From ChatGPT to AI bots for customer interactions, artificial intelligence has become integral to businesses across the world, including India. Companies across India are now using AI (specifically Generative AI) to develop or support their businesses.
Generative AI such as OpenAI’s ChatGPT has caught attention due to its ability to understand language complexity, context and intent, said JM Financial in a recent sectoral update note. “OpenAI is not alone as Google, Facebook, Alibaba and others are all training their own versions,” the report added.
While analysts rarely track the AI space in India as a whole, brokerages such as Motilal Oswal, Groww, Samco and Upstoxx have been watching the stocks of companies using AI. Here are some of the stocks in India leveraging artificial intelligence capabilities, on the radar of brokerage analysts.
The company provides design and technology services across industries -- Automotive, Broadcast, Communications, Healthcare, and Transportation.
Stock Performance: Over the last one year, the stock has gained over 20 percent, and was last trading at Rs 8,316. Over the last five years, the stock price has grown over 7 times from around RS 1,024 in 2018. As of October 2023, analysts at Geojit BNP Paribas and KRChokesy had an ‘accumulate’ call on the stock while HDFC Securities had a ‘sell’ call.
Market Cap: Rs 46,672 crore
A global software company, Persistent systems offers a range of solutions in areas such as digital transformation, cloud computing, and AI.
Stock Performance: Over the last one year, the stock has gained over 70 percent and was last trading at Rs 6,380. Over the last five years, the stock has given bumper returns of over 9 times from around Rs 610 in 2018. As of October 2023, analysts at KR Choksey had an ‘accumulate’ call on the stock while ICICI Securities had a ‘sell’ call. Brokerages such as Axis Securities and HDFC Securities have a ‘buy’ call on the stock due the growth potential.
Market Cap: Rs 44,999 crore
Also read: ChatGPT maker OpenAI ousts CEO Sam Altman
A subsidiary of Oracle group, Oracle Financial Services offers software solutions for banking and other financial solutions.
Stock Performance: Over the last one year, the stock has gained over 36 percent and was last trading at Rs 4,182. Over the last five years, the stock has gained a modest 26 percent from Rs 3,579 in November 2018. As of November 2023, analysts at Dolat Capital have given the stock a ‘buy’ call based on global leadership in the cloud-based services business, unmatched access, superior technology, integrated & reliable offerings.
Market Cap: Rs 27,100 crore
4. Affle India
A global technology platform Affle India (which is a subsidiary of Affle) helps advertisers to measure the effectiveness of advertisement as it charges only when a user downloads an app or completes a transaction.
Stock Performance: Over the last one year, the stock has fallen over 19 percent, and was last trading at Rs 1,039. Over the last five years, the stock has multiplied over 5 times from around Rs 168 in 2019. On the company’s strong recovery potential backed by strong deal wins and improved client engagement, Axis Securities has given the stock a ‘buy’ call as of November 2023.
Market Cap: Rs 14,437 crore
A technology and engineering solutions company, Cyient Ltd specialises in network, operations, analytics, and geospatial solutions.
Stock Performance: Over the last one year, the stock has gained 118 percent, and was last trading at Rs 1,730. Over the last five years, the stock has nearly tripled from around Rs 612 in 2018. Analysts at Axis Securities have given a ‘buy’ call based on its robust order intake and growing demand in new areas.
Also read: OpenAI CEO Sam Altman’s ouster sends ripples through Silicon Valley: What next?
Market Cap: Rs 18,462 crore
Other AI-backed stocks that are on brokerage radar include Kellton Tech, TCS, Bosch, Zensar, Infosys and Happiest Minds Technologies. The brokerages suggest that investors looking into the AI space should watch out for factors such as risks, regulatory policies and overall health of the companies.
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