The drone market in India is expected to generate revenue of US$27.0 million in 2024, with a projected annual growth rate of 5.78% (CAGR 2024-2029). By 2029, the drone market volume in India is forecasted to reach 79.6 thousand units, with a 6.6% volume growth expected in 2025. A significant factor contributing to the market’s growth is the increasing use of drones in agriculture, transforming farming practices across the country. In this article, let’s look at some of the best drone stocks in India for October 2024 based on the 5-year CAGR.
| Name | Market Cap (₹ in crore) | PE Ratio | 5Y CAGR (%) | 1Y Return (%) |
| Hindustan Aeronautics Ltd | 2,95,642.02 | 38.79 | 65.77 | 125.88 |
| Bharat Electronics Ltd | 2,08,401.79 | 52.3 | 51.18 | 104.81 |
| Bharat Dynamics Ltd | 42,521.25 | 69.4 | 50.96 | 127.18 |
| Honeywell Automation India Ltd | 43,305.34 | 86.37 | 11.3 | 22.98 |
| Data Patterns (India) Ltd | 12,964.21 | 71.35 | – | 8.96 |
Note: The list of top 10 drone stocks in India listed in stock market here are sorted as per the 5-yr CAGR as of October 01, 2024.
Hindustan Aeronautics Limited (HAL) is a key supplier of aviation equipment in India, specializing in building aircraft and helicopters and providing maintenance services. It is the only company in India with this focus and plays a major role in supporting the country’s defence program, with most of its business coming from contracts with the Ministry of Defence. HAL earns about 1% of its revenue from exports.
In the quarter ending June 2024, HAL’s revenue dropped to ₹4,347.57 crore, down from ₹14,768.78 crore in the previous quarter. Its net profit also fell to ₹1,435.59 crore from ₹4,292.04 crore in the earlier quarter.
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Bharat Dynamics Limited (BDL) is a major public-sector company in India’s defence industry. It specializes in making surface-to-air missiles (SAMs), Anti-Tank Guided Missiles (ATGMs), underwater weapons, launchers, and Countermeasures Dispensing Systems (CMOS). The company also works on refurbishing and extending the life of stored and deployed missiles. BDL is the only company in India that manufactures SAMs, torpedoes, and ATGMs, and it supplies these exclusively to the Indian Armed Forces.
In the quarter ending June 2024, BDL’s revenue dropped to ₹191.17 crore, down from ₹854.12 crore in the previous quarter. Its net profit also decreased to ₹7.22 crore, compared to ₹288.78 crore in the earlier quarter.
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Bharat Electronics Ltd (BEL) is a major producer of advanced electronic systems for the Indian Navy, Air Force, and Army. Operated by the Ministry of Defence, the company was founded in 1954 and is based in Bengaluru. Over time, BEL has expanded its business into several areas, including smart cities, homeland security, e-governance, energy storage, electric vehicle charging stations, space electronics, railway and metro solutions, telecom products, medical electronics, solar energy, network and cybersecurity, and night vision devices.
In the quarter ending June 2024, BEL’s revenue dropped to ₹4,198.77 crore, down from ₹8,528.54 crore in the previous quarter. Its net profit also fell to ₹776.14 crore, compared to ₹1,783.52 crore in the earlier quarter.
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Honeywell Automation India Ltd (HAIL) is a top provider of automation and software solutions that boost productivity, safety, security, and comfort in both homes and businesses. The company focuses on three key areas: manufacturing electronic systems and components, offering repair and maintenance services, and trading machinery, supplies, and equipment.
In the quarter ending June 2024, HAIL’s revenue slightly increased to ₹960.45 crore from ₹950.74 crore in the previous quarter. However, its net profit dropped to ₹136.46 crore, down from ₹148.18 crore in the earlier quarter.
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Data Patterns (India) Limited is a fast-growing company in India’s defence and aerospace electronics sector. As one of the few vertically integrated companies in this field, it provides complete electronic solutions for the country’s defence industry. The company has contributed to various platforms, including space, air, land, and sea, and has played a key role in projects like the LCA-Tejas, Light Utility Helicopter, and BrahMos missile.
In the quarter ending June 2024, the company’s revenue dropped to ₹104.08 crore, down from ₹182.29 crore in the previous quarter. Its net profit also fell to ₹32.79 crore, compared to ₹71.10 crore in the earlier quarter.
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Investing in drone stocks can be a chance to participate in this groundbreaking technology and benefit from its growth. However, it’s important to understand the risks associated with it and do thorough research. To make informed investment choices, it’s essential to understand market trends, assess key companies, and stay updated on regulatory changes.
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.
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