ideaForge Jumps 15% Intraday After Hitting 52-Week Low On Monday

SUMMARY

The rally in ideaForge’s shares also came after they hit their 52-week low at INR 322.60 earlier this week on Monday

ideaForge shares have been under pressure since the company reported weak financials for Q2 and Q3 of the ongoing financial year

The stock has given a negative return of 38.82% on a year-to-date basis

Update | March 19, 04:10 PM

Shares of IdeaForge surged as much as 17.6% to INR 396.05 during the intraday trading session on the BSE today (March 19), rebounding from its 52-week low of INR 322.60 on Monday.

The shares ended the day’s trade 13.8% above at INR 383.30 from its previous close of INR 336.75.

Original | March 19, 12:54 PM

Shares of ideaForge, which have been under heavy selling pressure over the past few months, zoomed 15.48% to INR 388.90 in the early trading hours on the BSE today.

At 12:20 PM, the stock was trading 12.35% higher at INR 378.35 on the BSE. At this point, the company’s market capitalisation stood at INR 1,639.72 Cr and 9.3 Lakh shares changed hands till then.

The rise in the stock coincided with the recovery in the broader Indian market. Nifty 50 was trading 0.3% higher at 22,911.15 at 12:25 PM today, while Sensex was also up 0.2% at 75,476.68.

The rally in ideaForge’s shares also came after they hit their 52-week low at INR 322.60 earlier this week on Monday (March 17). Yesterday, the stock gained nearly 4% to close at INR 336.75.

ideaForge shares have been under pressure since the company reported weak financials for Q2 and Q3 of the ongoing financial year. The stock has given a negative return of 38.82% on a year-to-date basis.

At its previous closing price, it is trading almost 61% lower than its 52-week high of INR 864.10 and 74% below its listing price of INR 1,305.10 on the BSE.

ideaForge made its debut on the bourses in July 2023, listing at a premium of 94.21% to its IPO issue price of INR 672.

Meanwhile, ideaForge has also allotted 3,041 equity shares under its Employees Stock Option Scheme ESOP 2018, it said in an exchange filing today.

Following the allotment, the compay’s paid-up equity capital stands at INR 43.07 Cr.

Founded in 2017 by Ankit Mehta, Rahul Singh and Ashish Bhat, ideaForge manufactures high-performance UAVs or drones for defence, internal security, disaster management, agriculture and enterprise applications.

Its product catalogue comprises drones for surveillance and mapping and industrial inspection models such as Switch, Netra V4+ and the Q Series.

In Q3 FY25, ideaForge reported a net loss of INR 24.02 Cr against a net profit of INR 14.80 Cr in Q3 FY24. Sequentially, loss widened by 42% from INR 13.73 Cr. Operating revenue narrowed 81% to INR 17.61 Cr during the quarter under review from INR 90.89 Cr in the year-ago quarter. This marked a 53% sequential decline from INR 37.10 Cr.

Earlier this month, the company announced plans to double down on its research and development budget and aims to enhance its technology and product platforms in the unmanned aerial vehicle (UAV) sector.

Notably, its R&D budget for the previous fiscal year was 22% of the overall revenue for the year.

The company is also looking to bolster its growth via investments in other companies and strategic partnerships. Last month, it infused $1.83 Mn (around INR 15.96 Cr) in California-based unmanned aerial vehicle (UAV) manufacturing company Vantage Robotics.

Last year, ideaForge also picked up a stake in Bengaluru-based spacetech startup GalaxEye Space for INR 8.28 Cr.