Best Drone Stocks In India In September 2024 – 5-Year CAGR Basis

The drone market in India is set to bring in $27 million in revenue in 2024, with an expected annual growth rate of 5.78% from 2024 to 2029. Drone manufacturers in India are experiencing impressive growth, driven by strong market trends and innovation. The industry is booming, with drones used in diverse fields such as agriculture, construction, logistics, and filmmaking. Drones’ popularity stems from their ability to provide affordable solutions, enhance efficiency, and introduce advanced technology. In this article, you will learn about the top drone companies in India listed in the stock market.

Best Drone Stocks In India In September 2024 – 5-Year CAGR Basis

Note: The best drone stocks are selected from the Nifty 500 universe and have been sorted based on 5-year CAGR as of September 04, 2024.

Overview of Top Drone Stocks in India

1. Hindustan Aeronautics Limited (HAL)

Hindustan Aeronautics Limited (HAL) plays a crucial role as a core aviation equipment supplier. It is the only Indian company specialising in manufacturing aircraft and helicopters and providing maintenance services. HAL is deeply integrated into India’s defence program, heavily relying on contracts from the Ministry of Defence (MoD). Export revenues make up about 1% of its total income.

For the quarter ended June 2024, the company’s revenue decreased to ₹4,347.57 crore from ₹14,768.78 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹1,435.59 crore from ₹4,292.04 crore in the previous quarter.

Key metrics: 

• Earning per share (EPS): ₹122.86
• Return on equity (ROE): 28.29%

2. Bharat Dynamics Limited (BDL)

Bharat Dynamics Limited (BDL) is a leading defence public-sector company in India, specialising in the production of surface-to-air missiles (SAMs), Anti-Tank Guided Missiles (ATGMs), underwater weapons, launchers, Countermeasures Dispensing Systems (CMOS), and test equipment. The company is also involved in refurbishing and extending the life of stored and deployed missiles. BDL is the only manufacturer in India of SAMs, torpedoes, and ATGMs and is currently the sole supplier of these missiles to the Indian Armed Forces.

For the quarter ended June 2024, the company’s revenue decreased to ₹191.17 crore from ₹854.12 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹7.22 crore from ₹288.78 crore in the previous quarter.

Key metrics: 

• EPS: ₹15.77
• ROE: 15.90%

3. Bharat Electronics Ltd

Bharat Electronics Ltd. (BEL) is a key manufacturer of advanced electronic products and systems for the Indian Navy, Air Force, and Army. Managed by the Ministry of Defence, the company was established in 1954 and is headquartered in Bengaluru. Over the years, the company has expanded its operations into various sectors, including smart cities, homeland security, e-governance, energy storage, e-vehicle charging stations, space electronics, railway and metro solutions, telecom products, medical electronics, solar energy, network and cybersecurity, and passive night vision devices.

For the quarter ended June 2024, the company’s revenue decreased to ₹4,198.77 crore from ₹8,528.54 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹776.14 crore from ₹1,783.52 crore in the previous quarter.

Key metrics: 

• EPS: ₹5.84
• ROE: 26.52%

4. Honeywell Automation India Ltd

Honeywell Automation India Ltd (HAIL) is a leading provider of integrated automation and software solutions that enhance productivity, safety, security, and comfort in both homes and commercial spaces. The company operates in three main areas of automation: manufacturing electronic systems and components, providing repair and maintenance services, and trading machinery, supplies, and equipment.

For the quarter ended June 2024, the company’s revenue increased to ₹960.45 crore from ₹950.74 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹136.46 crore from ₹148.18 crore in the previous quarter.

Key metrics: 

• EPS: ₹604.47
• ROE: 14.82%

5. Data Patterns (India) Limited

Data Patterns (India) Limited is a rapidly growing company in India’s Defence and Aerospace Electronics sector. As one of the few vertically integrated providers in this field, the company offers comprehensive electronics solutions for the domestically developed defence industry. The company has supplied products for various platforms, including space, air, land, and sea, with notable contributions to projects like the LCA-Tejas, Light Utility Helicopter, and BrahMos missile.

For the quarter ended June 2024, the company’s revenue decreased to ₹104.08 crore from ₹182.29 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹32.79 crore from ₹71.10 crore in the previous quarter.

Key metrics: 

• EPS: ₹33.70
• ROE: 14.25%

Conclusion

With the increasing adoption of drones across various sectors, such as agriculture and logistics, drone companies can benefit from the expanding market. Investors looking to capitalise on the growth of the drone sector can consider these top stocks. However, before investing in the top drone stocks, take the time to research the company thoroughly. Check its financial health, competitive edge, growth potential, and management team. Understanding its revenue sources, customer base, and partnerships will give you a clearer picture of its long-term prospects.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.