These drone stocks soared up to 52% in one month, few gave multibagger returns up to 1,007% in 3 years
Drone stocks in India have got traction amid defence sector push in the country. Some of the well known names in the space are Ideaforge Technology, Paras Defence, Zen Technologies, Hindustan Aeronautics, Bharat Electronics, DCM Shriram and RattanIndia Enterprises.
Outlook robust for drone stocks
Outlook for defence stocks is positive and growth-oriented. Nonetheless, near-term volatility as well as higher valuations call for caution.
India targets becoming drone hub
The government’s Production-Linked Incentive (PLI) scheme as well as the National Innovation Challenge for Drone Application & Research (NIDAR)- which is India's largest national drone innovation challenge is pushing drone manufacturing as well as R&D.
Ideaforge Technology
Ideaforge Technology shares in the last one month has gained 36 per cent, while in the last one year has cracked over 23 per cent.
Paras Defence and Space Technologies
This stock in the last one month amid the Operation Sindoor has galloped 52 per cent, while its 3-year return is at 162 per cent.
Zen Technologies
The stock in the last one month has scaled 28 per cent, while its 3-year return is 1,007 per cent.
Hindustan Aeronautics (HAL)
In the last month, the stock has gained 17 per cen, while 3-year return is at 474 per cent.
Bharat Electronics Limited
The stock in the last one month has gained 26 per cent, while its 3-year return has been at 390 per cent.
DCM Shriram
The stock in the last one month has given a negative return of -2 per cent, while its 3-year return is at 5 per cent.
RattanIndia Enterprises
This stock in the last one month has gained over 5 per cent, while its 3-year return is at 12 per cent.
Conclusion
High P/E for some of these drone stocks call for caution, but largecap names including HAL and BEL look more promising given their strong order book.