Artificial Intelligence (AI) has become a part of our life these days. from simple photo editing to a self-driving car, and robotic workforce, Artificial Intelligence is unavoidable in the present world. AI is playing a crucial role in many industries because Artificial Intelligence can enhance the efficiency of the business and its results. this growing Importance and applications of AI is reflected in the stock market. Investors are keen to know about the Best Artificial Intelligence stocks in India. In this Blog, we will go through the best Multibagger AI Stocks for the next 5 years.
Artificial Intelligence Industry in India
The modeling of human intelligence functions by machines, especially computer systems, is known as Artificial Intelligence. speech recognition, Expert systems, machine vision, and language processing are a few examples of specific AI applications. India is bringing pure expert knowledge and expandability of solutions to Al’s execution as a nation that quickly transitioned from physical to digital presidency during the pandemic. AI initiatives are increasing due to this digital readiness, whether for modular UPI transactions or centralized data storage in the DigiLocker.
Multibagger AI Stocks for next 5 years
Here is a list of the top artificial intelligence stocks of the 2023 artificial intelligence industry.
|S.No||Name of the company||Share Price||Market cap|
|1.||TATA ELXSI LTD||₹7,250||₹ 45,111 Cr|
|2.||BOSCH LTD||₹19,200||₹ 56,628 Cr|
|3.||PERSISTENT SYSTEMS LIMITED||₹5,800||₹ 44,531 Cr|
|4.||HAPPIEST MINDS TECHNOLOGIES LIMITED||₹ 874||₹ 13,313 Cr|
|5.||KELLTON TECH SOLUTIONS LIMITED||₹ 86.2||₹ 833 Cr|
|6.||ZENSAR TECHNOLOGIES LIMITED||₹ 517||₹ 11,715 Cr|
|7.||AFFLE INDIA LIMITED||₹ 1,107||₹ 14,750 Cr.|
|8.||ORACLE FINANCIAL SERVICES SOFTWARE LIMITED||₹ 4,111||₹ 35,596 Cr.|
|9.||SAKSOFT LIMITED||₹ 327||₹ 3,453 Cr|
|10.||CYIENT LIMITED||₹ 1,694||₹ 18,756 Cr|
1. TATA ELXSI LTD
Incorporated in 1989 Tata Elxsi Works develops and promotes applications of electronics, embedded systems, and software. Today Tata Elxsi is one of the world’s leading design and technology services providers in various industries including automotive, transportation, communication, healthcare, and broadcasting. The company also focuses on other technology-related projects like IoT (Internet of Things), cloud, and smart mobility. The company won the NASSCOM Engineering & Innovation Excellence Awards 2021 for Engineering Service Providers across all product groups.
Other various services provided by the company`s software development and services segment are new product design, development, and testing services, consumer insights and strategy, user experience design, Technology consulting, service experience design, visual design and branding, and three-dimensional (3D) animation services. Apart from software and other IT products When it comes to AI the company has had success in various fields like self-driving cars, video analytics solutions, etc. Financially the company has performed well. Tata Elxsi had a 15% compounded sales growth for the last 5 years.
Following are the few fundamental parameters of the company click here to get full and updated fundamental details. ( redirects to screener )
|Market Cap: ₹ 45,111 Cr||Current Price: ₹ 7,250||High / Low: ₹ 8,695 / 5,708|
|Stock P/E: 59.4||Book Value: ₹335||Dividend Yield: 0.83 %|
|ROCE: 47.7 %||ROE: 41.1 %||Face Value: ₹10.0|
2. BOSCH LTD
Bosch Limited is the Indian subsidiary of Robert Bosch GmbH – a German multinational engineering and technology company. The company’s segments include consumer goods, gasoline systems, automobiles, Diesel systems, automotive aftermarket goods, power tools, building technology, and more. The company provides hardware, software, and service-based smart mobility solutions. and they play a major role in implementing artificial intelligence in this sector. especially in the control technology and other hardware and software engineering segments.
|Market Cap: ₹ 56,628 Cr||Current Price: ₹ 19,200||High / Low: ₹ 19,990 / 15,391|
|Stock P/E: 37.8||Book Value: ₹ 3,734||Dividend Yield: 2.48 %|
|ROCE: 17.4 %||ROE: 13.2 %||Face Value: ₹10.0|
3. PERSISTENT SYSTEMS LIMITED
Persistent Systems Ltd. is an Indian MNC that mainly focuses on software product development services, integration, and support services. the company offers services in different domains including telecommunications, financial services, life sciences, and healthcare. the company’s major services include cybersecurity, digital transformation, enterprise mobility, and cloud computing.
From the AI aspects, the company is predominantly involved in various services, including data and analytics, intelligent automation, cloud & infrastructure, client experiences (CX) transformation, and data and product engineering. The company has two subsidiaries, Aepona Group Limited (AGL), Aepona Imported, Youperience GmbH (YGmbH), and Youperience Limited
|Market Cap: ₹ 44,531 Cr||Current Price: ₹5,800||High / Low: ₹ 6,035 / 3,172|
|Stock P/E: 46.4||Book Value: ₹ 519||Dividend Yield: 0.69 %|
|ROCE: 30.3 %||ROE: 25.3 %||Face Value: ₹10.0|
4. HAPPIEST MINDS TECHNOLOGIES LIMITED
One of the leading IT consulting and services providers in India. company`s major segments are Product Engineering Services, One of the leading IT consulting and services providers in India. company`s major segments are Product Engineering Services, and Digital Business Solutions (DBS). The company is aggressively working on Artificial Intelligence based services. and it is considered one of the most promising AI-based technology firms in India now.
|Market Cap: ₹ 13,313 Cr||Current Price: ₹ 874||High / Low: ₹ 1,044 / 763|
|Stock P/E: 60.2||Book Value: ₹ 56.2||Dividend Yield: 0.62 %|
|ROCE: 27.4 %||ROE: 28.9 %||Face Value: ₹ 2.00|
5. KELLTON TECH SOLUTIONS LIMITED
Kellton Tech Solutions is an international company with its headquarters in India that provides services in enterprise resource planning, digital transformation, and other information technology fields. Following are the key services
- Digital Commerce and Marketing
- Outsourced Product Development
- Professional Services
- Technology Consulting
- Digital Integration
- Testing and Automation
- Agile Software Development
- Research and Development Labs
- Platform Modernization
also, the company provides the Kellton4Media, KLGAME, Optima, and tHRive platforms. Kellton4Media covers all the duties and responsibilities a media organization carries.
|Market Cap: ₹ 833 Cr||Current Price: ₹ 86.2||High / Low: ₹ 98.7 / 40.5|
|Stock P/E: 15.4||Book Value: ₹ 38.6||Dividend Yield: 0.00 %|
|ROCE: 14.5 %||ROE: 10.4 %||Face Value: ₹ 5.00|
6. ZENSAR TECHNOLOGIES LIMITED
Zensar Technologies is one of the known electronic alternatives and technology services providers in India. A wide range of information technology solutions and services are provided by the company. Digital and Application Services-DAS and Digital Foundation Services – DFS are the two major operating segments of the company. Zensar Technologies is said to be India’s one of the major players in the Artificial Intelligence sector. its working segments have the potential to bring a revolution in AI.
|Market Cap: ₹ 11,715 Cr||Current Price: ₹ 517||High / Low: ₹ 575 / 202|
|Stock P/E: 28.7||Book Value: ₹ 131||Dividend Yield: 0.97 %|
|ROCE: 14.5 %||ROE: 11.2 %||Face Value: ₹ 2.00|
7. AFFLE INDIA LIMITED
AFFLE is a global technology company. consumer intelligence platform that generates consumer recommendations and conversions through relevant mobile advertising for brands and business-to-consumer companies worldwide is the major service area. The two segments operated by the company are, the consumer platform and the Enterprise platform it has various platform options as follows
- Traction Enterprise
converting new customers and retargeting current customers to move them closer to transactions are the main services offered by the consumer platform of the company. Also, the company provides a complete solution package for businesses to improve their interaction with mobile users. it includes the creation of mobile applications and enterprise-grade data analytics for both online and offline businesses.
|Market Cap: ₹ 14,750 Cr||Current Price: ₹ 1,107||High / Low: ₹ 1,300 / 866|
|Stock P/E: 57.6||Book Value: ₹ 110||Dividend Yield: 0.00 %|
|ROCE: 20.2 %||ROE: 18.5 %||Face Value: ₹ 2.00|
8. ORACLE FINANCIAL SERVICES SOFTWARE LIMITED
Oracle is one of the leading companies in India that offers business processing services and information technology solutions for companies in the financial services sector. Its major segments include
- Business processing outsourcing services
- IT solutions, and related services
- Product licenses
- Associated business activities (Products) (BPO-Services).
The company`s service segment provides services for the lifecycle of the applications used by financial service institutions. and the company`s service segment offers applications, technology, consulting, and support services.
|Market Cap: ₹ 35,596 Cr||Current Price: ₹ 4,111||High / Low: ₹ 4,529 / 2,883|
|Stock P/E: 19.6||Book Value: ₹ 863||Dividend Yield: 5.47 %|
|ROCE: 35.1 %||ROE: 24.8 %||Face Value: ₹ 5.00|
9. SAKSOFT LIMITED
Saksoft Ltd is one of the leading IT service providers in India. allied business solutions, Information technology services, strategic consulting services, and digital transformation solutions are the major areas of the company and its subsidiaries. the company has the following verticals that strengthen its business.
- public sector
Some of the digital solutions offered by the company are intelligent automation, enterprise cloud, Enterprise applications, and augmented analytics. also, the company offers managed services, core data services, testing and quality assurance, and application services. Saksoft Ltd has a global presence, it runs its business primarily in Europe, the United States, and Asia Pacific.
|Market Cap: ₹ 3,453 Cr||Current Price: ₹ 327||High / Low: ₹ 377 / 92.4|
|Stock P/E: 38.7||Book Value: ₹ 38.3||Dividend Yield: 0.21 %|
|ROCE: 28.4 %||ROE: 22.7 %||Face Value: ₹ 1.00|
10. CYIENT LIMITED
Cyient Ltd. is one of India`s best technology and engineering solutions companies. it specializes in geospatial solutions, operations, networks, and analytics. other major services provided by the company as as follows,
- digital services and solutions
- portfolio of industries
|Market Cap: ₹ 18,756 Cr||Current Price: ₹ 1,694||High / Low: ₹ 1,945 / 724|
|Stock P/E: 31.1||Book Value: ₹ 314||Dividend Yield: 1.53 %|
|ROCE: 19.8 %||ROE: 16.6 %||Face Value: ₹ 5.00|
Advantages of Investing in AI Stocks in India
1. Growth Prospect
Artificial Intelligence (AI) is growing rapidly in India. As we mentioned in the introduction, from photo editing to autonomous cars, AI is spread across all the segments. and all individuals and businesses are keen to take advantage of this AI revolution. so the growth potential of the AI is humongous. so AI-based companies in India may see rapid growth in the coming years. It will surely reflect on the stock exchanges too.
2. Higher Returns
As we discussed the Artificial Intelligence sector will definitely witness huge demand in the coming years. From tech giants to normal start-ups, every business is highly welcoming AI so the listed companies that work with AI may see a boom in coming years. so investing in AI-based companies may give you good returns. even though it is the early stage of AI, its demand will definitely rise in the future, and it will lead to a rise in profits in AI stocks.
3. Portfolio Diversification
Portfolio diversification is a very important factor when it comes to making a long-term healthy portfolio. adding AI stocks to your portfolio will help you to diversify your portfolio and the current demand for AI technologies will reflect on the listed AI stocks too. so that will give you good profits in the long term.
Risks of Investing in AI Stocks
1. High Competition
As we mentioned earlier AI is in its early stages. from tech giants to startups. companies and businesses are highly competing to take advantage of AI so before you make any investing decision in AI stocks you must do a detailed study on the companies. competition is good. but as an investor, we need to understand which company is moving forward.
As we witnessed in the cryptocurrency, regulatory changes may affect any sector immediately. so if you are planning to invest in AI stocks you must keenly focus on the industry news and updates. and high competition may affect the profits of the companies. it will also cause volatility in the AI stock price. any news or regulatory changes regarding AI will make an impact on the stock price so the AI investors must be well connected with market news and updates.
3. Technological Advancements
For good long-term growth of AI, the technology should also develop parallelly. AI can’t make things alone so definitely technological advancement is a crucial factor in the growth. so AI stock investors must consider this factor too.
Points to be noted Before Investing in AI Companies
As we discussed Artificial Intelligence will take the world to the next level. even though AI is in its early stages. it will definitely boom in the coming years. so it will surely make an impact on the stock market too. AI investors are interestingly watching all these developments and they are very keen to invest in AI stocks. here are a few important points before you make any investment decision on the Artificial Intelligence stocks.
- Make a detailed research about the company
- Determine your current risk appetite and your investment horizon.
- Check the Price-to-Earnings Ratio for The Company
- check if the Dividend on the Stock is High Enough to Make it Worthwhile
- Keep and eye on the charts of the company and do technical analysis if necessary.
Investing in Artificial Intelligence stock is good for our portfolio diversification and it may give a good return in the future. As we discussed we will witness a humongous change in the technological world by artificial intelligence. in this blog, we discussed 10 Leading Artificial Intelligence companies and the advantages and risks involved in AI stocks. you can consider these Multibagger AI Stocks for next 5 years. I hope this blog will you some useful info if you are a person who is planning to invest in AI stocks.