Top 10 Artificial Intelligence stocks in India
What is the Artificial Intelligence ?
Artificial Intelligence is nothing’s but a technology that could enables the machines to perform the things like a human being and animals, they are totally machines with intelligence. the machines can perform the things with high accuracy rates as they are machines, they can perform the things as per the human’s instructions.
Ex – Siri, Alexa, Google Assistant. both are totally based on the technology of Artificial Intelligence. Now everyone trying to adopt this technology into their production units to improve the efficiency and quality of the products with high high accuracy and in less time compare to the humans.
Industry analysis of Artificial intelligence stocks:
Actually the word artificial intelligence Stocks is futuristic but due to the covid impact artificial intelligence is came real into the world, prior than expected time. today everywhere AI playing key role in advancing the industries. eveyone realised the importance of AI in their industries and companies to make over themselves efficient.
Today everyone using this technology in various forms, one can use in one form and another can use this technology in another form. currently we are using this technology everywhere, such as Health care, Banking, Insurance, Automation, and many more.
Most startups are heavily investing in this technology to grab the opportunities, for example swiggy and zomato has been already invested huge amount to make sustainable positions in the market.
Day by day the usage of AI is gradually growing. As per the Accenture analysis this AI technology is going to contribute 15% of gross value of india by 2035, that should be around 957 billion USD. also one of the analysis is expected to grow this AI industry with 40% CAGR.
So we can understand that this technology is going to make the wonders in the future, we are seeing technology driven companies are making wonders currently and outperforming traditional businesses, As an investor we should experience the exponential growth story by investing into this space such as artificial intelligence stocks. here are the top 10 companies, those are going to lead this space to the next level in India.
Top 10 Artificial Intelligence Stocks in India:
1. Coforge Ltd
Coforge Ltd is formerly known as NIIT Technologies, that was incorporated in 2003, Coforge is one of the leading India’s IT services exporter and providing IT solutions across the world including USA and UK.
This company majorly works on providing solutions to the banks and insurance companies where technology advancement needs highly and these industries looking forward to adopt the AI technology that can helps the insurers to analyse the customers data.
Coforge Ltd is offering various AI based solutions across various industries such as AI based digital business assistants, deep learnig, multi currency, multi lingual, multi channel experience, image recognition, robotics process automation, natural language processing and workflow automation.
This company also investing strategically to enhance their capabilities in AI segment. To strengthen themselves this company strategically invested into SLK Global solutions, which is currently providing AI solutions in banking and Insurance in northern America. and also strategically partnered with Arago, which is the pioneer in AI technology, to provide and build AI solutions across the various industries.
This stock is fundamentally strong and generating positive cash flows from it’s operations continuously. Coforge Ltd is debt free company, their ROE is 20% and ROCE is 22.3% based on last three years. This stock is currently trading at Rs 5650, and delivered 1200% + returns in the last five years.
2. Happiest Minds Technologies Ltd
Happiest minds technologies is a IT consulting and services company that was leading by Ashok Sootha, founder of Mindtree.
This company was incorporated in 2011. This company works on disruptive technologies such as artificial intelligence, block chain cloud, digital process automation, Internet of things also known as IoT, robotics, drones, security, Virtual reality also known as augmented reality. and many more in AI space.
Happiest minds technologies ltd is a fundamentally strong company, and continuously generating positive cash flows from it’s operations. This is a debt free company. company’s ROE is 49.4%, ROCE is 27.9%, that are based on last three years. this stock is currently trading at Rs 1440. . and generated almost 300% returns since its IPO in 2020.
3. Saksoft Ltd
Saksoft is one of the major supplier of information management solutions to the most succesful companies across the world and this company encourages and transform the company to step ahead towards digitalisation of their clients. Saksoft provides all the support and solutions to the company to transform their businesses.
This company offers the solutions in the segments of big data, data analytics, AI and machine learning. Saksoft is working on digital transformation to put it a step ahead and providing intelligent solutions to the major business problems with the assistance of advanced technologies such as IoT, Machine Learning, Artificial Intelligence, Big data analysis and automation.
Saksoft Ltd is also a fundamentally strong company, and continuously generating positive cash flows from it’s operations. Saksoft Ltd is almost a debt free company. The company’s ROE is 20.6% and the ROCE is 23.8%, based on last three years average.This stock is currently trading at Rs. 1019, and generated almost 500% of returns in last five years.
4. TATA Elxsi Ltd
TATA Elxsi Ltd is another potential company from the great TATA group. Today TATA Elxsi is the most buzzing and performing stock in the midcap IT segment. This company haas the strong presence and market share in the segment of design and technology services across the world in various segments that includes automotive, broadcasting, communication, healthcare and transportation.
Coming to the AI part, this company is offering cognitive video analytics services which is completely based on Artificial Intelligence, it provides the video analytics services, that helps in tasks such as personalising content for users and automating the content analysis. This company has wide range of innovations enabled by AI and data analytics, that also includes from self driving cars to video analytics services, This company is also having own AI R&D centre named AICoE.
TATA Elxsi Ltd is a fundamentally strong company and generating positive cash flows from it’s operations. TATA Elxsi Ltd is a debt free company. The company’s ROE is 29.7% and the ROCE is 41.3% that are based on last three years average. This stock is currently trading at Rs. 5867, and this stock is generated 535% of returns from last 5 years.
5. Persistent Systems Ltd
Persistent Systems Ltd is software company that provides software engineering and strategy services to the clients to enable them to to transform digitally and to modernize their business.
This company is niche IT player and market leader in the outsourced software produts development services. This compnay has strong relationships and partnerships with tech giants such as Microsoft, Google Cloud, Salesforce, Amazon Web Services and particularly with IBM. these all are strategical partnerships.
Coming to the AI part this company providing AI support and solutions to the various segments across the industries such as healthcare which is rapidly growing after the pandemic. this company is having enough space and presence in AI segment.
Persistent systems Ltd is a 3o years old successful fundamentally strong company and this company continuously generating positive cash flows from it’s operations and this company is debt free. The company’s ROE is 14.9% and ROCE is 20%, based on last three years average. This stock is currently trading atRs. 3750. This company has been delivered 487% of returns in the last 5 years.
Remaining 5 artificial intelligence stocks was been discussed in Part – 2 of Top 10 AI stocks.
Conclusion :
As all above mentioned five artificial intelligence stocks are very strong in terms of fundamentals and having successful management. Most importantly these companies are working on the technology that is going to be transforming the entire globe into the new era. this technology is going to unveil self driving cars, robotics, Internet of Things and many more. so we need to understand that these companies is going to taste the real growth and they are going to be part and going to be drive the futuristic technology.
So that we can consider these artificial intelligence stocks for investment in terms of long term, as we discussed they have lot of potential to grow in these AI and technology space. and we can accumulate these stocks in every correction, as it’s an opportunity to get them in lower prices.
Disclaimer : This is standard disclaimer that every time i am mentioning, the stocks analysis and suggestions are purely based on my personal view. so please try to do your own research else take an advice from your financial advisor. When you can do your own research, you’ll get a conviction about particular stock that can gives confidence and you will ride the stock till it becomes multibagger.