The shares of the drone manufacturer gained up to 3 percent after Citigroup Global Markets Mauritius Private Limited, an FII bought 6,65,187 equity shares in the company.
With a market capitalization of Rs 2,979.32 crore, the shares of Ideaforge Technology Ltd were trading at Rs 692.40 per share, increasing around 2.36 percent as compared to the previous closing price of Rs 676.45 apiece.
Reason for Rise:-
The shares of the company have seen bullish movement after Citigroup Global Markets Mauritius an FII bought 6.65 lakh equity shares, equivalent to a 1.54% stake in the company at an average price of Rs 656 per share. However, Goldman Sachs India Equity Portfolio exited Ideaforge by selling its entire 6.49 lakh equity share, representing a 1.51% stake at an average price of Rs 657.67 per share, valued at Rs 42.7 crore.
Financial Condition:-
Examining the company’s financial performance, revenue magnified by 11.2 percent from Rs 97.07 crore in Q1FY24 to Rs 86.19 crore in Q1FY25, but during the same time frame, net profit zoomed significantly by 94 percent from Rs 18.86 crore to Rs 1.17 crore.
Key Achievements:-
The company achieved a significant milestone by surpassing half a million cumulative flights on systems utilized by end customers. Additionally, it launched the beta version of FLIGHT CLOUD, designed to simplify drone data management for civil use cases, enhancing operational efficiency and user experience.
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Business Developments:
The company has advanced its drone-as-a-service business by initiating paid Proof of Concepts (PoCs) with multiple enterprise customers in the manufacturing and mining sectors. This strategy aims to showcase the technology’s value and effectiveness in real-world applications, driving customer engagement and interest.
The U.S. market has shown a positive reception to the company’s offerings, including the successful launch of a border security solution at the Border Security Expo. Additionally, the completion of the Early Adopter Program with initial customers is expected to lead to confirmed orders, marking a transition from an entrant phase to a building phase in the U.S. market.
Strategic Partnerships:
The company has formed strategic partnerships with Inertial Labs for LiDAR payload integration, enhancing use cases. It invested in GalaxEye to develop UAV-based fog and foliage penetration Synthetic Aperture Radar and collaborated with TechEagle to leverage their logistics technology and network.
Market outlook:-
Management highlights the significance of long-term growth fueled by technology and innovation over short-term quarterly performance. They anticipate growth in FY25, focusing on converting the L1 pipeline into revenue, while recognizing a substantial opportunity in the U.S. public safety market, estimated at $200 million.
Future Guidance:-
Management expresses cautious optimism about revenue growth and margin performance, emphasizing that evaluations should not be based on quarter-over-quarter results due to technology-driven innovation. They plan to update revenue visibility throughout the year, focusing on the L1 pipeline and international engagements.
Company profile:-
Ideaforge Technology Limited’s primary activity is the production and selling of unmanned aerial vehicle (UAV) systems for security and surveillance. The auxiliary industry of providing training and maintenance services revolves around the primary business of manufacturing and marketing UAV systems.
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Written by:- Abhishek Singh
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