This microcap Drone company, which is engaged in manufacturing and provides training of Drones has hit 5 percent upper circuit after the company received an order from Survey of India for Drone Survey.
Price Movement
In Tuesday’s trading session, Drone Destination Limited stock hit a 5 percent upper circuit to a price of Rs.207.50 per share, from its previous close price of Rs.197.65. The stock has delivered a return of around 39 percent and outperformed Nifty in the same period.
What happened
The company has received an order to provide 2D/3D urban mapping under the NAKSHA (NAtional Geospatial Knowledge-based Land Survey of Urban HAbitation) pilot project under the Ministry of Rural Development. This contract was awarded by Survey of India and allotted to conduct drone surveys for 13 cities out of about 130 cities as part of the NAKSHA Pilot Programme. The Department of Land Resources has allotted one year for the NAKSHA program to create land records across 130 cities in India with an expected time of one year.
Financial Performance
As the company is in the microcap space they release results semi-annually. The recent September revenue results posted Rs. 13.83 crore, which is 152 percent and profits were Rs. 1.02 crore. The FY24 results show revenue from operations increased significantly by 163.62 percent year on year, from Rs. 12.07 crores in FY23 to Rs. 31.82 crores in FY24. Their net profit increased by 176.56 percent year on year, from Rs. 2.56 crores in FY23 to Rs. 7.08 crores in FY24.
The return on equity in FY24 stood at 17.87 percent down from 27.42 percent a year ago. The debt to equity ratio was 0.07 times which has reduced from 0.17 times in FY23. However, the return on capital employed has stood at 33.14 percent which has reduced compared to 33.14 percent a year ago.
Revenue Segment
According to the company’s annual report, they considered revenue from a single source. They derive their revenue from providing services related to the drone industry and trading as of FY24.
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a major share of 61.28 percent stake in Drone Destination. Foreign Institutional Investors (FIIs) hold 1.22 percent, and public holdings stand at 37.50 percent.
About the company
Drone Destination Limited operates as a drone solutions provider, specializing in drone manufacturing, certified pilot training, and Drone as a Service (DaaS). The company focuses on delivering essential services such as mapping, surveying, and surveillance across various
sectors. With a commitment to innovation, it aims to establish a robust ecosystem for drone technology in India. In FY24, the company had a market share of around 30 percent and 35 percent in revenue in the certified training market. They have mapped around 8,00,000 hectares of the area so far.
Written by Santhosh S
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