In 2025, artificial intelligence (AI) is no longer limited to big tech companies. A new wave of SME-listed companies in India are using AI to revolutionize industries like fintech, healthcare, logistics, and cybersecurity. These small-cap players are quietly building scalable, AI-powered platforms — and early investors could see multibagger returns.
If you’re looking for under-the-radar opportunities in
India’s AI boom, here are some of the top SME stocks to watch in 2025.
Best AI-Based SME Stocks in India 2025 – Undervalued Tech Multibaggers:
1. Vibhor Steel Tubes
Ltd (AI in Smart Manufacturing)
Why It’s a Pick:
- Recently listed SME IPO, backed by strong order books
- Partnering with AI startups for predictive maintenance & supply chain automation
- Low debt, strong EPS growth
- Targeting smart factory digitization in Tier 2 cities
2. E Factor
Experiences Ltd (AI in Event Tech & Smart Cities)
Why It’s a Pick:
- Provides AI-enabled event experiences, smart city infrastructure solutions
- Working with govts on AI-based crowd analytics and immersive virtual events
- Huge opportunity in upcoming Indian smart cities
- Scalable IP-based business model
AI-Powered SME Multibagger Stocks to Watch in India – 2025 Edition:
3. Innokaiz India Ltd
(AI in Digital Marketing & Fintech)
Why It’s a Pick:
- Operates in AI-led digital campaigns, martech, and reward management
- Growing client base in BFSI and government sectors
- Applying AI for audience behavior analytics
- Strong asset-light model and repeat business
4. Crayons
Advertising Ltd (AI in Programmatic Ads)
Why It’s a Pick:
- Public-sector and private sector ad campaigns
- Using AI for targeting, sentiment analysis, and predictive performance
- Low competition in the AI-powered regional advertising space
- Strong YoY revenue jump post-listing
5. DroneAcharya
Aerial Innovations Ltd (AI in Drones & Geospatial Tech)
Why It’s a Pick:
- Combines AI with drone data for mining, logistics, and agriculture
- Received multiple licenses from DGCA, government departments
- Early-stage with high scalability
- First-mover in SME drone tech with AI integration
Why These AI SME Stocks Stand Out
- Low market caps → Room to grow 5x–10x
- AI focus → Investors looking beyond large caps
- Government contracts & tech adoption → Stability and scale
- Available at relatively low price points compared to big AI names
Related Articles to read:
Top SME IPOs in India
2025 That Can Become Multibaggers
Top AI Penny Stocks Under 100rs to Buy
in India – 2025 List
Final Thoughts
India’s AI revolution is not just happening in large-cap
giants. These agile SME players are tapping niche opportunities using AI — from
smart cities to drones to ad-tech. As AI adoption deepens, these companies may
scale rapidly, and investors positioned early could benefit from multibagger
returns.
Share Your Views:
Which AI-based SME stock do you believe has the most
potential in 2025?
Comment below and share this post in your investor WhatsApp
and Facebook groups!
FAQs – AI SME Stocks
India 2025
Q1. Are SME stocks
risky for long-term investors?
Yes, they are volatile but high-risk, high-reward. Pick
companies with proven revenue models and scalability.
Q2. How is AI helping
Indian SME companies?
AI improves their efficiency, reduces costs, and helps them
offer cutting-edge services in marketing, logistics, security, and automation.
Q3. What’s a safe
entry strategy for these stocks?
Invest in tranches. Track results quarter-on-quarter and avoid illiquid stocks
Piyush Sharma is a long-term equity investor and founder of MultibaggerStockIdeas.com. With over 15 years of experience in Indian stock markets, he shares research-backed investment insights, personal lessons, and practical strategies for identifying multibagger stocks early.
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