AI Penny Stock Below Rs 3: This Low PE Stock Eyes Opportunity from India’s Over Rs 10,000 Crore AI Push

Indian equity markets had a difficult week, with the Nifty 50 falling more than 2 per cent and extending its losing streak to five consecutive weeks. Despite the broader market weakness, one penny stock remained firmly in the spotlight after gaining around 24 per cent during the week.

The stock is Empower India. Shares of the company have been gaining momentum since it announced its expansion into sustainable digital infrastructure solutions and highlighted the opportunities emerging from the rapid growth of India's artificial intelligence and digital infrastructure ecosystem.

AI Infrastructure Expansion in Focus

Empower India said its strategic move into sustainable digital infrastructure could benefit from the expansion of India's AI computing ecosystem.

According to the company, the growth of AI computing is expected to increase demand for energy efficient data centres, high performance computing infrastructure, advanced cooling systems and reliable power infrastructure.

The opportunity is supported by the Government of India's Rs 10,371.92 crore IndiaAI Mission, announced in 2024. The programme aims to strengthen India's artificial intelligence ecosystem through investments in computing capacity, data infrastructure and AI applications.

More than 38,000 GPUs have already been onboarded, while the government has announced plans to add another 20,000 GPUs. This expansion is expected to further increase the country's AI computing capacity.

Data Centre Capacity Expected to Rise Sharply

The rapid growth of AI computing is also driving demand for modern data centres and the supporting infrastructure required to operate them.

India's data centre capacity is projected to rise from around 1.6 GW in 2026 to nearly 6 GW by 2029, representing close to a fourfold increase.

For Empower India, the company believes this expansion could widen the market for its sustainable digital infrastructure solutions. AI workloads require higher computing densities, which in turn increase the need for efficient power management, cooling systems and reliable infrastructure.

The company expects rising demand across areas such as energy efficient data centre infrastructure, power optimisation systems, advanced cooling and thermal management solutions, and sustainable infrastructure designed for high density computing.

Growing Addressable Market

The expansion of AI, cloud computing and digitalisation is expected to increase investment across India's digital infrastructure ecosystem.

Every addition to computing capacity requires supporting infrastructure such as data centre space, electricity, cooling, connectivity and energy management systems. Empower India believes this could create long term opportunities for its digital infrastructure business as India's AI ecosystem continues to expand.

Valuation and Balance Sheet

Empower India is currently trading at a price to earnings ratio of 13.7 times, compared with the industry average PE of 20.6 times.

The company's debt to equity ratio stands at 0.11.

With the stock gaining around 24 per cent last week and 76 per cent over the past six months.

Disclaimer: The article is for informational purposes only and not investment advice