3 Indian AI Stocks With P E Under 25 To Watch

AI optimism has just lifted global stocks after the Nasdaq 100 moved close to its record high, and that global enthusiasm is spilling into Indian artificial intelligence opportunities. When capital is hunting for the next wave of AI leaders, many solid Indian AI stocks can still trade at prices that do not fully reflect their potential role in this boom. This article highlights three such undervalued AI companies from our screener.

The three stocks below are just a sample from our undervalued AI group, and the full screen surfaced 2 more Indian companies with equally compelling ChatGPT linked stories that are not covered here.

To go beyond this snapshot and move straight into filtering, comparing, and pressure testing your own highest conviction ideas, head into the Undervalued Artificial Intelligence/ AI Stocks screener.

Tanla Platforms (NSEI:TANLA)

Overview: Tanla Platforms runs a cloud communications and AI-powered messaging business, using products like Surbo and Wisely to automate large scale customer conversations across SMS, apps, and voice for enterprises.

Operations: Tanla Platforms generates about ₹46.0b in revenue from its CPaaS provider segment, which is the core source of its business income.

Market Cap: ₹64.4b

Tanla Platforms matters for this AI-focused list because its Surbo and Wisely products turn everyday customer messaging into LLM-style, automated conversations that tie directly into the ChatGPT wave.

"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 point in that commercial relationship reshapes how much of each AI-driven message flows through to profit.

If that pressure point matters to your thesis, the full narrative for Tanla Platforms shows how Tanla Platforms’ AI economics and platform dependencies could be decoupling beneath the surface.

KPIT Technologies (NSEI:KPITTECH)

Overview: KPIT Technologies builds AI driven software for autonomous and connected vehicles, from in car perception and planning to cloud integration.

Operations: KPIT Technologies earns revenue mainly from UK & Europe at ₹34.7b, with sizeable contributions from the Rest of The World and the Americas.

Market Cap: ₹144.0b

KPIT Technologies matters in this AI list because its auto focused perception, planning, and edge to cloud stack directly underpins vehicle autonomy software.

"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 if a single assumption in that AI heavy shift toward fixed price, solutions led work reshapes how margins settle?

That margin reset is where it gets interesting, and the full narrative for KPIT Technologies lays out how KPIT Technologies’ AI shift could accelerate or quietly stall.

Newgen Software Technologies (NSEI:NEWGEN)

Overview: Newgen Software Technologies builds the NewgenONE AI platform for workflow and document automation, alongside broader enterprise content and process software.

Operations: Newgen Software Technologies generates about ₹16.1b from software and programming, with revenue spread across India, the US, APAC, and EMEA.

Market Cap: ₹70.1b

Newgen Software Technologies matters for this AI screener because NewgenONE turns traditional workflows and documents into LLM style automation for banks, insurers, and governments.

"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."

The real swing factor is how one shift in customer buying preferences could reshape the balance between high margin subscriptions and slower license deals.

That shift in customer buying power is exactly what the full narrative for Newgen Software Technologies unpacks, highlighting where Newgen Software Technologies’ AI push could be accelerating or quietly stalling.

Seeking Fresh Alternatives Before They Fly

Fresh ideas move first. By the time every screen flashes green, early entries are gone, momentum is crowded, and pricing power drops. Scan these under the radar lists and consider acting before they become widely followed.

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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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