Rising global interest rates, highlighted by the US Federal Reserve's latest hike, are putting pressure on high-growth stories everywhere and forcing investors to think harder about what they are actually paying for future earnings. That sets the stage for Indian companies tied to artificial intelligence and ChatGPT style tools that still trade at restrained prices. This article walks through three such AI stocks from our screener that merit a closer look.
The three stocks profiled below are just a starting sample from this theme, and the full screen surfaced 2 more companies with equally compelling AI narratives that are not covered here. To see the wider field, head straight into the Undervalued Artificial Intelligence/ AI Stocks screener to identify, compare, and analyze the highest conviction ideas for your watchlist.
Tanla Platforms (NSEI:TANLA)
Overview:Tanla Platforms runs cloud-based communication tools that let enterprises use AI chatbots and automated messaging across channels like WhatsApp, SMS, and RCS.
Operations:Tanla Platforms generates about ₹46.0b in revenue from its CPaaS provider segment, largely tied to enterprise communication and messaging services.
Market Cap:₹64.4b
Tanla Platforms matters for this AI-focused screen because its Surbo and Wisely products plug large enterprises directly into ChatGPT-style customer conversations at scale, while still being part of a broader communications platform that investors can assess on more than just hype.
"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."
For anyone watching Tanla Platforms, the key question is what happens when a single pressure point reshapes how much value AI messaging can actually keep in-house.
If that pressure point is on your mind, the full narrative for Tanla Platforms shows how Tanla Platforms could still see AI demand accelerate while pricing risk slowly decouples.
KPIT Technologies (NSEI:KPITTECH)
Overview:KPIT Technologies builds embedded software, AI driven autonomous driving and ADAS platforms, and cloud linked vehicle systems for global automakers.
Operations:KPIT Technologies generates revenue across the Americas, UK & Europe, and Rest of The World, with UK & Europe contributing about ₹34.7b.
Market Cap:₹144.0b
KPIT Technologies matters for this AI focused screen because its autonomous driving stack uses AI perception, planning, and cloud connected inference to power software defined vehicles rather than just providing generic IT services.
"The catalyst sequence is: Q1 FY27 results confirming organic revenue growth above 3% constant currency, Europe revenue sustaining above 8% YoY, and a first explicit disclosure of solutions as a percentage of revenue."
What happens to KPIT Technologies' valuation and AI narrative if that single proof point on how work is priced shifts either way?
If that inflection point is what you care about, the full narrative for KPIT Technologies explains how KPIT Technologies' pricing mix, ADAS leverage and AI perception work could still accelerate.
Newgen Software Technologies (NSEI:NEWGEN)
Overview:Newgen Software Technologies builds the NewgenONE platform that applies agentic AI and LLM-driven automation to enterprise workflows, documents, and customer interactions, alongside broader ECM and BPM software products.
Operations:Newgen Software Technologies generates about ₹16.1b from software and programming, with key contributions from India, the USA, EMEA, and the wider Asia Pacific region.
Market Cap:₹70.1b
Newgen Software Technologies matters for this AI screen because NewgenONE is designed specifically for LLM-era automation, from document-heavy banking workflows to chatbot powered customer support. This gives you exposure to applied enterprise AI rather than just experimental tools.
"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 Software Technologies is how one quiet shift in its AI-heavy mix affects profitability and investor confidence.
That quiet shift is exactly what the full narrative for Newgen Software Technologies unpacks, highlighting where Newgen Software Technologies' AI subscriptions could be accelerating faster than the headline story suggests.
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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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