3 weeks ago

Two AI Stocks Down 50%: Bargains or Value Traps?

Two AI Stocks Down 50%: Bargains or Value Traps?
2 AI stocks down up to 50%: Hidden bargains or classic value traps? · financialexpress.com

Two companies in India that build software for other businesses have seen their stock prices drop a lot.

The first company, Kellton Tech, is small and based in Hyderabad.

Even though it made new AI tools, its stock fell to a price lower than the money the company owns per share.

That can happen when a company earns profit on paper but does not collect the cash.

The second company, Zensar Technologies, is bigger and based in Pune.

It has lots of cash, almost no debt, and many workers trained in AI.

But its sales are growing slowly, and some big foreign investors sold their shares.

Some people think these stocks are cheap bargains, while others think they are 'value traps' that keep falling.

The article says investors should watch how much cash these companies truly make in the next few quarters.

Key facts

Kellton Tech share price (6 Aug 2026)
Rs 14.2
Kellton Tech PE vs industry median
8x vs 26x
Kellton Tech FY26 free cash flow
Negative Rs 208 crore
Zensar share price (6 Aug 2026)
Rs 501
Zensar market cap
Rs 11,389 crore
Zensar PE vs industry median
14x vs 23x
Zensar net cash (June 2026)
$317.5 million (~Rs 2,600 crore, ~23% of market cap)
Zensar chairman
Harsh Goenka

Sources

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