Artificial Intelligence stocks in India (2023)

According to a survey by IMARC Group, artificial intelligence (AI) is one of the fastest-growing businesses in India, with a market size estimated to reach US$ 3,935.5 million by 2028. Artificial intelligence (AI) is poised to transform several industries and open up new investment opportunities thanks to developments in machine learning, natural language processing, and computer vision. 

What is Artificial Intelligence (AI) ?

Artificial intelligence (AI) is a branch of computer science that enables machines to carry out operations like learning, problem-solving, and decision-making that ordinarily need human intelligence. Artificial intelligence (AI) comes in a variety of forms, including narrow AI, which is created for specialised jobs like virtual personal assistants or recommendation algorithms, and general AI, which is capable of carrying out any intellectual task just like a human. AI enables machines to comprehend, analyse, and interpret data from the outside world using methods including machine learning, natural language processing, computer vision, and robotics. Although AI has the potential to revolutionise many different businesses, it also creates ethical issues that must be resolved as it develops.

What is vision on artificial intelligence ?

The vision of artificial intelligence (AI) encompasses the potential and possibilities that AI holds for the future. Here are some common visions of AI:

Enhancing Human Capabilities: AI has the potential to augment human capabilities by automating routine tasks, analyzing vast amounts of data, and providing insights and recommendations to aid decision-making. This vision sees AI as a tool that empowers humans to achieve more, rather than replacing them.

Improving Efficiency and Productivity: AI can optimize processes, workflows, and systems to improve efficiency and productivity across various industries. AI-powered automation, predictive analytics, and optimization algorithms can streamline operations, reduce costs, and enhance performance.

Enabling Personalized Experiences: AI can enable highly personalized experiences in areas such as customer service, marketing, and entertainment. AI-powered recommendation systems, virtual assistants, and chatbots can provide tailored solutions and services, catering to individual preferences and needs.

Revolutionizing Industries: AI has the potential to revolutionize industries such as healthcare, transportation, finance, and manufacturing. AI-powered technologies can transform how these industries operate, leading to improved outcomes, enhanced safety, and optimized processes.

Advancing Scientific Research: AI can accelerate scientific research by analyzing vast amounts of data, simulating complex systems, and aiding in drug discovery, climate modeling, and other scientific endeavors. AI has the potential to drive breakthroughs in various fields and contribute to scientific advancements.

Promoting Social Good: AI can be used for addressing societal challenges, such as climate change, poverty, and healthcare access. AI-powered solutions can help in predicting and mitigating natural disasters, optimizing resource allocation, and improving access to education and healthcare in underserved areas.

Ensuring Ethical and Responsible AI: The vision of AI also includes developing and deploying AI in an ethical and responsible manner. This involves addressing concerns related to fairness, transparency, privacy, and accountability, and developing regulations and guidelines to ensure responsible and ethical use of AI technologies.

It's important to note that these visions of AI are not mutually exclusive and can coexist in various applications and contexts. The future of AI will depend on how it is developed, deployed, and regulated to ensure that it benefits humanity as a whole while minimizing any potential risks. Responsible and ethical AI development will be crucial in realizing the positive potential of AI in shaping our future.

Segments of the Artificial Intelligence Stocks in India  

The AI industry is big, with plenty of different subsectors. The following are the main Artificial Intelligence stock sectors in India

Software

The largest sector of the AI market is AI software. Businesses that specialise in the creation of AI software market software platforms and applications that use AI algorithms. The healthcare, financial, and retail sectors can all leverage these platforms and apps.

Hardware

Computer chips, sensors, and other parts that support AI algorithms and applications are referred to as AI hardware. These components are created and marketed by hardware firms for use in a variety of devices, including self-driving cars and smartphones.

Services

Services connected to AI technologies include consultancy, implementation, and maintenance. AI services providers collaborate with clients to provide specialised AI solutions that address their unique needs.

Platforms

Software frameworks called AI platforms offer a set of tools and libraries to developers so they can create AI applications. These platforms can be used to develop a range of AI applications, including chatbots and image recognition software.

Robotics

The development and use of robots that incorporate AI technology falls under the umbrella of robotics, a subset of the AI sector. These robots can automate operations and increase productivity in the manufacturing, healthcare, and other sectors of the economy.

Internet of Things (IoT)

The creation of interconnected devices with the ability to gather and share data is a component of the IoT sector of the AI market. With the use of AI technologies, this data may be analysed to reveal insights that can be used to enhance goods and services.

Depending on their investment objectives and risk tolerance, investors can invest in businesses that specialise in one or more markets. Before making any investing decisions, careful investigation and analysis are necessary.

Before buying shares in artificial intelligence in India, there are several things to think about.

• Comprehensive Company Research

Recognise the business model and track record of an AI startup. Please take note of the company's long-term growth plans, strategies, and practises as well as the locations of its manufacturing and corporate offices.

• Check the Price-to-Earnings Ratio for The Company

Even if you have strong feelings about investing in a firm, resist the want to give it the benefit of the doubt because of your feelings. You must fully understand how they conduct their business financially. Watch out for the amount of debt they have, their current level of profitability, and the share price relative to their earnings per share.

• Analyse the level of risk that is currently present.

Which stock of a specific company is riskier than the rest of the market, and how can you tell? Finding a company's beta, or a technique to gauge market uncertainty, can be a good place to start before making any purchases. Finding out a company's beta is easy, and doing so can help you avoid future issues.

• Check to see if the stock's dividend is high enough to be worthwhile.

Investors can find out which stocks pay dividends on financial news websites. Avoid having irrational expectations; a startup should not be counted on to make money.

• Keep track of the company's stock chart.

Use the most basic stock chart indicators you can to spot price fluctuations. Consider the company's vulnerability to several economic factors as well as future changes to its market.

Artificial Intelligence stocks in India (2023)

Oracle Financial Services Software Ltd

The mid-cap stock, Oracle Financial Services Software, provides solutions to the financial services industry. The company offers a suite of banking products catering to the needs of corporate, retail, investment banking and treasury operations. 

The return on equity of Oracle Financial Services Software is 27.08%, and for the last 5 yrs, the company’s debt-to-equity ratio has been 0.79%, while the industry average is 9.85%.  

Tata Elxsi Ltd

The Tata Group company Tata Elxsi, a mid-cap business, is engaged in the design and development of computer hardware and software. The business is divided into two divisions: Software Development and Services and System Integration and Support. 

Tata Elxsi's return on equity is 37.23%, and its debt-to-equity ratio for the past five years has been 3.88%, compared to the industry average of 9.85%.

Happiest Minds Technologies Ltd

The IT services and consulting firm Happiest Minds Technologies specialises in big data, analytics in the cloud, mobility, and security services. Happiest Minds Technologies' return on equity is 29.91%, and its debt-to-equity ratio for the past five years has been -3.51%, compared to the industry average of 12.68%. 

Persistent Systems Ltd

The software service provider Persistent Systems is involved in building software products. The company offers complete product life cycle services. The company’s return on equity is 22.4%, and for the last 5 yrs, Persistent Systems’ debt-to-equity ratio has been 4.77%, while the industry average is 9.85%. 

Cyient Ltd

Cyient offers software-enabled engineering and geographic information system (GIS) services. The company’s segments include data and network operations, engineering, manufacturing, industrial products and product realisation.

The return on equity of Cyient is 17.22%, and for the last 5 yrs, the company’s debt-to-equity ratio has been 18.45%, while the industry average is 9.85%. 

Bosch

The large-cap company Bosch is involved in the manufacturing and trading of automotive products. They are a leading supplier of technology and services in mobility solutions, industrial technology, consumer goods, and energy and building technology. 

The return on equity of Bosch is 11.89%, and for the last 5 yrs, the company’s debt-to-equity ratio has been 0.41%, while the industry average is 79.54%.

Zensar Technologies

Zensar Technologies is a software and infrastructure services company providing various information technology services and solutions. The company’s return on equity is 16.46%, and for the last 5 yrs, Zensar Technologies’ debt-to-equity ratio has been 11.76%, while the industry average is 12.68%. 

Kellton Tech Solutions Ltd

The small-cap company Kellton Tech Solutions is a software development company which provides IT solutions, strategic technology consulting and product development services. The company’s return on equity is 15.67%, and for the last 5 yrs, Kellton Tech Solutions’ debt-to-equity ratio has been 32.87%, while the industry average is 12.68%. 

Affle (India) Ltd

The mid-cap stock, Affle, provides marketing consulting services. The company uses a consumer intelligence platform that delivers user engagement and transactions through mobile advertising. 

The return on equity of Affle is 27.81%, and for the last 5 yrs, the company’s debt-to-equity ratio has been 17.51%, while the industry average is 4.71%. 

Saksoft Ltd

The small-cap IT company, Saksoft offers business intelligence, testing and software solutions across various industries and verticals. The company’s return on equity is 21.9%, and for the last 5 yrs, Saksoft’s debt-to-equity ratio has been 17.6%, while the industry average is 12.68%. 

India's industry for artificial intelligence is expanding

The artificial intelligence (AI) market in India has been experiencing significant growth in recent years, and is expected to continue expanding in the coming years. Several factors are driving this growth, including increasing adoption of AI by enterprises, government initiatives and investments, a thriving start-up ecosystem, rapid technological advancements, increased awareness and acceptance of AI, and a focus on vertical-specific AI applications.

One of the key drivers of the AI market in India is the increasing adoption of AI technologies by enterprises. Many organizations are leveraging AI in areas such as automation, data analytics, natural language processing, and computer vision to optimize their operations, improve decision-making, and enhance customer experiences. AI is helping businesses streamline their processes, gain insights from data, and create innovative solutions, which is contributing to the growth of the AI market.

The Indian government has also been actively promoting AI through various initiatives and investments. The National Strategy for Artificial Intelligence, launched in 2018, aims to position India as a global leader in AI and includes measures such as research funding, setting up AI centers of excellence, and fostering collaboration between academia, industry, and government. These efforts are creating a favorable environment for the growth of the AI market in India and encouraging organizations to adopt AI technologies.

India's start-up ecosystem is also playing a crucial role in the growth of the AI market. There has been a significant rise in AI-focused start-ups in recent years, which are driving innovation in AI technologies and applications. These start-ups are attracting investments from both domestic and international sources, and are developing cutting-edge AI solutions for various industries. The growth of the start-up ecosystem is fueling the expansion of the AI market in India.

Furthermore, rapid technological advancements in AI, such as machine learning, deep learning, and natural language processing, are enabling the development of new applications and solutions. These advancements are empowering organizations to solve complex problems, automate tasks, and make data-driven decisions, which is driving the demand for AI technologies in India.

Increased awareness and acceptance of AI among businesses, consumers, and policymakers in India is also contributing to the growth of the AI market. Organizations are realizing the potential benefits of AI, such as improved efficiency, enhanced customer experiences, and increased competitiveness. This is driving the demand for AI solutions across various sectors, including healthcare, finance, agriculture, manufacturing, and more.

There is a growing focus on vertical-specific AI applications in India. Many industries are leveraging AI for specific use cases tailored to their unique requirements. For example, AI is being used in healthcare for telemedicine, disease diagnosis, and drug discovery, while in agriculture, AI is being used for crop monitoring and pest prediction. This vertical-specific approach is driving the adoption of AI in various industries and contributing to the growth of the AI market in India.

Conclusion

The artificial intelligence market in India is witnessing significant growth, driven by increasing adoption by enterprises, government initiatives and investments, a thriving start-up ecosystem, rapid technological advancements, increased awareness and acceptance of AI, and a focus on vertical-specific AI applications. The future of the AI market in India looks promising, with the potential for further expansion and innovation across various sectors.

Frequently Asked Questions

1. Which Indian companies are investing in the field of artificial intelligence?

Big tech firms like Infosys, TCS, and Wipro are among the Indian enterprises making investments in AI. Numerous businesses operate with AI in a variety of sectors, including retail, banking, and healthcare.

2. How will artificial intelligence (AI) develop in India?

In India, artificial intelligence appears to have a bright future. The industry is anticipated to have tremendous growth in the next years because to rising investment and government measures to support AI research and development. According to experts, AI will have a significant impact on a number of industries, including healthcare, agriculture, manufacturing, and transportation.

3. Is it wise to invest in AI?

Investors seeking chances for long-term success may want to consider investing in India's top AI businesses. Companies with a strong presence in the AI sector may be able to provide substantial profits as the market is predicted to grow quickly in the future years. 

4.Is AI a good stock to buy?

Presently, AI as a revenue segment earns lesser income than the other larger divisions for tech companies in India. So investors hoping to enter a tech company in the hope of an AI boom must take this into account. Unlike in the US, there is not any listed stock in India that earns a majority of its revenues from an AI product.

Thus, at this point in time, investors should take a holistic approach to investing in companies instead of being solely focused on their AI capabilities.

5.Which AI companies are listed in NSE?

1. BOSCH 
2. CYIENT 
3. HAPPIEST MINDS TECHNOLOGIES 
4. KELLTON TECH 

6. Which AI companies are listed in BSE ?

1. CYIENT 
2. HAPPIEST MINDS TECHNOLOGIES 
3. KELLTON TECH 

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.