The shares of this microcap company jumped 2 percent in Friday’s trading session after signing an MoU with American Blast Systems to expand drone solutions into U.S. and European markets.
Price Movement:
With a market capitalization of Rs. 340 crores, the shares of Droneacharya Aerial Innovations Ltd started Friday’s trading session on a higher note at Rs. 141.50 compared to its previous close of Rs. 138.95.
During the trading session, the shares hit a high of Rs. 142.25, gaining around 2 percent and are currently trading at Rs. 140 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had signed a MoU with American Blast Systems (ABS) Inc., a U.S.-based leader in law enforcement and military safety products.
This partnership is strategically aimed at co-designing, certifying, and locally manufacturing drone solutions tailored for the U.S. and European markets, particularly focusing on enterprise, industrial, and defence sectors.
Furthermore, DroneAcharya’s ‘Make in India’ drones will be co-produced and branded locally in the U.S., allowing access to the North and South American and European markets.
This collaboration aims to develop defence-grade drone solutions and anti-drone technologies tailored for law enforcement, military, agriculture, logistics, and retail sectors. Through this partnership, DroneAcharya intends to secure a significant share of the established U.S. drone market.
Moreover, the collaboration not only opens new avenues for revenue generation but also signifies a step towards establishing India as a key player in the international drone industry.
Additionally, DroneAcharya will cross-sell ABS products in the Asian market as part of the agreement, further expanding its global footprint.
Financials:
Looking at the company’s financial performance, the revenue zoomed by 88 percent from Rs. 18.57 crores in FY22-23 to Rs. 34.96 crores in FY23-24. In addition, the net profits surged by 77 percent from Rs. 3.43 crores to Rs. 6.08 crores during the same period.
Future OutlooK:
The management has set ambitious targets, aiming for a 200 percent increase in revenue, EBITDA, and PAT as they scale operations and enhance technological capabilities and is targeting a 400 percent growth in the number of DGCA-certified drone pilot training centers for the financial year 2024-2025.
DroneAcharya is actively entering new markets, particularly in defence and space technologies, which is expected to contribute to a projected CAGR of 50-70 percent over the next three years.
Moreover, the company aims to enhance its market presence in the DaaS sector by leveraging the increasing demand for drone services across industries such as agriculture, logistics, and defence.
In addition, DroneAcharya plans to double its number of Directorate General of Civil Aviation (DGCA) certified Remote Pilot Training Organizations (RPTOs) across India.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 8.39 percent and a return on capital employed (RoCE) of 11.50 percent for the period spanning FY23-24. Further, the net profit margin stood at 17.24 percent during the same timeframe.
Shareholding Pattern:
According to the latest shareholding pattern, Promoters hold 28.21 percent of the shares, Foreign Institutional Investors (FIIs) possess 2.02 percent, and Retail Investors hold the remaining 69.78 percent.
Company Profile:
Incorporated in 2017, Droneacharya Aerial Innovations Ltd provides Drone operation training, supply and maintenance services, and management consultancy and training services.
Written By Vaibhav Patil
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