Best Drone Stocks in India

Best Drone Stocks in India 2024 as per Market Capitalization

Drone stocks have been attracting several retail investors. Due to the evolving demand and growing market size, many people have been searching for the best drone stocks in India. Thus, we have created a list of top drone companies in India listed in stock market based on market capitalization.

Overview of Best Drone Stocks in India as per Market Capitalisation

Below-mentioned is a brief overview of the top drone stocks in India as per market capitalisation-

1) Hindustan Aeronautics Ltd

Hindustan Aeronautics Ltd (HAL) was founded in 1963. It is India’s leading aerospace company, engaged in the design, development, manufacture, etc of a vast range of products such as aircraft, helicopters, aero-engines, drones, etc.

As per news by The Hindu BusinessLine, a leading drone start-up called Garuda Aerospace and Naini Aerospace Engineering Limited (NAeL), which is a wholly owned subsidiary of HAL under the administrative control of the Ministry of Defence, have signed a joint development partnership to manufacture Advanced Precision Drones.

2) Info Edge (India)

Info Edge is a premier online classifieds company primarily active in recruitment, education, matrimony, real estate, and more such services. The company was founded in 1995 and has been substantially investing in drone startups.

For instance, Info Edge acquired an equity stake in Skylark Drones, a global company engaged in the development of fundamental drone frameworks.

3) RattanIndia Enterprises

RattanIndia Enterprises was founded in 2010. Its subsidiary NeoSky India Ltd. is committed to providing drones with its 360° Drone-as-a-Product and Drone-as-a-Service portfolio. Apart from this, RattanIndia Enterprises has expanded more into the drone sector by purchasing a 60% stake in Throttle Aerospace Systems, a provider of drone services.

It offers drone-based solutions for several industries, including agriculture, infrastructure, and defence. RattanIndia Enterprises hopes to strengthen its position in the drone market by acquiring Throttle Aerospace Systems and using the technology for various tasks, such as monitoring and surveillance, surveying and mapping, and inspection and maintenance.

4) Zen Technologies

Zen Technologies is a renowned company engaged in the design, development and manufacture of defence training systems. The company offers a range of products that includes driving simulators, live range equipment, anti-drone systems, and more.

Its Anti-Drone System primarily works on drone detection, classification, tracking on passive surveillance, etc.

5) Paras Defence & Space Technologies

Paras Defence & Space Technologies was founded in 2009. It is involved in developing, manufacturing, testing and commissioning of products and solutions for defence and space applications.

Paras Aerospace is its subsidiary involved in Drone services and related technologies. On the other hand, Paras Anti-Drone Solutions is its another subsidiary engaged in the development of RF & Microwave systems & sub-systems focusing on counter UAV solutions.

Factors to Consider Before Investing in Drone Stocks in India

While building a portfolio with drone sector stocks may seem a lucrative idea, you should, however, consider the following factors before investing-

• Regulatory Environment

The regulatory landscape for drones in India can have a direct impact on the growth and operations of drone companies. Therefore, investors should stay informed about the latest regulations set by the DGCA and how likely they might have an effect on the growth scale.

• Partnerships and Acquisitions

You should also consider the strategic partnerships, acquisitions, and mergers that drone companies have formed with the government, leading industry players, research institutes, etc. It is essential to have a run-through of this factor, as such collaborations can expand market access and enhance product development.

To understand this factor, read our blog on How Mergers and Acquisitions Affect Stock Prices

• Demand and Market Potential

Before you invest in drone stocks, you should determine their demand and growth potential. Though, at present, the drone industry is booming and catering to multiple sectors, you should, however, assess its growth projections for the future.

• Technology and Innovation

Assess the technological capabilities and innovation pipeline of drone companies. You should check which companies are building cutting-edge drone technology and software solutions that are addressing the market needs.

• Valuation

You should also do a fundamental analysis to determine the valuation of drone stocks. You can check the price-to-earnings ratio, price-to-sales ratio, and other relevant metrics to compare with the peers and industry benchmarks.

Should You Invest in Drone Stocks?

The drone industry is witnessing fast growth across various sectors. As drones are becoming increasingly an integral part of numerous business operations and daily life, there is considerable potential for companies operating in this industry to seize market share and yield substantial revenue growth.

Nevertheless, you should note that this sector may face setbacks due to stringent government regulations, technological hurdles, high competition, country-wide acceptance of the technology, etc. Therefore, you should take due precautions before you invest any sum in listed drone stocks.

Conclusion

As the drone industry continues to evolve, well-positioned companies with strong fundamentals and competitive advantages can generate sustainable growth and deliver shareholder value over the long term.

Drones have the potential to disrupt traditional industries and create new market dynamics. Companies that successfully leverage drone technology to innovate and disrupt established markets can experience significant growth and create value for shareholders.

Yet, before investing in drone stocks, it is crucial to check industry conditions, the overall financial performance of the company and also align your investment and risk appetite.