DroneShield share price charges higher amid Australian Government orders

This tech company is catching the eye of investors on Thursday. But why?

The DroneShield Ltd (ASX: DRO) share price is having a strong session.

In morning trade, the counterdrone and electronic warfare solutions company's shares are up almost 4% to 27.5 cents.

A silhouette shot of a man holding a control in his hands and watching as a drone hovers overhead with sunrays coming from the sky.

Image source: Getty Images

Why is the DroneShield share price rising?

Investors have been bidding the company's shares higher today after it announced another supply contract.

According to the release, the company's counterdrone equipment has been selected to deploy to Ukraine under the latest Australian Government aid package.

The company has received multiple orders from the Australian Government as part of a $20 million military assistance package to Ukraine, with a total value to DroneShield of $10.4 million.

Australian Prime Minister, Anthony Albanese, commented:

This contribution will provide Ukraine with some of the best capabilities in the world, while investing in Australia's sovereign defence industry and technology sector.

Approximately $5 million of cash receipts from the $10.4 million total was included in its record $48.2 million cash receipts year to date to 20 October, announced earlier this week in its quarterly release. The remaining cash receipts are expected to be received prior to the end of 2023.

Long-range radar capabilities added

In other news, yesterday, DroneShield announced the addition of the long-range RADA RPS-82 radar capabilities to its flagship DroneSentry system. It expects this to serve its most demanding multi-sensor customer deployments.

RPS-82 provides DroneSentry operators with a significantly enhanced radar detection, classification and tracking range for wide area, multi-mission requirements.

With DroneSentry's compatibility with multiple radar platforms, DroneShield notes that it can offer both high-performance and cost-effective solutions to meet any customer requirement and/or budget.

DroneShield's CTO, Angus Bean, commented

DroneShield's radiofrequency sensors remain the single best and core way of detecting drones, however where customer's deployment scenario and budget allow, multi-sensor detection provides a superior approach, when managed by an intelligent C2 software that is able to fuse together large amounts of sensor data and present the end user with an easy-to-understand situational awareness picture.

The Droneshield share price is now up more than 30% over the last 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has recommended DroneShield. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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