InvestorQ : What are the companies dealing with Artificial intelligence worth investing for long term in India?
Rohit Kashyap made post

What are the companies dealing with Artificial intelligence worth investing for long term in India?

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Neelam Naik answered.
2 years ago
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You really do not have too many companies that deal with artificial intelligence but some of the IT companies like TCS and Infosys do have projects where they are working on artificial intelligence solutions for their clients. But it may just be too early to try and put a value to that business at this point of time.

However, this is a business with big potential over a longer time period. Artificial intelligence is about making machines think like humans. Currently, machines can very efficiently and effectively execute routine transactions. However, the machines can learn and make changes on their own. That is what artificial intelligence adds. For example, if you show patterns in your investing behavior then the system can map these patterns and create a solution that makes changes when necessary. 

Artificial intelligence is now finding immense application in customer service, auto design, customer mapping, more focused selling, etc. This will be supportive of valuations in the future. If your question is whether an investor can invest in India for the long term, the answer is yes. GDP growing at nearly 7% and having the second-largest consumer market in the world makes India an attractive investment proposition. The question is what to invest in? You can look at 3 broad themes. Look at consumption stories in the FMCG space like Hindustan Unilever, Britannia, Marico, Havells, etc as they are linked to the Indian growth story. They are good proxies for growth in income and also the consumption boom.

Look at PSU banks which are available at very cheap prices today. Banks like SBI and BOB may be good ways to play on the turnaround in banking and better recoveries from bad loans. They can be good buys over the next 2 to 3 years.

Finally, you must also look at emerging stories for the future with a focus on capital goods and defense where the companies like L&T, Bharat Forge could really benefit from a turnaround in the capital cycle.
I have only put down some large-cap names but you must also look at some quality mid-cap names that are reasonable valuations.
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