Top AI stocks with High FII Holdings The 21st century has been a transformational era where humans have finally trained machines to learn, reason & make decisions. From self-driving cars to personalized recommendations, Artificial Intelligence is secretly training itself to be your best Personal Assistant.
Top AI stocks with High FII Holdings Add To Your Watchlist.
Well, it can be a lot more than that. It can solve complex problems, understand patterns, and speech, and even learn a language in a jiffy. The capabilities of AI are immense and we cannot fathom what humans can create when we embrace the power of AI.
Top AI Stocks with High FII Holding
Today, let us explore some technologically advanced Companies that are investing in developing their AI infrastructure. Let us look at what form of intangible assets/platforms are they developing and what potential these assets have. We will also be taking a look at their Foreign Institutional holding and see who are their biggest investors.
Top AI Stocks with High FII Holdings #1 – Coforge
Coforge is a leader in product engineering, that designs, consults, operates, and modernizes client systems across the world. It Leverages Cloud, Integration, and automation tech that transforms its client businesses into digital and high-growth enterprises.
Its products, solutions, and services are supported by partnerships with world-leading software providers such as Microsoft, Amazon Web Services (AWS), Google, Pegasystems, Appian, Salesforce, ServiceNow, and Duck Creek. The firm is present in 21 countries with 26 delivery centers spread across the US, Europe, the Middle East, India, Asia, and Australia.
The Company has been investing in the creation of a responsible AI that emphasizes responsibility, security, and compliance. This has led to Coforge developing Quasar Responsible AI, a proprietary AI framework that plays a crucial role in detecting and explaining biases within datasets.
This AI platform is designed to build Enterprise AI capabilities, which is a comprehensive of 100+ APIs readily available for customer integration. The platform operates on a fully governed framework, incorporating Process Governance, API Governance, and Model Governance (MLOps) within its foundation.
Coforge scaled its revenue by 24.56%, up from Rs. 6484 Cr in FY22 to Rs. 8077 Cr in FY23. During the same period, the Company’s Net Profits saw a marginal growth of 4.25%, from Rs. 715 Cr in FY22 to Rs. 745 Cr in FY23.
As of December 2023, Coforge has an FII holding of 34.04% with Smallcap World Fund and Government Pension Fund Global owning 3.73% and 2.01% of the Company respectively. JP Morgan Funds and Vanguard Total International Stock Index Fund are also investors in the Company.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹ 6,593.4 | Market Cap (Cr.) | ₹ 38,766 Cr |
| EPS | ₹113.77 | Stock P/E (TTM) | 53.39 |
| RoE | 20.72% | RoCE | 21.51% |
| Promoter Holding (%) | 0% | FII Holding (%) | 34.04% |
| Debt to Equity | 0.11 | Price to Book Value | 11.65 |
| Operating Profit Margin (%) | 17.50% | Net Profit Margin (%) | 10.10% |
Top AI Stocks with High FII Holdings #2 – Zensar Technologies
Zensar Technologies Ltd, An RPG Group Company led under the helm of billionaire Harsh Goenka. Headquartered in Pune, the Company has a workforce of 10,500+ customers who serve over 145 global clients.
With over 37 offices worldwide, the Company derives ~71% of its revenue from North America, the UK & Europe bringing another 18.1% of the revenue, followed by South Africa which brings in 11.2%.
Unlike other Companies on our list, Zensar is concentrated on catering to three industries. These are Hi-Tech and Manufacturing, Banking, Financial Services and Insurance, and Consumer Services.
The Services offered by the Company are given below:
The Company’s Advanced Engineering division has created AI Engineering Buddy, which is created with a partnership with Microsoft. It unlocks the power of GPT models powered by the Azure OpenAI ecosystem, which offers high-quality solutions that increase users’ efficiency by at least 30%.
Zensar made a revenue of Rs. 4951 Cr in FY23, which increased by 13% from Rs. 4382 Cr in FY22. During this period, the Company’s Net Profits fell by 22%, falling from Rs. 422 Cr in FY22 to Rs. 328 Cr in FY23.
The fall in Net Profits came as a result of a fall in Operating Margins which fell by 400Bps from the previous year. When we take a deep look at the financials, we find out that Employees have increased from 61% of their revenue to 64% of their revenue.
Zensar Technologies has an FII Holdings of 17.12% as of December 2023, with Goldman Sachs India Equity Fund holding a substantial 1.69% stake in the Company.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹ 532.75 | Market Cap (Cr.) | ₹ 12,717 Cr |
| EPS | ₹14.47 | Stock P/E | 24.19 |
| RoE | 16.17% | RoCE | 20.26% |
| Promoter Holding (%) | 49.20% | FII Holding (%) | 16.66% |
| Debt to Equity | 0.07 | Price to Book Value | 3.91 |
| Operating Profit Margin (%) | 13.23% | Net Profit Margin (%) | 9.62% |
Top AI Stocks with High FII Holdings #3 – Newgen Software
Newgen Software Technologies is a global software Company engaged in the business of product development like designing and delivering end-to-end solutions covering the entire workflow automation from Document management to imaging.
The Company has set up its proprietary platform called Newgen One, a unified low code cloud-based digital transformation platform that helps customers digitally build their enterprise experience.
A low code is a visual approach that creates applications that require little to almost no coding. Having the low code Newgen platform, it can be customized to cater to every customized requirement. Also having low code means that enterprises can run their application 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.
The platform helps develop and deploy complex, content-driven, customer-engaging business applications on the cloud. The platform has a wide spectrum of use cases across industries from onboarding to service requests, lending to underwriting, and many more.
The Company’s biggest clients are from the banking segment, which contributed to 66% of Newgen’s revenue. Government & PSUs contribute to 9% of its revenue, followed by 8% from the Insurance sector.
Newgen earned 32% of its revenue from the European, Middle East & African markets, followed by India which contributes 31% of revenue. The USA is the 3rd biggest client contributing 24%.
Newgen Software reported a Net Revenue of Rs. 1008 Cr in FY23, which increased by 25% from Rs. 809 Cr in FY22. However, due to an increase in operating expenses like Employee expenses the Company’s Net Profit increased by just 2%, from Rs. 164 Cr in FY22 to Rs. 176 Cr in FY23.
FII holds a 15.14% stake in the Company as of December 2023. Some of the notable names like Massachusetts Institute of Technology (MIT) and Goldman Sachs India Equity Fund hold 4.14% and 3.14% in the Company respectively.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹ 842 | Market Cap (Cr.) | ₹ 11,795 Cr |
| EPS | ₹25.32 | Stock P/E (TTM) | 55.99 |
| RoE | 20.0 % | RoCE | 24.0 % |
| Promoter Holding (%) | 55.16% | FII Holding (%) | 15.14% |
| Debt to Equity | 0.04 | Price to Book Value | 12.15 |
| Operating Profit Margin (%) | 24.43% | Net Profit Margin (%) | 17.49% |
Top AI Stocks with High FII Holdings #4 – Affle (India)
Affle is a global Technology Company building platforms that transform ads into recommendations. These platforms help businesses identify, engage & acquire customers making these platforms an effective tool for scaling revenue.
The Parent Company of Affle (India) was founded in Singapore in 2005. The Company began by launching a mobile media platform that provided browser-type functions over SMS. This was followed by a cross-messaging platform Pinch, which it built in 2010.
Over the years, the Company has evolved with technology building multiple platforms to help businesses address their market better. The Company has built platforms like Appnext, Jampp, MAAS, FaaS, Mediasmart, mTraction Enterprise, RevX, Vizury, and You.APPI.
What’s super interesting about the Company is that in November 2023, the Company announced that it has successfully filed 15 patents in India. These patents were related to areas of Automated AI agents, predictive analytics, Privacy Management, enhanced fraud detection, and security.
The Company has established its presence in SouthEast Asia (SEA), Middle East Africa (MEA), North America, Jakarta, Japan, Korea & Australia. Affle earned 32.9% of its FY23 revenue from India, while the remaining was collectively earned by its entire International Business Combined.
Affle (India) reported a strong year scaling revenue by 29%, from Rs. 1153 Cr in FY22 to Rs. 1488 Cr in FY23. Net Profits increased by 14% during the same period, from Rs. 215 Cr in FY22 to Rs. 245 Cr in FY23. Affle (India) Ltd has an FII shareholding of 14.35%, with 4.92% of the Company held by Gamnat PTE Ltd.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹ 1,131 | Market Cap (Cr.) | ₹ 16,765 Cr |
| EPS | ₹18.43 | Stock P/E (TTM) | 67.15 |
| RoE | 16.59% | RoCE | 16.75% |
| Promoter Holding (%) | 55.16% | FII Holding (%) | 14.35% |
| Debt to Equity | 0.00 | Price to Book Value | 7.58 |
| Operating Profit Margin (%) | 24.43% | Net Profit Margin (%) | 14.00% |
Top AI Stocks with High FII Holdings #5 – RateGain Travel Tech
Finally, we will talk about one special AI stock, which might not have the high FII holding like the other mentioned on our list, but this stock has truly built a transformational B2B enterprise empowered by Artificial Intelligence.
Rate Gain is a leading Software as a Service (SaaS) Company serving the hospitality and travel sector allowing them to maximize their revenue with Rate Gain’s AI-powered solutions.
The Company provides solutions to over 2443 hotel brands, 144 Online Travel Agents (OTA), and 355 travel brands. The Company’s AI model has access to over 370 billion data points, which collect data from over 700+ partners which comprise hotel chains, online travel agents, airlines & car rentals.
Rate Gain started operations in 2015 as a rule-based automated rate software, which would understand travel demand & set prices accordingly. In 2020, the Company launched the ability to map channels 80% faster with AI mapping.
Following this, in 2021 the Company launched a pricing recommendation platform that was driven by combining airline capacity, Covid cases, vaccination, hotel prices, and OTA searches. The model was able to work out a pricing structure for all these data points, perfectly matching demand with supply.
The Company makes 75% of its revenue from its hybrid model, which is a mix of subscription-based & transaction-based fees. Transaction-based products contribute to 25% of revenue and 32.5% is contributed by subscription-based products.
RateGain reported a Net Revenue of Rs. 585 Cr in FY23, which increased from Rs. 383 Cr in FY22. Net Profits of the Company skyrocketed from Rs. 8.4 Cr in FY22 to Rs. 68 Cr in FY23, increasing by 7.12x in year. The increase in Net Profits was a result of Employee expenses as a percentage of revenue reducing, signaling an expansion of margins.
The Company has an FII Holding of 6.37% as of December 2023, with the biggest shareholders being Goldman Sachs India Equity Fund and Pinebridge India Equity Fund who own 2.12% and 1.03% stake in the Company respectively.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹ 830.7 | Market Cap (Cr.) | ₹ 9,908.66 Cr |
| EPS | ₹6.33 | Stock P/E (TTM) | 85.23 |
| RoE | 9.64% | RoCE | 9.44% |
| Promoter Holding (%) | 55.72% | FII Holding (%) | 8.67% |
| Debt to Equity | 0.02 | Price to Book Value | 6.34 |
| Operating Profit Margin (%) | 17.88% | Net Profit Margin (%) | 12.10% |
List of Top AI Stocks with High FII Holdings
The list below puts together the 10 Top AI Stocks with High FII Holdings
| Name | CMP | Mkt Cap | FII (%) |
|---|---|---|---|
| Coforge | ₹ 6,575 | ₹ 38,766 Cr | 34.04% |
| Zensar Technologies | ₹ 532.2 | ₹ 12,717 Cr | 17.12% |
| Newgen Software | ₹ 842 | ₹ 11,795 Cr | 15.14% |
| Affle (India) | ₹ 1,124.5 | ₹ 16,765 Cr | 14.35% |
| RateGain Travel Tech | ₹ 832.8 | ₹ 9,908.66 Cr | 8.67% |
| Intellect Design | ₹ 1,020 | ₹ 12,442 Cr | 24.39% |
| Infosys | ₹ 1,655.85 | ₹ 6,20,491 Cr | 33.59% |
| HCL Tech | ₹ 1,651.45 | ₹ 4,18,718 Cr | 18.80% |
| Tech Mahindra | ₹ 1,296.75 | ₹ 1,296.75 | 26.22% |
Conclusion
With this, we would be wrapping up our list of the Top AI Stocks with High FII Holdings. Investors should know that multiple Companies from across all sectors like Automobiles, Engineering, and a lot many have been investing in developing their AI models.
Although the concept of Artificial Intelligence was introduced way back in the 1950s, the developments in AI have never been as transformative as they are now. Just take the example of ChatGPT, an AI-based language model designed to generate human-like text responses.
