Shares of a newly listed drone manufacturing company shed 7.4 percent on Wednesday intraday trades to reach a 52-week low of ₹ 996.00 apiece. This happened even though it received orders from the Ministry of Defence.
Ideaforge Technology is a leader in the Indian unmanned aircraft systems (UAS) market, with a market share of 50 percent in FY22. It manufactures UAVs for mapping, security and surveillance. These drones are capable of a wide range of mining area planning, and mapping applications.
The drone manufacturing company got listed on the exchanges in July, after a successful initial public offer (IPO). In fact, its shares got listed at a premium of 94 percent at ₹ 1305.00 apiece on July 7, against an issue price of ₹ 672.00.
The stock is still 51 percent higher than its issue price of ₹ 672.00, however, it has corrected 22 percent as compared to its listing day close of ₹1295.50 apiece.
The Mumbai-based company on Wednesday announced that it has bagged an order worth ₹ 88 crore from the Defence Ministry for the supply of surveillance quadcopters, with accessories to one of the forces under the Ministry of Defence.
However, its share price did not return to the green, as its quarterly results failed to cheer shareholders. The company’s net profit declined by 54 percent to ₹ 18.9 crores in the April to June quarter (Q1FY24), compared to ₹ 41.24 crores in the corresponding period a year ago. Its total income came in at ₹ 100.6 crores in the June quarter, compared to ₹ 100.3 crores a year ago.
With a market capitalization of ₹ 4,485 crores, ideaForge is a small-cap company. It has a high return on equity of 39.46 percent and an ideal debt-to-equity ratio of 0.08. Its shares were trading at a price-to-earnings ratio (P/E) of 40.79, which is higher than the industry P/E of 33.10, indicating that the stock might be overvalued as compared to its peers.
Written by Simran Bafna
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