Artificial intelligence (AI) is an innovative technology that has become increasingly important in various industries. AI has the potential to transform businesses and improve efficiency, leading to significant growth opportunities for artificial intelligence company stocks in India. The growing importance of artificial intelligence stocks in India has also been reflected in the stock market, with AI stocks in India attracting investors’ attention. In this blog, we will explore the benefits, risks, and top 10 artificial intelligence stocks to invest in India.
What are AI Stocks in India?
Before understanding which AI companies to invest in, let’s first understand artificial intelligence in India. Artificial Intelligence refers to the emulation of human intelligence in machines, especially computers. It encompasses applications like expert systems, natural language processing, speech recognition, and machine vision, showcasing the diverse capabilities of AI. Therefore, AI stocks refer to best ai shares in India or investments in top AI companies in India that are heavily involved in the development, application, and advancement of artificial intelligence (AI) technologies.
The Indian AI Sector: An Overview
Artificial Intelligence (AI) is set to play a pivotal role in global economic growth, with a projected contribution of up to $15.7 trillion by 2030, surpassing the combined GDP of India and China. India, as the third-largest global talent pool for AI, is positioned for a significant AI revolution. Investments in India’s AI capabilities are growing at a remarkable 30.8% CAGR, expected to reach $881 million in 2023. The burgeoning semiconductor industry is poised to be the foundation of India’s AI market, projected to be valued at $7.8 billion by 2025. Anticipated to drive 60% of AI’s Gross Value Added (GVA) in India’s GDP by 2025, key sectors include Industrials & Automotive, Healthcare, Retail, and CPG. Additionally, BFSI and Agri-tech are emerging as crucial application areas for AI.
Best Artificial Intelligence Stocks in India
Here is an AI stocks list of top artificial intelligence stocks of the 2024 of artificial intelligence industry with AI share prices & market capitalization that you might be interested in, all in our curated artificial intelligence share list:
|Market Cap (in Cr)
|Persistent Systems Ltd
|Oracle Financial Services Software Ltd
|Tata Elxsi Ltd
|Affle (India) Ltd
|Zensar Technologies Ltd
|Happiest Minds Technologies Ltd
Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.
Note: The data on this AI stocks list is from 7th February, 2024. However, for real-time updates on artificial intelligence share prices and market trends, visit smallcase stocks collection today!
Now, that we have covered what AI stocks to buy in India, let’s understand more about the artificial intelligence industry in the next section.
Why Invest in Open AI Stock Industry in India?
From cars that drive themselves to robots performing surgeries, artificial intelligence (AI) is helping us transform for a better future.
The AI industry in India is experiencing growth with a market size reaching $119.78 billion in 2022 and an estimated value of $1,597.1 billion by 2030. Businesses across sectors, including healthcare, manufacturing, finance and retail are increasingly embracing AI technology.
IMRAC group experts suggest that investing in top AI companies in India potentially presents an exciting opportunity.
With their groundbreaking advancements in AI such as ChatGPT, the artificial intelligence chatbot developed by OpenAI, recorded 100 million users only two months after its launch. This rate suggests that the future of artificial intelligence in India potentially looks promising. Additionally, the use of Jampp, a programmatic advertising platform to accelerate mobile businesses is on the rise as well.
As AI stocks India adoption continues to surge OpenAIs, its pro contributions can significantly impact India’s landscape. By investing in the artificial intelligence market, you can reap the benefits of the company’s growth as it continues to shape the future of AI-based solutions and applications.
Best AI Shares in India 2024 – An Overview
Here’s an overview of the best AI companies in India:
Bosch Ltd is an Indian subsidiary of the German multinational engineering and technology company, Robert Bosch GmbH. They provide technology and services in areas such as automotive, industrial technology, and consumer goods. This stock is 1.62x as volatile as Nifty, with a market cap of Rs. 54,654 Cr, the stock is ranked 114, and is also one of the best AI stocks in India with prices considered.
Persistent Systems Ltd is an Indian multinational company that provides software product development services, integration, and support services. It offers services in various domains such as healthcare, financial services, life sciences, and telecommunications. The company’s services include digital transformation, cloud computing, cybersecurity, and enterprise mobility. This stock is 2.73x as volatile as Nifty, with a market cap of Rs. 37,894 cr, the stock is ranked 159. It is also considered one of the top AI stocks in NSE for 2024 investments.
Oracle Financial Services Software Limited (OFSSL), a subsidiary of Oracle Corporation, leads globally in delivering Financial Technology Solutions across Retail Banking, Corporate Banking, Risk and Finance, and Financial Crime and Compliance Management. OFSSL assists customers in enhancing financial services, fostering vibrant economies, building resilient institutions, and safeguarding against financial crime.
Tata Elxsi is an Indian design and technology company that provides engineering services and solutions across various industries such as automotive, healthcare, broadcast, and communication. They specialize in product engineering, design and visualization, and system integration. The stock is 2.23x as volatile as Nifty, with a market cap of Rs. 45,923 cr, it is ranked 141. It is also one of the top AI stocks in India for 2024 Investments.
Cyient Limited, formerly known as Infotech Enterprises Ltd, was founded in 1991. It specializes in providing global technology services and solutions, focusing on geospatial engineering, IT solutions, and data analytics. The company is headquartered in India and operates development facilities in the same country. It serves a diverse international clientele through its subsidiaries located in the United States, the United Kingdom, Germany, Japan, Australia, Singapore, and India.
Affle (India) generated an impressive operating revenue of Rs.1,569.77 Cr. in the last 12 months. Notably, the company achieved a remarkable annual revenue growth of 29%, a commendable pre-tax margin of 20%, and a solid ROE of 16%. Furthermore, with a reasonable debt-to-equity ratio of 4%, Affle maintains a healthy balance sheet, making it one of the best AI stocks in India with price for long term investments.
Zensar Technologies Ltd., founded on March 26, 1963, is a prominent player in digital solutions and technology services. It excels in assisting global organizations from various sectors in their Digital Transformation endeavors. The company’s inception involved partnerships with international firms such as ICL UK, Fujitsu Japan, and Northern Telecom Canada.
Happiest Minds Technologies raked in a robust operating revenue of Rs. 1,542.35 Cr. in the past year. Achieving an impressive annual revenue growth of 28%, a commendable pre-tax margin of 22%, and an exceptional ROE of 27%, the company demonstrates strong financial performance. With a reasonable debt-to-equity ratio of 13%, the company maintains a healthy balance sheet, making it potentilly one of the AI stocks to buy in India in 2024.
RateGain Travel Technologies Limited originated in New Delhi as Ridaan Real Estate Private Limited on November 16, 2012. The High Court of Delhi approved a scheme of arrangement and demerger on November 25, 2014, enabling the company to acquire RateGain IT Solutions Private Limited, focusing on web-based solutions for the hospitality and travel sector. This acquisition prompted a name change to RateGain Travel Technologies Private Limited on February 25, 2015. By July 15, 2021, shareholders resolved to convert the company into a public limited one, leading to another name change to RateGain Travel Technologies Limited on July 27, 2021.
Saksoft’s impressive financial performance includes an operating revenue of Rs. 727.62 Cr. over the last 12 months, showcasing a remarkable annual growth of 37%. Noteworthy indicators include a robust pre-tax margin of 16% and an exceptional ROE of 20%. With a debt-free status and a strong balance sheet, the company consistently achieves stable earnings growth throughout various business cycles. It is also one of the top artificial intelligence listed top AI companies in India.
How to Invest in Artificial Intelligence (AI) Stocks in India?
One way to invest in the best AI shares in India is through traditional stock market investing. This involves investing in the listed artificial intelligence companies in India and buying the best AI shares in India directly.
Another way to invest in AI stock in India is through exchange-traded funds (ETFs). Investors can choose from various value-oriented ETFs, which may provide exposure to a diversified portfolio of top AI companies in India.
Mutual funds are another option for investing the best in AI shares in India. These are professionally managed investment portfolios that pool money from multiple investors to buy a diversified portfolio of AI stocks India. Like ETFs, there are a variety of mutual funds that focus on AI investing.
Investing in AI Stocks via smallcase
You can also invest in a basket of Artificial Intelligence stocks via smallcase. Simply go to smallcase.com or the smallcase app, and login via your phone number. Then, go to ‘Discover’ and enter ‘artificial intelligence’ in the search bar and hit enter. You’ll find an array of stock portfolios that have artificial intelligence companies in India. Just pick the one that fits your investment criterion.
Make sure that you do your diligent research before picking the right AI stocks in India with price, considering your long-term investment goals and risk appetite.
However, if you’re confused about which stocks to pick, you can explore smallcases:
- smallcases are readymade portfolios of stocks/ETFs, that are based on a theme idea or strategy
- They’re created and managed by SEBI-registered experts
- smallcase.com offers over 200+ stock portfolios, created by 180+ managers
- Some of the popular smallcases among new investors are as follows:
Disclosures for aforementioned smallcases
Factors to Consider Before Investing in AI Stocks in India
Investing in AI stocks in India with price holds the potential for substantial returns, but prudence dictates a thoughtful approach. Here are five critical considerations for investing in AI stocks in 2024:
- Financial Strength: Examine the financial health of potential AI stocks India investments. Analyze balance sheets, cash flow, and profitability records. Favor artificial intelligence companies in India listed on NSE with a robust financial position, as this indicates a foundation for sustained growth.
- Competitive Positioning: Given the intense competition in India’s AI industry, scrutinize a company’s competitive standing. Evaluate factors like technology, market share, intellectual property, and customer base. A strong competitive advantage enhances a company’s growth and longevity prospects.
- Management Prowess: The leadership team’s track record is paramount. Assess the management team’s experience and understanding of the industry. A strategic and knowledgeable leadership is instrumental in ensuring the company’s and thereafter the AI stocks in India’s long-term success.
- Regulatory Awareness: Given the evolving regulatory landscape for AI technologies, stay informed about the regulatory environment in India. Look for the top artificial intelligence companies in India listed on NSE that comply with regulations and understand potential impacts on their operations due to regulatory changes.
- Market Dynamics: Evaluate the market potential of the artificial intelligence companies stock in India. Thereafter, analyze revenue, market share, and profitability growth potential. Companies well-positioned to meet the increasing demand for AI technologies in India and globally are likely to offer superior returns.
Features of Artificial Stocks in India
Artificial Intelligence (AI) stocks in India exhibit distinct characteristics that define their role in the financial landscape.
- Algorithmic Trading Precision: AI related stocks in India leverage sophisticated algorithms for trading, allowing for precise execution and rapid decision-making based on real-time market data.
- Predictive Analytics: 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.
- Risk Management Strategies: AI-driven stocks are equipped with robust risk management mechanisms, dynamically adjusting to mitigate potential losses and optimize returns.
- Adaptability to Market Dynamics: Artificial stocks showcase adaptability to evolving market conditions. Machine learning algorithms continuously learn from market behavior, refining strategies to stay relevant in fluctuating environments.
- Automated Portfolio Management: Artificial intelligence stock in India often come with automated portfolio management features, streamlining the process of balancing and diversifying investments based on predefined parameters.
Advantages of Investing in Artificial Intelligence (AI) Stocks in India
Let’s have a look at some of the advantages of investing in artificial intelligence stocks in India.
- Growth Prospect: 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.
- Higher Returns: Investing in artificial intelligence stocks in India can provide many benefits, including the potential for high growth. Although the AI industry is still in its early stages, its products and services continue to rise and can lead to an increase in stock prices.
- Diversification: Another advantage of investing in artificial intelligence stocks in India is the potential for diversification. AI technology is used in various industries, which means investing in AI stocks can provide exposure to multiple sectors. This diversification can help reduce risk and provide stability to your investment portfolio.
How to Select the Best Artificial Intelligence Stocks for Investing?
Here are a few ways you may ascertain a safe investment experience while considering AI stocks:
- Assess AI Integration Commitment: Begin by examining a company’s dedication to artificial intelligence (AI) integration. Companies actively involved in AI research, development, and application are more likely to have a solid foundation in the dynamic tech landscape, making them promising candidates for investment.
- Evaluate Financial Health: Delve into the financial health of potential AI investments. A company with a strong balance sheet and a history of sound financial management is better positioned for long-term success. Analyze earnings reports and assess revenue growth to gain insights into overall financial stability.
- Scalability and Adaptability: Consider the scalability and adaptability of the AI solutions a company offers. A versatile approach that addresses diverse market needs and the ability to scale innovations for broader applications contribute significantly to sustained growth and relevance in the competitive AI sector.
- Partnerships and Collaborations: Examine a company’s partnerships and collaborations. Those engaged in strategic alliances with other industry leaders may have a competitive edge. Collaborations signify a commitment to innovation and often enhance a company’s market position, making them noteworthy considerations for investment.
- Regulatory Awareness: Stay informed about the regulatory landscape surrounding AI. Given the evolving nature of AI technology, a company’s ability to navigate and comply with regulations is crucial. Companies that demonstrate a proactive approach to regulatory compliance inspire investor confidence and are better positioned for long-term success in the AI market.
Risks of Investing in AI Stocks
Let’s have a look at the challenges that one should consider while investing in AI stocks India:
- Volatility: As with any investment, there are risks involved in investing in AI stocks India. One of the main risks is the volatility of the stock market. AI stocks India to buy can be affected by market fluctuations, and their prices can fluctuate rapidly.
- Technological Advancements: Other risks include regulatory changes, competition, and technology limitations. Regulatory changes could impact the AI industry, and competition could reduce the profits of AI companies stock. Technology limitations could also affect the growth of the AI industry.
- High Competition: The AI industry is highly competitive. Established companies with significant resources can quickly enter the market and disrupt existing players, causing significant losses for investors. Therefore, investors should conduct thorough research before investing in the top AI penny stocks in India.
Tips for Investing in AI Stocks
Here we have listed out some of the best tips and strategies that you should consider before investing in artificial intelligence stocks in India.
- Portfolio Diversification: To invest in AI companies in India, investors should diversify their portfolios and conduct thorough research on companies and their artificial intelligence stocks India before investing.
- Long-Term Investment: It is also essential to have a long-term investment perspective, as AI stocks India can be potentially volatile in the short term.
- Stay Updated: Investors should stay up-to-date with industry news and avoid common pitfalls. Such as investing based on emotions and not having a well-defined investment strategy. Investors must closely monitor emerging technologies that could disrupt the AI industry.
As always, investors must do their own research and/or consult their financial advisor before investing.
To Wrap It Up…
Investing in AI stocks can offer potential growth opportunities, but it also comes with risks. By diversifying their portfolio, conducting thorough research, and staying up-to-date with industry news, investors can make informed decisions when investing in AI stocks India. Considering the increasing significance of AI across various industries, you can potentially find a promising future for AI companies listed on the NSE in India. As always, please do your own research and/or consult a financial advisor before investing.
Here are the top 3 AI companies to invest in out of a list of the top 5 AI stocks in India for 2024. Tata Elxsi, Kellton Ltd & Happiest Minds Technologies. Note: This is for educational purposes, and is not recommendatory.
You can easily invest in AI stocks by following the below mentioned steps:
1. Open a trading account with a stockbroker.
2. Research AI stocks. Consider factors such as the company’s financials, its products and services, and its competitive landscape.
3. Make a purchase. You can buy AI stocks individually or through an exchange-traded fund (ETF).
However, you can simply invest in AI stock portfolio on smallcase.
Investing in the best AI stocks in India can be a good investment decision if you’re seeking long-term growth. However, it’s important to do your own research or consult a financial advisor before investing.
Investing in AI stocks is suitable for anyone who is looking for long-term growth and believes in the potential of AI shares in India. However, one must consider their risk appetite and investment goals before investing.
Yes, AI stock trading is a practice. It utilizes artificial intelligence and formulate predictions regarding stock prices.
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