Investors eye surging small cap DroneShield as conflicts ignite defence demand
One of the standout performers on the ASX so far this year makes technology being used to thwart deadly drone attacks in major conflict zones around the world.
Once the plaything of budding videographers, drones have quickly been adapted as a deadly tool of war around the world.
And with the incidence of drone strikes and surveillance using drones rapidly rising during escalating conflicts in Ukraine and Middle East, so too has the urgent demand for the tools to defend against them.
This is where Sydney-based, ASX-listed DroneShield comes into the picture. As its name suggests, the company makes software and systems to detect and thwart drone attacks. “We’re now seeing drones used in every hotspot around the world,” CEO Oleg Vornik told Capital Brief. “Guys are effectively taking the kind of drones you can get from JB Hi-Fi for $2,000, strapping plastic explosives to it and then using it for a mission.
DroneShield is the only publicly listed drone defence play in the world. And all of a sudden, ASX investors seem alert to its potential. The stock has soared more than 85% so far in 2024, compared to a 0.2% rise for the All Ordinaries Index. That has pushed its market value above $430 million. On Friday alone, the stock rose 19.5% on no fresh news. The move, and DroneShield's recent strength, have not gone unnoticed in small cap investor circles.
