The shares of this microcap company locked a 5 percent upper circuit after entering into MoU with Green Agrevolution Private Limited (DeHaat) to provide Drone spraying facilities. In one year, the stock has delivered more than a 100 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 607 crores, the shares of Drone Destination Ltd started Wednesday’s trading session on a flatter note at Rs. 240 compared to its previous close of Rs. 238.10. During the trading session, the shares locked a 5 percent upper circuit at Rs. 250 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had entered into an MOU with Green Agrevolution Private Limited (DeHaat) to collaborate in bringing cutting-edge drone technology to India’s farmlands.
This partnership aims to enhance agricultural efficiency by offering drone spraying services while promoting DeHaat’s wide range of agricultural inputs, including seeds, fertilizers, and pesticides, to farmers across rural India.
Under this collaboration, Drone Destination will provide drone spraying facilities to interested farmers, ensuring that DeHaat’s products reach the country’s hinterlands.
Additionally, DeHaat will generate leads for drone services and offer agricultural services directly to end users. This agreement will streamline access to modern agricultural solutions, driving productivity and sustainability for Indian farmers.
The collaboration is expected to drive significant advancements in rural farming communities by facilitating the adoption of advanced technologies, ultimately helping to enhance productivity and improve overall agricultural outcomes.
Financials:
Looking at the company’s financial performance, the revenue zoomed by 381 percent from Rs. 5.48 crores during H1FY24 to Rs. 26.35 crores in H2FY24. On the other hand, the net profits magnified by 1,615 percent from Rs. 39 lakhs to Rs. 6.69 crores during the same period.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 11.49 percent and a return on capital employed (RoCE) of 15.36 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 22.25 percent.
Compnay Profile:
Drone Destination Ltd specialises in drone pilot training and drone services. It operates as a DGCA-authorized Remote Pilot Training Organization, offering comprehensive training programs for aspiring drone pilots across multiple locations in India.
Additionally, the company provides a range of drone services, including precision agriculture, surveying and mapping, asset inspection, and surveillance.
Written By Vaibhav Patil
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