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covering exciting investing ideas and opportunities in India.
For many years, the Indian drone market has remained at a nascent phase and is yet to make a breakthrough.
But the situation is changing. With the Indian government putting a lot of weight behind the drone industry, drone related stocks could be the next big thing in India.
Drone related stocks include drone manufacturing companies, companies supplying drone parts, companies using drones in their everyday use, etc.
Think drones used by enterprises for their day to day use, drones used in agriculture, drones used in construction, mining, delivery apps using drones to deliver groceries, medicines etc.
At present, there's limited option in the listed space as there are only a couple of drone related stocks in India.
The top drone related stocks in India include:
#5 L&T
#8 Infosys
#10 Zomato
There are more to this list. These companies have in some or other way exposed themselves to the evolving drone industry.
While it may seem like drones are expensive, inexpensive drones are also becoming popular these days. And for various recreational purposes.
It appears there will be a flaring competition going forward among drone related stocks as they aim to capture the market.
You can also checkout our playlist on Drone Stocks on Equitymaster's YouTube channel.
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Based on marketcap, these are the top drone companies in India:
You can see the full list of drone stocks here.
And for a fundamental analysis of the above companies, check out Equitymaster’s Indian stock screener which has a separate screen for best drone companies in India.
Within the Drones sector, the top gainers were BHARAT ELECTRONICS (up 2.2%) and HINDUSTAN AERO. (up 2.1%). Within the Drones sector, the top gainers were BHARAT ELECTRONICS (up 2.2%) and HINDUSTAN AERO. (up 2.1%).
Investing in stocks requires careful analysis of financial data to find out a company's true worth. However, an easier way to find out about a company's performance is to look at its financial ratios.
Two commonly used financial ratios used in the valuation of stocks are -
Price to Earnings Ratio (P/E) - It compares the company's stock price with its earnings per share. The higher the P/E ratio, the more expensive the stock.
Price to Book Value Ratio (P/BV) - It compares a firm's market capitalization to its book value. A high P/BV indicates markets believe the company's assets to be undervalued and vice versa.
The details of listed drone companies can be found on the NSE and BSE website.
For a curated list you can check out our list of drone stocks.