Best Drone Stocks to Invest in India 2024

In the quest to achieve a $5 trillion economy, India is gearing up like never before. A crucial player in driving economic growth is the manufacturing industry. Manufacturing not only reduces export costs but also ensures affordable supply for domestic demands, thus fostering economic expansion. Recognizing this, the Indian government has consistently supported initiatives like 'Make in India' and introduced schemes like PLI to bolster growth in emerging sectors. Today, we'll delve into one such burgeoning sector that's not just running but soaring high – the Drone Industry.

 

Drone Industry's Growth Plan

The Indian government allocated a budget of Rs. 57 crores for the drone sector in the interim budget of February 1, 2024. This substantial investment underscores the immense potential and the government's commitment to the industry's growth. Projections suggest that by 2030, the drone industry could triple in size, indicating a lucrative avenue for investors.

 

 

Industry Size in India and Growth till 2030

According to industry estimates, the drone industry in India is poised to expand nearly threefold by 2023. With such a robust growth trajectory and unwavering government support, the potential for investors in this sector is undeniable.

 

Key Players in Drone Manufacturing

 

Zen Technology:

Zen Technology, established in 1996, specializes in combat training solutions and counter-drone systems for defense and security forces. Its cutting-edge products not only protect our armed forces from drone attacks but also cater to various other defense needs.

The company boasts a robust order book, with a significant order influx during Q3, FY24. Management anticipates impressive revenue growth, targeting a 50% CAGR over the next 2-3 years.

 

 

DCM Shriram Industries:

DCM Shriram operates across sectors like sugar, alcohol, power, chemicals, industrial fibers, and drones. Focusing on its drone segment, the company manufactures advanced Armored Vehicles for the Indian defense forces and produces Unmanned Aerial Vehicles (UAVs) under brands like DCM Trishul and DCM Kailash.

DCM Shriram's drones serve diverse purposes, from heavy lifting to surveillance and mapping. Additionally, the company develops anti-drone systems, enhancing India's security infrastructure.

 

Ideaforge:

Established in 2007, Ideaforge commands a 50% market share in India's drone industry. Its drones find applications in mapping, surveying, security, and surveillance, contributing significantly to defense revenues.

The company's recent achievements include improved global rankings, certification as a Great Place to Work, and the grant of seven new patents. With plans to expand operations in North America and a healthy order book, Ideaforge presents a compelling investment opportunity.

 

 

Investing in the Future

As the drone industry takes flight, investing in these pioneering companies offers a chance to be part of India's technological revolution. With government support, innovative solutions, and a burgeoning market, these stocks hold immense potential for growth-oriented investors.

While the journey may have its ups and downs, the long-term outlook for the drone sector remains promising, making it a sector worth exploring for investors seeking exposure to India's burgeoning technology landscape. As we witness the transformation of the drone industry, investors can ride the wave of innovation and progress, potentially reaping significant rewards along the way.

Disclaimer: This Stock Analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.