Top Artificial Intelligence Stocks in India 2024

artificial intelligence stocks in india

Investing in artificial intelligence stocks is more than a trend; it’s a strategy to tap into the future of technology. As we look around the globe, India emerges as a powerful player with a significant stake in the AI revolution. 

Join us as we navigate the landscape of artificial intelligence stocks in India, dissect their performance, and highlight their unique attributes.

India’s Leap into the Future: The AI Industry

The Indian AI industry is on an upward trajectory, driven by innovation from startups and tech giants. This market is growing at a CAGR of 28.63%, reaching around $28.36 billion by 2030. Here are some factors responsible for this remarkable growth: 

  • Increased Enterprise Tech Spending: Forecasts predict AI spending in India is soaring at a CAGR of 39%, reaching $11,781 million by 2025. This massive surge shows how serious India is about improving its AI ambitions.

  • Massive AI Talent Pool: India is a goldmine of AI expertise, making up 16% of the global talent. That’s not all! India’s tech brains have 3X more AI skills than other countries, scoring 3.09 in AI skill penetration.

So, what’s in it for you as an investor? These trends signal that investing in artificial intelligence stocks in India is a golden opportunity. But with so many choices, how do you find the hidden gem – the company with an explosive growth prospect? Read ahead and find out! 

Top Artificial Intelligence Stocks in India (as per analyst ratings)

Based on the analyst ratings, here are some of the top-rated AI stocks in India:

S.No.

Company

Analyst Rating (in %)

1

Oracle Financial Services Software Ltd

Outperform 100%

2.

Affle India

Buy 70%

3.

Zensar Technologies

Buy 50%

4.

Persistent Systems

Buy 34%, Outperform 19%

Note: This blog is only for informational purposes; we are not SEBI registered, and we are not promoting any company or pushing you to buy stocks of a specific company; please do your research before purchasing the stocks.

Best Artificial Intelligence Stocks in India as per Market Capitalisation

Artificial intelligence stocks refer to shares in tech companies dedicated to advancing AI. Here is a list of some of the best artificial stocks in the NSE exchange:

Company

Dividend Yield (%)

Net Profit (in ₹ cr.)

ROE (%)

ROCE (%)

Piotroski Score (out of 9)

(P/E) Ratio

Market Cap (in ₹ cr.)

Debt to Equity

Book Value (₹)

Oracle Financial Services Software Ltd

3.2

2,219

30.83

39.74

6

29.43

65,119

0.01

907

Zensar Technologies Ltd

0.89

665

20.3

25.46

6

23.13

14,039

0.08

143.47

Persistent Systems Ltd

0.58

1,093

24.5

29.8

8

47.8

52,177

0.04

322

TCS

1.89

46,099

50.73

64.28

5

30.3

1,398,427

0.01

250

Bosch Ltd

1.64

1,424

13.2

17.4

5

51.59

86,885

0.00

3,929

HCL Technologies

3.72

15,710

23.00

29.84

7

24

376,385

0.03

252

Tata Elxsi Ltd

0.9

792

39.3

42.8

7

55.9

44,357

0.11

402

Affle (India) Ltd

Not Specified

246

18.5

20.2

8

56.7

15,415

0.07

114

Overview of Best AI Stocks in India in 2024

With analyst ratings and market capitalisation as our guide, we’ve compiled a list of the top AI stocks to watch in 2024. From innovative startups to established industry titans, there’s something for every investor.

Oracle Financial Services Software Ltd

With a steady dividend yield of 3.2%, a strong analyst rating, and a high market cap, OFSS Ltd. showcases resilience. Its strong ROCE of 39.74% reflects efficient capital utilisation, making it an enticing prospect for investors.

  • Market Capitalisation: ₹65,119 crores
  • High / Low: ₹ 9,023 / 3,417
  • Key Offerings: Specialises in IT solutions for the finance sector, including banking, risk management, and compliance software.

Zensar Technologies Ltd

With a solid analyst rating and a positive outlook, this small-cap AI stock is worth considering. Its attractive debt-to-equity ratio of 0.08 adds to its investment appeal.

  • Market Capitalisation: ₹14,039 crores
  • High / Low: ₹ 646 / 278
  • Key Offerings: Provides digital solutions and technology services across various sectors.

Persistent Systems Ltd

With a growing market share and strong financials, this mid-cap AI stock is positioned for long-term success. The company stocks have a high Piotriski score of 8, indicating sound fiscal health.

  • Market Capitalisation: ₹52,177 crores
  • High / Low: ₹ 4,490 / 2,308
  • Key Offerings: Provides services in cloud & infrastructure, application development, data and analytics, and more.

TCS (Tata Consultancy Services)

  • Market Capitalisation: ₹ 1,398,427 crores
  • High / Low: ₹ 4,255 / 3,156
  • Key Offerings: The company is a global leader in IT services, consulting, and business solutions.

Bosch

Bosch is a large-cap company with a low debt-to-equity ratio and a solid track record. Its AI-driven solutions have revolutionised its operations and made it a preferred choice among investors.

  • Market Capitalisation: ₹86,885 crores
  • High / Low: ₹ 31,400 / 17,925
  • Key Offerings: Manufactures and sells automotive products, industrial technology, consumer goods, and energy and building technology.

HCL Technologies

The company is a modern computing pioneer with a high market cap and a solid financial position. HCL’s stock is near its 52-week high, reflecting positive market sentiment and potential growth prospects.

  • Market Capitalisation: ₹3,76,385crores
  • High / Low: ₹ 1,697 / 1,048
  • Key Offerings: It is known for its cutting-edge solutions in digital and engineering fields, with a strong emphasis on AI-driven innovation and robust cloud-based services.

Tata Elxsi Ltd

It is a mid-cap stock from the Tata Group with solid profitability and revenue growth.

  • Market Capitalisation: ₹44,357 crores
  • High / Low: ₹ 9,200 / 6,556
  • Key Offerings: Provides design and technology services across industries, including automotive, broadcast, communications, and healthcare.

Affle (India) Ltd

This company is a mid-cap AI stock with a positive profitability outlook and potential for price upside.

  • Market Capitalisation: ₹15,415 crores
  • High / Low: ₹ 1,337 / 866
  • Key Offerings: Offers a platform that enhances the relevance of advertising through mobile apps and other platforms.

Factors to Consider Before Investing in Artificial Intelligence Stocks in India

Here are some key factors to consider before investing in these top artificial intelligence stocks in India:

1. Financial Health and Stability

Before you invest in artificial intelligence stocks, analyse the financials of potential investment targets. Examine balance sheets, cash flow statements, and debt-to-equity ratios.

2. Ethical and Regulatory Considerations

Ensure the companies you consider adhere to ethical AI use and comply with stringent AI regulations in India. It will safeguard your investment and also support responsible technological advancement.

3. Market Position and Competition

Understanding a company’s market position, unique value propositions, and competition is crucial. This analysis will help you select firms that are leaders rather than followers in innovation.

4. Tactical Investments and Industry Knowledge

Companies that invest heavily in R&D and new tech are often at the forefront of AI technology. For instance, TCS’s recent strategic investment in cloud infrastructure complements its AI initiatives.

5. Risk Diversification

AI investments can be unpredictable! So, diversifying your portfolio across different artificial intelligence stocks in NSE is wise. To reduce losses, spread your assets to companies with varying risk profiles and growth potentials.

Should You Invest in Artificial Intelligence Stocks?

Like any other investment, AI stocks have perks and pitfalls. Consider these given aspects to see if they’re the right fit for you.

Benefits of AI Stocks

  1. Growth Prospects: The Indian AI market is expanding at an unprecedented rate. Such growth can translate into lucrative returns for investors who enter the market at the right time.
  2. Diversification: Investing in AI stocks can provide diversification within a tech-focused portfolio. By spreading assets across different sectors, it reduces overall risk.
  3. Efficiency and Automation: AI has a superb ability to automate processes and improve efficiency. It can lead to cost savings and increased company productivity, translating to higher stock values.
  4. Comparative Advantage: AI stocks in India are currently valued lower than those in more developed markets like the US. This edge presents a unique opportunity to invest in potential growth at a lower cost.

Risks of AI Stocks

  1. Market Fluctuations: AI stocks can be highly volatile due to market dynamics or regulatory changes. For instance, Nvidia, a leading AI stock, faced an 18% decline in just two months during 2023.
  2. Data Privacy Concerns: AI relies heavily on data, and with its usage comes great responsibility. Data privacy and security concerns could lead to regulatory challenges, rattling the stock performance.
  3. Ethical Tightrope: AI has many implications, such as algorithm biases and job displacement. These could tarnish the reputation of AI companies and impact their stock prices.

Now that you know what drives artificial intelligence stocks, it’s time to seize the opportunity and invest in this rapidly growing industry. But remember, investing in AI stocks requires thorough research and careful consideration. So, don’t wait any longer – take action now and start investing in the future of AI! 

Disclaimer: The information provided here is for educational purposes only. Always research and consult a financial advisor before investing.

FAQs

Are artificial intelligence stocks a safe investment?

Investing in AI stocks can be profitable, but it’s crucial to research and assess the risks before deciding.

How can I stay updated on the latest developments in the AI industry?

Stay informed through reputable financial news sources, company reports, and industry publications. You can also consult an expert financial advisor to track the latest trends.

What are the main financial metrics to consider when investing in AI stocks?

Key financial metrics include ROE, net profit margin, debt-to-equity ratio, and Piotroski score. These can provide insights into a company’s financial health and performance.

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.


LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping lenders diversify their investments beyond traditional investment instruments ever since.

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