Best Stocks to Invest in 2024 (as per Google AI Gemini)

Gemini AI is the artificial intelligence tool developed by Google. Earlier it was called as Google Bard which was later renamed to Google Gemini. While google search engine provides the list of recommended websites for any search query, it does not provide a simple answer. However, whether it is ChatGPT or Google Gemini’s AI, these Articificial Intelligence tools provide specific responses to the queries raised by the user. I asked a question “Best Stocks to invest in 2024 in India” and as usual “Gemini AI says “it is impossible..””. However, provides a list of stocks. In this article we would provide Best Stocks to invest in 2024 in India as per Google AI Gemini.

Also Read: 5 Mutual Fund Schemes with 3-Year Returns between 160% to 215%

What did I ask to Google AI Gemini?

I posed a question “Best stocks to invest in 2024 in India” and it responded with the following details.

“It is impossible to say definitively which stocks will be the best to invest in 2024, as the stock market is inherently unpredictable. However, there are a number of factors that you can consider when making your investment decisions, such as the company’s financial health, its future growth prospects, and the overall state of the economy.”

It continued with its response “Here are a few of the stocks that are often mentioned as being good long-term investments in India”.

Best Stocks to invest in 2024 (as per Google AI Gemini)

Here are a few of the stocks that are often mentioned as being good long-term investments in India as per Google AI Gemini tool.

#1 – HDFC Bank

#2 – Reliance Industries

#3 – Infosys

#4 – Hindustan Unilever

#5 – Tata Consultancy Services

Top Stock Picks to invest in India in 2024 as per Google AI Gemini – Deep Dive

In this section, we would provide more insights to help investors decide whether to invest or avoid.

#1 – HDFC Bank

About the company

As per Wikipedia, HDFC Bank Limited is an Indian Multinational banking and financial services company headquartered in Mumbai. It is India’s largest private sector bank by assets and the world’s fifth-largest bank by market capitalization as of August 2023, following its takeover of parent company HDFC.

Financial Summary

  • Its revenue increased from Rs 105,161 Crores in FY19 to Rs 170,754 Crores in FY23.
  • Its net profit increased from Rs 22,446 Crores in FY19 to Rs 46,149 Crores in FY23.
  • Its Net NPA has reduced from 0.39 to 0.27.

Reasons to invest in this company

  • The company had strong revenue and margin growth in the last 5 years
  • The company has been maintaining a healthy dividend payout of 19.0%

Risk Factors of investing in this company

  • The stock’s current price-to-book ratio is 2.74
  • The company has a low interest coverage ratio.
  • Contingent liabilities of Rs.18,22,393 Crores
  • Earnings include an other income of Rs.88,999 Cr in the TTM

Share Price Performance

  • 1 Year – minus 10.6%
  • 3 Years annualised – minus 4%
  • 5 Years annualised – 6%
  • 10 Years annualised – 16.4%

What is Google AI Gemini view on this stock?

Gemini AI says “One of the largest private sector banks in India, HDFC Bank has a strong track record of growth and profitability. The bank is well-capitalized and has a healthy loan-to-deposit ratio.”

Our View: HDFC Bank is the most underperforming stock in terms of share price performance. It has generated returns below those of bank fixed deposits (FDs) in the last 5 years. Investors need to have patience to buy and hold such stocks. Such stocks are not for investors who are looking for instant returns or returns in the short term. However, they can create value for investors with a longer-term horizon, typically within a 5-10 year timeframe.

Also Read: 5 Mutual Fund Schemes with 1-Year Returns between 66% to 90%

#2 – Reliance Industries

About the company

Reliance Industries Limited businesses include energy, petrochemicals, natural gas, retail, telecommunications, mass media, and textiles.

Financial Summary

  • Its revenue increased from Rs 568,337 Crores in FY19 to Rs 876,396 Crores in FY23.
  • Its net profit increased from Rs 39,837 Crores in FY19 to Rs 74,088 Crores in FY23.

Reasons to invest in this company

  • Company had strong revenue and margin growth in the last 5 years

Risk Factors of investing in this company

  • The stock’s current price-to-book ratio is 2.69.
  • Company has a low return on equity of 8.23% over last 3 years.

Share Price Performance

  • 1 Year – 36.6%
  • 3 Years annualised – 15%
  • 5 Years annualised – 22%
  • 10 Years annualised – 23%

What is Google AI Gemini’s view on this stock?

Gemini AI says “Reliance Industries is a conglomerate with interests in oil and gas, petrochemicals, retail, and telecommunications, Reliance Industries is a major player in the Indian economy. The company is well-positioned to benefit from India’s growing economy.”

Our View: Reliance Industries had financial growth in the past. It generated stable returns to shareholders too. One should not expect multibagger returns from such stocks. One can expect returns in line with equity mutual funds.

#3 – Infosys

About the company

Infosys Ltd provides consulting, technology, outsourcing and next-generation digital services to enable clients to execute strategies for their digital transformation. It is the 2nd largest Information Technology company in India behind TCS.

Financial Summary

  • Its revenue increased from Rs 82,675 Crores in FY19 to Rs 146,767 Crores in FY23.
  • Its net profit increased from Rs 21,041 Crores in FY19 to Rs 33,332 Crores in FY23.

Reasons to invest in this company

  • Company had strong revenue and margin growth in the last 5 years
  • Company has a good return on equity (ROE) track record: 3 Years ROE 29.4%
  • Company has been maintaining a healthy dividend payout of 58.8%.

Risk Factors of investing in this company

  • Stock is trading at 8.69 times its book value
  • Promoter holding is low: 14.8%

Share Price Performance

  • 1 Year – 8.1%
  • 3 Years annualised – 9.6%
  • 5 Years annualised – 17.7%
  • 10 Years annualised – 13.4%

What is Google AI Gemini view on this stock?

Gemini AI says “One of India’s leading IT companies, Infosys has a strong presence in the global IT services market. The company is well-positioned to benefit from the growing demand for IT services.”

Our View: Infosys had strong revenue and margin growth. It generated returns just like a bank FD in the short term, however generated stable returns (over 15%) in the medium to long term. Like I indicated in an earlier section, one should not expect multibagger returns from such stocks.

#4 – Hindustan Unilever

About the company

Hindustan Unilever is in the FMCG business comprising primarily of Home Care, Beauty & Personal Care and Foods & Refreshment segments. The Company has manufacturing facilities across the country and sells primarily in India.

Financial Summary

  • Its revenue increased from Rs 39,310 Crores in FY19 to Rs 60,580 Crores in FY23.
  • Its net profit increased from Rs 6,060 Crores in FY19 to Rs 10,143 Crores in FY23.

Reasons to invest in this company

  • Company had strong revenue and margin growth in the last 5 years
  • Company is almost debt free.
  • Company has a good return on equity (ROE) track record: 3 Years ROE 21.6%
  • Company has been maintaining a healthy dividend payout of 99.9%

Risk Factors of investing in this company

  • Stock is trading at 8.69 times its book value
  • Promoter holding is low: 14.8%

Share Price Performance

  • 1 Year – minus 4%
  • 3 Years annualised – 3%
  • 5 Years annualised – 6%
  • 10 Years annualised – 16%

What is Google AI Gemini view on this stock?

Gemini AI says “A leading consumer goods company in India, Hindustan Unilever has a strong portfolio of brands that are well-known and trusted by consumers. The company is well-positioned to benefit from India’s growing middle class.

Our View: HUL had strong revenue and margin growth in the past. However, it is the most under performing stock in the last 5 years in terms of share price performance which generated returns below Savings Bank interest rate. Investors should consider this aspect before investing in such companies.

#5 – Tata Consultancy Services

About the company

Tata Consultancy Services is the flagship company and a part of Tata group. It is an IT services, consulting and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys for over 50 years. TCS offers a consulting-led, cognitive powered, integrated portfolio of business, technology and engineering services and solutions.

 Financial Summary

  • Its revenue increased from Rs 146,463 Crores in FY19 to Rs 225,458 Crores in FY23.
  • Its net profit increased from Rs 31,562 Crores in FY19 to Rs 42,303 Crores in FY23.

Reasons to invest in this company

  • Company had strong revenue and margin growth in the last 5 years
  • Company is almost debt free.
  • Company has a good return on equity (ROE) track record: 3 Years ROE 43.3%
  • Company has been maintaining a healthy dividend payout of 61.4%
  • Company’s working capital requirements have reduced from 43.6 days to 32.8 days

Risk Factors of investing in this company

  • Stock is trading at 14.6 times its book value

Share Price Performance

  • 1 Year – 19.1%
  • 3 Years annualised – 10.6%
  • 5 Years annualised – 14.7%
  • 10 Years annualised – 14.1%

What is Google AI Gemini view on this stock?

Gemini AI says “India’s largest IT services company, Tata Consultancy Services has a strong track record of growth and profitability. The company is well-positioned to benefit from the growing demand for IT services.

Our View: TCS had strong revenue and margin growth in the past. It generated stable returns to shareholders too. Like I indicated in an earlier section, one should not expect multibagger returns from such stocks. One can expect returns in line with equity mutual funds.

You may like: Best Mutual Funds to invest in 2024 (as per Google AI Gemini)

Does Google Gemini give stock-specific recommendations?

Now critics may argue that Google Gemini does not provide stock-specific recommendations. Here is the recorded video on my mobile with the query and its response.

What is Google’s advice on investing in some of these stocks?

Google Gemini suggests considering some additional factors when investing in stocks:

  • Your investment goals: What are you hoping to achieve with your investments? Are you looking for income, growth, or a combination of both?
  • Your risk tolerance: How much risk are you comfortable with? Some stocks are more volatile than others.
  • Your investment time horizon: How long do you plan to hold on to your investments?

What are your views on the best stocks recommended for investment in 2024 by Google Gemini AI?

Suresh KP

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