Artificial intelligence (AI) stocks were the flavour of this bull market, with Nvidia rising 18x in the last five years. The rally that started on the Nasdaq also spread to India, with Netweb Technologies and Anant Raj making big gains in the Indian markets and then topping out.
Netweb’s share price rose 233% from ₹898 in July 2023 to ₹3,060 in December 2024, while Anant Raj returned 373% from ₹200 in July 2023 to ₹947 in January this year. However, when the release of Deepseek triggered concerns around demand for hardware growth, share prices of AI related stock fell sharply.
Both Natweb and Anant Raj also fell more than 40% from their highs.
So, how are they placed right now? Let’s find out.
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Netweb provides various computer server solutions, including High-Performance Computing (HPC), storage, deep learning, big data analytics, cloud, and virtualization.
It has installed more than 300 Make-in-India HPC and is one of the few players in the market providing end-to-end supercomputing and cloud service solutions.
Netweb has designed, developed, and deployed some of India’s most powerful supercomputers, including the Kabru (India’s second-fastest computer) and PARAM Yuva II (the fastest supercomputer).
In addition, it is also participating in the Indian government’s National Supercomputing Mission. The company is one of the few original equipment manufacturers eligible for the IT Hardware PLI and Telecom and Networking PLI schemes.
The company collaborates with various technology partners, such as Intel Americas, AMD, Samsung, Nvidia, and Seagate India. It also has a diversified client base, including the IIT, the ISRO, Zoho, RailTel, and TCS.
Netweb’s revenue base is diversified, with HPC contributing 36% of total revenue, 37% from private cloud, 11% from artificial intelligence, and the rest from others.
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Coming to its financials, Netweb’s operating income has grown at a massive 72% compounded annual growth rate (CAGR) during FY21-FY24 to ₹7.24 billion, while profit rose at 110% CAGR to ₹0.76 billion.
Strong profitability was driven by robust margins, which expanded from 10.2% in FY21 to 14.2% in FY24.
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