5 ASX drone shares to watch out

Highlights 

  • Commercial drone industry is likely to grow in the upcoming years with increased visible applications of public utilities.
  • With emerging contactless delivery of goods and medicines in Australia, analysts predict long term growth of this sector.
  • Few companies like Delta Drone, Droneshield among others have delivered strong financial performance in FY21.

While the overall market took a downturn because of COVID-19 pandemic, the commercial drone industry has rather embraced the challenge. With increasingly visible applications of public utility drones, comprising of contactless delivery of goods and medicines in Australia, analysts predict long term growth in this sector.

On this note, let’s have a look at top 5 ASX drone stocks.

Delta Drone International Limited (ASX:DLT)

Delta Drone is an ASX listed global drone-based data service provider to mining, engineering and agriculture sectors. This drone business has estimated a compound annual growth rate (CAGR) of 14.5% in its drone services from 2020 -2025.

As per its FY21 half yearly results released in September –

  • The Company has reported 53.3% increase in its revenue during HY21 that stood at AU$2.5 million.
  • Gross profit stood at AU$1.34 million and the cash generated from operating activities stood at AU$2.58 million from AU$979,476 in FY2020.

RELATED READ - From Healius to AMP: How these stocks reacted to Sept quarter numbers

Prior this month, the Company signed a contract with major seeds producer – Corteva Agriscience RSA (PTY) Ltd. in South Africa, adding to its growing global customer-base.

On 21 October, Delta shares closed flat at AU$0.023 with a market cap of AU$11.76 million.

Droneshield Limited (ASX:DRO)

This mid-cap company - Droneshield Limited, is a worldwide drone security technology firm that protects various organisations, critical infrastructure, and individuals from intrusion.

business performance

Image Source: © Jirsak | Megapixl.com

The Company delivered strong performance during the first half of FY21. According to its HY21 results –

  • HY21 revenue increased by 87% from HY2020 to AU$6.7 million and the cash receipts stood at AU$9.1 million, up 600% from HY2020.
  • Droneshield booked cash of AU$14 million, as of 30 June 2021, and reported rapidly narrowing HY21 losses for HY21, down 61% at AU$450,000.

With increasing use of counter-drone technology, the Company anticipated to reach AU$5.9 billion mark by 2026.

On 21 October, DRO closed at AU$0.175 per share with market cap of AU$73.18 million.

Auctus Investment Group Limited (ASX:AVC)

Auctus is an ASX-listed global investment firm that typically invests in technology, robotics and drone services.

The Company delivered outstanding financial results largely supported by assets under management in FY21. As per its FY21 full year results –

  • Revenue increased by 173% to US$8.16 million from US$2.98 million in FY2020.
  • The Company maintained strong balance sheet supported by net assets at US$25.3 million with a share value of US$32.98 cents.
  • Total assets stood at US$26.9 million, and the ending cash balance stood at US$14.5 million.

Auctus intends to continue this growth momentum in FY22. On 21 October, AVC shares closed at AU$1.260 per share with a market cap of AU$93.24 million.

Elsight Limited (ASX:ELS)

Elsight Limited is an ASX listed reliable high bandwidth solutions provider, that provides AI powered drone connectivity. According to its FY21 half yearly results published in August –

  • The Company reported 30% fall in its revenues from ordinary activities to US$248,335.
  • Profit after tax from ordinary activities attributable to members stood at US$3.26 million, up 80% from FY2020.

Source: © Jirsak | Megapixl.com

image description – profit growth

 

The Group has increased its inventory levels to ensure adequate supply for an anticipated increase in sales towards end of FY21 and FY22.

On 21 October, ELS shares ended the day a tad down at AU$0.440 per share with a market cap of AU$59.33 million.

Orbital Corporation Limited (ASX:OEC)

Orbital Corporation is an ASX listed international developer of innovative technical solutions provider for a cleaner world. According to its FY21 investor presentation –

  • The Company has reported revenue of US$31.2 million in FY21.
  • OEC has anticipated defense budget to be in the range of AU$73.7 billion in FY2029 -FY2030, under Australian sovereign industrial capability.

The Company has recently signed a new contract with Textron Systems to accelerate its existing engine development programs towards FY22.

OEC shares closed 7.693% lower at AU$0.600 per share with a market cap of AU$50.63 million.

RELATED READ - Orbital Corporation (ASX:OEC) delivers second engine system to major Singapore customer

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