Drone stock engaged in developing an integrated drone eco-system built around drone manufacturing, certified training, services, renting drones, and many more hit a 5 percent upper circuit after its associate company received BIS approval for its Lithium-Ion batteries.
Price Action
With a market capitalization of Rs. 1,046 Crores, the shares of Drone Destination Limited hit a 5 percent upper circuit in the day’s trade at Rs. 430.75 per equity share, from its previous day’s close price of Rs. 410.25.
What Happened
Following further developments Drone Destination Limited’s associate company Hubblefly Batteries Private Limited has received BIS approval for its Lithium-Ion batteries to be used in aerial drones and other utilities.
This will provide twin benefits to Drone Destination Limited, Firstly it will secure a supply chain of key consumables, such as batteries and additionally, it expects to see a cost reduction of about 10 -15 percent in the battery costs for the drones, thereby positively impacting its bottom line as it grows its drone fleet
About the company
Drone Destination Limited is a DGCA-authorized Remote Pilot Training Organization that has developed an integrated drone eco-system built around drone manufacturing, certified training, services, and renting drones. It also offers skill loans with the assistance of banking partners to make training affordable for aspiring drone pilots.
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It has three training bases of its own, at Gurugram, Chandigarh, and Phulpur, and Its drone portfolio includes STAR GURU, SKY STAR, AGRISTAR, AGRI MAPPER, STAR EDGE, STAR EYE, and LASER STAR.
Financials and Ratios
Its revenue from operations grew by 164 percent from Rs. 12.07 Crores in FY23 to Rs. 31.83 Crores in FY24, accompanied by profits of Rs. 2.44 Crores to Rs. 7.08 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 40.3 percent, and a return on capital employed (ROCE) of 51.5 percent. It has reported a debt-to-equity ratio of 0.06.
Written by: Bharath K.S
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