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AI has become intertwined with every aspect of our lives. Each one of us is currently using this technology in one form or the other. From personal digital assistants like Siri, google assistant, Alexa, to self-driving cars, its being used very widely.

The use is increasing on a daily basis in fast growing sectors such as healthcare, finance, e-commerce, and manufacturing.

Also, businesses like Swiggy and Zomato, which have invested heavily in AI over the past couple of years, have witnessed the power of technology to both sustain and increase growth. This has steered the discussion towards AIs potential for other companies in India.

According to a report by Accenture, its expected that AI has the potential to make up 15% of Indias current gross value in 2035 or US$957 bn.

In the coming years, AI will transform the way we live and work.

With increasing demand for AI technology, investor interest in AI stocks has also increased.

Heres the list of top Indian companies working on AI in the Indian stock market.

1. Coforge

Coforge is an IT services company providing end-to-end software solutions and services.

It is among the top-20 Indian software exporters.

The company was formerly known as NIIT Technologies and was incorporated in April 2003.

It provides AI-based digital business assistants, deep learning, machine learning, multi-currency, multi-lingual, multi-channel experience, image recognition, robotic process automation (RPA), natural language processing (NLP), and workflow automation.

In the past, the company has made a few acquisitions to increase revenue and enhance geographical and customer presence.

In April 2021, Coforge completed its strategic investment in SLK Global Solutions. SLK Global has deep domain expertise in the banking and insurance segments in North America. It enjoys multiple long-standing and scalable relationships with marquee clients with strong growth potential.

Over the span of five years, the company has given a return of 1,202%. Currently, shares of Coforge are trading at 5,136 per share.

2. Happiest Minds Technologies

Happiest Minds is an IT consulting and services firm that was founded in 2011.

The company works on disruptive technologies such as artificial intelligence, cloud, internet of things (IoT), blockchain, robotics/drones, virtual reality, and other services.

Artificial intelligence is used by the firm for language processing, picture analytics, video analytics, and upcoming technologies such as AR and VR.

In addition, the company assists organisations in using robots using AI, leading to time and cost savings.

In September 2020, the firm was listed on the stock exchange. Its one of the most popular Indian artificial intelligence stocks.

Ashok Soota the executive chairman of the company is the main promoter and was earlier founding Chairman & MD of Mindtree. Prior to Mindtree, he led Wipros IT business for fifteen years.

Since its listing, the company has managed to give a return of 290.8%. Happiest Minds shares are trading at 1,445 on the BSE.

3. Saksoft

Saksoft is a leading provider of information management solutions to successful companies around the world.

The company is a mid-sized IT company and provides end-to-end business solutions that leverage technology and enables their clients to enhance business performance.

It mainly focuses on getting transformations through efficiency, productivity, enhanced customer decisions, and service innovations by increasing the combination of AI and automation.

Saksoft gives a boost to digital transformation and applies intelligent automation to solve major business problems with the assistance of modern technology like IoT, AI, machine learning, and automation.

The company has delivered good profit growth of 20.1% compound annual growth rate (CAGR) over last 5 years. Saksoft shares are trading at 913 on the BSE.

4. Tata Elxsi

Founded in 1989, Tata Elxsi is a part of the Tata Group and performs in the midcap range in the stock market.

Today Tata Elxsi is one of the leading providers of design and technology services in various industries. These include automotive, broadcasting, communication, healthcare, and transportation.

When it comes to AI, the company has had success in various fields like self-driving cars, video analytics solutions etc.

Tata Elxsi Artificial Intelligence Centre of Excellence addresses the increasing demand for intelligent systems. It allows its customers to use cloud-based integrated data analytics frameworks that feature patent-pending technology to get actionable insights and outstanding returns.

On the financial front, the company has performed well over the last few quarters. It has had a compounded profit growth of 19% for the last 5 years.

In the past five years, stock has provided 535% return compared to Nifty IT that returned 95% returns to the investors.

5. Persistent Systems

Persistent Systems offers a secure and scalable mobile networking capability based on its cutting-edge Wave Relay MANET technology.

Persistents products provide a total solution consisting of voice, video, and situational awareness to mobile users with no reliance on fixed infrastructure.

Also, the company has developed machine learning and AI solutions that help companies at every stage of their AI and machine learning development.

It uses AI to help companies improve and scale their operations, prioritise cases, and designs platform architecture.

Financially the company has performed well. It has achieved a compounded profit growth of 10% and sales growth of 13% over the last five years.

In the last five years, the stock gave returns of 462%. Currently, shares of Persistent Systems are trading at 3,479 per share.

Apart from the above, heres the list of more AI-based stocks to watch out for in India.

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In conclusion

Today, AI is a crucial tool for many businesses and the market for the technology is growing quickly in India.

From online shopping to the data used for scholastic tasks, AI has become an integral part of human life.

Also, many Indian start-ups are expanding and developing AI solutions in education, health, financial services, and other fields.

For the last few years, it has been attracting numerous companies to adapt to the trend, driving investments towards them, due to its increasing demand in the present and future.

Investing in digital technologies can create huge revenue in the coming years.

If youre thinking about buying artificial intelligence stocks, you should look out for companies that are focused on AI businesses in India with excellent technical and business fundamentals, minimal debt, and are available at attractive valuations.

Happy Investing!

(This article is syndicated from Equitymaster.com)

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Five Indian companies that are leading the AI race - Mint