RIL, Bharti Airtel, ONGC, Tata Motors PV among top 'HALO' picks against AI disruption

Amid concerns over artificial intelligence (AI) rewriting the rules of traditional models, a report by Geojit Financial Services highlighted the ‘HALO Trade’, an acronym for heavy assets, low obsolescence, as a key investment strategy focused on companies with strong tangible assets and low risk of technological obsolescence.

While Japan has recently emerged as a ‘HALO’ play, attracting foreign inflows of nearly $87.8 billion over the past 12 months amid AI-driven disruption, India has seen outflows of around $7.3 billion, the report said. 

“Historically, Indian corporates have maintained a healthy RoE, led by efficient capital management, high promoter holding, assets light approach and low capex,” Geojit said.

However, Geojit noted that India may need to shift from an asset-light model to one that invests more in future-ready assets in manufacturing, software, and advanced services.

The brokerage has identified several companies that perfectly fit this HALO profile. Heavyweights like Reliance Industries Ltd (RIL), Oil & Natural Gas Corporation (ONGC), Bharti Airtel Ltd, and Tata Motors Passenger Vehicles (PV) are on the list of India's most tangible companies. 

Reliance Industries tops the charts, boasting an estimated FY26 capital expenditure of Rs 121,695 crore and leading the pack with Rs 1,375,818 crore in gross fixed assets. Similarly, Geojit also anticipates traditional core sectors to generate higher values, supported by their substantial assets and a shift toward "greener and more sustainable operating frameworks". 

“Key opportunities for India are expected to emerge in advanced manufacturing segments such as electronics, robotics, industrial machinery, and semiconductors, along with specialty areas including data centres, high-grade steel, specialty chemicals, and industrial gases,” Geojit added.

Geojit warned investors of key risks, primarily the requirement for sustained high capital investment, which may weigh on future cash flow generation. Furthermore, Geojit noted these companies generally command high valuations and still face exposure to obsolescence due to rapid and continuous technological advancements.