by In this article, we will cover, 3 Top AI Stocks Buy Now in India in IT which work on Next Generational Technologies like Artificial Intelligence, IOT, 5G. Along with this, we will also cover the key technical support levels for these stocks that will help you, in case you think of buying
One of these AI Stocks has given 5 Times return to shareholders in the last 1 year. Request you to not miss it, let’s get started.
3 Top AI Stocks Buy Now in India
The first company that we discuss is truly a digital transformational company 96% of their revenues come from new-age technology like AI, IoT, Cloud.
Happiest Mind
- The Stock which we will discuss is Happiest Minds Share.
- IT veteran Ashok Soota is the Chairman of Happiest Minds. Previously he has been associated with IT Sector stocks such as Mindtree, Wipro, etc.
- 21% of their revenues come from HiTech and Eductech industries, which are upcoming verticals and need active Technology support.
- They cater to traditional industries like BFSI too. Showing a good mix of a new age and conventional industry mix.
Financials and Valuations
- Let’s look at their financials. 36% ROCE, means 36 Rs return on 100 Rs Capital Invested. They generate 33 Rs return on 100 Rs of equity applied too also called ROE.
- In the first 9 months of FY21, they have shown Profit growth of 90% (PAT). This is when I compare 9-month performance this year against last year 9 months
- It has shown 9.6% of sales growth on similar 9-month comparable Attrition % is a very important parameter in the IT industry which shows how frequently your employees are quitting.
- Employees in IT are really important because they are the ones who program or code your technologies their Training, Upskilling involves a lot of time and money.
- Their Attrition % has reduced from 25% to 13% almost which is very good to see Their Q4 results are due as well, so keep an eye out for it.
Support Levels
- The support levels of Happiest Mind Share Price are currently at 1395 and the first major support is at levels of 1290.
- the second major support is at levels of 1140.
Larsen & Toubro Technology services
- The next company that we discuss caters to engineering research and development.
- They have 650 patents registered in their name.
- They also work on next generational technologies like 5G, AI, Robots, etc to deliver ER&D services to their clients.
Financials and Valuations
- 35% of their revenues come from Transportation and 20% from Hitech/Telecom.
- The company that I am discussing is Larsen & Toubro Technology Services Share.
- This company is a strong beneficiary of the strong dollar as 76% of its revenues come from North America and Europe.
- Their product portfolio is really amazing. It includes World’s first autonomous self-wielding robot, smart campus architecture, and solar drones.
- Their recent deal wins have been in promising areas too.
- EV Programs, 5G for Telecom company, Analytics lab, etc.
- Despite all this, there is one major concern which is related to the growth of the company in last year.
- On a yearly basis, the company has 3% revenue and 19% PAT degrowth so, in the times to comes, the come must return to the growth trajectory.
- So, don’t be in rush to buy But definitely keep a watch on the company due to its promising future and fundamentals.
Tata Elxsi
- Next Company is into the design and Technology space with expertise in, not only AI but also, Cloud, IoT, Virtual Reality, etc.
- They have concept products like Autonomous vehicles. In simple language, self-driving cars.
- They have designed a fixed dosage pen for drug delivery in healthcare too.
- They have great use cases in IoT too like, conversational AI or Chatbot, IoT has amazing applications in Healthcare too.
- It can transmit real-time data about a patient’s health to the doctor to take corrective actions.
- The stock which we are discussing is Tata Elxsi Share.
- If you want me to carry out a detailed fundamental analysis article with a long-term target price on one of these companies then you can comment in the comment section.
Financials and Valuations
- Tata Elxsi dedicates 1.42% of its sales to research and development.
- R&D is very important for such new age and next generational companies working on AI etc their financials are really promising too.
- 13% Revenue growth, 43% PAT growth & 19% PAT margin on Yearly basis.
- Their Attrition is at 6.6 which is industry-leading.
- It is very good to see their ROE and ROCE above 30%.
- Tata Elxsi Share price is around 4330 and recently it has moved up a lot so keep a bit of caution before rushing into buying.
Support Levels
- If we talk about the support levels. Their first support is on 4100.
- The second major support is around 3600.
Disclaimer: This article is not a recommendation in any form. This article is for educational purposes only. Please consult your financial advisor before any investment decisions.
I hope you found this insight to be useful and meaningful. One should follow the Risk Management, Money Management, and Fear and Greed concept of the market to avoid big losses.
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