These four drone company stocks gave record breaking returns in one year
- Drones could be the next big thing in India, with the government putting its weight behind the industry.
- While the drone industry is still in its nascent stages, the Indian government announced that it would support the use of drones in the agriculture sector.
- Experts believe the liberalisation in drone policies could result in the creation of new jobs, too.
- For investors, too, there are several possibilities.
The drone sector in India has remained muted for a while now despite many startups trying to find their feet. As the government lifts restrictions on drone usage from just defense to sectors like agriculture, tourism, healthcare and more, drone company stocks could be worth a lot more.
The recent news about the Adani Group picking up a 50% stake in a drone company General Aeronautics – could be an early sign of things to come.
“Though young, drone as an industry has been assisting social development in a big way and the thrust in the budget will further strengthen the industry. It will help the sector to move away from being a toy / entertainment product to a business product/service,” said Gautam Vohra, business head for telecom and engineering staffing at TeamLease Digital.
This provides investors with an opportunity to get in relatively early into this sector – still in its nascent stage.
Drone sector liberalisation provides investment opportunities, too
In the listed space, there are a few drone companies that could benefit from the government liberalising its drone policies.
Zen Technologies has been around for a long time now. It is headquartered in Hyderabad and offers logistics drones, among other things. Its stock has surged nearly 150% in the last one year.
RattanIndia Enterprises is known for its Revolt branded electric bikes, but the company has a wholly-owned drone subsidiary called NeoSky India. Its shares have surged over 160% in the last one year.
Bharat Electronics, a government-owned company, makes a wide range of products, right from weapon systems to radars, naval systems and drones, too. This
Navratna public sector undertaking has also seen its stock surge consistently in the last one year, up by nearly 60% as on today.
From fundraises to govt agreements, the drone sector is seeing plenty of action
The sector also saw quite a bit of funding action in the last few months. For instance, ideaForge, an Indian drone manufacturer, raised $20 million in a Series B round. Established in 2007, ideaForge counts Infosys, Qualcomm, and Exim Bank of India amongst some of its investors.
Another drone startup, Skye Air Mobility, signed a memorandum of understanding (MoU) with the Himachal Pradesh government to enable agriculture and healthcare logistics in the state.
The difficult terrain of the state and low temperatures makes it difficult to address logistics needs, which makes drone deliveries even more lucrative.
Vohra added that the recent developments and the government’s push could boost job opportunities in the sector by 25%.