Shares of Ideaforge Technology surged 10% in early trade on BSE. Orders worth ₹107 crore from the Ministry of Defence and a b order book boosted investor sentiment.
Stock Market: Shares of drone manufacturer Ideaforge Technology surged 10 percent in early trade on BSE on Monday. The primary reason for this rally is the two new orders worth ₹107 crore received by the company from the Ministry of Defence. A buying frenzy was observed among investors.
Order Details
The company received its first order worth ₹75 crore, which involves the supply of AFDS/tactical class drones and their accessories. This order is to be completed within 12 months. The second order is worth ₹32 crore, for the supply of hybrid drones and accessories, and must be completed within six months.
Q2 Results: Annual Revenue Growth
Ideaforge recently released its September quarter results, reporting a 10 percent year-on-year increase in the company's revenue. This marks the first positive growth after three quarters. However, on a quarter-on-quarter basis, the company's revenue decreased by 57 percent compared to the previous quarter. The company remained in losses for the fifth consecutive quarter, but the loss was lower than in the previous quarter.
Order Book and Sector Contribution
At the end of the quarter, the company's order book stood at ₹164 crore. The contribution from the defence sector decreased to 63 percent, while the contribution from the civil sector increased from 14 percent to 37 percent. This indicates diversification and new opportunities in the company's business.
Stock Performance and Market Cap
Ideaforge Technology's shares were listed at ₹1,305.10 in 2023, with a 93 percent premium at the time of listing. However, the stock is now 64 percent below its listing price. The 52-week low is ₹301, and the high is ₹660. The company's total market cap on BSE is ₹2,219.57 crore.
