E2E Networks: This multibagger AI stock turns ₹1 lakh into ₹60 lakh in 6 years

Multibagger small-cap stock: In the fast-paced world of investing, finding a multi-bagger stock that can deliver extraordinary returns within a short period of time is the dream of every investor. Such dreams turned into reality for investors of E2E Networks, as the company’s shares delivered a phenomenal return.

The shares, which were trading at a value of ₹657.90 apiece a year ago, have seen a meteoric rise of 268% to trade at the current market price of ₹2,423. Over the last six years, the stock has zoomed 5,650% to date.

If an investor had invested Rs1 lakh in the shares six years ago and remained invested until today, their wealth would have grown to a staggering ₹60.57 lakh, highlighting the potential of the stock market to multiply wealth when the right investments are made.

The company is an NSE-listed, MeitY-empaneled AI-focused hyperscale cloud platform, offering advanced cloud GPUs and a comprehensive ecosystem of cloud technologies designed for the development and deployment of AI/ML/GenAI workloads on large-scale compute clusters.

According to the recent estimates, the global AI market, valued at approximately $110-130 billion in 2023, is expected to grow significantly, reaching $320-380 billion by 2027, driven by advancements in model training, enabling more accurate results through improved enterprise data and use case-specific training.

Additionally, the increasing compute power of GPUs is expected to be utilised more effectively with enhanced training models. AI’s natural language interface and ease of use have broadened its user base, accelerating its integration into a wide range of products and services across industries.

AI Opportunities in India

India is witnessing a surge in AI-driven opportunities across three key areas:

Advanced GPU Demand: The demand for high-performance cloud GPUs like H100/H200 is rapidly increasing, driven by government initiatives, higher education institutions, startups, and enterprises.

Open-Source AI: The capabilities and availability of state-of-the-art open-source AI models are expanding, enabling businesses to build and deploy Generative AI (GenAI) solutions more effectively.

Data for AI/ML: With a highly digitised population, India remains the data capital of the world. The government is committed to fostering AI innovation by supporting Indian startups and enterprises in leveraging the country’s data sovereignty to emerge as global AI leaders, as per the E2E networks Q3FY25 earnings report.

Meanwhile, the Indian government approved a comprehensive IndiaAI mission at a budget outlay of ₹104 billion in March 2024 with an aim to create public artificial intelligence (AI) compute infrastructure of over 10,000 graphic processing units, or GPUs, built through the public-private partnership route.

Further, it aims to design an AI marketplace to offer AI-as-a-service and pre-trained models to AI innovators and will also act as a one-stop solution for resources critical for AI innovation.

The recent media reports suggest that the government has identified L1 bidders for compute infrastructure and is expecting leading developers to complete multiple foundational models (large or small language models (LLM/SLM)) within 8-10 months, leveraging algorithmic efficiency in areas such as healthcare, education, agriculture, climate, and governance, said domestic brokerage firm Incred Equities. 

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.