Buzzing Stocks: Underperforming drone manufacturer jumps 10% after ₹107 crore order win

Shares of ideaForge Technology Ltd. surged as much as 10% on Monday, November 17, in response to order wins that it announced after market hours on Friday.

ideaForge announced two order wins, worth ₹107 crore on Friday evening, both of which was from the Ministry of Defence. The first order, worth ₹75 crore, pertains to the supply of AFDS / Tactical class UAVs (Unmanned Aerial Vehicles) with accessories.

The order needs to be executed within a 12-month period.

ideaForge announced another order win from the Defence Ministry, which was for the supply of hybrid UAVs, with accessories. This order, worth ₹32 crore, needs to be executed within a period of six months.

The drone manufacturer recently reported results for the September quarter, where the weakness continued for the company. Revenue for the quarter increased by 10% from last year, the first positive growth after three quarters. However, the topline figure was down 57% on a sequential basis.

The company remained loss-making for the fifth straight quarter, even as the losses narrowed on a sequential basis. Order book position at the end of the quarter stood at ₹164 crore.

Revenue contribution from the defence segment declined to 63% from 86% in the same quarter last year, while the Civil segment contribution increased to 37% from 14% last year.

Shares of ideaForge are trading 10.2% higher at ₹512. The stock was among the most successful listings in 2023, having doubled from its IPO price of ₹672 on the day of its listing. However, the stock is down 62% from the post-listing peak and is even trading below its IPO price.