Top AI Stocks with High FII Holdings Add to Watchlist

Top AI Stocks with High FII HoldingThe 21st century was a transformative era in which humans finally trained machines to learn, reason, and make decisions. From self-driving cars to personalized recommendations, artificial intelligence is secretly training itself to become the best personal assistant.

Well, it could be much more than that. You can solve complex problems, understand patterns and speech, and even learn languages ​​in an instant. The capabilities of AI are enormous, and we cannot fathom what humans can create if we embrace the power of AI.

Top AI Stocks with High FII

Today we will take a look at some technologically advanced companies that are investing in developing AI infrastructure. Let’s take a look at what types of intangible assets/platforms are being developed and what potential these assets have. We will also take a look at their foreign institutional holdings to find out who the biggest investors are.

Top AI Stocks with High FII Holdings #1 – Coforge

Coforge is a leader in product engineering that designs, consults, operates and modernizes client systems around the world. We leverage cloud, integration and automation technologies to transform our clients’ businesses into digital, high-growth enterprises.

Our products, solutions, and services are supported by partnerships with the world’s leading software providers such as Microsoft, Amazon Web Services (AWS), Google, Pegasystems, Appian, Salesforce, ServiceNow, and Duck Creek. The company has 26 delivery centers in 21 countries across the United States, Europe, the Middle East, India, Asia and Australia.

The company has invested in creating responsible AI that emphasizes responsibility, security, and compliance. This led Coforge to develop Quasar Responsible AI, a proprietary AI framework that plays a critical role in detecting and accounting for bias within datasets.

This AI platform is designed to build enterprise AI capabilities, with over 100 comprehensive APIs ready to be used for customer integrations. The platform operates on a fully managed framework with integrations based on Process Governance, API Governance, and Model Governance (MLOps).

Coforge increased its sales by 24.56% from Rs. 6484 Cr in FY22 to Rs. 8,077 Cr in FY 2023. During the same period, the company’s net profit increased by 4.25% to 50 billion won. 715 Cr in FY22 to Rs. 745 Cr in FY23.

As of December 2023, Coforge holds a 34.04% stake in FII. Smallcap World Fund and Government Pension Fund Global They own 3.73% and 2.01% of the company’s shares, respectively. JP Morgan Fund and Vanguard Total International Stock Index Fund He is also an investor in the company.

Top AI Stocks with High FII Holdings #2 – Zensar Technologies

Zensar Technologies Ltd, an RPG group company led by billionaire Harsh Goenka. Headquartered in Pune, the company has a customer workforce of over 10,500 people serving over 145 global clients.

The company, which has more than 37 offices globally, generates approximately 71% of its revenue from North America, an additional 18.1% of its revenue from the United Kingdom and Europe, and 11.2% from South Africa.

Unlike other companies on the list, Zensar focuses on three industries: these are High-tech and manufacturing, banking, financial services insuranceand consumer service.

The services provided by the company are as follows.

The company’s advanced engineering department was created. AI Engineering Buddy, Created in partnership with Microsoft. It leverages the power of the GPT model based on the Azure OpenAI ecosystem to deliver high-quality solutions that increase user efficiency by over 30%.

Zensar earned a revenue of Rs. 4951 Cr in FY23, up 13% from Rs. 4382 Cr in FY22. During this period, the company’s net profit decreased by 22% to 20 billion won. 422 Cr in FY22 to Rs. 328Cr in FY23.

The decline in net profit was the result of a 400 Bps decrease in operating profit margin compared to the previous year. A closer look at the financials shows that employees have increased from 61% to 64% of revenue.

Zensar Technologies has FII holding of 17.12% as of December 2023. Goldman Sachs India Equity Fund It holds a 1.69% stake in the company.

Top AI Stocks #3 with High FII Holdings – Newgen Software

Newgen Software Technologies is a global software company engaged in the business of product development, designing and delivering end-to-end solutions covering entire workflow automation from document management to imaging.

The company has set up a proprietary platform called Newgen One, an integrated, low-code, cloud-based digital transformation platform that helps customers digitally build enterprise experiences.

Low code is a visual approach to creating applications that require little or no coding. The low-code Newgen platform allows you to customize it to meet all your customization needs. Less code also means businesses can run applications with minimal training.

The core products of the NewgenONE platform are contextual content services, low-code process automation (BPM), omnichannel customer engagement (CCM), and artificial intelligence cloud.

This platform helps you develop and deploy complex, content-driven, customer engagement business applications in the cloud. The platform has a wide range of use cases across industries, from onboarding to service requests, lending, acquisitions, and more.

The company’s largest customer is the banking sector, which contributed 66% of Newgen’s revenue. Government and PSUs contribute 9% of the revenue and the insurance sector accounts for 8%.

Newgen derived 32% of its sales from the European, Middle East and African markets, with India accounting for 31% of its sales. The United States is the third largest customer contributing 24%.

Newgen Software reported net revenue of Rs. 1008 Cr in FY23, up 25% from Rs. 809 Cr in FY 2022. However, due to increase in operating expenses such as staff costs, the company’s net profit rose only by 2% at Rs. 164 Cr in FY22 to Rs. 176 Cr in FY 2023.

FIIs hold 15.14% stake in the company as of December 2023. Some of the notable names include: Massachusetts Institute of Technology (MIT) and Goldman Sachs India Stock Fund They own 4.14% and 3.14% of the company’s shares, respectively.

Top AI Stock #4 with High FII Holdings – Affl (India)

Affl is a global technology company building a platform that turns ads into recommendations. These platforms help businesses identify, engage, and acquire customers, making these platforms effective tools for expanding revenue.

Affle (India)’s parent company was founded in Singapore in 2005. The company began by launching a mobile media platform that offered browser-like functionality via SMS. This was followed by Pinch, a cross-messaging platform built in 2010.

Over the years, the company has evolved its technology to build multiple platforms to help businesses better address the market. The company has built a platform that: Appendix, Zamp, mas, FaaS, Media Smart, Emtraction Enterprises, RevX, Bizzuriand You.APPI.

What is very interesting about the company is that in November 2023, the company announced that it has successfully filed 15 patents in India. These patents relate to the areas of automated AI agents, predictive analytics, privacy management, and improved fraud detection and security.

The company has a presence in Southeast Asia (SEA), Middle East and Africa (MEA), North America, Jakarta, Japan, Korea and Australia. Affl earned 32.9% of its FY23 revenue from India, with the remainder collectively earned from its entire International Business Combined.

Affle (India) reported a 29% increase in sales this year from Rs. 1153 Cr in FY22 to Rs. 1488Cr in FY23. During the same period, net profit increased 14% from 1.4 billion won. 215 Cr in FY22 to Rs. 245Cr in FY23. Affle (India) Ltd holds 14.35% stake in FII, which owns 4.92% stake in the company. Gamnat PTE Ltd.

Top AI Stocks #5 with High FII Holdings – RateGain Travel Tech

Lastly, we will talk about a special AI stock that may not have high FII holdings like other stocks mentioned in the list. But this stock has truly built an innovative B2B company powered by artificial intelligence.

Rate Gain is a leading Software as a Service (SaaS) company serving the hospitality and travel sectors. Rate Gain’s AI-powered solutions help you maximize your profits.

The company provides solutions to over 2443 hotel brands, 144 online travel agencies (OTAs) and 355 travel brands. The company’s AI models have access to over 370 billion data points, collecting data from more than 700 partners consisting of hotel chains, online travel agencies, airlines and car rentals.

Rate Gain began operating in 2015 with rule-based automated pricing software that understands travel demand and sets prices accordingly. In 2020, the company launched a feature that maps channels 80% faster with AI mapping.

Accordingly, in 2021, the company launched a price recommendation platform powered by a combination of airline capacity, COVID cases, vaccinations, hotel prices and OTA searches. The model was able to calculate a pricing structure for all of these data points to perfectly match supply and demand.

The company generates 75% of its revenue from a hybrid model, which is a mix of subscription-based and transaction-based fees. Transaction-based products account for 25% of revenue and subscription-based products account for 32.5%.

RateGain reported net revenue of Rs. 585 Cr in FY23, up from Rs. 383Cr in 2022. The company’s net profit soared from 50 billion won. 8.4 Cr in FY22 to Rs. 68 Cr in FY23, an increase of 7.12 times compared to the previous year. The increase in net income was driven by lower employee costs relative to revenue, which translates into expanded margins.

As of December 2023, FII shareholding in the company was 6.37%, and the largest shareholders were: Goldman Sachs India Stock Fund and Pinebridge India Equity Fund They own 2.12% and 1.03% of the company’s shares, respectively.

List of top AI stocks with high FII holdings

The list below includes the top 10 AI stocks, which includes High FII Holdings.

conclusion

This concludes our list. Top AI stocks with high FII holdings. Investors should be aware that several companies across all sectors, including automotive and engineering, are investing in AI model development.

The concept of artificial intelligence was introduced in the 1950s, but advances in AI have never been as revolutionary as they are now. Take the example of ChatGPT, an AI-based language model designed to generate human-like text responses.

ChatGPT is just one example of AI, and there are several models and platforms built using AI today. So, if you have been researching the field, please share your thoughts with us. Also, which AI stocks are you most bullish on? Let us know in the comments below.

Written by Nasir Hussein

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