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Top 5 AI Stocks in India to Watch in 2025.
In today’s discussion, we will look at the top five AI (Artificial Intelligence) stocks in India. According to TeamLease Digital, the AI adoption rate in key Indian sectors such as financial services, technology, pharma, FMCG, infrastructure, and media reached around 48% in FY24, and it is expected to grow further by 5–7% in FY25. Indian companies collectively spent $173.8 million on AI in 2023, and this spending is projected to rise sharply to $5.1 billion by 2027. Supporting this trend, the Government of India has also allocated ₹10,300 crore in March 2024 towards the National AI Mission, further boosting AI adoption across industries. With this strong growth outlook, let’s explore the best five AI stocks in India to watch.
ICICI Lombard General Insurance Company was established in 2000 as a joint venture between ICICI Bank and Fairfax. The company commenced operations in FY2002 and has since become one of India’s leading private non-life insurance companies. In FY2024, it achieved a gross direct premium income (GDPI) of ₹248 billion, giving it an overall market share of 8.6% and a private sector market share of 13.2%.
From a financial standpoint, ICICI Lombard has a market capitalization of ₹91,721.07 crore, with a 52-week high of ₹2,301.90 and a low of ₹1,480.50. The last twelve months EPS stands at ₹50.50, with a PE ratio of 36.47 and ROE of 17.31%. The 12-month target price is estimated at ₹2,300.
The stock has been chosen due to its robust fundamentals and earnings growth outlook. ICICI Lombard aims to maintain a ROE of 16–18%, and according to IIFL Securities, earnings are expected to grow at a CAGR of 23% between FY25 and FY27. Growth will be supported by expanding healthcare offerings, lower competition in corporate health insurance, and strong investment returns.
Published March 18, 2024.
Hindalco Industries Ltd, part of the Aditya Birla Group, is a global leader in aluminium and copper. Its international subsidiary, Novelis, is among the world’s largest producers of rolled aluminium products. In FY23, Novelis exported 3.8 million tonnes of aluminium, with 64% sourced from recycled material, making it a sustainable growth play.
Hindalco has a market capitalization of ₹1,39,137.03 crore, with a 52-week high of ₹772.65 and a low of ₹546.45. Its EPS is ₹61.82, PE ratio 10.03, and ROE 9.56%. The 12-month target price is projected at ₹790.
The company is expected to benefit from operational efficiencies, improved pricing, and a ₹10 billion capex plan for expansion between FY26 and FY29. With Novelis targeting positive free cash flows by FY27 and shareholder-friendly returns, Hindalco is well-positioned as one of the top long-term AI and tech-enabled manufacturing plays.
Founded in 2018, Entero Healthcare Solutions has emerged as one of the top three healthcare distributors in India by revenue, backed by Baring Private Equity Asia. It operates on a B2B model, supplying products to pharmacies, hospitals, and clinics.
The company has a market capitalization of ₹6,055.84 crore, with a 52-week high of ₹1,584.25 and a low of ₹991.10. EPS is ₹20.72, PE ratio 66.84, and ROE just 2.38%. Target price: ₹1,500.
While valuations look expensive, Entero offers strong growth prospects. The drug distribution market in India is highly fragmented, leaving room for consolidation. Entero is expected to deliver 24% CAGR revenue growth and 45–46% CAGR in EBITDA and EPS from FY25 to FY28, driven by procurement efficiency, high-margin product focus, and economies of scale.
Heritage Foods, founded in 1992 by Shri N. Chandrababu Naidu, is one of South India’s leading dairy and FMCG players, producing milk, curd, paneer, and lassi. It procured an average of 15 lakh liters of milk per day in FY24, showing strong sourcing strength.
It has a market capitalization of ₹3,953.11 crore, with a 52-week high of ₹727.35 and a low of ₹314.60. EPS is ₹20.54, PE ratio 20.65, and ROE 13.18%. The stock has a target price of ₹500.
The company is shifting focus toward value-added products to drive mid-teen revenue growth, above the historical CAGR of 9%. EBITDA margins are expected to remain in the 7–10% range, with EPS projected to grow at 11% CAGR between FY25 and FY27. Heritage Foods offers stable growth opportunities in India’s fast-growing FMCG and AI-driven supply chain sector.
Nexus Select Trust owns 17 top-quality retail malls (9.8 million sq. ft. leasable area), along with office properties, two hotels, and a 15 MW renewable power plant. Backed by the Blackstone Real Estate Fund, it enjoys strong financial and strategic support.
The trust has a market capitalization of ₹19,375.34 crore, with a 52-week high of ₹154.85 and a low of ₹120.00. EPS is ₹7.01, PE ratio 18.22, and ROE 5.86%. The stock has a target price of ₹170.
Management expects India’s retail consumption recovery to drive double-digit growth in net distributable cash flows by FY26. With an ambitious plan to double net operating income and grow its retail portfolio, Nexus Select Trust is an attractive pick for investors looking at AI-powered retail analytics and smart mall management opportunities.
Conclusion.
Here are the top five AI stocks in India that investors can consider for the long term. These companies operate across financial services, manufacturing, healthcare, FMCG, and retail, all of which are rapidly integrating AI technologies into their business models.
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