Introduction
AI stocks have become increasingly popular in recent years, with investors looking to capitalize on the potential growth of this industry. In this blog, we will discuss three amazing AI stocks for 2024, analyzing their performance and potential for the coming year. We will delve into the details of each stock, highlighting their strengths, weaknesses, and the factors that may impact their future growth. Let’s get started!
Emphasis Limited
The first stock we will discuss is Emphasis Limited. Over the last year, this stock has delivered a modest return of 11%. While this may seem average compared to other AI stocks, it is important to note that some AI stocks have seen significant returns, such as Zensar with 125% and Persistent System Limited with 51%. However, Emphasis Limited’s recent performance has shown promising signs, with a 7% increase in the last month alone. To understand why Emphasis Limited has underperformed compared to other AI stocks, we need to examine their last quarterly results. Page eleven of their presentation reveals a decline in revenues from the Americas, a significant market for the company. The banking sector’s macro overhang has impacted their US business, particularly the mortgage business, which has seen a decline of 20% in the last year. The good news is that there are indications of a potential turnaround in 2024. The Federal Reserve’s decision to lower interest rates throughout the year may alleviate the pressure on the mortgage industry, leading to increased revenues for Emphasis Limited. If the macro conditions become more favorable, the company’s stock prices are likely to appreciate and offer better returns in the coming years.
Happiest Minds Limited
Happiest Minds Limited is the second AI stock we will discuss. This company was founded by Ashok Suta, who previously worked for Mindtree. The stock saw a significant increase after its IPO in September 2020, reaching a high of Rs 1200-1300. However, in the past year, the stock has experienced a decline of -15%. Analyzing their recent quarterly results, we observe a 14% increase in revenue year on year and 4% quarter on quarter. The company’s EBITDA margin, a crucial metric for evaluating IT companies, has risen from 16% to 20%, indicating healthy financial performance. However, the profit after tax has declined by 1.6% due to intangible write-offs from acquisitions. The revenue growth guidance for Happiest Minds Limited has been revised to 12% on an organic basis, indicating a potential slowdown in the next quarters. A large acquisition that was expected to contribute to future revenue growth has been delayed, affecting the company’s growth prospects. Despite these challenges, the company’s long-term strategy, including the creation of a separate generative AI unit, shows promise for future growth.
Intellect Design Arena Limited
The third AI stock on our list is Intellect Design Arena Limited. Over the past year, the stock has delivered impressive returns of 62%, with a 13% increase in the last month. This growth can be attributed to the company’s strong financial performance and strategic initiatives. Intellect Design Arena has reported a revenue increase from 529 crores to 621 crores in the last quarter. Furthermore, their EBITDA margin has improved from 16% to 20%, indicating a healthy financial position. The company’s focus on marketing activities, doubling their efforts in the past six months, demonstrates their commitment to expanding their customer base and promoting their products. A significant development for Intellect Design Arena is their partnership with Microsoft to launch their IGTB product on the cloud. They have also showcased over 50 AI use cases in the banking sector, highlighting the potential for cost savings and growth. The company’s focus on product marketing and innovation positions them well for future success.
Conclusion
In conclusion, these three AI stocks show promising potential for 2024. Emphasis Limited, despite its average performance in the past year, may see a turnaround with the softening of interest rates. Happiest Minds Limited faces short-term challenges but has laid the foundation for long-term growth with its strategic initiatives. Intellect Design Arena Limited has demonstrated strong financial performance and a focus on marketing and innovation, positioning them well for future success. Please note that this blog is not a recommendation to invest in these stocks. It is essential to conduct thorough fundamental and technical analysis before making any investment decisions. If you are interested in learning more about fundamental analysis or want to see an analysis of a particular stock, consider subscribing to our YouTube member community. Remember to always do your own research and make informed investment decisions.
Disclaimer: The information is only for information purpose only. It is always recommended to consult with certified financial experts before making any investment decisions. Follow busymoneyfreak.com