Adani is betting BIG on the drone sector. That means you need to track these 3 stocks

Five years ago, drones weren't really a part of the casual office small talk. But, in the last few years, drones have reached everywhere. Nirmala Sitharaman spoke about encouraging startups and companies to promote Drone-As-A-Service (DrAAS) in her 2022 budget. The government liberalized drone policies and made them less strict (the new policies require lesser approvals, have reduced remote pilot license charges, and have also reduced penalties for violation of rules).

India organised its first Drone Festival in May 2022, and then came the news of businessman Gautam Adani to acquire 50% stake in a drone manufacturing company General Aeronautics. This is an indication that the drone industry maybe set to boom in the coming years. This will obviously reflect on the stock market for companies dealing in this industry.

Here are 3 companies you need to track: 

1. Zen Tech 
Zen Technologies is involved in the business of designing, developing, and manufacturing defense training systems. It has 3 main revenue segments:
1. Sale of defense equipment
2. Providing training platform to give a realistic combat experience
3. Annual maintainence contracts which begin 3 years after installation of defense equipment. 

The company has added new products to its portfolio like anti-drone systems, anti-drone simulators, drone simulators, and logistic drones. It has received massive orders from the Indian Air Force and has seen a massive increase in orders from Rs 191.6 crore to Rs 402.6 crore in a span of 4 months in 2021. It has also entered the medical industry and added products like medical simulators and medical ventilators. 

The company got listed on April 1, 2015, at a price of Rs 55.7. Today, the stock price has grown by more than 250% to Rs 204.

2. RattanIndia Enterprises:

The company started with the business of supplying manpower but transitioned into the business of manufacturing electric two-wheeler bikes and manufacturing drones. It has also taken to investing in new-age cleantech startups with tremendous growth potential and has forayed into investing in drone manufacturing companies to possibly be a partner in the same field in the future.

It has 5 business segments of which 3 relate to drones and electric vehicles: 

1. Revolt - RattanIndia forayed into the electric mobility sector by investing in Revolt Motors, a leading electric bike company.

2. Matternet-  RattanIndia made a strategic investment in Matternet, one of the leading drone market leaders in urban drone logistics in the US. (Matternet provides the technology to run drones).

3. NeoSky-  RattanIndia operates its drone business in India through this company. It has also bought a 60% stake in Throttle Aerospace Systems Pvt Ltd (TAS), India's leading drone manufacturing company.  

The company got listed on April 9, 2021, at a price of Rs 5.65. Today, the stock price has grown by more than 200% and is at Rs 53.

3. Paras Defence and Space Technology 
The company manufactures a variety of defense and space engineering products by itself and its subsidiary Paras Aerospace. Paras Aerospace specifically manufactures defense products and military drones. The company has tied up with many companies in the defense space in Israel, Latvia, and Italy, which has allowed it to capitalize on the technology and experience of Israeli companies that have been making drones since the 1980s.    

The company's IPO offer price was Rs 175, it got listed on October 1, 2021, at a price of Rs 475. Today, the stock price is at Rs 634.