Top AI Penny Stocks in India to Watch in 2025: Potential Picks

Top AI penny stocks in India, especially those belonging to companies that develop or invest in AI systems, offer investors great potential to maximise their returns. AI penny stocks are low-priced shares of companies involved in developing or applying Artificial Intelligence (AI) technologies in their services. These services could include building or integrating core AI technologies to promote automation and efficiency. 

The government also supports the artificial intelligence industry to drive innovation and technological advancements in the country. This is because AI is anticipated to be a vital element in the foundation of all the industries. Continue reading to gain more insights about high growth penny stocks AI!

List of AI Penny Stocks: High-Potential AI Stocks

Explore the top AI penny stocks in India to invest in 2025!

Disclaimer: The above table is for informational purposes only. Univest is not suggesting buying or selling these AI penny stocks in India. The data is derived from Univest stocks and is subject to real-time updates. 

AI Penny Stocks in India: Company Overview

The top AI Penny Stocks in India include Vertoz, FCS Software, Subex, Sagility India, and more. These AI stocks come with high-growth potential to deliver tremendous returns in the coming decades.

1. Vertoz Ltd.

Founded: 2012

Headquarters: Mumbai, India

Market Capitalisation: ₹721 cr.

Vertoz Ltd. is an Indian company providing cloud solutions and AI-powered advertisement services. With a 3-year return of 69.45%, it is one of the top AI penny stocks in India. Additionally, the prevailing market price of the stock is ₹8.46, which makes it a suitable choice for beginners. 

2. FCS Software Solutions Ltd.

Founded: 1993

Headquarters: Noida, India

Market Capitalisation: ₹434 cr.

FCS Software Solutions Ltd. is an Indian company that offers various services such as software development and testing, digital content management and e-learning. The stock is priced at a very nominal price of ₹2.55, listing it among the cheap AI stocks India. Owning a market share of approximately ₹434 cr., the company is expecting to scale up its operations.

3. Subex

Founded: 1992

Headquarters: Bengaluru, India

Market Capitalisation: ₹658 cr.

Subex is an Indian company specialising in AI applications through various services in communication service providers. The company has a decent market share in the AI industry and is expected to expand significantly. This stock is included in some of the cheap AI stocks India, and is priced as low as ₹11.66.

4. Bartronics India

Founded: 1990

Headquarters: Hyderabad, India

Market Capitalisation: ₹448 cr.

Bartronics India is an Information Technology (IT) company in India that is engaged in IT infrastructure management, software testing and identification technologies. As the demand for these services continues to rise, the market capitalisation of the company has a huge potential. With a current price of ₹14.69, it is a solid pick for investors seeking to invest in AI-related stocks.

5. Infibeam Avenues

Founded: 2007

Headquarters: Ahmedabad, India

Market Capitalisation: ₹4,539 cr.

Infibeam Avenues is a FinTech (Financial Technology) company based in India. Its services include digital payment solutions and software platforms for various industries. The stock is currently traded at ₹16.25 and is often chosen by novice investors who want to start investing in top AI penny stocks.

6. Sagility India

Founded: 2021

Headquarters: Bengaluru, India

Market Capitalisation: ₹18,664 cr.

Sagility India Ltd. specialises in providing AI-based business services in the healthcare industry. The 3-year returns of the stock are approximately 28%, positioning it among high growth penny stocks AI. The current market price of the stock is ₹39.87, which presents it as one among the cheap AI stocks India.

7. Magellanic Cloud

Founded: 1981

Headquarters: Hyderabad, India

Market Capitalisation: ₹3,441 cr.

Magellanic Cloud Ltd. is an Indian company operating in the Information Technology (IT) space with a primary focus on software development and digital transformation. With the consistently evolving AI sector, the company is anticipating to expand its customer base. Currently priced at ₹59.07, it is one of the promising AI penny stocks in India. 

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Overview of the AI Industry:

With startups and established firms consistently thriving to integrate AI automation into their products & services, the Artificial Intelligence industry in India is growing at a rapid pace. AI is undoubtedly revolutionising the way industries operate, from education to financial services to the agriculture sector to healthcare. It has significantly made the business processes more efficient and seamless. 

With the advent of technology being a foundational element in all sectors, AI penny stocks in India are anticipated to gain more popularity in the future. This will significantly contribute to the overall growth of AI-related stocks, leading to profitable investments.

Best Performing AI Penny Stocks With P/E Ratio

Explore the top AI Penny Stocks in India with their P/E ratio. 

Best Performing AI Penny Stocks With 5-Year Returns

Look at the top AI Penny stocks in India based on 5-year returns.

Factors to Consider Before Investing in AI Penny Stocks:

Investors should be careful while making their investment decisions. Some important factors to consider when investing in AI-related stocks are as follows:

1. Financial Health

It is crucial to examine the financial health of the company including factors like revenue growth, debt levels, cash flows, and other relevant financial ratios. A sound financial position helps investors gain confidence in the safety of their investments in AI penny stocks in India.

2. Competition

Before investing in cheap AI stocks India, it is important to consider the company’s competitive position in the industry. Those with strong competitive advantages like technology, market size, growth prospects, customer base, etc. are more likely to survive market uncertainties.

3. Capability to Adapt

The AI industry in India is highly competitive. With frequent innovations in the market, the consistent performance of high growth penny stocks AI depends on the ability to adapt to these market changes. This ensures a loyal customer base and industry demand, further promoting the growth of the company.

4. Government Regulations

Successful companies operate keeping in consideration the rules and regulations set by the government. This helps in ensuring transparency, resulting in increased confidence from the investors as well as the public.

5. Ethical Considerations

Unethical practices or policies can disrupt the company’s reputation in the market, especially from a long-term perspective. It is advisable to invest in the top AI penny stocks of companies that are ethically aligned with your investment goals. 

Benefits of Investing in AI Penny Stocks

The top AI penny stocks in India offer multiple benefits to investors, some of which are:

• High Growth Prospects

With the rise in demand for AI-driven tools to assist automation, AI penny stocks in India are gaining immense popularity. Companies that are integrating Artificial Intelligence systems into their offerings are revolutionising a majority of industries. Since most of them are in their growing stages, they provide the opportunity for investors to make substantial returns from their investments in cheap AI stocks India.

• Minimal Initial Investment

Artificial Intelligence stocks under ₹100 allow novice investors to participate in the stock market without having to invest large amounts of funds. Being able to invest with smaller amounts in the beginning helps them test the waters and gain confidence in their investment strategies. 

• Portfolio Diversification

Over-reliance on a specific investment category or sector can restrict the potential for high profits and be a risky decision. All rational investors prioritise portfolio diversification to ensure mitigation of risk from market fluctuations. Investing in the top AI penny stocks is a strategic way to diversify the portfolio due to its integrations in multiple sectors.

• Early Access to Expanding Markets

Technological advancements based on the integration of AI are all set to become the foundation of all sectors. With the demand for AI-integrated products and services increasing, the Artificial Intelligence industry is expected to boom. By investing in cheap AI stocks India, investors can have the first-mover advantage by experiencing exponential growth as the industry scales up.

• Contribution to Technological Advancements

Investing in AI penny stocks in India helps investors support technological innovation in the country. AI-based companies and small startups are more likely to be purpose-driven with the aim of integrating creativity to revolutionise the industries. So, investors of AI-related stocks are often optimistic about the broader evolution of technology and not just financial returns. 

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Best Performing AI Penny Stocks With 5-Year CAGR

Explore the best-performing AI penny stocks in India with 5-year CAGR. 

Risks of Investing in AI Penny Stocks:

While Artificial Intelligence stocks under ₹100 offer a high potential for profit maximisation, it is advisable to be aware of the risks associated with them. Some of the common risks are mentioned below:

• Market Volatility

Since high growth penny stocks AI are highly susceptible to market fluctuations, even minor changes in the market sentiment can significantly impact their prices. Due to this, conservative investors might not prefer investing in AI-related stocks.

• Uncertain Future Performance

While the business models and growth plans of AI companies might sound lucrative, it is uncertain whether they’ll be able to keep up with the market expectations. A sound expansion blueprint does not guarantee a consistent performance without proper execution. This uncertainty makes risk-averse investors concerned about the safety of their investments, thus causing them to refrain from investing in AI-related stocks.

• Intense Competition

Emerging companies with small market capitalisation might face tough competition from established rivals. With years of expertise in the market, large-cap companies have an edge over young companies. Hence, it can be challenging for small-cap AI companies to compete with such global giants.

• Technological Upgradations

The AI industry is consistently evolving with newer technologies and advancements. Smaller companies that rely heavily on particular technologies without innovating might face setbacks. If a certain technology gets outdated, it can highly impact the performance of such Artificial Intelligence stocks under ₹100. 

Conclusion

The AI sector in India is experiencing a massive upward growth trajectory. As more businesses shift towards integrating automation via Artificial Intelligence, the demand for AI-related stocks is expected to rise. This helps investors anticipate a high-potential market with promising returns. So, investors can diversify their portfolios by including some of the best Artificial Intelligence stocks under ₹100. However, staying aware of the risks associated with AI-related stocks is imperative.

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FAQs on AI Penny Stocks

1. Is there any AI Penny Stocks?

Ans. Yes, AI penny stocks are a smart pick for novice investors who prefer to invest with limited capital. The top AI Penny Stocks in India include Vertoz, FCS Software, Subex, Sagility India, and more.

2. What are AI penny stocks?

Ans. AI penny stocks are low-priced shares of companies that are involved in the development or application of Artificial Intelligence (AI) technologies in their services. These stocks are typically traded under ₹100, and their services could include building or integrating core AI technologies to promote automation and efficiency.

3. Which Indian AI Penny Stocks are best?

Ans.  

4. What are the benefits of investing in AI penny stocks?

Ans. Investing in some of the top AI penny stocks offers high growth prospects and portfolio diversification at a low initial investment. Additionally, the AI industry is expected to expand substantially, allowing investors to benefit from early access to this emerging sector.

5. Is investing in AI penny stocks risky?

Ans. Yes, AI-related stocks involve a high level of risk as these companies are still in their early stages of growth. Some common risks are market volatility, uncertain future performance, and technological upgrades. Moreover, these young companies might face tough competition with established rivals.

6. What to consider before investing in AI penny stocks?

Ans. It is important to consider factors like the financial statements, debt levels, growth prospects, competition, government regulations of a company before investing in Artificial  Intelligence (AI) penny stocks. These crucial factors help in getting relevant insights about the companies, leading to more well-informed decisions.

7. What are some common AI penny stocks in India?

Ans. Some common AI penny stocks in India are Vertoz Ltd., Subex, Virinchi Ltd., Sagility India, Bartronics India, Intense Technologies, FCS Software Solutions Ltd., and many others. It is advisable to consistently monitor the performance of AI-related stocks to ensure a well-balanced portfolio.

Disclaimer: This is for general information and education purposes only. The Securities quoted (if any) are for illustration only and are not recommendatory. Past performance does not guarantee any future returns. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

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