3 Indian AI Stocks With P E Under 23
Global tech giants are pouring money into AI infrastructure, and the latest US Federal Reserve rate hike highlights how much this theme now shapes real-world spending. That wave of investment ripples into Indian AI related stocks, especially where valuations still look reasonable. This article walks through three ideas from an India focused undervalued AI screener so you can see which businesses might suit your own watchlist.
The three ideas below are only a starting sample from this theme, and the full screen surfaced 1 more Indian AI related company with a similarly compelling story that is not covered here.
To identify your own high conviction candidates in this corner of the ChatGPT and AI build out, head straight into the Undervalued Artificial Intelligence/ AI Stocks screener to filter and analyze the full set of undervalued infrastructure and software plays.
Tanla Platforms (NSEI:TANLA)
Overview: Tanla Platforms runs cloud-based communication and AI messaging platforms like Wisely and Surbo that automate large scale customer interactions for enterprises.
Operations: The business generates about ₹46,034 million in revenue from its CPaaS provider segment, centered on messaging and communication services.
Market Cap: ₹65.4 billion
Tanla Platforms matters for this AI screener because its Surbo and Wisely platforms plug conversational intelligence directly into the everyday channels where enterprises already talk to their customers.
"Although WhatsApp and broader OTT messaging volumes are expanding and Tanla has been recognized as Meta partner of the year, frequent pricing changes from Meta and withdrawal of certain incentives can compress unit economics and limit the uplift to revenue and earnings if enterprises resist higher costs or slow adoption."
This raises the question of what happens if a single pressure on how those messages are priced starts to reshape the margins behind Tanla Platforms’ AI initiatives.
If that pricing pressure is only half the story, the full narrative for Tanla Platforms shows whether Tanla Platforms can decouple AI messaging growth from those shifting economics.
Newgen Software Technologies (NSEI:NEWGEN)
Overview: Newgen Software Technologies builds the NewgenONE platform that uses agentic AI to automate document-heavy enterprise workflows and conversational customer interactions.
Operations: Newgen generates about ₹16,104 million from software and programming, with revenue split across India, the US, APAC, and EMEA regions.
Market Cap: ₹70.3 billion
Where Tanla is plugged into messaging rails, Newgen Software Technologies sits deeper in the plumbing of enterprise processes, wiring AI into how banks, insurers and government departments actually move documents, approve loans and respond to customers.
"The ongoing acceleration in global digital transformation, including rising demand for cloud adoption, automation, and artificial intelligence, expands Newgen's addressable market; management highlighted strong client interest in AI-led workflow solutions and recent expansion of AI-driven features, which is expected to drive recurring subscription revenue and long-term revenue growth."
What could really move the needle for Newgen now is how one pressure on large deal timing reshapes the margin profile of those AI workflows.
That margin question is exactly where the full narrative for Newgen Software Technologies traces how Newgen Software Technologies could turn delayed deals, AI subscriptions and global demand into a stronger long term story.
CG-VAK Software and Exports (BSE:531489)
Overview: CG-VAK Software and Exports delivers global software services, including AI and machine learning solutions and hyper data curation for clients.
Operations: The business generates about ₹739 million in revenue from software services, where AI, ML and related offerings sit within a broader IT mix.
Market Cap: ₹745.4 million
CG-VAK Software and Exports ties into the AI screen through its artificial intelligence, machine learning and hyper data curation services. It currently trades on a P/E of about 8.4x, while many Indian software peers trade at higher multiples. A key consideration is how any changes in earnings and project mix might affect that valuation gap.
That valuation tension is exactly why the DCF valuation analysis for CG-VAK Software and Exports could be worth a few seconds of your time, before the next rerating debate kicks off.
Curious About High Conviction Alternatives
Fresh ideas do not stay under the radar for long. Before the next breakout gathers momentum and ideal entry points get caught by the crowd, scan these curated lists and act now.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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