Best AI stocks to buy in 2024 - SMC Global Securities

Best AI stocks to buy in India 2024 – SMC Global Securities

In response to the rapid technological evolution, the Indian government is intensifying its investment in Digital India, emphasising Artificial Intelligence, big data, IoT, machine learning, robotics, and cybersecurity. This surge in support has ignited investor and analyst interest, making the best AI stocks in India particularly appealing. The strategic alignment between government and upcoming technologies shows India’s commitment to staying ahead in the digital landscape.

What are AI stocks?

Equities within leading Artificial Intelligence firms are referred to as AI stocks. Advanced technologies, including cybersecurity, robots, and machine learning, are the main focus of these businesses. These equities represent ownership stakes in firms spearheading innovation and profiting from the increasing integration of artificial intelligence in various industries.

Top 10 AI Stocks to Invest in 2024

Here’s a list of the top 10 best AI stocks in 2024 :

  1. Tata Consultancy Services
  2. Tata Elxsi Ltd
  3. Bosch Ltd
  4. Persistent Systems Ltd
  5. Wipro
  6. Saksoft Ltd
  7. Oracle Financial Services Software Ltd
  8. Cyient Ltd
  9. Affle (India) Ltd
  10. Happiest Minds Technologies Ltd

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Overview of Best AI Stocks to Invest in India

Tata Consultancy Services

The introduction of TCS Studio by India’s top software exporter and AI training for over 100,000 employees propels its stock above short-, medium-, and long-term averages, approaching a 52-week high, making it one of the best AI stocks in India for long term.

Tata Elxsi Ltd

A prominent Tata group tech entity specialises in AI video analytics, AI DMS, customer experience management, SymanTEx conversational AI, and TESA innovative annotation services.

Bosch Ltd

Bosch delivers cutting-edge technology and services across automotive, industrial technology, and consumer goods. Marked by a market cap of ₹54,654 cr, the stock, ranking 114, stands out and makes it one of the best stocks in AI industry.

Persistent Systems Ltd

Persistent Systems Ltd, an Indian multinational, excels in software product development, integration, and support services. It provides digital transformation, cloud computing, cybersecurity, and enterprise mobility solutions.

Wipro

Wipro is set to invest $1 billion, intensifying its commitment to artificial intelligence for automation, analytics, and machine learning. This substantial investment will propel advancements in Wipro’s infrastructure.

Saksoft Ltd

Saksoft demonstrates financial prowess with an operating revenue of Rs. 727.62 Cr. in the last 12 months, boasting an impressive 37% annual growth, affirming its resilience and success in the market.

Oracle Financial Services Software Ltd

Oracle Financial Services Software Ltd. innovates with AI-driven cloud apps, revolutionising customer experience and expediting operations for time and cost efficiency.

Cyient Ltd

Cyient Limited, formerly Infotech Enterprises Ltd, specialises in geospatial engineering, IT solutions, and data analytics; the India-based company operates development facilities, solidifying its commitment to innovation.

Affle (India) Ltd

Affle (India) showcased robust financial performance, recording an impressive operating revenue of Rs. 1,569.77 Cr. in the past year. Notably, the company attained a remarkable 29% annual revenue growth, signalling its strength and growth trajectory.

Happiest Minds Technologies Ltd

Happiest Minds Technologies demonstrated financial strength with an operating revenue of Rs. 1,542.35 Cr. in the last year, underlining its robust performance and solid position in the market.

WHY SMC

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Latest Performance of Top 10 AI Stocks

Company Name CMP Rs. Mar Cap Rs.Cr. 1Yr return % ROCE % CMP / BV Debt / Eq ROE % EPS 12M Rs. P/E Div Yld %
Tata Consultancy Services  4,150 15,18,932 11.7 58.7 13.85 0.08 46.9 122.62 33.3 1.16
Tata Elxsi Ltd 7,443 47748 15.05 47.7 22.78 0.11 41.1 127.98 58.2 0.81 
Bosch Ltd 26,301 77,395 51.08 17.4 5.18 0.00 13.2  482.99 46.0 1.83
Persistent Systems Ltd 8,698 67,036 84.2 30.3 8.94 0.00 25.3 37.20 65.1 0.46
Wipro 470 245546 18.08 17.7 3.54 0.26 15.87 21.06 21.7 0.21
Saksoft Ltd 315 3339 130.38 28.41 7.35 0.03 22.67 9.01 35.05 0.22
Oracle Financial  7701 66,748 146.58 35.1 4.70 0.00 24.8 205 31.2 2.92
Cyient Ltd 2,132 23,639 139.3 19.8 4.06 0.00 16.6 32.44 33.0 1.22
Affle (India) Ltd 1,136 15,959 10.23 20.2 14.45 0.00 18.5  5.02 58.6 0.00
Happiest Minds Technologies Ltd 866 13195 2.35 27.37 9.58` 0.39 28.93 16.22 54.48 0.62

Overview of the AI Industry in Indian Market

India’s AI market is driven by startups and established tech firms venturing into the field. The government has allocated Rs 10,000 crore, emphasising PPP servers.

PwC notes that 54% of companies adopted AI and accelerated post-COVID for workflow optimization. Microsoft-IAMAI study reveals India contributes 16% of global AI talent, projecting a 20% market growth in five years. Leading tech firms innovate with AI solutions, either independently or collaboratively.

Advantages and Risks Associated with Investing in AI Stocks

Promising Growth
The Indian AI sector is on an accelerated trajectory, poised to reach USD 267 billion by 2027, transforming industries like healthcare, finance, and retail.
Lucrative Returns
Investing in Indian AI stocks holds the potential for robust returns, driven by rising demand despite the industry’s early stage.
Diversification
The widespread integration of AI across diverse industries offers valuable portfolio diversification, exposing investors to multiple sectors and enhancing stability.

Investing in AI stocks in India has challenges, such as market volatility, regulatory risks, intense competition, and technological limitations. Before investing in this sector, in-depth research must be conducted to understand these uncertainties and make sound investment choices.

Why should you invest in AI stocks in India?

AI has grown leaps and bounds over the past few years, showing remarkable breakthroughs revolutionising diverse aspects of our daily lives. Investing in AI stocks is an opportunity that offers potential returns, capitalising on breakthroughs and transformative innovations that promise to reshape industries across sectors.

As AI grows across sectors, exploring the NSE-listed AI companies in India offers potential for a promising future for investors.

How to Start Investing in AI Stocks?

SMC’s cutting-edge online trading platform simplifies and enhances the process of trading AI stocks. In just four straightforward steps:

Start your journey in 3 easy steps with us:

  1. Go to the official website of SMCtradeonline or simply download the app
  2. Open a free demat account
  3. Start investing

WHY SMC

  • 20 Lac+ unique clients
  • 33+ Years of Serving
  • Advance Technical Analysis
  • Free Demat Account



Conclusion

The thriving AI landscape in India presents a compelling investment opportunity. The AI sector is poised for growth as the government emphasises digital transformation, and significant players like TCS, Wipro, and Saksoft exhibit promising performance.

Despite challenges, the potential returns and transformative impact make investing in AI stocks a strategic move for a future-forward portfolio. SMC’s user-friendly platform simplifies the process, offering a gateway to capitalise on this dynamic and promising sector.

References 

https://economictimes.indiatimes.com/defaultinterstitial.cms

Author: All Content is verified by SMC Global Securities.

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