Best Drone Stocks in India

05 March 2024
7 min read
Best Drone Stocks in India
whatsapp
facebook
twitter
linkedin
telegram
copyToClipboard
(The stocks mentioned in the blog are as per Market Capitalization)

Over the past 5-6 years, the demand for drone technology has increased significantly. With their innovative technology, drones are now catering to numerous sectors such as defence, logistics, agriculture, recreation, etc.

Given the increasing demand, efficiency, usage and market potential, drone stocks are now attracting substantial investment from retail investors.

Drone Industry in India - A Quick Synopsis

The Indian drone industry has been evolving rapidly along with a surge in startups and innovation. From government to commercial applications, drones are being used in aerial photography, infrastructure inspection, defence, filmmaking, surveillance, delivery services, disaster management, and more.

In terms of investment and growth, the drone industry in India has attracted significant investment from both domestic and international sources.

The Indian government has been supporting this industry with strategic investments and also through initiatives such as the Digital Sky Platform, which aims to facilitate the registration and approval process for drone operations. Along with this, the government has formulated certain regulations that govern the operation of drones through the Directorate General of Civil Aviation (DGCA).

Despite its strong growth prospects, the Indian drone industry has faced several challenges in the past. Be it airspace management issues, regulatory hurdles, concerns related to privacy, or limited public awareness and acceptance.

Hence, if you are someone who is keenly interested in investing in drone stocks, it is necessary for you to do complete research. Before investing, address the regulatory challenges, growth potential, your investment horizon, and risk tolerance.

📣 IPOs to look out for
View all IPOs
Companies
Type
Bidding Dates
SMECloses 21 May
SMECloses 21 May
RegularOpens 22 May
Regular-
Regular-

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.

S.No.

Best Drone Company Stocks in India (as per Market Capitalization)

1.

Hindustan Aeronautics Ltd

2.

Info Edge (India)

3.

RattanIndia Enterprises

4.

Zen Technologies

5.

Paras Defence & Space Technologies

*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog.

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.

Drone Fun Fact - Groww

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.

*Stock Selection Criteria for Top Stocks Based on Market Capitalisation

These stocks are chosen based on their market capitalization, which represents the total value of a company's outstanding shares. The selection is arranged in descending order, placing the largest companies first and the smaller ones later. This helps prioritize stocks based on their market size. 

It is important to note that market capitalization in no way guarantees a company’s performance or the returns from its stocks. However, it can be used as a criterion for shortlisting companies from within a sector. Investors should recognize that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment. 

This stock selection should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here
Research Analyst - Aakash Baid

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Groww Invest Tech Pvt. Ltd. (Formerly known as Nextbillion Technology Pvt. Ltd) Ltd. do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
Do you like this edition?
LEAVE A FEEDBACK
ⓒ 2016-2024 Groww. All rights reserved, Built with in India
MOST POPULAR ON GROWWVERSION - 4.9.8
STOCK MARKET INDICES:  S&P BSE SENSEX |  S&P BSE 100 |  NIFTY 100 |  NIFTY 50 |  NIFTY MIDCAP 100 |  NIFTY BANK |  NIFTY NEXT 50
MUTUAL FUNDS COMPANIES:  GROWWMF |  SBI |  AXIS |  HDFC |  UTI |  NIPPON INDIA |  ICICI PRUDENTIAL |  TATA |  KOTAK |  DSP |  CANARA ROBECO |  SUNDARAM |  MIRAE ASSET |  IDFC |  FRANKLIN TEMPLETON |  PPFAS |  MOTILAL OSWAL |  INVESCO |  EDELWEISS |  ADITYA BIRLA SUN LIFE |  LIC |  HSBC |  NAVI |  QUANTUM |  UNION |  ITI |  MAHINDRA MANULIFE |  360 ONE |  BOI |  TAURUS |  JM FINANCIAL |  PGIM |  SHRIRAM |  BARODA BNP PARIBAS |  QUANT |  WHITEOAK CAPITAL |  TRUST |  SAMCO |  NJ