Best Robotics & AI Stocks in India: Robotics is all set to change the way things are done in the industries. Indian companies are incorporating modern-day techniques to boom their businesses.
The pandemic has further pushed them to go virtual and adapt more technology-intrinsic methods. In this article, we will look at the Indian Robotics Market and analyze the best robotics stocks. Keep reading to find out!
India Robotics Market – An Overview
Indian companies are rapidly moving towards automation of their operations. The aim is to increase production volume, accuracy, and safety. To build up industrial automation for increasing the product supply and domestic manufacturing.
The Indian government is promoting both public, and private sector industries as well as robotics startups in the country. According to a June 2019 report by Oxford Economics, the current trends suggest the global stock of robots will multiply even faster in the next 20 years. So much so that it can reach as many as 20 million by 2030 worldwide.
According to a 2019 report by the International Federation of Robotics, India’s automotive sector was the main customer for industrial robots, accounting for as much as 62% of the total supply.
According to IFR, from 2020 to 2022 almost 2 million new units of industrial robots are expected to be installed in factories around the world. The Indian Robotics market is estimated to grow at a 13.3% CAGR from 2019-2024.
Challenges Faced by Indian Companies
Although there is rapid adoption of robotics software and technologies by Indian companies, there are still some unique challenges faced by them. Some of the common issues include:
- High cost of acquiring these technologies
- Lack of capital
- An abundance of unskilled labor in the market.
- A lack of space on the shop floor.
- The lack of technical expertise to operate the complex new technology.
Best Robotics & AI Stocks in India
Here is the list of companies that are using Robotics.
Best Robotics & AI Stocks in India #1 – Tata Motors
|ace Value (₹): 2||Net Profit Margin: -5.21|
|Market Cap (Cr): Rs 166,362 Cr||Current Ratio: 0.82|
|Promoter’s Holdings (%): 46.4%||Debt to Equity: 3.29|
|Stock P/E (TTM): 0||ROE (%): -22.3|
|EPS (₹): -36.1||Dividend Yield (%): 0|
Tata Motors Limited is an Indian multinational automotive manufacturing company, which is part of the Tata Group. The company produces passenger cars, trucks, vans, coaches, buses, luxury cars, sports cars, and construction equipment.
TAL Manufacturing Solutions which is a wholly-owned subsidiary of Tata Motors launched a ‘Made-in-India’ robot called TAL BRABO. Short for “Bravo Robot”, it primarily caters to micro, small and medium industries. It can also be used for large-scale industries. It is designed to lift loads of up to 10 kilograms. This robot is used by big names which include Tata Motors, Mahindra and Mahindra, CPG Industries, BITS Dubai Campus, and Micromax Systems.
The financials of Tata motors look strong. It has the highest market capitalization among its peers. In FY22 the company earned revenue of Rs 278,454. It posted a net loss of Rs -11,441 Crores for the same year. One of the red flags for the company is the increasing debt and consequent high-interest payments compared to its earnings. The promoter pledge stood at 1.82%.
Best Robotics & AI Stocks in India #2 – Maruti Suzuki India
|Face Value (₹): 5||Net Profit Margin: 4.39%|
|Market Cap (Cr): Rs 269,921 Cr||Current Ratio: 0.99|
|Promoter’s Holdings (%): 56.4%||Debt to Equity: 0.01|
|Stock P/E (TTM): 60.8||ROE (%): 7.20|
|EPS (₹): 147||Dividend Yield (%): 0.68|
Maruti Suzuki India Limited (MSIL) is engaged in the business of manufacturing, purchasing, and sale of motor vehicles, automobile components, and spare parts for automobiles. It also facilitated pre-owned car sales, fleet management, and car financing.
Its other business vertical includes Finance, Insurance, Maruti Genuine Accessories, Maruti Genuine Parts, Maruti Driving School, and Autocad.
Maruti is not far behind when it comes to automation. It has numerous robots employed at its Manesar and Gurugram car factories.
Robots are deployed largely in the weld shop with more than 2000 robots working there. The paint shop and the press shop, where automobile car bodies are shaped are also automated. Manual work is now done mostly in car assembly. They use more than 5,000 robots at their plant to produce vehicles.
Coming to the financials of the company, it posted a Net Profit of Rs 3,880 Cr and earned a total revenue of Rs 88,330 Cr in FY22. The company has low debt which is a good sign. There are zero pledged shares of the promoters.
Best Robotics & AI Stocks in India #3 – Mahindra & Mahindra
|Face Value (₹): 5||Net Profit Margin: 7.69|
|Market Cap (Cr): ₹ 157,264Cr||Current Ratio: 1.14|
|Promoter’s Holdings (%): 19.4||Debt to Equity: 1.65|
|Stock P/E (TTM): 19.5||ROE (%): 14.2|
|EPS (₹): 67.2||Dividend Yield (%): 0.91|
Mahindra & Mahindra Limited is an Indian multinational automotive manufacturing corporation that is a part of the Mahindra group. It is one of the largest vehicle manufacturers by production in India. Its subsidiary Mahindra Tractors is the largest manufacturer of tractors in the world by volume. It is engaged in the sales of automobiles, spare parts, and related services.
M&M has joined the league and already has a “robotic weld line” at its factory in Nashik. It now caters to many of its products including the Marazzo and the XUV300. Around 70% of their vehicle’s body shop work is done via robots.
The company saw an increase in the net profit at Rs 6,577 Cr from the previous year and recorded a revenue of Rs 90,171 Cr in FY22. M&M has been increasing debt in the last few quarters. On the bright side, the promoter’s pledge has decreased from 1.34% in June 2021 to 0.06% in June 2022 quarter.
Companies Providing Robotic Process Automation (RPA)
Before diving into what the companies are doing, let us first understand what Robotic Process Automation is. In simple terms, RPA is a software technology that is used to make a software Robot work. These software robots are capable of emulating basic human actions such as understanding what’s on a screen, identifying and extracting data, and performing a wide range of defined actions. Software Robots can help in getting the work done faster, accurately, and in a cost-effective manner.
The Indian companies engaged in providing Robotic Process Automation (RPA) are:
1. Companies Providing Robotic Process Automation (RPA) – Happiest Minds
|Face Value (₹): 2||Net Profit Margin: 18%|
|Market Cap (Cr): Rs 14,235Cr||Current Ratio: 1.30|
|Promoter’s Holdings (%): 53.2||Debt to Equity: 0.37|
|Stock P/E (TTM): 71.4||ROE (%): 30.6|
|EPS (₹): 13.9||Dividend Yield (%): 0.39|
Happiest minds technologies limited is an Indian multinational information technology company. They are into a wide spectrum of disruptive technologies such as artificial intelligence, blockchain, cloud, digital process automation, the internet of things, robotics/drones, security, and virtual/augmented reality among others.
Happiest Minds Robotic Process Automation as a Service is designed to help organizations integrate RPA with technologies like artificial intelligence, machine learning, and knowledge-based systems to drive enterprise-wide transformation.
Last year the company executed a digital transformation project for Coca-Cola Bottling Company United for streamlining its order management with the help of RPA.
The financials of the company looks strong as they have earned a Net profit of Rs 186 Cr and a revenue of Rs 1034 Cr in FY 22. The company has low debt and zero promoters pledge which is impressive.
2. Companies Providing Robotic Process Automation (RPA) – Kellton Tech solutions
|Face Value (₹): 5||Net Profit Margin: 8.36%|
|Market Cap (Cr): Rs 697Cr||Current Ratio: 2.96|
|Promoter’s Holdings (%): 52.2||Debt to Equity: 0.24|
|Stock P/E (TTM): 9.88||ROE (%): 15.7|
|EPS (₹): 7.30||Dividend Yield (%): 0.34|
Kellton Tech Solutions Ltd. (KTSL) is an Indian information technology and outsourcing company. It provides Digital Transformation, Digital Connected Enterprise, SAP, Outsourced Product Development, and Digital Commerce and Marketing.
The company provides tailored RPA solutions to its customers. It has provided Inventory management systems to restaurants for automating their operations in the US. The company has also created Content Management Systems based on the needs of its client to make their operations more efficient.
Kellton Tech Solutions recorded a net profit of Rs 70 Cr and clocked a revenue of Rs 843 Cr in FY22. The promoters of the company have pledged around 12.72% of their share. On the bright side, the company has low debt.
3. Companies Providing Robotic Process Automation (RPA) – Tata Elxsi
|Face Value (₹): 10||Net Profit Margin: 22.2|
|Market Cap (Cr): Rs 59,468Cr||Current Ratio: 4.13|
|Promoter’s Holdings (%): 43.9%||Debt to Equity: 0.09|
|Stock P/E (TTM): 95.7||ROE (%): 37.2|
|EPS (₹): 99.7||Dividend Yield (%): 0.45|
Tata Elxsi is amongst the world’s leading providers of design and technology services across industries including Automotive, Media, Communications, and Healthcare.
It provides integrated services from research and strategy to electronics and mechanical design, software development, validation, and deployment, and is supported by a network of design studios, global development centers, and offices worldwide.
Tata Elxsi is focused on innovating products and services that can cater to Healthcare and Pharmaceutical companies to automate their core processes. The company is into Product engineering and designing other embedded systems for Robotics and related software.
The Tata Group company earned a revenue of Rs 2,471 Cr and a Net profit of Rs 550 Cr in FY 22. The company has a Zero promoters pledge and No debt. One of the red flags is the decreasing promoter shareholding in the company.
In this article, we looked at the best robotics & AI stocks in India. However, this raises a pertinent question. Will these disruptive technologies which can be used in almost all industries, steal jobs? The answer to the question is No. Companies need to have the right mix of both Robots and Human resources to optimize their operations.
This gives a good opportunity to investors to invest in Robotics which is the future. That’s all for this article on “Best Robotics & AI Stocks in India”. Happy Investing!
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