Companies with access to unique and extensive datasets may have a competitive advantage in developing AI solutions.
Tactical Investments and Industry Knowledge: Understand the interplay between AI and other technologies, such as cloud computing, and have a grasp of the industry-specific challenges and opportunities.
Technological Expertise: Familiarise yourself with the technologies that underpin AI, such as machine learning and deep learning, to better assess the potential of AI investments.
Ethical Considerations: Ensure that the AI companies you invest in employ AI in a just and ethical manner, as unethical practices could harm the company’s reputation and, by extension, its stock price.

Conclusion

AI has become an integral part of our lives. Considering the demand, many companies and industries have adopted AI in their products and services. While investing, it is essential to look at the market of that particular industry, and in the case of AI, the market seems enormous.However, along with the market, you must also consider your investment objectives and risk appetite and, most importantly, analyse the company you plan to invest in. Use Tickertape Stock Screener to determine the growth potential of a company thoroughly. You can use Scorecard to analyse a company even more wisely. Get started now!

FAQs

Is it profitable to invest in AI stocks in India?

AI is a booming industry. Most of our daily life activities include the usage of AI, and we are getting accustomed to it. Several companies are using AI in their products/systems considering the demand. If you look at the market, AI has good growth potential.

However, for an investment, you must also look at the company you are investing in. Analyse the growth numbers and forecasts of the company before investing. On Tickertape Asset Pages, along with the company’s financials, you can also check the company’s forecasts. These predictive estimates can help you in making an informed decision.

Are AI and robotics the same?

While looking at AI stocks, many investors assume that AI and robots are the same. But it is not true as these two have a few differences. In robotics, robots help humans with their tasks. While in AI, systems are made to copy the human mind. For example, if you watched a thriller series on Netflix, the next time you open Netflix, it recommends thriller series/movies. This is done with the help of artificial intelligence. AI helps you with decision-making, while robots help you with your physical tasks.