These four drone company stocks have given record returns in a year

  • Drones could be the next big thing in India, with the government throwing its weight behind the industry.
  • While the drone industry is still in its infancy, the Indian government has announced that it will support the use of drones in the agricultural sector.
  • Experts believe that the liberalization of drone policies could also lead to the creation of new jobs.
  • For investors too, several possibilities are available to you.

The drone industry in India has been silent for quite some time now despite many startups trying to find their feet. As the government lifts restrictions on the use of drones from simple defense to sectors like agriculture, tourism, healthcare and more, shares of drone companies could be worth much more.

The recent announcement that the Adani Group has acquired a 50% stake in a drone company, General Aeronautics, could be a harbinger of things to come.

“Although young, the drone as an industry has made a significant contribution to social development and the budget orientation will further strengthen the industry. This will help the sector to transform from a toy / entertainment product to a commercial product / service said Gautam Vohra, head of telecommunications and engineering workforce at TeamLease Digital.

This offers investors the opportunity to enter this sector relatively early – still in its infancy.

The liberalization of the drone sector also offers investment opportunities

In the listed space, there are a few drone companies that could benefit from the government liberalizing its drone policies. Paras Defense is the last one on the block. The company launched its IPO in September last year. Since then, its stock has jumped nearly 25%. 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 jumped nearly 150% in the past year.

RattanIndia Enterprises is known for its Revolt-branded e-bikes, but the company has a wholly-owned drone subsidiary called NeoSky India. Its shares have jumped more than 160% in the past year.

Bharat Electronics, a state-owned company, manufactures a wide range of products, ranging from weapon systems to radars, naval systems and drones. This
Navratna the public sector company has also seen its stock rise steadily over the past year, up almost 60% as it is today.

From fundraisers to government deals, the drone industry is seeing a lot of action

The sector has also seen quite a bit of funding action over the past few months. For example, ideaForge, an Indian drone maker, raised $20 million in a Series B round. Founded in 2007, ideaForge counts Infosys, Qualcomm, and Exim Bank of India among some of its investors.

Another drone startup, Skye Air Mobility, has signed a memorandum of understanding with the government of Himachal Pradesh to enable agriculture and healthcare logistics in the state.

The state’s harsh terrain and low temperatures make it difficult to meet logistical needs, making drone deliveries even more lucrative.

Vohra added that recent developments and government push could increase employment opportunities in the sector by 25%.

SEE ALSO:

ONGC beats Tata Steel and TCS to become India’s 2nd most profitable company – but Russian ties could spoil the party

After cryptos, the taxman could come and get your NFTs according to a new report

Government withdraws advisory on Aadhaar photocopies and asks citizens to be careful when sharing Aadhaar card details

Garland K. Long