AI small cap stocks in India
AI small cap stocks in India: Technology is constantly evolving, from the industrial revolution to current artificial intelligence and machine learning that are automating many industries. Companies are capitalizing on the opportunity to gain market share, and more and more customers are looking to apply AI to their core businesses.
Some companies are making changes to enter the space. In this article, we will take a look at some small-cap stocks looking to enter artificial intelligence in their business sectors.
Best AI small-cap stocks in India
AI Small Cap Stock #1 in India: Affl (India)
Founded by Anuj Khanna Sohum and Anuj Kumar Apple In 2005, the company was established in India and the UK in 2006. It is a technology company that operates globally and develops a platform that turns ads into recommendations.
Its product platforms include You.APPI, Vizury, Mediasmart, MAAS, RevX, mTraction Enterprise, Jampp, FaaS, and Appnext. Later, in 2010, a cross-messaging platform called Pinch was developed.
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It allows businesses to identify, engage and retain customers, making it an effective revenue generation tool. It started with the launch of a mobile media platform that provides browser-type functions through SMS.
The company has advanced its technology over the years and has built several platforms that help businesses improve their market presence. It is worth noting that the company has successfully filed 14 patents in India in November 2023 and has 15 more patents pending. These patents relate to various areas such as privacy management, improved fraud detection, predictive analytics, automated AI agents, and security.
Affle (India) established its presence in FY23 and generated 86.63% of its revenue from India operations, 5.35% from Singapore and 8% from Rest of the World.
The company’s operating revenue grew 29% from Rs. 1,153 crore in FY22 and Rs 148.8 billion in FY23. Net profit recorded 1.4 billion won, a 14% increase compared to the same period last year. 215 crore in FY22 to Rs. 24.5 billion dollars in 2023.
AI Small Cap Stock #2 in India: Kellton Tech Solutions
Keltonis a technology company founded in 1994 by Niranjan Chintam. We serve industries such as construction, food and beverage, oil and gas, distribution, manufacturing, chemicals, real estate, energy and utilities, healthcare and others. It offers services such as digital integration, technology consulting, digital commerce and marketing, and more.
Recent developments include the signing of a significant eight-year contract from LIC, covering around 150,000 people and infrastructure. Additionally, the company successfully acquired 11 new customers across a variety of industries in the third quarter.
The current order size is approximately 80 billion rupees. The company aims to achieve a revenue target of $200 million in the next three years by FY26.
In FY23, various segments such as Digital Transformation account for 81.95% of total operating revenue, Enterprise Solutions at 14.08% and Consulting at 3.95%. Kellton’s operating revenue grew 8.77% year-on-year in FY23 to Rs. 917 crore up to Rs. Last year, 84.3 billion won. Net profit decreased from 100 million won. In 22, it suffered a loss of Rs 7 billion. 12.7 billion dollars in 2023.
The loss was caused by an exceptional item of 50 million won. 184 crore was written off as goodwill by the US and Ireland-based company as it had no future economic value to the company.
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AI Small Cap Stock #3 in India: Zensar Technologies
Zensar Technologyis a Pune-based company within the RPG Group led by Harsh Goenka and boasts of over 10,500 employees. Serving a diverse clientele, the company serves more than 145 global clients. We provide services such as engineering experience, advanced engineering, data engineering and analytics, application services, and foundational services.
According to recent records, the order book remains healthy at $167.5 million. Healthcare has emerged as a new industry capable of promoting growth. Along with investments, we also evaluate M&A.
With approximately 37 offices globally, the company’s FY23 revenue breakdown reflects its dominance in the Americas, accounting for 70.69% of total revenue. This was followed by Europe with 17.98% and the rest of the world with 11.33%.
Unlike other companies on the list, Zensar specializes in three industries: Banking, financial services and insurance, high-tech and manufacturing, consumer services.
The company’s Advanced Engineering division worked with Microsoft to develop AI Engineering Buddy. This system leverages the GPT model capabilities within the Azure OpenAI ecosystem to provide a best-in-class solution that improves user efficiency by at least 30%.
Zensar’s operating revenue in FY23 was Rs. 4,848.20 crore, an increase of 14.24% over Rs. 4,243.80 crore in the previous year. Net profit decreased by 22.31% to 30 billion won. 421.7 million in FY22 at Rs. $327.6 million in FY23.
The decline in net profit is interpreted to be due to an increase in labor costs, which increased by 3.73% compared to the same period last year as a percentage of sales. Accordingly, FY23 operating profit margin decreased by approximately 4% compared to the previous year.
AI Small Cap Stock #4 in India: RateGain Travel Technologies
ratio gain technique Rate Gain is a Software as a Service (SaaS) company provider serving the hospitality and travel sectors through AI-based solutions. Bhanu Chopra was founded in 2004.
The company serves more than 2,443 hotel brands, 144 online travel agencies (OTAs), and 355 travel brands. Their AI models leverage a data pool of over 370 billion data points from an extensive network of over 700 partners, including hotel chains, online travel agencies, airlines, and car rentals.
In 2020, we introduced AI-based mapping capabilities to improve channel mapping speeds by 80%. In 2021, the company introduced a price recommendation platform that leverages a combination of data points such as airline capacity, COVID cases, vaccination rates, hotel prices, and OTA searches.
The platform perfectly matches supply and demand to achieve balance between supply and demand. According to the latest records, the company recorded a record Rs 84.4 crore in new contract awards in the third quarter, up 71% year-on-year. The current pipeline size stands at Rs 421 crore.
The company’s target is to double its revenue to Rs 2,000 crore in the next three years, with an organic and inorganic CAGR of around 20-25 per cent. Additionally, the pursuit of inorganic growth through mergers and acquisitions will complement this expansion strategy.
42.5% of the company’s revenue is generated from hybrid-based products, 25% from transaction-based products and 32.5% from subscription-based products. Operating revenue for FY23 was calculated to be 56.05% from North America, 30.05% from Europe, 11% from Asia Pacific and the remaining 2.9% from other regions.
In FY23, RateGain reported operating revenue of Rs. It increased by 54.15% to 585.06 billion won. In fiscal year 22, it is $3665.9 billion. The company’s net profit increased from Rs 8.41 crore in FY22 to Rs 68.40 crore in FY23. The increase in net profit is due to an improvement in operating profit ratio due to a decrease in employee costs compared to sales.
AI Small Cap Stock #5 in India: Happiest Minds Technologies
happy mind skills It was founded in 2011 by Ashok Soota. The company leverages a variety of disruptive technologies such as artificial intelligence, cloud, digital process automation, Internet of Things, robotics/drones, security, virtual/augmented reality, etc. to enable users in industries such as financial services, banking, blockchain, and automotive. Supports. , we are undergoing digital transformation in areas such as insurance, e-commerce, engineering research, educational technology and development (R&D), and travel/transportation/accommodation.
According to a recent transcript, the company is pursuing a three-pronged strategy to strengthen its sales engine. This includes creating a separate generative AI division, hiring a global sales leader focused on acquiring new customers, and adopting a verticalized go-to-market approach.
Happiest Minds continues to see significant potential in the healthcare sector, particularly in areas such as bioinformatics, medical devices, healthcare providers and life sciences. Within these areas, the company has grown its expertise in digital technologies, including AI, analytics and cloud solutions.
In FY23, HM reported operating revenues of 22.09% from Infrastructure Management and Security Services, 30.07% from Digital Business Services, and 47.83% from Product Engineering Services. Most of the company’s exposure came from the US (68.04%), India (16.07%), Europe (9.66%) and Others (6.21%) in FY23.
In FY23, the company reported a 30.69% increase in operating revenue to Rs. 1,429.29 crore compared to Rs. 1,093.65 crore. Net profit recorded 140 million won. 230.99 crore compared to Rs. It increased by 27.47% to $181.2 million in FY22. The margin improvement in FY23 was due to a slight decrease in employee costs as a percentage of revenue.
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conclusion
AI Smallcap Stocks in India As we near the end of our article, Artificial Intelligence and Machine Learning will revolutionize various industries and challenge the status of traditional ways of working. Change is inevitable for companies, and those who are proactive and adaptable will ultimately have the most opportunities. What do you think about the company’s potential? Let us know your thoughts in the comments section below.
Written by Santosh
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