While artificial intelligence (AI) as a technology has been around for long, corporates have just started fully exploring its business applications. Indian companies, especially those operating in the technology services segment, have also started experimenting with AI. The current Indian AI market size is close to $1 billion. The industry is expected to witness steep growth in the upcoming years, making AI or artificial intelligence stocks in India one of the brightest investment options for stock market traders and investors.
The AI market in India is estimated to be worth $8 billion by 2025 at a CAGR rate of 40%, according to a report. Also, the global market trends and favorable government policies make it a stable investment option for the long term. In this article, we will discuss the best stocks in AI in India that you can invest in.
What are AI stocks?
Before discussing the top AI stocks in India, let’s understand what are AI stocks. AI stocks refer to the stocks of AI or artificial intelligence companies listed on stock exchanges. Investors can invest in AI stocks to profit from the growth of the AI industry.
Top 10 AI stocks to invest in India by market capitalization
The Indian AI industry is a budding sector. Here is a list of the top 10 AI stocks in India in 2024 that you can consider investing in.
2. Cyient
5. Affle India
8. Tata Elxsi
8. Saksoft
9. Oracle Financial Services Software
Performance overview of the top AI stocks by market capitalization
When you plan to invest in AI or artificial intelligence stocks in India, knowing the names of top AI stocks is not enough. You need to observe their performance to find options that align with your investment objectives. Here, we will share a table discussing the performance overview of the best AI stocks in India to invest in.
| Company | CMP Rs. | Market Cap Rs.Cr. | ROE % | P/E | Div Yld % |
| HCL Tech | 1,587 | 4,25,299 cr | 23.5 | 25.9 | 3.31 |
| Cyient | 740 | 5,872 cr | 11.1 | 96.0 | 0.00 |
| Kellton Tech | 151 | 1,466 | 15.7 | 21.4 | 0.00 |
| Zensar Tech | 726 | 16,451 | 20.0 | 24.7 | 1.24 |
| Affle India | 1,350 | 18,923 | 15.0 | 63.6 | 0.00 |
| Persistent Systems | 4,682 | 72,124 | 24.0 | 61.6 | 0.55 |
| Tata Elxsi | 6,948 | 43,271 | 34.5 | 54.9 | 1.0 |
| Saksoft | 286 | 3,027 | 21.1 | 31.5 | 0.28 |
| Oracle Financial | 10,756 | 93,264 | 29.0 | 42.0 | 2.25% |
| L&T Tech | 5,012 | 53,040 | 25.8 | 41.7 | 1.00 |
Overview of the top AI stocks in India by market capitalization
Learning about AI solution companies is essential before investing in their stocks. You need all financial and other information to make a well-informed decision. Below, we will discuss the best AI stocks in India.
HCL Technologies
HCL is a multinational IT company established in 1976. HCL Technologies is leading player among AI stocks in India. The company positions its AI labs as an extension of its Cloud Native Labs that focuses on AI enablement. HCL Technologies has collaborated with Amazon Web Services to boost the adaptation of generative AI at the institute.
Cyient
Cyient provides software services to different industrial sectors such as energy, aerospace, defense, and healthcare. The firm leverages AI by integrating the technology into its business operations and services.
Kellton Tech Solutions
Kellton Tech Solutions is one of the top AI stocks in India that you can consider investing in. Recently, the company has shifted its focus to AI solutions. The firm’s AI offerings include both conventional and generative AI-based solutions. The company has also launched the Kverse Customer Experience Center and Innovation Lab focusing on AI solutions at their Gurgaon center.
Zensar Technologies
An RPG group company, Zensar operates in infrastructure management services and application management services. The Pune-headquartered firm taps AI to enhance its business operations. Zensar AI projects include one being executed for a utility service provider in Europe.
Affle India
Affle, a mobile marketing and adtech company established in 1994, has expanded its services portfolio to provide AI and ML solutions. Specifically, the firm offers predictive analytics, computer vision, natural language processing, and chatbot development.
Persistent Systems
The technological services company provides services such as application development, consulting, and software product engineering. The firm’s Persistent.AI solutions help customers lower costs and boost revenue growth. Persistent, established in 1990, services a wide range of industries such as banking, insurance, healthcare, and life sciences.
Tata Elxsi
TATA Elxsi, a part of the Tata group of technologies, focuses on AI solutions. The company offers AI-based customer experience management services, AI-based video analytics as well as its smart annotation service named conversational AI- SymanTEx and TESA. Tata Elxsi has zero promoter pledges and no debt on its books.
Saksoft
Saksoft is one of the best AI stocks in India. The company has shifted its focus to AI recently. The company encompasses a wide range of AI-based solutions from data mining, AI consulting, NLP-powered sentiment analysis, ML development, and more. The company has zero promoter pledge and historical evidence of the highest recoveries after a 52-week low stock price.
Oracle Financial Services Software
The Mumbai-headquartered company provides IT services to the finance industry. Oracle FLEXCUBE Universal Banking and FLEXCUBE for Islamic banking are some of its prominent banking products.
L&T Technology Services
L&T Technology Services is an engineering research and development services provider. The company, which counts the US as its largest market, is majorly into incorporating AI into its business practices. To boost its prowess in AI, the firm has partnered with SymphonyAI.
Overview of the AI industry
The Indian AI industry primarily comprises leading technology companies and AI start-ups. Also, the government’s contribution in the form of favorable policies in leveraging AI solutions in technological advancement is worth mentioning. The Ministry of Electronics and IT has allocated Rs. 10,000 crores to boost India’s AI strategy.
Also, AI advancement gathered further momentum during and after COVID-19 as the companies became more diligent in improving the workflow with advanced AI solutions.
Factors to consider before investing in the best AI stocks in India
Here is a list of factors that you should consider while investing in the best AI stocks in India.
Financial Health
One of the primary factors to consider when investing in the top AI stocks in India is the financial health of a company. Always choose a company with strong finances.
Partnerships
For Indian AI companies, collaboration with expert stakeholders in the fields is a plus point.
Technical
You should also consider metrics like moving averages, resistance, and support before investing in AI stocks.
Regulations
Consider Indian government regulations for AI. Invest in a company that complies with regulations.
Ethical considerations
The ethical use of AI is crucial. Choose an AI company that uses artificial intelligence fairly and ethically. The unethical use of AI can negatively impact the company’s stock price.
Why invest in AI stocks?
There are many reasons to invest in AI stocks. The AI industry holds immense promise for various sectors. It is becoming more and more relevant for almost every industry, including technology industry and healthcare. Investing in artificial intelligence stocks in India allows traders to capitalize on the innovative and transformative power of AI.
The global market for AI is expected to grow to $2.6 trillion by 2032, according to Precedence Research.
Conclusion
Artificial intelligence stocks in India are gaining upward momentum, leading to increased opportunities for investors. In this blog, we have discussed some of the best AI stocks in India that you can consider investing in.
