Top 10 ai stocks in india to invest in 2024 - 25

Artificial intelligence (AI) has increasingly become a crucial technology across various industries, driving innovation and efficiency. Its potential to transform businesses and boost productivity presents significant growth opportunities for AI companies' stocks in India. The rising importance of AI stocks in india is evident in the stock market, where investors are increasingly focusing on these stocks.

This article aims to explore the benefits, risks, and top 10 ai stocks in India to invest in 2024 - 25

What are AI Stocks? 

Several Indian technology companies that are listed on the stock market have come to recognize the potential that AI provides. They have either established new divisions within their company or partnered with global players to capture a share of the AI market. Additionally, it is anticipated that a large number of start-up companies will soon go public on stock exchanges in order to secure funding for both themselves and their investors.

AI stocks allocate their resources to either advancing the AI technology itself or its applications in diverse industries.

Oracle Financial Services Software Ltd

Oracle Financial Services Software Limited specializes in delivering IT solutions tailored for the financial services industry. Their offerings encompass a wide array of banking services catering to corporate, retail, investment banking, and treasury operations. Recently, Oracle has integrated two AI-powered components into its Oracle Financials Cloud platform aimed at enhancing operational efficiency and accuracy within financial processes.

These innovations include Intelligent Account Defaulting for Invoices and Dynamic Discounting features, both of which offer substantial benefits. However, it's essential to assess whether these tools are suitable for your organization's specific needs and can seamlessly integrate into your existing systems.

Bosch Ltd

Bosch Limited is involved in the production and selling of automotive goods. Bosch has a workforce of approximately 421,000 individuals worldwide and is heavily involved in research, specifically in AI-driven offerings. From 2018 onwards, the company has submitted more than 1,000 patents, demonstrating its creativity. The Bosch Center for Artificial Intelligence advances the growth and application of cutting-edge AI technologies in different industries. Bosch's studies concentrate on deep learning, natural language processing, probabilistic modeling, and reinforcement learning, guaranteeing the company stays ahead in technological progress.

L&T Technology Services Ltd

L&T Technology Services Ltd provides services in design, analysis, prototyping & testing, embedded system design, manufacturing engineering, and engineering process support through advanced CAD/CAM/CAE technology in different fields. LTTS, a top digital engineering and R&D services provider, is strategically boosting global AI adoption. They are actively involved in the NVIDIA GTC global AI conference happening from March 18-21, connecting with customers and showing their commitment to pushing forward AI technology. LTTS aims to empower global businesses with scalable AI solutions.

Wipro  

Over 210,000 employees of the company have received training in skills based on AI. The CEO of Wipro, Thierry Delaporte, recently stated that all business divisions are making efforts to introduce new products that utilize artificial intelligence. Currently, that's how things stand. For instance, gen AI is widely utilized in digital workplace services within our FullStride Cloud business. Using artificial intelligence to reduce the workload on the service desk and provide quicker and more efficient customer service is now a standard requirement in every request for proposal in this industry.

The company's stock price is above short-, medium- and long-term moving averages, with zero promoter pledge and low debt. Brokerages have upgraded the stock due to growing interest from FPIs. Lately, there has been pressure on its margins.

Tata Elxsi

Another technology company within the Tata group which is a frontrunner in the AI competition in India offers AI-powered video analytics, AI DMS, customer experience management services, conversational AI - SymanTEx, and smart annotation services known as TESA.

Lately, the stock has experienced pressure and has broken below the third support level, resulting in negative movement. However, it has received some improvements from brokerage firms and has observed an increase in return on equity over the past two years. The company has no promoter pledge and zero debt in its records.

Subex

The company's main focus has been on providing AI solutions for telecom companies, in addition to other industries. AI is used to assist telecommunications companies in predicting growth in their networks, including traffic, users, and utilization. It also provides machine learning and deep learning algorithms such as LSTM, generative adversarial networks, capsule network, elastic net, etc. for detecting and preventing fraud in networks.

The low PE ratio of the stock presents a favorable opportunity for investment. The company is debt-free and has received increasing interest from Foreign Portfolio Investors (FPIs). A decrease in ROE and RoCE in the past two years is concerning, in addition to financial stress.

Happiest Minds Technologies

The company is providing solutions that merge augmented intelligence with natural language processing, image analytics, video analytics, and new technologies such as AR and VR.

The stock is facing downward pressure because of a rise in promoter pledge and a decrease in Mutual Fund holding. The stock is trading under the averages for short, medium, and long terms. Nevertheless, solid financials are among the benefits.

Kellton Tech Solutions  

The company is providing solutions that blend augmented intelligence with natural language processing, image analytics, video analytics, and new technologies such as AR and VR.

The stock's performance has been negatively impacted by higher promoter pledge and decreased mutual fund holding. The stock is currently trading below its short-, medium-, and long-term averages. Nevertheless, robust financials are a notable advantage.

Persistent Systems Limited

Persistent Systems is a Pune-based company that is a prominent provider of software products, services, and technology solutions in India, North America, Europe, and Asia Pacific. One of the top AI stocks in India, this company provides various services such as cloud, digital and product engineering, digital transformation, artificial intelligence, analytics, data security, maintenance & support, etc. It serves customers in diverse sectors like BFSI, insurance, healthcare, life sciences, industrial, etc.

The company has over 16,000 AI professionals in its talent pool and extensive industry knowledge to create Gen AI applications and collaborations on leading AI platforms and in various industries.

The company earned Rs 9822 crore in revenue and Rs 1093 crore in PAT in FY 2024. The company has minimal debt and has shown strong profit growth over the last decade, with a steady increase in revenue of 19% and profit of 16%. The company distributes 36.6% of its profits as dividends, while the promoter owns 31.02% of the company.

Zensar Technologies Limited

Zensar Technologies, with over 10,000 employees in 33 locations worldwide, is recognized as a leading AI company in India. The company has submitted numerous AI patents and concentrates on AI research at ZensarAIRLabs, its R&D center. The company's primary focus is on efficiently and effectively disrupting various industries including hi-tech, manufacturing, insurance, healthcare, and more through innovation and speed. It is developing AI strategies for IoT, NEXT, Blockchain, and NLP.

In the fiscal year 2024, the company had a revenue of Rs 4902 Cr, experiencing an 8% compounded growth in revenue over the past decade. FY ‘24 saw a net profit of Rs 665 Cr, marking an 11% compounded growth over the previous decade. The company has reduced its debt and is close to being debt-free. The dividend payout stands at a robust 30.8%. The company is owned by promoters with a 49.18% stake.

FAQs

Q. How to invest in AI in 2024?

A. Choices include more speculative direct AI investments in individual companies or ETFs and mutual funds that offer a portfolio of multiple companies in the AI space. You can also look to add well-established companies that are positioned to increase their revenues as AI is more widely adopted across the economy.

Q. Who is leading in AI right now?

A. Nvidia is a key beneficiary and an enabler of the AI boom. Its full-stack AI platform (hardware, software, and networking solutions) enables clients to rapidly build "AI factories" (essential infrastructure for generating AI-based outputs), which in turn helps expand the AI market.

Q. What is the AI trend in 2025?

A. Business Automation: AI will automate repetitive tasks in businesses. Decision Optimisation: AI will optimise decision-making processes. Personalised Customer Experiences: Businesses will use AI to personalise customer interactions. Healthcare Breakthroughs: AI will aid in medical diagnosis and drug discovery.

Q. Can AI predict stocks?

A. "We found that these AI models significantly outperform traditional methods. The machine learning models can predict stock returns with remarkable accuracy, achieving an average monthly return of up to 2.71% compared to about 1% for traditional methods," adds Professor Azevedo.