Although the drone business is still in its early stages, it is predicted to grow exponentially in the next few years. This means that you can profit significantly from this growing industry by investing in drone shares in India.
Continue reading as we talk about the best drone shares in India that you can invest in to generate high returns.
| S.No. | Popular Drone Stocks in India | Market Capital (in Cr) | Share Price |
|---|---|---|---|
| 1. | Info Edge (India) | ₹ 66,338.47 | ₹ 5,129.35 |
| 2. | Paras Defence and Space Technologies Ltd | ₹ 2,808.98 | ₹ 720.50 |
| 3. | Zen Technologies Ltd | ₹ 6,681.52 | ₹ 799 |
| 4. | Droneacharya Aerial Innovations Ltd | ₹ 460.10 | ₹ 192.40 |
| 5. | Rattanindia Enterprises Ltd | ₹ 10,470.69 | ₹ 75.10 |
| 6. | DCM Shriram Ltd | ₹ 17,104.63 | ₹ 1,029.60 |
What Are Drone Stocks?
Drone stocks are shares of firms that are directly involved in the drone industry. These businesses create, produce, operate or provide services for Unmanned Aerial Vehicles (UAVs) or drones. Investing in the stocks of these companies allows people and organisations to engage in the growth and progression of the drone industry and potentially profit from its success.
Drone stocks might include companies that develop drones, create drone-related technologies, offer drone services or provide solutions for various industries using drone technology. These equities can be traded on other financial markets or listed on stock exchanges such as the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Furthermore, investing in drone stocks provides exposure to the rapidly growing market for drones, which are increasingly being used in industries such as agriculture, construction, logistics, aerial photography and surveillance.
Market demand, technological improvements, government regulations, competition and the financial viability of the companies involved can influence the performance of drone stocks.
Drone Industry in India
India's drone industry is still in its early stages. The Indian government has approved the use of drones in various industries, such as agriculture and healthcare. Prime Minister Narendra Modi termed drones a 'game-changer' in agriculture when he inaugurated the drone festival in New Delhi in May 2022. He also mentioned how, during COVID-19, drones assisted in delivering vaccines to remote locations nationwide.
The Ministry of Civil Aviation (MoCA) announced instructions for the Production-Linked Incentive (PLI) scheme, which was implemented in September 2021 for drone manufacturing and component firms, in December 2022. The MoCA has set aside Rs. 120 crores for enterprises manufacturing drones and drone components between FY’2023 and FY’2025.
Though a handful of businesses are looking into the drone sector, the industry is projected to grow and improve in the coming years with the government's support and demand.
6 Best Drone Stocks in India 2023
Here is a brief overview of the top 10 drone stocks in India for 2023:
Info Edge (India)
Info Edge is a popular online marketplace in India that provides various internet-based services via web portals and smartphone apps. The company was founded in 1995, and its equities are traded on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Info Edge India has a track record of investing in emerging technology, one of which is drones. It recently invested in Skylark Drones, a global start-up developing basic drone frameworks. It has also made investments in growing companies such as Zomato and PolicyBazaar.
Droneacharya Aerial Innovations
Droneacharya Aerial Innovations Ltd, established in 2017, is a small-cap firm that offers drone services, training and manufacturing. Infrastructure, real estate, construction and agriculture are among the industries the organisation serves.
The company has educated over 300 drone pilots so far and has expanded by more than 63.59% since last year. Furthermore, Droneacharya Aerial Innovations Ltd is an Indian government-recognised start-up under the Start-up India programme.
Paras Defence & Space Technologies
Paras Defence & Space Technologies, established in 2009, is a privately held domestic firm that provides a diverse variety of defence and space engineering goods and solutions. It has also developed many UAVs and offers services such as aerial mapping, surveillance and surveying.
The company's four key business segments are Defence and Space Optics, Defence Electronics, Heavy Engineering, and Electromagnetic Pulse Protection Solutions.
Shares of Paras Defence and Space Technologies were first listed on stock exchanges in 2021 through an initial public offering (IPO), and Furthermore, the company's net profit margin is 16.21%, and its ROE is 9.10%.
Zen Technologies
Zen Technologies, founded in 1993, is an Indian small-cap drone tech firm. They are developing heavy-lift logistics drones, and their anti-drone technology focuses on drone detection, classification, and tracking using passive surveillance, camera sensors, and threat neutralisation by blocking Drone communication.
The fact that Zen Technologies has secured orders from the Indian Air Force for the procurement of CUAS, or counter unmanned aircraft systems, reflects their growth in drone technology.
RattanIndia Enterprises
RattanIndia Enterprises Ltd is involved in a variety of businesses, including power, infrastructure, cement, and real estate. The headquarters of the company are in Mumbai, India. RattanIndia Enterprises is significantly involved in the power sector, with a wide portfolio of thermal and solar power projects.
With about 2.7 GW of installed capacity, the company plans on increasing its power-producing capabilities. Rattan India Enterprises expanded its business beyond the power industry in 2019 by purchasing a majority share in Asteria Aerospace.
Asteria Aerospace provides drone-based solutions for a variety of industries, including agriculture, infrastructure, and defence. Rattan India Enterprises intends to increase its position in the drone market by acquiring Asteria Aerospace and utilising the technology for a variety of purposes, including surveillance and monitoring, assessing and mapping, and evaluation and maintenance.
DCM Shriram Industries
DCM Shriram Industries Ltd. is an Indian company that works in a variety of industries, including plastics, chemicals and sugar. The company's headquarters are in New Delhi, India, where it was founded in 1947. DCM Shriram Industries is a major player in the sugar industry, with multiple sugar mills spread over North India.
The company produces a wide range of products, including sugar, molasses and alcohol. In addition to a wide range of plastic products, such as PVC pipes and fittings, the company also produces chemicals such as caustic soda, chlorine and calcium carbide.
DCM Shriram Industries' development of unmanned aerial vehicles (UAVs) for agricultural purposes is another push into the drone business. The company's drones are utilised in precision agriculture for spraying, mapping and crop monitoring.
Summing Up
As the use of drones grows, so will the demand for drone-related services such as controller training, maintenance, and repair in the future years. Overall, India's drone industry is primed for tremendous expansion in the next few years, providing an interesting opportunity for investors seeking high-growth potential businesses.
Frequently Asked Questions
Which drone stock is the best one?
Some of the best drone stocks in India are:
- Rattan India Enterprises
- Zen Technologies
- Paras Defence & Space Technologies
- DCM Shriram Industries
Is it good to invest in Drones?
Yes! The drone market is flourishing, with a variety of industries adopting this technology. They are being used everywhere, from agricultural and delivery solutions to infrastructure and defence.
