Top Drone Stocks in India 2024: Leading Manufacturers and Stocks

Last Updated on Sep 16, 2024 by Anjali Chourasiya

The rapid increase in technology is giving rise to several developments worldwide. And one such development is drone technology. Either for last-mile delivery or to gather information for disaster management, the drone industry has captured the attention of many investors. In this article, let’s look into the best drone stocks in India listed in the stock market, their usage and factors to check while investing in them.

Best Drone Stocks in India (2024)

Note: The drone sector stocks listed here are as of 26th April 2024. These are sorted according to their 1Y return.

Relative Strength Index (RSI) – 14D measures the speed and change of price movement over a 14 trading day period to determine whether a stock is in an overbought or oversold range. RSI values range from 0 to 100. If the RSI is above 80, it is considered that a security is overbought zone or has run up too much and might fall soon. On the contrary if the RSI reading is below 20, it is considered that the security is oversold or has fallen too much and might see price reversal soon.

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About Top Drone Stocks India

Hindustan Aeronautics Ltd

Founded in 1940, Hindustan Aeronautics Ltd (HAL) is a premier aerospace and defense company in India, primarily engaged in the design, manufacture, and maintenance of aircraft, helicopters, and related equipment. HAL plays a crucial role in supplying defense and aerospace needs for India and has significant expertise in indigenous production.

The company has a market capitalisation of Rs. 311,438.49 cr. and a closing price of Rs. 4685.40. The PE ratio is 40.87, with a 1-year return of 129.52%. The net profit margin is 23.59%, and the RSI (14D) is 44.94. HAL is also one of the top Indian defence sector stocks.

Zen Technologies Ltd

Established in 1993, Zen Technologies Ltd specialises in developing and manufacturing training simulators and defense solutions, including anti-drone systems, driving simulators, and combat training systems. It is one of the top drone making companies in India. The company is known for providing cutting-edge simulation technologies to defense and paramilitary forces. 

Zen Technologies Ltd has a market capitalisation of Rs. 14,326.46 cr., with a closing price of Rs. 1618.80. The PE ratio is 112.03, showing a 1-year return of 100.58%. The net profit margin stands at 27.97%, and the RSI (14D) is 40.53. The company is one of the top drone manufacturers in India.

Drone Destination Ltd

Founded in 2019, Drone Destination Ltd is a leading provider of drone pilot training and education services in India. The company focuses on building skills in unmanned aerial vehicle operations, offering certified training programs across multiple locations.

Drone Destination Ltd has a market capitalisation of Rs. 615.88 cr., with a closing price of Rs. 262.75. The PE ratio is 86.99, with a 1-year return of 94.92%. The net profit margin is 21.70%, and the RSI (14D) is 42.96.

Info Edge (India) Ltd

Established in 1995, Info Edge (India) Ltd is an internet-based company providing online services in recruitment (Naukri.com), matrimony (Jeevansathi.com), real estate (99acres.com), and education (Shiksha.com). It is one of India’s oldest and largest internet companies.

Info Edge (India) Ltd has a market capitalisation of Rs. 95,828.48 cr. and a closing price of Rs. 7476.70. The PE ratio is 166.60, with a 1-year return of 65.80%. The net profit margin is 19.50%, and the RSI (14D) is 50.74.

Paras Defence and Space Technologies Ltd

Founded in 2009, Paras Defence and Space Technologies Ltd is involved in the design, development, and manufacturing of defense and space engineering products. The company provides a broad range of solutions, including defense electronics, optics, and heavy engineering. 

Paras Defence and Space Technologies Ltd has a market capitalisation of Rs. 4,605.91 cr., with a closing price of Rs. 1179.50. The PE ratio is 143.67, with a 1-year return of 44.30%. The net profit margin stands at 12.25%, and the RSI (14D) is 41.17. Paras Defence and Space Technologies Ltd is one of the leading drone manufacturing companies in India as well as one of the top defence stocks in India.

Rattanindia Enterprises Ltd

Rattanindia Enterprises Ltd, founded in 2010, operates in the power trading and consultancy sector, providing comprehensive solutions in power generation, distribution, and trading. The company also explores opportunities in new-age technologies like drones and electric mobility.

The market capitalisation of Rattanindia Enterprises Ltd is Rs. 10,806.83 cr., with a closing price of Rs. 78.11. The PE ratio is 25.36, showing a 1-year return of 25.88%. The net profit margin is 6.88%, and the RSI (14D) is 45.53.

Larsen & Toubro Ltd

Founded in 1938, Larsen & Toubro Ltd (L&T) is a leading multinational engaged in engineering, construction, manufacturing, technology, and financial services. The company operates in over 30 countries and is one of India’s most respected engineering and construction firms.

Larsen & Toubro Ltd has a market capitalisation of Rs. 492,014.43 cr., with a closing price of Rs. 3596.15. The PE ratio is 37.68, with a 1-year return of 24.25%. The net profit margin is 5.79%, and the RSI (14D) is 50.84.

DCM Shriram Ltd

Established in 1990, DCM Shriram Ltd is a diversified chemical company engaged in the production of chloro-vinyl products, sugar, fertilizers, and seeds. The company operates in both the agribusiness and chemical sectors, with a strong market presence in India.

DCM Shriram Ltd has a market capitalisation of Rs. 17,454.93 cr., with a closing price of Rs. 1132.75. The PE ratio is 39.04, with a 1-year return of 11.30%. The net profit margin is 3.95%, and the RSI (14D) is 42.16.

Droneacharya Aerial Innovations Ltd

Founded in 2022, Droneacharya Aerial Innovations Ltd provides aerial and drone-based solutions, focusing on research, consulting, and technological innovation in unmanned aerial systems. The company offers services in areas like surveying, mapping, and data analytics.

Droneacharya Aerial Innovations Ltd has a market capitalisation of Rs. 287.50 cr. and a closing price of Rs. 119.75. The PE ratio is 47.36, with a 1-year return of -34.49%. The net profit margin stands at 16.29%, and the RSI (14D) is 26.85.

What are Drone Stocks?

Drones are also known as Unmanned Aerial Vehicles (UAVs); Drone stocks are nothing but publicly listed companies that manufacture drones and other related technologies. These aerial vehicles can either fly anonymously or be controlled remotely. Along with defence, drones are used in various industries like delivery service, agriculture, etc.

Drone Industry in India

The drone sector in India is still in the developing stage. The Government of India has given permission to use drones in other sectors like agriculture, healthcare, etc. In May 2022, while inaugurating the drone festival in New Delhi, Prime Minister Narendra Modi called drones a ‘game-changer’ in agriculture. He also acknowledged how during COVID-19, drones helped deliver vaccines to remote locations in the country. 

In December 2022, the Ministry of Civil Aviation (MoCA) issued guidelines for the Production-Linked Incentive (PLI) scheme, introduced in September 2021 for drone manufacturing and components companies. The MoCA allocated Rs. 120 cr. fund for companies manufacturing drones and drone components between FY 2023-2025.

Moreover, it is estimated that by 2030 India’s drone market will grow to nearly ₹2.5 tn, up from just ₹29 bn in 2020. The defence sector is expected to be the largest contributor to this market by 2030.

Though only a few companies are looking into the drone sector, with the government’s support and demand, the industry is expected to grow and evolve in the next few years.

Usage of Drones in India

Previously, drones were used only in the defence sector, but currently, it is used in several fields. And with the rapid rise in technology in every field, we can expect the usage of drones in more sectors. Here are a few uses of drone technology in India. 

• Security: Drones are used for security and surveillance purposes. Like, for border surveillance, tracking any criminal activity, and keeping an eye on crowds at events.
• Aerial videography and photography: The high-quality cameras equipped with drones can be used to capture pictures at events. 
• Search operations: The thermal cameras in drones can also be used to locate missing persons or find dangers in the path ahead. 
• Agriculture: They help survey the crops, spray fertilisers and pesticides over the fields. 
• Last-mile Delivery: Drones can be used in the delivery of packages to customers quickly and easily, especially in regions that are hard to reach. 
• Wildlife tracking: It can be used to keep track of wildlife populations.

Benefits of Investing in Top Drone Stocks in India

• Growth Potential: Investing in India’s top drone stocks allows you to benefit from the industry’s rapid expansion across various sectors, from agriculture to defence.
• Adoption of Drone Technology: With drones becoming integral to many industries for tasks like surveillance and deliveries, investing in leading drone stocks offers a chance to capitalise on this trend.
• Cost-efficient: Drones offer significant cost savings and efficiency improvements for businesses, making investments in top drone stocks potentially profitable as companies gain profitability.
• Technological Advancements: The drone sector’s continuous innovation offers investors in top drone stocks the opportunity to be part of the cutting-edge developments in technology.

Risks of Investing in Drone Sector Shares in India

• Regulatory Uncertainty: The drone sector is subject to strict regulations. Any changes or new restrictions can affect companies’ operations and growth potential.
• Technology Risks: The sector relies on rapid innovation. Companies must continuously invest in R&D, and failure to keep up with technological advancements can impact their competitiveness.
• Market Volatility: The drone market is still emerging, and stocks may be highly volatile due to evolving market conditions, competition, and shifting consumer demand.
• High Competition: With many new players entering the market, intense competition can pressure profit margins and impact long-term sustainability.
• Operational Risks: Issues like supply chain disruptions, production delays, or technical failures can affect a company’s performance and profitability.

How to Identify Drone Stocks in India?

Identifying drone stocks in India can be a crucial step if you are looking to explore investment opportunities in this rapidly growing sector. As drone technology gains traction across various industries, such as agriculture, defence, logistics, and surveillance, it is essential to identify companies that are poised to benefit from this trend. Here are some key points to help you identify potential drone stocks in India:

1. Look for Companies with Direct Involvement in Drone Technology

To identify potential drone stocks, you may start by looking for companies directly involved in drone manufacturing, software development or those providing drone-based services. Some companies might be primarily drone-focused, while others may integrate drone technology into their existing business models, such as aerospace, defence, or agriculture. Companies heavily investing in drone technology often indicate a strategic focus on this growing market.

2. Examine Financial Health and Market Position

Financial stability and a strong market position may indicate a company’s ability to sustain and expand its operations in the drone sector. You can evaluate a company’s financial statements, revenue trends, and profit margins. Companies with a healthy cash flow and low debt levels are usually better positioned to innovate and adapt to market demands. Additionally, strategic partnerships or collaborations can enhance a company’s foothold in the drone market.

3. Assess R&D and Technological Capabilities

A company’s investment in research and development (R&D) can be a good indicator of its commitment to innovation in drone technology. Companies that develop proprietary technologies, such as advanced navigation systems, artificial intelligence (AI) for autonomous operations, or unique drone designs, may hold a competitive edge. Patents and exclusive technologies can further solidify a company’s market position, making it a promising drone stock.

4. Evaluate Regulatory Readiness

The regulatory landscape for drones in India is still evolving, with the government introducing various guidelines and restrictions. Companies that are proactive in complying with regulations or that have successfully navigated regulatory challenges may be better positioned for growth. Pay attention to firms that have received necessary certifications and approvals from regulatory bodies, as these can significantly impact their ability to scale operations.

5. Industry Partnerships and Strategic Alliances

Partnerships with other technology companies, defence contractors, or international drone manufacturers can play a crucial role in the growth of drone companies. These alliances can provide access to advanced technology, global markets, and additional revenue streams. You can look for companies that have established strategic alliances, as these partnerships often signal growth potential and market validation.

6. Track Market Trends and Growth Projections

Staying informed about the latest market trends in the drone industry can help you identify stocks with growth potential. Sectors such as logistics, agriculture, surveillance, and defence are rapidly adopting drone technology. Companies that have strong market projections or are expanding their presence in these sectors may offer compelling investment opportunities. Keeping an eye on market reports, industry forecasts, and technology advancements can provide valuable insights.

7. Analyse Competitor Landscape

Analysing the competitive landscape is vital in identifying leading companies within the drone sector. Understanding how a company compares with its peers in terms of market share, innovation, and strategic direction can help you assess its relative strength. Companies that outperform their competitors in terms of technology adoption and market penetration may have a better chance of success.

8. Review Stock Performance and Valuation

Reviewing the historical stock performance and valuation metrics can provide an idea of how the market perceives a company’s growth prospects. While past performance does not guarantee future results, stocks that have shown consistent growth or have attractive valuations compared to peers may be worth considering. Valuation metrics like Price-to-Earnings (P/E) ratio, Price-to-Book (P/B) ratio, and earnings growth forecasts can provide insights into whether a stock is potentially undervalued or overvalued.

How to Invest in the Top Drone Stocks in India?

Investing in the top drone stocks in India can be streamlined using Tickertape, which offers advanced tools to help you identify, analyse, and monitor investments. Here’s how you can get started:

1. Set Up Your Account: Create an account on Tickertape and set up your profile to match your financial goals and risk appetite.
2. Use the Stock Screener: Utilise Tickertape’s Stock Screener to find drone stocks that meet your criteria. Filter by sector, financial health, or specific metrics like R&D investments and market position.
3. Research and Analyse: Dive into detailed stock analysis with Tickertape’s asset pages and Scorecard. Review financial metrics, market trends, and analyst recommendations to understand each stock’s potential.
4. Monitor and Manage: Use Tickertape to track stock and portfolio performance, set alerts for your favourite stocks, and stay updated with real-time data that can impact your portfolio.
5. Stay Updated: Regularly check Tickertape for insights on industry trends and regulatory changes that could influence your drone investments.

Tickertape provides all the tools you need to make informed decisions in the evolving drone market. Start exploring today!

Factors to Check While Investing in Drone Company Stocks in India

Though the drone industry seems promising, there are certain things you, as an investor, need to check before investing in them. 

• Regulations – Though the Government of India approved the usage of drones in a few sectors, you need to understand the associated regulations that can impact the industry. 
• Market potential – Check the market size for this new sector to see if there is any growth potential. 
• Competition – Given the popularity, several large companies and startups are investing in the drone business. Check out the competition. 
• Financial health – While investing in stocks, it is not just the sector that you need to check but also the company. Review the company’s financial health with factors like profitability, revenue, debt, and cash flow. Use Tickertape Scorecard to analyse the company’s growth, performance, red flags, and more. 

Should You Invest in Drone Stocks?

Investing in the top drone stocks in India might be an exciting opportunity due to the sector’s potential, but here are factors to consider:

1. Emerging Market Potential: The drone sector is rapidly growing with expanding applications in agriculture, logistics, and defence, suggesting future profitability.
2. Innovation-Driven Growth: Investing in drone stocks allows you to participate in cutting-edge innovations in AI, automation, and drone technologies that can redefine industries.
3. Long-Term Growth Outlook: The industry is still in its early stages, so a long-term investment horizon may be needed to see significant returns as companies mature.
4. Industry Support and Investments: With increasing government support and private investments, the sector is positioned for significant growth, enhancing opportunities for investors.
5. Portfolio Diversification: Drone stocks can add a unique, high-growth element to your portfolio, especially if you’re looking to diversify into new-age technologies.

While drone stocks offer exciting prospects, they also come with risks, such as regulatory hurdles and market volatility, making thorough research and a balanced approach essential.

Conclusion

Though drone industry stocks are gaining popularity now, you need to consider your investment objectives and risk appetite before investing. Do thorough research not just about the industry but also about the company. Happy Investing. 

FAQs About Drone Stocks in India

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Harshit Singh

Content Strategist at Tickertape

Hey there, I’m Harshit Singh Mahey! With eight years of experience as a Content Strategist, I’ve had the pleasure of working with a Fortune 100 company and building three successful startups from the ground up.

As an investment fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, stocks, smallcases, and real estate to identify which assets generate the highest ROI. At Tickertape, I’m dedicated to presenting my learning and providing insightful suggestions to help my readers make sound investment decision.

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