Investing in Artificial Intelligence stocks involves putting money into companies dedicated to developing AI technology or applying it across various industries. AI is increasingly prevalent in many sectors, where it plays a crucial role in boosting online security, protecting data, and preventing theft. In this blog, we will explore the best AI stocks for February 2025 based on different metrics.

Overview of Artificial Intelligence Industry in India

Emerging technologies, especially AI and generative AI, are poised to boost productivity and creativity, offering significant potential for India. Research suggests that the responsible adoption of generative AI could add up to US$ 675 billion (₹57,28,725 crore) to India’s economy by 2038. The government’s IndiaAI mission demonstrates its commitment to leveraging AI’s transformative potential, focusing on adoption, consumption, and widespread skilling.

With generative AI expected to enhance 31% of working hours by 2030, India must prioritize skilling and the ethical development of AI to stay ahead. This involves updating academic programs, incentivizing R&D, and promoting cross-industry collaboration. With the right support, India is well-positioned to lead the AI revolution while ensuring responsible growth and ethical progress.

Best Artificial Intelligence Stocks Based on 5 Yr CAGR 

Note: The best artificial intelligence sector stocks in India are selected and sorted based on 5Yr CAGR as of January 27, 2025. 

Overview of Best Artificial Intelligence Stocks

Persistent Systems Ltd

Persistent Systems is engaged in providing software engineering and strategy services to help companies implement and modernize their businesses. It has its software and frameworks with pre-built integration and acceleration. During Q3FY25, the company recorded its 19th sequential quarter of revenue growth, with 4.3% QoQ and 19.9% YoY increase. This indicates the strength of its AI-led, platform-driven services strategy.

Key metrics: 

• Return on Capital Employed (ROCE): 29.2%
• Return on equity (ROE): 24%

KPIT Technologies Ltd

KPIT is a technology company operating worldwide providing software solutions that help mobility leapfrog towards an autonomous, clean, smart and connected future. During Q2FY25, KPIT reported EBITDA margins of 20.8% despite the full quarter impact of wage hikes and one-month additional ESOP cost, mainly due to productivity improvement and fixed cost leverage.

Key metrics: 

• ROCE: 38.4%
• ROE: 31.2%

Tanla Platforms Ltd

Tanla Platforms Ltd operates as a cloud communications provider allowing businesses to communicate with their customers and intended recipients. During Q3FY25, revenue growth remained muted and OTT contribution to overall revenue stood at 22.8% as compared to 14.8% in Q3 FY24.

Key metrics: 

• ROCE: 38.3%
• ROE: 31.7%

Birlasoft Ltd

Birlasoft is engaged in Computer programming, consultancy, and related activities. It provides software development and IT consulting to its customers predominantly in Banking, Financial Services, Insurance, etc. The business growth during Q2FY25 was backed by the Manufacturing, Energy & Utilities (E&U) and BFSI among verticals, by Digital & Data and ERP among service lines, and by Americas among geographies.

Key metrics: 

• ROCE: 29.80%
• ROE: 22.50%

Tata Elxsi Ltd

Tata Elxsi provides integrated services from research and strategy to electronics and mechanical design, software development, validation and deployment. During Q3FY25, the company continued to see positive outcomes of its strategic business focus on Japan, emerging markets and capitalising on the India opportunity. The company’s revenue from India has grown by 21.9% YoY, while Japan and emerging markets grew at 66.8% YoY

Key metrics: 

• ROCE: 42.70%
• ROE: 34.50%

Best Artificial Intelligence Stocks Based on Net Margin 

Note: The best artificial intelligence sector stocks in India are selected and sorted based on net margin as of January 27, 2025.

Best Artificial Intelligence Stocks Based on Debt-to-Equity 

Note: The best artificial intelligence sector stocks in India are selected and sorted based on Debt-to-Equity as of January 27, 2025.

Factors to Consider Before Investing in Artificial Intelligence Stocks

Investing in AI stocks can be an exciting opportunity, but it’s important to approach it carefully. Here are several factors to consider before diving in

• Company Fundamentals: Before investing, assess the company’s financial health. Look at its revenue growth, profitability, and the strength of its balance sheet. You’ll want to invest in a company that is financially stable and has consistent growth. Also, evaluate its market position—whether the company is a leader in AI or is just trying to catch up with more established players.
• Technology and Innovation: The technology and innovation driving a company’s AI efforts is crucial. Look at the product pipeline to understand what AI solutions the company is developing and whether these have the potential for scalability and disruption.
• Industry Trends: AI is an emerging field, so understanding the adoption rate across various industries is essential. The faster AI is being adopted in sectors like healthcare, finance, or manufacturing, the more growth potential there is for AI companies.
• Competition and Market Saturation: Look into how much competition exists within the company’s AI niche. While AI is booming, certain subfields may be more saturated, which could limit growth potential. Additionally, consider the barriers to entry in the AI market.

Conclusion

Investing in AI stocks presents a unique opportunity to capitalize on one of the most transformative technologies of our time. However, like any investment, it comes with risks that need careful consideration. By evaluating company fundamentals, technology and innovation, industry trends, management strength, and ethical considerations, you can make more informed decisions about where to allocate your capital.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

On January 27, 2025, as of 12:10 PM, the BSE Sensex was down by 0.71% at 75,649.50, while the Nifty 50 was down 0.73% at 22,922.90. The mid-day top gainers and losers for the day are:

Mid-Day Top Gainers 

Britannia 

Britannia shares opened at ₹5,103.65, reached a high of ₹5,215.00, and closed at ₹5,203.45, gaining ₹102.45 or 2%.

ICICI Bank

ICICI Bank shares started trading at ₹1,195.00, peaked at ₹1,234.65, and closed at ₹1,229.85, rising ₹20.85 or 1.71%.

SBI

SBI shares opened at ₹740.00, hit a high of ₹755.35, and closed at ₹753.65, up ₹9.50 or 1.28%.

Hindustan Unilever

HUL shares began at ₹2,365.00, reached a high of ₹2,409.70, and closed at ₹2,396.00, increasing ₹28.00 or 1.18%.

Asian Paints

Asian Paints shares opened at ₹2,255.30, touched ₹2,277.75 at its peak, and closed at ₹2,276.20, rising ₹13.90 or 0.61%.

Mid-Day Top Losers

Powergrid

Powergrid shares opened at ₹295.00, dropped to ₹283.75, and closed at ₹286.00, falling ₹9.00 or -3.33%.

Tech Mahindra

Tech Mahindra shares started trading at ₹1,710.00, hit a low of ₹1,669.55, and closed at ₹1,673.40, losing ₹50.60 or -2.88%.

Wipro

Wipro shares opened at ₹317.80, touched a low of ₹310.75, and closed at ₹311.80, down ₹8.00 or -2.59%.

HCLTech

HCLTech shares began trading at ₹1,775.00, reached a low of ₹1,737.00, and closed at ₹1,751.95, losing ₹41.05 or -2.28%.

TCS

TCS shares opened at ₹4,102.00, dropped to ₹4,053.00, and closed at ₹4,060.00, declining ₹92.00 or -2.22%.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Wipro Ltd has set Jan 28, 2025, as the record date for its interim dividend for FY25. On January 17, 2025, Wipro declared an interim dividend of ₹6, which will be paid on Monday, February 15, 2025, to the equity shareholders of the Company, whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as of Friday, January 28, 2025.

Wipro Dividend Record Date: What This Means For Shareholders?

As Wipro has set the record date for the interim dividend, which means that Jan 28, marks the last to purchase Wipro shares to get eligible for the interim dividend. Further, any shares bought on Jan 28 (record date), won’t be eligible for the interim dividend.

Wipro Q3FY25 Results

Wipro’s Q3 FY25 results showed a mixed performance. Gross revenue stood at ₹223.2 billion ($2,608.9 million), reflecting a marginal growth of 0.1% QoQ and 0.5% YoY. However, the IT services segment reported a decline in revenue, totalling $2,629.1 million, down 1.2% QoQ and 1.0% YoY. On a constant currency basis, IT services revenue grew 0.1% QoQ but fell 0.7% YoY. Total bookings reached $3,514 million, with large deal bookings at $961 million, showing a 6.0% YoY increase in constant currency.

The IT services operating margin improved to 17.5%, marking a 0.7% QoQ and 1.5% YoY rise. Net income surged by 24.5% YoY to ₹33.5 billion ($392.0 million), and earnings per share increased 24.4% YoY to ₹3.21 ($0.04). Operating cash flows were robust at ₹49.3 billion ($576.4 million), up 3.0% YoY and 146.5% of net income. The company also reported a voluntary attrition rate of 15.3% on a trailing 12-month basis.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

On January 27, 2025, NTPC Green Energy shares dropped approximately 4%, reaching a low of ₹107.90 at 10:20 AM, after opening at ₹111.60. The decline in NTPC Green Energy shares follows the release of the company’s financial results for the quarter ending December 31, 2024. NTPC Green reported an 18%YoY growth in net profits, reaching ₹65.61 crore, up from ₹55.61 crore in the same quarter last year. Revenue from operations rose 13.2% to ₹505.08 crore, compared to ₹446.14 crore in the previous year’s corresponding quarter.

However, the company’s expenses surged by 26%, totalling ₹482.22 crore, up from ₹383.28 crore in the same period last year. NTPC Green Energy’s standalone net profits saw a significant 52% increase, climbing to ₹89.42 crore for the quarter, compared to ₹58.73 crore in Q3 of the previous year.

NTPC Green Latest Project

On January 24, 2025, NTPC Green’s wholly owned subsidiary NTPC Renewable Energy Limited (NTPC REL), was selected as a successful bidder in the e-reverse auction conducted by NHPC Limited. As a result, it secured a contract for Setting up of 1200 MW (1.2 GW) ISTS (Inter State Transmission System) Connected Solar Power Projects with 600MW/1200MWh Energy Storage Systems (ESS) on an anywhere-in-India basis under Tariff Based Competitive Bidding with Green Shoe Option.

About NTPC Green Energy Limited

NTPC Green Energy is a renewable energy company that focuses on undertaking projects through organic and inorganic routes. NTPC Green Energy had been listed on the Indian stock market in late November 2024, raising ₹10,000 crore from investors during its IPO.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

On January 27, 2025, PC Jeweller shares slipped ~3% and touched the day low of ₹13.60 at 09:45 AM after opening at ₹13.92. PC Jeweller shares are on investors’ radar after the company announced a settlement with SEBI on January 25, 2025. PC Jeweller has settled with the Securities and Exchange Board of India (SEBI), agreeing to pay ₹7.23 crore to resolve allegations of violating the Listing Obligations and Disclosure Requirements (LODR) Regulations.

In February 2024, SEBI issued a show-cause notice to the company over accusations of failing to disclose or delaying disclosure of loan defaults, misclassifying loans as non-performing assets (NPAs), not submitting a resolution plan to lenders, and providing misleading information to investors.

With the settlement, the adjudication proceedings on the matter have been concluded. PC Jeweller filed for settlement in April 2024, without admitting or denying the findings or legal conclusions.

PC Jeweller Q3FY25 Results Announcement

PC Jeweller has recently announced that it will conduct a Board meeting on February 4, 2025, to consider and approve the unaudited standalone and consolidated financial results of the Company for the quarter and nine months ended December 31, 2024.

About PC Jeweller Limited

PC Jeweller is involved in the manufacturing, sale and trading of gold jewellery, diamond-studded jewellery and silver items and operates in different geographical areas. The Company’s export business of gold jewellery is on a B2B basis through its dealers based in the Gulf via Dubai-based firms.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

On January 27, 2025, JK Cement shares are on investors’ radar after the release of the financial results for the quarter ended December 31, 2024. JK Cement’s net profit witnessed a significant decline of 33.1%, falling to ₹190 crore, compared to ₹284 crore in the same period last year.

The company’s consolidated revenue for the quarter stood at ₹2974.83 crore, a slight decrease of 0.05% compared to ₹2819.99 crore in the third quarter of the previous fiscal year.

Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) came in at ₹490 crore, reflecting a 21.6% drop from ₹625 crore recorded during the same period last year. The company’s EBITDA margin also slipped to 16.8%, down from 21.3% in the previous year.

JK Cement Operational Performance 

As of December 31, 2024, JK Cement’s total production capacity stood at 24.34 MTPA for grey cement and 3.05 MTPA for white cement and wall putty.The company’s expansion of its 6 MTPA grey clinker capacity is progressing well and remains on track.

In line with its sustainability goals, the company commissioned 11 MW of renewable energy (RE) power capacity under Group Captive in the current quarter. Additionally, JK Cement signed agreements for 39 MW of Group Captive RE power, bringing the total RE power arrangements under Group Captive to 267 MW.

Strategic Acquisition of Saifco Cements

The company’s board of directors has given in-principle approval for the acquisition of a 60% equity shareholding in Saifco Cements Private Limited. The transaction will involve a Shareholders Agreement (SHA) and a Securities Subscription and Purchase Agreement (SSPA) with Saifco and its shareholders. The total consideration for the 60% stake is ₹174 crore, based on the enterprise value.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

On January 27, 2025, Godrej Consumer Products shares slipped 3% to the day low of ₹1,096.30 at 09:20 AM after opening at ₹1,107.75 Limited (GCPL). The fall in Godrej Consumer shares follows the release of its financial results for the quarter ending December 31, 2024. The company delivered a mixed performance, with growth in several markets but facing challenges in others.

Godrej Consumer Q3 FY 2025 Financial Performance

GCPL reported a 6% year-on-year growth in consolidated organic sales for Q3 FY 2025. A breakdown of segment-wise performance is as follows:

• The standalone business saw a 4% increase in sales, with volumes remaining flat year-on-year.
• Indonesia posted solid growth, with volumes up by 6% and sales increasing by 9% in INR terms compared to the previous year.
• In Africa, the USA, and the Middle East, organic sales declined by 8% in INR terms, though they grew by 1% in constant currency terms.
• Latin America and Other markets saw a significant surge in sales, increasing by 165% in INR terms and 28% in constant currency terms.

The company’s consolidated EBITDA margin for the quarter stood at 20.2%. However, consolidated net profit declined by 14% year-on-year (excluding exceptional items and one-offs), primarily due to temporary headwinds affecting performance.

Godrej Consumer Category Performance

• Home Care: Home Care sales grew by 4%, although Household Insecticides were impacted by a relatively poor season. In contrast, Goodknight Agarbatti showed strong performance, capturing a substantial market share in the Incense Sticks category and is expected to become a market leader. Premium formats experienced some setbacks due to the urban consumption slowdown, but share gains in premium segments indicate that the RNF molecule is resonating with consumers.
• Personal Care: Personal Care grew by 2%, with Personal Wash volumes declining by mid-to-high single digits. However, price hikes helped offset volume losses. The company continues to face inflationary pressures, particularly in palm derivatives, which have resulted in higher pricing across its portfolio. These pressures are expected to continue in the near term. Notably, Magic Handwash saw strong double-digit volume growth.

Godrej Consumer Business Update

In Indonesia, GCPL reported an 8% growth in constant currency sales and a 9% increase in INR terms. Volumes grew by 6%, and the company improved its EBITDA margins, which expanded by approximately 60 basis points year-on-year, reaching 21.5%. Household Insecticides also saw strong volume growth, delivering teen volume growth on a two-year CAGR basis.

In the Africa, USA, and Middle East regions, GCPL reported a 1% growth in organic sales in constant currency terms, though sales in INR terms declined by 8%. The company achieved an EBITDA margin of 14.8%, a notable improvement of approximately 340 basis points year-on-year, driven by gross margin expansion, better product mix, and a reduction in controllable costs.

Godrej Consumer Interim Dividend

The Board of Directors of Godrej Consumer declared an interim dividend of ₹5 per share and fixed February 3, 2025, as the record date and will pay the interim dividend of February 23, 2025.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.