The keyword ‘Chat GPT’ is being discussed in every other post on your LinkedIn timeline, and with good reason. Artificial Intelligence (AI) has dominated search results for the last few months and gained prominence. Just like the internet was a new concept a few decades ago, AI is the face of the future and will be the next thing to change the world. Which is why it’s slowly influencing what’s new in the stock market.
Even though AI’s existed for many decades, it’s still in the beginning stages of its influence. But it’s slowly infiltrating all sectors - whether it’s unlocking your phone through face recognition or chatting with a virtual bot while shopping. And when you think about it, these are so limited compared to AI's vast potential in our day-to-day lives.
This is why the Artificial Intelligence market in India is only getting bigger, with many companies working on AI-based products and/or incorporating them into their systems. Projections for the AI market size in India foresee a growth of as high as $71 billion within the next five years.
Something that might surprise you is that the industry with the fastest adoption rate isn’t the IT industry but BFSI. AI has big potential to address the financial industry's biggest problem — personal data security breaches! And with how much companies are investing in AI, it’s the next big thing.
When you compare the boom of the Indian IT sector in the 90s to the current state of AI, it’s obvious that AI is the future to invest in. Indian companies and investors are increasing their shares in analytics and AI, which is reflected in our stock market.
Pick any company listed on the stock exchange, and there’s a high chance they’re diving into AI. But that’s not what we’re doing today. In this list, we’re looking at the top Artificial Intelligence players, companies choosing to focus on at least one main offering in AI.
As a company, Affle looks at building customer CX and focusing on insight-led solutions, specifically in the mobile advertising sector. They’ve run mobile ads for some of the biggest companies in India, such as Flipkart, Bookmyshow, Amazon and more.
With the help of AI-based data, algorithms and deep learning, they’re seeking to build a bridge between marketers and consumers to increase engagement.
To note for potential investors: Affle’s share price has grown 5.5 times since its IPO was listed in August 2019.
Born out of Pune in 1993, ‘data and analytics’ is one of the key offerings by the company. They service multinational companies across various financial, healthcare, media and software sectors to build AI-based solutions, improve automation, personalisation, and more. And with the ethics of artificial intelligence being called into question, the company is looking to incorporate the practice of building a ‘Responsible AI’ system.
To note for potential investors: Their annual revenue growth in 2022 (36.29%) was more than their CAGR for the last 3 years (19.03%)
With the help of cloud-enabled applications, automation and omnichannel solutions, Saksoft delivers data-driven insights to enhance customer experience. One of their core offerings is ‘augmented analytics’, which focuses on hyper-personalising the customer experience with deep learning, data and analytics. They also help their clients improve the data collection and analysis process, which equals faster business action.
To note for potential investors: Virtually debt-free, Saksoft has displayed increasing revenue over the last four quarters and their dividends are well covered by cash earnings.
OFFS provides financial solutions products via banking software that aids customer experience. Their services aim to improve personalisation, decrease data breaches, strengthen financial and risk management processes, and cloud-based infrastructure for banks and others. They have some of the biggest companies to count amongst their clientele, such as Zoom, FedEx, Qatar Airways, Puma and Canon.
To note for potential investors: Its P/E ratio of 15.0x is far below industry standards, and the company has had poor revenue growth in the last decade. However, it is expected to change moving forward, given its products and the future of AI.
One of India's forerunners of digital technology, Zensar Technologies, made headlines with its big shift to AI-focused in 2019. Its R&D facilities solely focused on AI and even filed for 100 patents between 2017 and 2019. It’s changing how manufacturing, BFSI, and retail companies approach challenges with AI-based solutions, transforming supply chain management.
To note for potential investors: The company is trading at a good value compared to others in the industry. It also has a good payout ratio (30%) with high and reliable dividend payouts.
The rise of AI in India indicates its potential impact on the future of the global economy. Given its niche market, AI stocks have their fair share of risks. However, we don’t buy stocks based on their current status but their future implications. AI will change the future, whether you like it or not. The question is if you want to be a part of this change. Companies in various sectors invest heavily in AI to solve complex problems, improve customer experiences, and streamline processes. Companies like Affle, Persistent Systems, Saksoft, Zensar Technologies, etc., are just a few examples of exciting opportunities in the AI industry. To find such hot funds, look at Fi Money.
Fi is a commission-free platform that allows you to invest in over 800 direct mutual funds. Fi operates under the guidance of epiFi Wealth, a SEBI-registered investment advisor, ensuring 100% security. Simplifying the investment process, Fi allows you to invest daily, weekly, or monthly through automatic payments or SIPs, all with a single tap & find top names in the AI industry. You can enjoy 100% flexibility with no penalties for missed payments, making Fi an excellent choice for AI industry mutual fund investors.