Top 5 Artificial Intelligence (AI) stocks in India | Anushka Rathod | AI stocks in India - YouTube

Hello everyone. Today we will be covering a topic that is said to be the future of information technology.

It has the potential to transform the entire world.

We are talking about Artificial Intelligence or AI.

In this video, we will be covering, What is AI? What are the real-world applications of AI at present?

What is the future of AI in India? Which are the top 5 AI stocks in India?

So let's begin.

Artificial Intelligence or AI is by no means a new topic

It was first introduced way back in 1950 by the Father of Computer Science Alan Turing when he raised the question “Can machines think?”

AI leverages computers and machines to mimic the problem-solving and decision-making capabilities

But of course, it is for limited tasks and narrow capacity.

AI is used in daily life. Like

1. Speech Recognition: In Apple’s Siri or Amazon’s Alexa 2. Customer Service: Virtual chatbots

3. Image Processing: Used in social media or self-driving cars

4. Recommendation Engines: In search engines, ad recommendations, social media, and streaming services

5. Automated Stock Trading: Rule-based computer-operated stock trading

A lot of AI applications that are in use daily are what we call "narrow” or “weak” AI which is primarily rule-based and has a limited set of functions.

For example, there is a specific set of commands that you can order Siri or Alexa to do only in a specific sequence and in specific languages.

It won't recognize you and the task won't be completed.

Similarly, chatbots or virtual chat assistance programs have a set of options and cannot handle any outside requests.

Another example is that the recommendation engine in Netflix is only going through the past viewing data of the customers

And makes recommendations based on specific rules only like genre, language, etc.

These rule updates are in 2 types.

Manual inputs or the algorithm that continuously updates and changes as per data fed in it.

This is what is known as Machine Learning.

Given the vast potential for AI and its applications, it is expected to have a big impact on technological development in the future.

The major advantage of AI is that it can complete repetitive, detail-oriented tasks with a very small margin for error as compared to humans.

Like assembling a car or sifting through vast amounts of data like going through legal documents very fast

Thus, AI is expected to bring in a new industrial revolution

With all repetitive tasks being done by machines through AI automation and only critical decision-making tasks being left for humans.

This can be replicated almost everywhere with AI is expected to integrate our daily lives as time goes on.

The AI space in India may not be as developed as other tech-based economies like US

But numerous startups are coming up in diverse segments like edtech, agriculture tech, and others using AI/ML.

Many programs are running in India for AI development promotion like AI Game Changers by Nasscom

India is expected to have 100 AI startups by 2025.

According to Accenture, AI has the potential to add $957 billion or 15% of the current Indian GDP by 2035.

The majority of this will be added through industrial and manufacturing automation and the digital transformation of corporates in India.

India also has a big scope for AI development given the vast talent pool the country has in the IT space and the high young graduate population.

Now we will look to identify the major players in the AI space in India.

As every software co. is involved in AI, we will be avoiding major software giants like TCS and Infosys who are involved in many other fields

And we will specifically be discussing companies that are focusing majorly on AI/ML applications.

The top 5 AI stocks as per market cap in India by this criterion are:

First is L&T Technology Services.

LTTS is an engineering services, research & development (ER&D) company.

It is a listed subsidiary of the Indian Conglomerate Larsen & Toubro.

LTTS provides end-to-end digital and engineering solutions for a variety of industries

Like Transportation, Industrial Products, Telecom and Hi-Tech, Medical Devices, and Plant Engineering.

The company has over 69 Fortune 500 clients and it has a total of 283 clients around the world.

The company’s major focus in AI/ML is in building AI solutions for industrial use-cases.

L&T Technology Services’ market cap is 56,699 crores.

Its PE is 68.6 1-year sales return is 218%

Second is Tata Elxsi.

Tata Elxsi is another big Engineering Research & Development player in India.

It is a leading provider of design and tech services across industries including Automotive, Media, Communications, and Healthcare.

The company’s major focus in AI/ML applications is in the media and broadcasting space and the autonomous vehicles space.

Tata Elxsi’s market cap is 37,605 crores.

Its PE is 81.9 1-year sales return is 286%

Third is Persistent Systems.

Persistent System is a leading player in the digital and cloud transformation space in India.

The company has an active client base of over 1000 companies

It has partnerships with many industry majors including AWS, IBM, Salesforce, red hat, Microsoft, Appian, Google, Snowflake, and others.

The company’s focus on AI is mainly in the digital banking and healthcare software solutions spaces.

Persistent Systems’ market cap is 31,928 crores.

Its PE is 55.8 1-year sales return is 244%

Forth is Happiest Minds.

Happiest Minds is an IT company that specializes in disruptive technologies

like artificial intelligence, blockchain, digital process automation, internet of things, robotics/drones, security, virtual/augmented reality, and others.

The company has over 186 active clients.

HM services Automotive, BFSI, Consumer packaged goods, e-commerce, edtech, engineering, hi-tech, manufacturing, retail, and travel sectors.

In the AI space, Happiest Minds provides data science and big data engineering services along with AR/VR applications.

Happiest Minds’ market cap is 18,617 crores.

Its PE is 114 1-year sales return is 295%

Fifth is Affle India.

Affle India is a technology company that works mainly in the Platform-As-A-Service model.

The company has a proprietary consumer intelligence platform

That tracks and delivers consumer acquisitions, engagements, and transactions through relevant mobile advertising for its clients.

The services under its platform are online marketing automation, ad recommendations, customer data, behavior tracking, and end-to-end growth marketing.

It serves many industry segments like Ecommerce, Entertainment, EdTech, Fintech, Foodtech, FMCG, and many others.

Affle India’s market cap is 14,891 crores.

Its PE is 86.3 1-year sales return is 68.9%

Thus, we come to the end of this video.

We learned the basic idea of AI and how it works in our daily lives and the top 5 AI stocks.

Please let us know which listed companies we may have missed in our list here.

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