Shares of this smallcap stock surged around 8 percent in Monday’s trading session after receiving Type Certification for its Unmanned Aircraft System. The shares have delivered a multibagger return of 180 percent to its shareholders in one year.
Price Movement:
With a market capitalization of Rs. 7,832 crores, the shares of Magellanic Cloud Ltd started Monday’s trading session on a higher note at Rs. 688, gaining around 8 percent and also recorded as the company’s fresh 52-week high compared to its previous close of Rs. 626.05 and are currently trading at Rs. 672 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that one of its subsidiaries Scandron Private Limited, had received Type Certification for Unmanned Aircraft System (UAS) model “SNDAG010QX8”.
This drone spraying system is specifically engineered for agricultural agrochemical spraying, it boasts a sprayer tank with a maximum capacity of 8 litres, ensuring efficient and effective coverage across varied terrain and crop types.
Furthermore, this shall serve to be beneficial for the company by creating new revenue streams and expanding the market. The company aims to enter the drone manufacturing market with a target of selling between 1000 to 2000 drones in the next year, leveraging its potential for exponential growth over the coming decade.
Moreover, this segment will not only add significantly to the top line but being a high-margin business, will contribute equally to the bottom line.
Financials:
Looking at the company’s financial statements, the revenue increased by 5 percent from Rs. 131 crores during the December quarter to Rs. 137 crores in the March quarter. In addition, the net profits zoomed by 70 percent from Rs. 23 crores to Rs. 39 crores during the same period.
Company’s Drone Segment:
Magellanic subsidiary, Scandron Pvt Ltd, is the first Indian company to get a DGCA-type type certification under the Logistics and Cargo category for its CargoMax 500HE drone.
The company has also witnessed significant offtake in the drone segment, especially with the implementation of government initiatives like the National Logistics Policy (NLP) Kisan Drone Shakti and Drone Didi.
Further, the company has also entered into a strategic partnership with ‘CriticaLog India’ to offer comprehensive B2B as well as hub-to-hub drone delivery solutions across 160 cities in India. This enables them to operationalize and introduce innovative drone-based logistics solutions to the market.
Future Goals:
The company plans to acquire 2 to 3 companies annually and is seeking opportunities in IT, e-surveillance, and drones, with a potential entry into the Middle East and US geographies.
Company Profile:
Headquartered in Hyderabad, Magellanic Cloud was incorporated in 1981. The company is primarily within the digital space, specializing in providing comprehensive solutions related to digital transformation, IT services, cloud computing, and advanced drone technology.
Written By Vaibhav Patil
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