BackThe rise of India's drone industry - 5 stocks to watch out for
Stocks to buy: Drone market in India is set for a leap frog and leading drone companies listed on Indian bourses are expected to get benefit of this, believe stock market experts
PremiumStocks to buy: To maximise utility of drone in public life, Indian government has been liberalising its drone policy for last few years. Now, drone is not restricted to defense sector only as Ministry of Civil Aviation is mending ways to use drone in agriculture, healthcare, tourism, other sectors. Hence, a lot of activities are taking place at drone manufacturing companies as Adani Enterprises signed a definitive agreement to acquire 50 per cent stake in General Aeronautics Private Limited, which provides commercial drone-based solutions for crop protection. Like Adani Enterprises, RattanIndia Enterprises has acquired 60 per cent stake in India's leading drone manufacturing company Throttle Aerospace Systems Pvt Ltd (TAS).
According to stock market experts, Government of India (GoI) is now looking at drone beyond defense sector. Now, the GoI has allowed using drone in agriculture, healthcare and some other sectors. They said that after new drone policy released in July 2021, drone coverage has been increased from 300 kg to 500 kg. Now chances are high for Indian government allowing use of drone in supply-chain system for e-commerce companies like Amazon, Flipkart, etc. Taking note of recent activities in Indian drone market, they listed out 5 drone making stocks to buy. Those 5 drone making stocks are Zen Tech, Paras Defense, BEL, DCM Shriram and RattanIndia Enterprises.
Speaking on India's drone industry Avinash Gorakshkar, Head of Research at Profitmart Securities said, "After liberalised drone policy released last year in July 2021, a lot of activities are taking place in India drone market. Now it is no more restricted to defense sector only. Now, it is seen as a useful technology for agriculture, healthcare, tourism, media and other industries. Like US, chances are high that Indian government may allow use of drone for supply-chain e-commerce platforms like Amazon, Flipkart, etc." He said that importance of having a drone stock in one's portfolio can be understood as Adani Enterprises is going to foray into this business.
Echoing with Avinash Gorakshkar's views, Ravi Singhal, Vice Chairman at GCL Securities said, "After the new drone policy, a lot of merger and acquisition is taking place in Indian drone market. RattanIndia Enterprises has acquired 60 per cent stake in Throttle Aerospace Systems, which is India's leading drone manufacturing company. In fact, Indian billionaire Gautam Adani is also going to foray in drone business as Adani Enterprises has signed a definitive agreement to acquire 50 per cent stake in General Aeronautics, a company that provides commercial drone-based solutions for crop protection."
Asked about the drone stocks that one can buy, Avinash Gorakshkar of Profitmart Securities said, "Drone market in India is set for a leap frog and leading drone companies listed on Indian bourses are expected to get benefit of this. So, if someone is looking forward to buy drone stocks, then they can look at stocks like Zen Tech, Paras Defense, BEL, DCM Shriram and RattanIndia Enterprises.
While inaugurating drone festival in New Delhi, Prime Minister Narendra Modi termed drones as a 'game-changer' in the agriculture sector and pointed out the need for drones to improve last-mile healthcare delivery. He said that during COVID, drones helped in delivering vaccines to the remotest corners of the country. Inviting investors from domestic and overseas market, PM Modi said that PLI Scheme will be soon introduced to build a drone manufacturing ecosystem in India.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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