Market Buzz: Drone Stock Locked at 5% Upper Circuit After Major Win!
Multi-Crore Contract Win Strengthens India’s Drone Ecosystem
Contract Details
Drone Destination Limited (DDL) has secured a contract worth Rs 1.34 crore from GarudaUAV Soft Solutions Private Limited, a Trentar Group company. The contract involves aerial survey and data processing services, further strengthening DDL’s presence in the drone services sector.
About
Drone DestinationFounded in 2019, Drone Destination Limited is India’s largest drone pilot training and Drone-as-a-Service (DAAS) company. Along with its sister concern, Hubblefly Technologies, it has developed an integrated drone ecosystem that covers drone manufacturing, certified training, and service operations.
Products and Services
DDL offers a wide range of drone-related products and services, including manufacturing, operations, repair, renting, and training for UAVs and related technologies. The company provides various types of drones, including multi-rotor drones, fixed-wing drones, single-rotor helicopters, and hybrid VTOL drones. Its product line includes specialized models like Staredge for surveying and mapping and Agristar 2.0 for agricultural spraying.
Agri Drone Services
DDL has recently expanded into agricultural drone services, partnering with IFFCO to promote drone adoption in farming. It has deployed over 200 drones and trained pilots to execute more than 25,000 drone demonstrations in Uttar Pradesh, highlighting its commitment to sustainable agriculture.
Agricultural Spray Services
The company also provides drone-based agricultural spraying services, which help optimize pesticide and fertilizer usage, reducing waste and improving efficiency. These services are carried out by DGCA-certified drone pilots following government-issued standard operating procedures.
Clients and Collaborations
Drone Destination serves major corporations such as Reliance, Tata, Airbus, ITC, IFFCO, Aditya Birla Group, and Bayer. It also collaborates with several state governments, including Haryana, Himachal Pradesh, Madhya Pradesh, Bihar, Gujarat, Karnataka, Arunachal Pradesh, and Andhra Pradesh, for drone-based projects.
Stock Valuation
As of February 19, Drone Destination has a market capitalization of Rs 287 crore. The stock is trading at a price of Rs 118, up 4.15 per cent. It has a price-to-earnings (P/E) ratio of 37.2, compared to the industry P/E of 35.7. The company has shown strong financial growth, with sales increasing by 334 per cent and profit growing by 424 per cent over the last three years. Its return on capital employed (ROCE) stands at 23.3 per cent, return on equity (ROE) at 17.9 per cent, and it maintains a low debt-to-equity ratio of 0.20.
Drone Destination’s latest contract win further strengthens its position in the drone industry, and its financial performance indicates promising future growth.
Disclaimer: The article is for informational purposes only and not investment advice.