Stocks to buy: In order to maximize the utility of drones in public life, the Indian government has been liberalizing its drone policy for the past few years. Now, drones are not limited to defense as the civil aviation ministry is improving the ways drones are used in agriculture, healthcare, tourism, among other sectors. Hence, a lot of activity is happening in drone manufacturing companies as Adani Enterprises signed a definitive agreement to acquire 50 per cent stake in General Aeronautics Pvt Ltd, which provides commercial drone-based solutions for crop protection. RatanIndia Enterprises, like Adani Enterprises, has acquired 60 per cent stake in Throttle Aerospace Systems Private Limited (TAS), India’s leading drone manufacturing company.
According to stock market experts, the Government of India (GoI) is now looking beyond the defense sector towards drones. Now, the Indian government has allowed the use of drones in agriculture, healthcare and some other sectors. He said that after new drone policy Released in July 2021, the drone coverage has been increased from 300 kg to 500 kg. Now it is more likely for the Indian government to allow the use of drones in the supply-chain system for e-commerce companies like Amazon, Flipkart etc. Keeping in mind the recent developments in the Indian drone market, he listed 5 drone making stocks to buy. Those 5 drone manufacturing stocks are Gen Tech, Paras Defence, BEL, DCM Shriram and RatanIndia Enterprises.
Speaking on India’s drone industry, Avinash Gorakshakar, Head of Research, Profitmart Securities said, “After the liberal drone policy released last year in July 2021, there is a lot of activity happening in the India drone market. Now it is limited to defense sector only. Now, it is seen as a useful technology for agriculture, healthcare, tourism, media, and other industries. Like the US, the chances are high that the Indian government will go for supply-chain e-commerce like Amazon, Flipkart etc. May allow the use of drones for the platform. He said the importance of having drone stocks in one’s portfolio is understandable as Adani Enterprises is about to enter this business.
Echoing the views of Avinash Gorakshakar, Ravi Singhal, Vice Chairman, GCL Securities said, “After the new drone policy, a lot of mergers and acquisitions are taking place in the Indian drone market. RatanIndia Enterprises has acquired 60 per cent stake in Throttle Aerospace Systems. Lee, India’s leading drone manufacturing company. In fact, Indian billionaire Gautam Adani is also going to enter the drone business as Adani Enterprises has acquired 50 per cent stake in General Aeronautics, a company that provides commercial drone-based solutions. A definite agreement has been signed for crop protection.
When asked about drone stocks, Avinash Gorakshakar of Profitmart Securities said, “Drone market in India is poised for a leap and major drone companies listed in Indian markets are expected to benefit from it. So, if one is looking Drone stocks ahead to buy, they can look at stocks like Zen Tech, Paras Defence, BEL, DCM Shriram and RatanIndia Enterprises.
Inaugurating the Drone Festival in New Delhi, Prime Minister Narendra Modi termed drones as a ‘game-changer’ in the agriculture sector and pointed to the need for drones to improve last-mile healthcare. He said that during COVID, drones helped in delivering vaccines to the far flung corners of the country. Inviting investors from domestic and foreign market, PM Modi said that the PLI scheme will be introduced soon to create a drone manufacturing ecosystem in India.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.