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4 Drone Stocks To Keep Track Of After Centre Invites Application From Industry For PLI


Drones or the unmanned vehicle similar to an aircraft that is operated by a remote control is being seen in wide existence. For a common man, it has found application in video making etc.


Now to boost this niche area the centre today has invited players in the segment to make applications for PLI such that incentive can be availed by them. As per the terms of the scheme, developers of drone related software are also covered. For the PLI, it is capped at 25% of the total annual expenditure. In case a manufacturer fails to meet the threshold for the eligible value addition for a particular financial year, he/she will be allowed to claim the lost incentive in the subsequent year if she makes up the shortfall in the subsequent year.

The PLI rate is 20% of the value addition, one of the highest among PLI schemes.

Also, the government has approved as many as 15 drone schools.

Earlier, the centre has recently announced a curb on import of drones though the components that are used to assemble may be still imported. Likewise, players in the industry are a happy lot, so here are the listed company stocks which may benefit given the government's thrust to promote 'Make in India Drones'.

Furthermore, these drones seen to have a wide application are also seen to lessen the cost. So, here are the companies with the big tilt and focus in the space.

1. Paras Defence and Space:

1. Paras Defence and Space:

The company is the Tier 2 Defence engineering firm offering a wide range of defence products and solutions.

The company's subsidiary firm based out of NCR, Paras Aerospace has entered into an agreement with UAV manufacturers in Israel, Latvia & Italy. The partnership will enable the company to capitalise on the long standing leadership of these countries in these capabilities.

On the scrip front the company has a high promoter holding of over 58%.

2. Hindustan Aeronautics:

2. Hindustan Aeronautics:

The defence sector company similar to Paras Defence has also partnered with some of the Israeli entities to manufacture UAV and it is said to be working on the Warrior to work both independently as well as a team with the LCA (Tejas) and other Indian Air Force jets.

So, the controller aircraft for the drone shall remain at a distance and such a drone will have an array of weapons.

Scrip wise the company has a high promoter holding with majority of the stake in the hands of the government of India. Also the company has substantially reduced its debt and is virtually a debt free entity.

ROE and ROCE have been maintained at a healthy over 20% for the last 3 years. Also, the company has maintained good profitability track record.

3. Zen Technologies:

3. Zen Technologies:

This is again a small cap firm from the defence domain offering drone solutions. The company's drone offerings as per its site include Heavy Lift Logistics Drones and Anti Drone System (ZADS).

Other than the drone venture, the company is into offering advanced training simulators.

ZEN was the first company in India to commercialize PC-based visual simulation technology for small arms training simulators.

Scrip wise this scrip is also almost debt free with Debt to equity as of 2021 at 0.01.

4. RattanIndia Enterprises:

4. RattanIndia Enterprises:

The company primarily into power generation and distribution announced that it will foray into drone business. For the same, the company has set up a fully owned subsidiary entity NeoSky India. The company also in line made a strategic investment in urban drone logistics based out of the US.

Some of the positives of the scrip are it commands a high promoter holding as well as a healthy liquidity position together with being virtually debt free.

Should Drone Technology stocks be added to your portfolio?

Should Drone Technology stocks be added to your portfolio?

These firms listed above with interest in drone technology through some or the other means are from different industry verticals and have different stock fundamentals. So, based on the fundamentals and the stock's valuation you may or may not consider the stocks for your individual stock portfolio.

Read more about: drone stocks hal paras defence
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