Today, Artificial Intelligence (AI) is becoming an integral part of our lives, from students to CEOs, and India is quickly emerging as one of the fastest-growing AI industries. According to a report, India’s AI market size was $680 million in 2022, and it is expected to reach $3,935 million by 2028. This presents a significant opportunity for investors, as investing now could yield good returns in the coming years. In this post, we will discuss in detail the top 5 AI stocks in India in 2024 that have the potential to provide good returns in the future.
Table of Contents
Overview of Top 5 AI Stocks in India
1. Tata Elxsi Ltd
- Current Share Price: ₹8,638
- Market Capitalization: ₹53,682 crore
- Tata Elxsi operates in various sectors, including Artificial Intelligence (AI), making it a leading technology company in India.
- The company has been consistently innovating in the AI sector, offering products like AI-based video analytics, AI-based driver intelligence services, customer experience management services, and more.
- Over the past five years, the stock has delivered a return of 788%.
- The company has shown a sales growth of 25% and a profit growth of 43% over the last three years. For investors seeking exposure to the burgeoning AI market in India, Tata Elxsi emerges as a compelling choice among the top 5 AI stocks.
2. Persistent Systems Ltd
- Current Market Price: ₹7,674.35
- Market Capitalization: ₹58,102 crore
- Persistent Systems is rapidly advancing in the field of AI, developing solutions in data analytics, machine learning, IoT, and edge intelligence.
- The company is planning to continue investing in AI, considering it a crucial driver for the future.
- The stock has delivered an outstanding return of 1,298% over the past five years.
- With a ROE of 25% and ROCE of 30%, Persistent Systems has demonstrated robust financial performance. For investors seeking exposure to top 5 AI stocks in India, Persistent Systems stands out as a compelling choice.
3. Cyient Ltd
- Current Market Price: ₹2,280.45
- Market Capitalization: ₹25,061 crore
- Cyient Ltd focuses on digital thread and intelligent automation solutions, incorporating AI technologies like machine learning and data analytics.
- While not directly working in AI, the company provides integrated manufacturing services and predictive maintenance solutions.
- The stock has delivered a return of 36% over the past five years.
- With a sales growth of 22% and a profit growth of 89% in the last three years, the company has shown promising financial performance. Cyient Ltd emerges as a strategic choice for the investors looking for top 5 AI stocks in India.
4. Affle (India) Ltd
- Current Market Price: ₹1,285.15
- Market Capitalization: ₹18,004 crore
- Affle (India) Ltd has been actively involved in the AI sector for many years, providing AI solutions in industries like banking, financial services, insurance, retail, telecommunications, education, and government.
- The stock has delivered an impressive return of 669% over the past five years.
- With a ROE of 18.5% and ROCE of 20%, the company has shown strong financial metrics. Hence it is on the fourth place in the list of top 5 AI Stocks in India.
5. Zensar Technologies Ltd
- Current Market Price: ₹576
- Market Capitalisation: ₹13,057 crore
- Zensar Technologies is an IT services company rapidly expanding its presence in the AI sector, with over 100 AI patents filed in the last two years.
- The company provides AI solutions in various industries such as banking, financial services, healthcare, and manufacturing.
- The stock has delivered a return of 15% over the past five years.
- With a ROE of 44.5% and ROCE of 50.4%, Zensar Technologies has shown steady financial performance. Hence it is in the list of top 5 AI stocks in India.
Read also: 5 Best Semiconductor Penny Stocks in India – 2024
List of Top 5 AI Stocks in India in 2024
| Name of AI Stocks | CMP | Market Cap (crore) | PE Ratio |
| Tata Elxsi Ltd | ₹8,638 | ₹53,628 | 68.53 |
| Persistent Systems | ₹7,674.35 | ₹58,102 | 61.14 |
| Cyient | ₹2,280.45 | 25,061 | 130.64 |
| Affle (India) | ₹1,285.15 | ₹18,004 | 64.74 |
| Zensar Technologies | ₹576 | ₹13,057 | 24.97 |
Note: The above figures have been taken from Google Finance.
Conclusion
Embark on an enriching investment journey into the realm of artificial intelligence with the “Top 5 AI Stocks in India.” These stocks not only embody the spirit of innovation but also offer a pathway to growth and financial success. Explore the intersection of potential and opportunity in the ever-evolving landscape of technology.
Frequently Asked Questions (FAQ)
Tata Elxsi’s AI-enabled smart annotation platform allows for speedier creation of autonomous and intelligent systems. TESA can be swiftly trained to generate real-world testing scenarios for near-miss/abnormal driving incidents, mimic corner-case failures, and much more.
The NSE lists several AI-related firms, including Tata Consultancy Services Ltd, Infosys Ltd, HCL Technologies Ltd, Wipro Ltd, Tech Mahindra Ltd, and Bosch Ltd.
Microsoft Azure. Microsoft provides a combination of consumer-facing and business AI programs. Microsoft’s Azure cloud service sells a variety of AI services, including bots, machine learning, and cognitive services. Microsoft has invested in OpenAI to strengthen their relationship and develop new AI technology.
Should you invest in AI stocks? Investors should use caution when purchasing particular stocks or narrowly targeted ETFs. Targeted investments can be riskier than wide investments like S&P 500 index funds, which offer a long-term average yearly return of roughly 10%, excluding inflation.
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