The purpose of drones has increased in various industries, from agriculture to surveillance and entertainment. This advanced machine is expected to reshape the whole world we work and live in.
Over the past 4 to 5 years, drone technology has been used everywhere significantly. With its new innovative technology, numerous sectors adopt it including recreation, defence, agriculture, logistics, etc.
By investing in drone stocks, you can expect big returns while the industry is growing efficiently.
Top Drone Stocks in India List 2024
Here are the lists of top drone stocks play a vital role in the market in 2024:
| Drone Stocks | Market Cap (in Crore) |
|---|---|
|
Larsen & Toubro Ltd |
483,656.53 |
|
Info Edge (India) Ltd
|
14,076.31 |
|
Zen Technologies Ltd
|
8,205.17
|
|
Drone Destination Ltd
|
663.75
|
|
Hindustan Aeronautics Ltd |
250,877.57
|
Overview of Best Drone Stocks in India
Below mentioned is a brief data analysis of the best drone stocks in India in accordance with the market analysis
| Drone Stocks | Market Cap | P/E Ratio (TTM) | P/B Ratio | Industry P/E | Book Value | Face Value | Debt to Equity | ROE | Dividend Yield |
|---|---|---|---|---|---|---|---|---|---|
|
Hindustan Aeronautics Ltd |
Rs. 2,62,220 Cr |
42.68 |
10.42 |
51.76 |
376.14 |
5 |
0.00 |
24.00%
|
0.70% |
|
Zen Technologies |
Rs.9,015 Cr |
79.51 |
23.39 |
53.74 |
45.86 |
1 |
0.00 |
23.18% |
0.02% |
|
Info Edge |
Rs. 77,583 Cr |
320.66 |
3.94 |
118.54 |
1523.64 |
10 |
0.01 |
1.91% |
0.32% |
|
Paras Defence & Space Technologies |
Rs. 2,823 Cr |
85.96 |
7.30
|
51.76% |
99.14
|
10 |
0.09 |
8.39% |
0.00% |
|
Drone Destination Ltd |
Rs. 630 Cr |
259.20 |
8.48 |
41.84 |
54.55 |
10
|
0.04 |
0.00% |
0.00%
|
Why Invest in Drone Stocks?
The drone industry is growing rapidly across various industries. It has become an integral part of many business operations and investors are expecting that it will yield substantial revenue growth.
These drone stock companies can create, manufacture, operate or provide services to drones or UAVs (Unmanned Aerial Vehicles). By investing in the stocks of these companies, people can engage in the growth of the drone industry and earn good returns.
To make you know better, herewith the comparison of last 5 years net profit rate given below:
Net Profit Rate (Yearly):
| Year | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
|
Hindustan Aeronautics
Ltd
|
2,328 |
2,883 |
3246 |
5,080 |
5,828 |
|
Zen Technologies |
19.24 |
60.51 |
4.10 |
2.02 |
37.64 |
|
Info Edge (India) |
592.20 |
-245.75 |
1418 |
12,882
|
35.94 |
|
Drone Destination Ltd |
- |
- |
-0.05 |
0.21 |
2.44 |
Factors to Consider Before Investing in Drone Stocks in India
Fundamental Factor Analysis
While thinking about investing in drone stocks in India, you should be aware of the following factors:
New Innovation
Consider analyzing the technological advancement and innovation of drone companies. You must look for companies able to build software solutions and cutting-edge drone technology according to the market needs.
Regulatory Environment
The regulatory landscape for drones directly influences the growth of drone companies in India. Therefore, the investors are required to understand the latest regulations announced by DGCA.
Market Demand
Before you step in to invest in drone stocks, you should stay informed about the demand and growth potential. Right now, the drone industry is booming gradually, however, decent growth may provide good profits.
Financial Performance
Check out how the company is performing financially. Choose a company that has consistent profitability, strong cash flow and revenue growth. A trouble-free financial foundation is essential.
Technical Factor Analysis
Earnings Per Share (EPS)
Knowing your choice of company’s profitability allows you to predict the rate of returns that you can gain in future. Generally, the higher EPS is better but it is paramount to consider the earnings trend over time, no. of shares over time, and potential for share dilution.
Dividend Yield
In general, the high dividend value is not a sign of sustainability and low-yielding dividends do not symbolize mismanaged capital. Historically, a good dividend yield fluctuates between 2 to 5%. It is calculated by dividing the dividend per share by market value per share.
P/E Growth
Companies growth rate can be predicted by estimating the P/E growth ratio. Investors are advisable to consider companies with the PEG ratio of 1.0.
What is the Future of Drone Stocks?
Indian drone stocks are steadily growing and some of them continue to evolve in the first quarter of 2024. Due to the increasing adoption of drone technology, your investment may tend to provide profitable returns. Investors want to explore the history of companies before investing and choose the one with wide opportunities.
Risks of Investing in Drone Shares in India
The drone industry completely relies on regulations and legal frameworks. Enabling changes in airspace restrictions, laws governing drone operations, and privacy concerns impact the profitability and growth of drone stocks.
Conclusion
In the end, the drone industry is growing at a rapid pace. With the collaboration of various sectors, drone stocks can make tremendous changes in the Indian stock market. Mentioned above are the things associated with drone stocks including the benefits and risk factors. However, before investing, you should look for the profits you can earn in the future.
FAQs
Investing in drone stocks in India provides you with diverse benefits and opportunities. The drone industry is booming rapidly, as it surprises investors with unexpected growth and profit rates by expanding its involvement in various sectors.
According to the report, the drone industry in the year 2026 is expected to reach a value of $10 billion. Hence, the investors are considering it as a great choice to invest. But, they should look for the investment goals and risk factors before investing.
There are no restrictions or limitations to investing in drone stocks. Anyone who wants to earn good returns with their investment can prefer the drone sector stocks. However, considering its goal and risk appetite is advisable before investing.
Here is the list of best drone stocks you can consider investing in:
- Hindustan Aeronautics Ltd
- Larsen and Toubro Ltd
- Rattanindia Enterprises Ltd
- Info Edge (India) Ltd
- DCM Shriram Ltd