Best AI Stocks in India 2024 - Top AI-Based Companies to Watch (2024)

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Artificial intelligence (AI) is an innovative technology that has become increasingly important in various industries. AI has the potential to transform businesses and improve efficiency, leading to significant growth opportunities for AI company stocks in India. The growing importance of AI stocks in India has also been reflected in the stock market, with AI stocks in India attracting investors’ attention. This blog will explore the benefits, risks, and the top 10 artificial intelligence stocks in India.

Best Artificial Intelligence Stocks in India Based on Dividend Yield

Here is a list of top AI stocks in India sorted according to their respective Dividend Yield percentages. This list includes the top AI based companies in India & their market capitalisation, artificial intelligence share price in India and ROE, which might be of interest to concerned investors:

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data on this AI share list is from 2nd September 2024. This data is derived from Tickertape Stock Screener.

🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

Best AI Shares in India 2024 – An Overview

Here is a brief overview of the listed artificial intelligence companies in India based on their dividend yield:

HCL Technologies Ltd

Founded in 1976 by Shiv Nadar, HCL Technologies Ltd is one of India’s leading global IT services companies, specialising in IT consulting, software development, and business process outsourcing. The company operates in various sectors, including technology, financial services, manufacturing, and healthcare, providing solutions in digital, cloud, automation, cybersecurity, and analytics. As of 2nd September 2024, HCL Technologies has a market capitalisation of Rs. 4,74,073.95 cr., and a closing price of Rs. 1,753.25. The company has a PE ratio of 30.19 and offers a dividend yield of 2.98%. The return on equity stands at 23.49%.

Infosys Ltd

Founded in 1981 by Narayana Murthy, Infosys Ltd is a global leader in IT services and consulting, providing services such as software development, maintenance, and validation to companies in finance, insurance, manufacturing, and other domains. Infosys is known for its focus on innovation, digital transformation, and artificial intelligence. The company has a market capitalisation of Rs. 8,00,768.13 cr., and a closing price of Rs. 1,943.70. The company’s PE ratio is 30.53, with a dividend yield of 2.38% and a return on equity of 31.94%.

Oracle Financial Services Software Ltd

Oracle Financial Services Software Ltd, established in 1990, is a subsidiary of Oracle Corporation. It provides specialised software solutions for the banking and financial services sector, including banking software, analytics, and risk and compliance management tools. The company has a market capitalisation of Rs. 93,738.30 cr., and a closing price of Rs. 10,988.70. Its PE ratio is 42.24, with a dividend yield of 2.22% and a return on equity of 28.98%.

Tech Mahindra Ltd

Tech Mahindra Ltd, established in 1986, is part of the Mahindra Group. It provides IT and business process outsourcing services to industries like telecommunications, manufacturing, financial services, healthcare, and retail. The company focuses on digital transformation, data analytics, and cloud services. Tech Mahindra has a market capitalisation of Rs. 1,61,145.81 cr., and a closing price of Rs. 1,636.50. The PE ratio is 68.35, with a dividend yield of 2.19% and a return on equity of 8.49%.

Tata Consultancy Services Ltd

Founded in 1968, Tata Consultancy Services Ltd (TCS) is a global leader in IT services, consulting, and business solutions. TCS offers services that include software development, systems integration, and consulting. It is a part of the Tata Group and is known for innovations in digital, cloud, and AI. TCS has a market capitalisation of Rs. 16,32,408.73 cr., and a closing price of Rs. 4,553.75. The PE ratio is 35.56, with a dividend yield of 1.62% and a return on equity of 50.30%.

Cyient Ltd

Cyient Ltd, founded in 1991, is a global engineering, manufacturing, and digital technology solutions provider serving the aerospace, defence, rail transportation, and telecommunications sectors. The company focuses on engineering, data analytics, and digital transformation. The market capitalisation is Rs. 22,117.40 cr., and the closing price is Rs. 1,977.25. Cyient’s PE ratio is 32.39, with a dividend yield of 1.50% and a return on equity of 17.03%.

Bosch Ltd

Bosch Ltd, established in India in 1951, is a leading manufacturer of auto components and a subsidiary of Robert Bosch GmbH. The company supplies mobility solutions, industrial technology, consumer goods, and energy and building technology. Bosch Ltd has a market capitalisation of Rs. 93,588.78 cr., and a closing price of Rs. 32,389.60. The PE ratio is 37.57, with a dividend yield of 1.18% and a return on equity of 21.61%.

Zensar Technologies Ltd

Founded in 1991, Zensar Technologies Ltd is an IT services company that provides digital solutions, consulting, and technology services to sectors such as retail, banking, and manufacturing. The company focuses on areas like cloud computing, AI, and automation. Zensar Technologies has a market capitalisation of Rs. 17,527.57 cr., and a closing price of Rs. 767.90. The PE ratio is 26.36, with a dividend yield of 1.16% and a return on equity of 20.34%.

Tata Elxsi Ltd

Tata Elxsi Ltd, founded in 1989, is a global design and technology services company that serves industries such as automotive, broadcast, communications, and healthcare. It provides product engineering, design, and technology solutions. The company has a market capitalisation of Rs. 49,338.20 cr., and a closing price of Rs. 8,000.70. Tata Elxsi’s PE ratio is 62.28, with a dividend yield of 0.88% and a return on equity of 34.51%.

L&T Technology Services Ltd, established in 2012, is an engineering services company that provides design and development solutions across various industries, including automotive, aerospace, and telecommunications. The company focuses on digital engineering and research and development. The market capitalisation is Rs. 61,494.25 cr., and the closing price is Rs. 5,716.10. The PE ratio is 47.17, with a dividend yield of 0.86% and a return on equity of 26.60%.

How to Invest in Artificial Intelligence (AI) Stocks in India?

Here is how one can invest in AI stocks in NSE in India:

1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!

2. Conduct thorough research into the Indian artificial intelligence stocks that are of interest to you. Investors can use tools like the Tickertape Stocks Screener to do this. The screener offers 200+ built-in filters to choose from and investors can pick and choose the parameter to research on.

3. Place a ‘Buy’ Order on the AI Stocks of your choosing.

Note: Investors should conduct thorough research and consult a financial advisor before investing in any stock.

Investing in AI Stocks in India via smallcase

You can also invest in a basket of Artificial Intelligence stocks in NSE via smallcase. Simply go to smallcase.com or the smallcase app, and login via your phone number. Then, go to ‘Discover’ and enter ‘artificial intelligence’ in the search bar and hit enter. You’ll find an array of stock portfolios that have artificial intelligence companies in India. Just pick the one that fits your investment criterion.

Make sure that you do your diligent research before picking the right AI stocks in India with price, considering your long-term investment goals and risk appetite.

What are AI Stocks in India?

Before understanding which AI listed companies in India to invest in, let’s first understand artificial intelligence in India. Artificial Intelligence refers to emulating human intelligence in machines, especially computers. It encompasses applications like expert systems, natural language processing, speech recognition, and machine vision, showcasing the diverse capabilities of AI. Therefore, AI-based stocks in India refer to the top AI companies listed in NSE that are heavily involved in developing, applying, and advancing artificial intelligence (AI) technologies.

The Indian AI Sector: An Overview

Artificial Intelligence (AI) is set to play a pivotal role in global economic growth, with a projected contribution of up to $15.7 trillion by 2030, surpassing the combined GDP of India and China. India, as the third-largest global talent pool for AI, is positioned for a significant AI revolution. Investments in India’s AI capabilities are growing at a remarkable 30.8% CAGR, expected to reach $881 million in 2023. The burgeoning semiconductor industry is poised to be the foundation of India’s AI market, projected to be valued at $7.8 billion by 2025. Anticipated to drive 60% of AI’s Gross Value Added (GVA) in India’s GDP by 2025, key sectors include Industrials & Automotive, Healthcare, Retail, and CPG. Additionally, BFSI and Agri-tech are emerging as crucial application areas for the artificial intelligence industry in India.

Why Invest in the AI Stock Industry in India?

From cars that drive themselves to robots performing surgeries, artificial intelligence (AI) is helping us transform for a better future.

The AI industry in India is experiencing growth, with a market size reaching $119.78 billion in 2022 and an estimated value of $1,597.1 billion by 2030. Businesses across sectors, including healthcare, manufacturing, finance and retail, are increasingly embracing AI technology.

IMRAC group experts suggest that investing in top AI companies in India potentially presents an exciting opportunity.

With their groundbreaking advancements in AI, such as ChatGPT, the artificial intelligence chatbot developed by OpenAI, recorded 100 million users only two months after its launch. This rate suggests that the future of artificial intelligence in India potentially looks promising. Additionally, the use of Jampp, a programmatic advertising platform to accelerate mobile businesses is on the rise as well.

As AI stocks India adoption continues to surge OpenAIs, its pro contributions can significantly impact India’s landscape. By investing in the artificial intelligence market, you can reap the benefits of the company’s growth as it continues to shape the future of AI-based solutions and applications.

Features of Artificial Stocks in India

Artificial Intelligence (AI) stocks in India exhibit distinct characteristics that define their role in the financial landscape.

• Algorithmic Trading Precision: Artificial intelligence shares in India leverage sophisticated algorithms for trading, allowing for precise execution and rapid decision-making based on real-time market data.
• Predictive Analytics: These artificial intelligence company stocks in India often incorporate advanced predictive analytics models, enabling a data-driven approach to anticipate market trends and fluctuations, contributing to informed investment decisions.
• Risk Management Strategies: Artificial Intelligence shares in India are equipped with robust risk management mechanisms, which dynamically adjust to mitigate potential losses and optimise returns.
• Adaptability to Market Dynamics: Artificial stocks showcase adaptability to evolving market conditions. Machine learning algorithms continuously learn from market behaviour, refining strategies to stay relevant in fluctuating environments.
• Automated Portfolio Management: Artificial intelligence-related stocks in India often come with automated portfolio management features, streamlining the process of balancing and diversifying investments based on predefined parameters.

Advantages of Investing in Artificial Intelligence (AI) Stocks in India

Let’s have a look at some of the advantages of investing in artificial intelligence stocks in India.

• Growth Prospect: AI is a rapidly growing industry, with a market size projected to reach USD 267 billion by 2027. As AI continues to transform industries such as healthcare, finance, and retail, companies. Essentially, leaders in AI technology can experience significant growth.
• Potential Higher Returns: Investing in artificial intelligence shares in India can provide many benefits, including the potential for high growth. Although the AI industry is still in its early stages, its products and services continue to rise and can lead to an increase in stock prices.
• Diversification: Another advantage of investing in artificial intelligence stocks in India is the potential for diversification. AI technology is used in various industries, which means investing in Indian AI stocks can provide exposure to multiple sectors. This diversification can help reduce risk and provide stability to your investment portfolio.

How to Select the Best Artificial Intelligence Stocks for Investing?

Here are a few ways you may ascertain a safe investment experience while considering top AI stocks in India, including AI startups in India:

• Assess AI Integration Commitment: Examine a company’s dedication to artificial intelligence (AI) integration. Companies actively involved in AI research, development, and application are likelier to have a solid foundation in the dynamic tech landscape, making them promising candidates for investment.
• Evaluate Financial Health: Delve into the financial health of potential AI investments. A company with a strong balance sheet and a history of sound financial management is better positioned for long-term success. Analyse earnings reports and assess revenue growth to gain insights into financial stability.
• Scalability and Adaptability: Consider the scalability and adaptability of a company’s AI solutions. A versatile approach that addresses diverse market needs and the ability to scale innovations for broader applications contribute significantly to sustained growth and relevance in the competitive AI sector.
• Partnerships and Collaborations: Examine a company’s partnerships and collaborations. Those engaged in strategic alliances with other industry leaders may have a competitive edge. Collaborations signify a commitment to innovation and often enhance a company’s market position, making them noteworthy considerations for investment.
• Regulatory Awareness: Stay informed about the regulatory landscape surrounding AI. Given the evolving nature of AI technology, a company’s ability to navigate and comply with regulations is crucial. Companies that demonstrate a proactive approach to regulatory compliance inspire investor confidence and are better positioned for long-term success in the AI market.

Risks of Investing in AI Stocks

Let’s have a look at the challenges that one should consider while investing in the top AI stocks in India:

• Volatility: As with any investment, there are risks involved in investing in even the best AI stocks in India for the long term. One of the main risks is the volatility of the stock market. AI stocks in India to buy can be affected by market fluctuations, and their prices can fluctuate rapidly.
• Technological Advancements: Other risks include regulatory changes, competition, and technology limitations. Regulatory changes could impact the AI industry, and competition could reduce the profits of AI company’s stock. Technology limitations could also affect the growth of the AI industry.
• High Competition: The AI industry is highly competitive. Established companies with significant resources can quickly enter the market and disrupt existing players, causing significant losses for investors. Therefore, investors should conduct thorough research before investing in the top AI penny stocks in India.

Tips for Investing in AI Stocks

Here we have listed out some of the best tips and strategies that you should consider before investing in artificial intelligence stocks in India.

• Portfolio Diversification: To invest in AI companies in India, investors should diversify their portfolios. Conduct thorough research on companies and their artificial intelligence stocks in India before investing.
• Long-Term Investment: It is also essential to have a long-term investment perspective, as AI stocks in India can be potentially volatile in the short term.
• Stay Updated: Investors should stay up-to-date with industry news and avoid common pitfalls, such as investing based on emotions and not having a well-defined investment strategy. Investors must closely monitor emerging technologies that could disrupt the AI industry.

As always, investors must conduct their own research and/or consult their financial advisor before investing.

Factors to Consider Before Investing in AI Stocks in India

Investing in AI stocks in India with price holds the potential for substantial returns, but prudence dictates a thoughtful approach. Here are five critical considerations for investing in AI stocks in 2024:

• Financial Strength: Examine the financial health of potential AI stocks in India investments. Analyse balance sheets, cash flow, and profitability records. Favour artificial intelligence companies in India are listed on NSE with a robust financial position, as this indicates a foundation for sustained growth.
• Competitive Positioning: Given the intense competition in India’s AI industry, scrutinise a company’s competitive standing. Evaluate factors like technology, AI market size, intellectual property, market share and customer base. A strong competitive advantage enhances a company’s growth and longevity prospects.
• Management Prowess: The leadership team’s track record is paramount. Assess the management team’s experience and understanding of the industry. Strategic and knowledgeable leadership is instrumental in ensuring the company’s and thereafter, the AI stocks in India’s long-term success.
• Regulatory Awareness: Given the evolving regulatory landscape for AI technologies, stay informed about the regulatory environment in India. Look for the top artificial intelligence companies in India listed on NSE that comply with regulations and understand potential impacts on their operations due to regulatory changes.
• Market Dynamics: Evaluate the market potential of the artificial intelligence companies’ stock in India. Thereafter, revenue, market share, and profitability growth potential should be analysed. Companies well-positioned to meet the increasing demand for AI technologies in India and globally are likely to offer superior returns.

To Wrap It Up…

Investing in AI stocks can offer potential growth opportunities, but it also comes with risks. By diversifying their portfolio, conducting thorough research, and staying up-to-date with industry news, investors can make informed decisions when investing in AI stocks in India. Considering the increasing significance of AI across various industries, you can potentially find a promising future for AI companies listed on the NSE in India. As always, please do your own research and/or consult a financial advisor before investing.

Frequently Asked Questions on Artificial Intelligence Stocks