Magellanic Cloud's shares rise 10% as drone spraying system gets DGCA nod

Shares of Magellanic Cloud rose up to 9.90 per cent, hitting its 52-week high at Rs 688 per share on the BSE in Monday’s intraday deals. This came after the company on Saturday announced that its subsidiary, Scandron Private Limited, has received ‘Type Certification’ for unmanned aircraft system (UAS) model "SNDAG010QX8" from the Directorate General of Civil Aviation (DGCA). 

The drone spraying system is specifically engineered for agricultural agrochemical spraying, it boasts a sprayer tank with a maximum capacity of 8 litres, ensuring efficient and effective coverage across varied terrain and crop types. 

“It shall serve to be beneficial for the company by creating new revenue streams, expanding market reach with a target to sell at least 1000 to 2000 drones in the upcoming year by entering the drone manufacturing market which has the potential of growing exponentially over the next decade,” the company said in an exchange filing on Saturday.

Further, the company said that the business segment will not only add to the top-line but being a high margin business, will contribute equally to the bottom-line. 

Magellanic Cloud provides IT services in software development, consulting and human resource business solutions.

The company’s revenue increased by 30.05 per cent year-on-year to Rs 152.12 crore in quarter four of fiscal year 2023-24 (Q4FY24). Its net profit rose by 116.1 per cent year-on-year to Rs 38.92 crore in Q4FY24. While the net profit margin increased to 25.59 per cent in Q4 2023-2024.

At 01:40 PM; the stock of the company gave up some of its intraday gain and was trading 6.81 per cent higher at Rs 668.70 per share on the BSE. In comparison the BSE Sensex fell 0.13 per cent to 79,889 levels.

At present, the shares of the company are trading at a price to earnings multiple of 401.45 times with an earning per share of Rs 1.56, BSE data showed.