Hi … @Vineetjain111 …

Some quick thoughts –

The capacity increment includes Nepal – Yes. Even if the peak sales ( volumes ) go up by 20-30 pc for next 2 yrs, I think it would be a descent outcome as the company is sitting on a lot of operating leverage. The margins may end up expanding by 200-300 bps. The bottom-line should get a good boost

If they r capacity constrained / demand outpaces supply before fresh capex comes online ( say 30 months from now ), they can go in for 3rd party manufacturing

Wrt retail vs developer sales – Ur observation is correct. The sales that we r witnessing right now is the base business – IMO ( primarily / mostly the standalone houses being constructed as the construction cycle in case of standalone houses is much smaller + the usual project work ). The kicker should come in once the Tiling work starts wrt the new project work where the construction cycles are longer (2-3 yrs)

Disc: invested, biased

TAMO MoM 13% increase

PRESIDENT ALI TOURS JASH ENGINEERING LIMITED IN INDORE

Jash Engineering की विस्तार योजना और स्वच्छ भारत मिशन से कारोबार को मिले सपोर्ट पर CMD Prateek Patel

CFO in Focus Interview | Dharmendra Jain, Chief Financial Officer, Jash Engineering Limited

Jash Engineering QIP News : जैश इंजीनियरिंग को लेकर खास खबर, जैश इंजीनियरिंग का ₹500 Cr का आएगा QIP

New Heights in New Year: India Witnesses Record Drone Registrations in January 2024, Agriculture Sector Takes Flight
(John Mathai – IHS Markit | LinkedIn)

February 3, 2024

The start of 2024 has witnessed an unprecedented rise in the registrations of commercial drones in India. The Digital Sky platform, managed by the industry regulator Directorate General of Civil Aviation (DGCA), reported a 62% increase in January 2024 compared to January 2023. This growth marks a vibrant uptick from the last quarter and indicates a sequential monthly growth of 6.4% over December 2023. This trend signifies a robust and expanding commercial drone market, with the agricultural sector leading the charge.

Source: DigitalSky, DGCA *Jan22 registrations are negligible

The significant increase is largely attributed to a series of strategic government incentives at the Central and state government levels, coupled with significant orders from the farmers’ cooperative IFFCO, which have catalyzed the market. New registrations in the medium and small-category drones, as defined by the DGCA, are mostly agricultural sprayer drones, a direct response to the incentives. Conversely, registrations in micro-class drones have declined.

“Make in India” Initiative and Drone Imports

A closer examination of drone models registered in January 2024 reveals a marked commercial orientation. The “Make in India” initiative has significantly influenced the domestic production of drones, especially in the agricultural sector. With the February 2022 ban on drone imports, there has been a noticeable shift towards domestically produced drones, with 77% of new registrations being domestic models. Despite the ban, imported drones, particularly those from Chinese manufacturer, DJI, continue to fill a niche in the market, representing the remaining registrations and indicating a sustained demand for advanced, compact drones for non-agricultural applications.

Drone Application Segmentation

The segmentation of drone applications based on origin and size demonstrates a strategic divergence. Domestically produced drones, which dominate the small and medium categories, are predominantly agricultural spraying models. This reflects a direct response to government policy incentives, with no imported models in the medium category and only 3% in the small category. Conversely, the import dominance in the micro and nano categories of drones highlights a marked preference for compact, versatile drones suited for aerial photography, asset inspections, surveys, and surveillance tasks.

Source: DigitalSky, DGCA

Market Concentration

Drone registrations in January also reveal a notable concentration among India’s top domestic manufacturers, particularly in the agriculture segment. The top five Unique Identification Number (UIN) owners accounted for 61% of all drone registrations, with Daksha Unmanned Private Systems leading the pack at 29%. This dominance by a few key players underscores the significant influence they hold in the agricultural drone market as early entrants and their ability to benefit from large deals like the IFFCO tender.

Source: DigitalSky, DGCA

Drones as Innovation Platforms

The recent acquisition of Daksha by Coromandel International Limited, a front-runner in the fertilizer industry, exemplifies a strategic trend where fertilizer companies are forging partnerships with drone enterprises. This collaboration underscores a deliberate move to utilize drones as innovative platforms for the introduction of new products. The deployment of nanotechnology-based fertilizers, notably Nano Urea and Nano DAP, serves as a prime example of this strategy.

These advanced fertilizers, which necessitate foliar application, are perfectly suited for drone deployment, thereby enhancing the efficiency and effectiveness of nutrient delivery to crops. These innovative products are designed to address the widespread challenge of nutrient deficiencies in Indian soils, marking a significant milestone in agricultural productivity. By reportedly enhancing crop yields for farmers and generating higher profit margins for fertilizer companies without relying on government subsidies, these solutions set a new standard distinct from traditional fertilizers. This strategy exemplifies the immense potential of integrating drone technology within agricultural practices, indicating a pivotal transformation within the sector.

Summary

The upsurge in India’s commercial drone registrations continued into January 2024 underpinned by strategic governmental policies, the impactful “Make in India” campaign, and an industry-wide shift towards domestic production. This expansion is particularly pronounced in the agricultural spraying domain, where drones are becoming indispensable tools for enhancing productivity. The leadership of domestic manufacturers, and their alignment with agricultural solution companies to introduce products like Nano Urea and Nano DAP, spotlight the sector’s potential to revolutionize farming practices in India.

The Indian drone industry, with its diverse ecosystem of over 200 companies and start-ups, is experiencing a phase of dynamic growth and integration into the broader economic landscape. The implications of this growth extend far beyond the agricultural sector, touching upon various domains where drones can add value, from logistics and surveillance to disaster management and urban planning. As drones become increasingly embedded in India’s economic activities, their potential to streamline operations, enhance efficiency, and open up new avenues for services is unparalleled, promising an exciting era of development and prosperity.

Noob here. The following are more of as questions, rather than statements ?

I will assume comparison between VISA/MasterCard and sbi cards to be apples to oranges comparison. If you see the revenue breakdown of VISA I think we will get a better picture of what kind of company VISA is.

Should be AMEX be better comparison, if you are comparing global peers ?

Also I like to think market values SBI cards something similar to Lenders.