India is on a growing path, whether it’s GDP or economy. So, as it’s Space Journey, from launching various satellites to Chandrayan 3, the Indian Space Sector has shown immense growth. To participate in this growth and create wealth in the long run, one can invest in the Stocks of the Space Sector. As ISRO expands its missions and collaborations, ISRO-related stocks in India are gaining attention for their potential in the space and defence value chain.
In today’s blog post, we will give you an overview of the Best Space Stocks in India to invest in, along with the future and benefits of investing in them.
Meaning of Space Stocks
Space stocks refer to the shares of companies which are primarily engaged in manufacturing, developing, and operating technologies related to space exploration, rockets, defence systems and satellites. Space sector stocks are generally considered thematic in nature, with high growth potential; however, these stocks generally carry high risk.
Top Space Stocks
- Apollo Micro Systems Limited
- Bharat Electronics Limited
- Data Patterns (India) Limited
- Hindustan Aeronautics Limited
- MTAR Technologies Limited
- Bharat Dynamics Limited
- DCX Systems Limited
| Company | Current Market Price (INR) | Market Capitalisation (in INR crore) | 52-Week High | 52-Week Low |
|---|---|---|---|---|
| Apollo Micro Systems Limited | 285 | 9519 | 355 | 90.2 |
| Bharat Electronics Limited | 407 | 297618 | 436 | 240 |
| Data Patterns (India) Limited | 2753 | 15417 | 3269 | 1350 |
| Hindustan Aeronautics Limited | 4695 | 313940 | 5166 | 3046 |
| MTAR Technologies Limited | 2642 | 8124 | 2648 | 1155 |
| Bharat Dynamics Limited | 1610 | 58979 | 2097 | 890 |
| DCX Systems Limited | 224 | 2497 | 393 | 200 |
Read Also: Top Aerospace Stocks in India
Overview of Best Space Stocks in India
The overview of the best space stocks in India is as follows:
1. Apollo Micro Systems Limited
Apollo Micro Systems Limited company was established in 1985 and is engaged in providing specialised services in designing, developing and manufacturing equipment used in the defence and space sectors. The company supplies its product to organisations like ISRO, DRDO, etc. The company leverages its R&D capabilities to improve its efficiency. The company’s headquarters is situated in Hyderabad.
2. Bharat Electronics Limited
Bharat Electronics Limited company was founded in 1954 as a public sector company. BEL works under the Ministry of Defence, and has been awarded the status of Navratna by the Government of India. The company has signed an agreement with companies of various countries, including a Canadian company, for the production of space products. The company’s headquarters is situated in Bengaluru.
3. Data Patterns (India) Limited
Data Patterns (India) Limited company was founded in 1998, and was initially known as Indus Teqsite Private Limited and provides electric solutions to the defence and aerospace sector. In 2021, the company changed its name and became a publicly listed company with the name Data Patterns (India) Limited and got itself listed on the NSE and BSE exchanges. It supplies electronic equipment, including radar systems, space equipment, and other related equipment. The company’s headquarters is situated in Bengaluru.
4. Hindustan Aeronautics Limited
HAL was founded in 1940 and is one of the world’s oldest and largest aerospace manufacturers. HAL has 11 R&D and 21 manufacturing divisions across four production units in India. The company is managed by the Board of Directors, which was appointed by the President of India. HAL manufactures aircraft and their parts, which are used as a vital component in space missions. Its headquarters are situated in Bengaluru.
5. MTAR Technologies Limited
MTAR Technologies was founded in 1970 to meet the demands of the nuclear and defence sector of India. Later in 2000, the company entered the energy industry 2000. The major clients of the company include DRDO, ISRO, NPCIL, etc. It supplies components which are used in launching the spacecrafts. Along with this, it also manufactures engine components for spacecraft. MTAR Technologies came up with its IPO in 2021 and became a publicly listed company. It went up with an IPO in 2018 and became a publicly listed company. The company’s headquarters is situated in Hyderabad.
6. Bharat Dynamics Limited
Bharat Dynamics Limited company was established in 1970 as a Government undertaking and works under the Ministry of Defence. The company was primarily engaged in manufacturing defence equipment such as missiles and ammunition for the Indian Armed Forces. For ISRO, company manufacturers developed advanced mechanisms which were used in launching satellites and spacecraft. Its headquarters are situated in Hyderabad.
7. DCX Systems Limited
DCX was incorporated in 2011 and is one of India’s fastest-growing companies in the defence and space sector. The company integrates cable wire harness assemblies and manufactures electric systems for the space industry. It has collaborated with various space-related companies and ISRO. It also manages the electronic components of communication and navigation satellites. DCX Systems launched its IPO in 2022 and became a publicly listed company. Its headquarters are situated in Hyderabad.
Read Also: List of Coworking Space Stocks in India
Key Performance Indicators (KPIs)
| Company | Debt to Equity | ROE (%) | ROCE (%) | Operating Profit Margin (%) | Net Profit Margin (%) |
|---|---|---|---|---|---|
| Apollo Micro Systems Limited | 0.55 | 9.29 | 16.16 | 20.77 | 10.02 |
| Bharat Electronics Limited | 0 | 26.64 | 33.72 | 29.90 | 22.24 |
| Data Patterns (India) Limited | 0 | 14.70 | 19.67 | 43.39 | 31.31 |
| Hindustan Aeronautics Limited | 0 | 23.91 | 17.41 | 34.95 | 26.86 |
| MTAR Technologies Limited | 0.24 | 7.36 | 11.24 | 13.99 | 7.96 |
| Bharat Dynamics Limited | 0 | 13.71 | 10.18 | 22.48 | 16.43 |
| DCX Systems Limited | 0 | 3.09 | 5.59 | 5.82 | 3.20 |
Benefits of Investing in Space Stocks
Investors exploring space sector stocks in India are drawn to this theme because of strong technological momentum.
- Growth Potential: Because of increasing advanced technology and space communication, the space industry is expected to grow very rapidly, providing an opportunity for investors to create wealth in the long run. This trend directly boosts demand for ISRO related stocks in India that support satellite launches and related systems.
- Public-Private Partnership: The government of India is collaborating with various private players in order to expand its reach in space communication, providing an opportunity for private players.:
- Innovative Industry: Through investment in space-related companies, one can diversify their investment portfolio into a different innovative industry from traditional sectors.
Factors to Consider Before Investing in Space Stocks in India
There are various factors which one should consider before investing in Space Stocks in India. A few of such factors are as follows:
- Financial Performance: The company’s financial health plays an important role in the company’s performance. Higher profit margins, lower debt levels, and order books increase the potential for higher growth.
- Technological Advancement: The innovative techniques used by the companies provide them with an advantage over competitors.
- Long-term View and Risk: The company’s future depends on how it executes the orders; any delay in order or system failure can cause a significant dent in the company’s reputation.
Read Also: Best Small Cap Defence Stocks in India
Future of Space Stock in India
The future of space stocks in India looks very promising because of government initiatives towards space exploration and a focus on satellite technology. Recent achievements of ISRO, such as Chandrayan and Mangalyan, witnessed the success of the Indian Space Programmes. The current valuation of the Indian Space sector is around 840 crores, and is expected to increase to 4400 crores by 2033. As the demand for satellite launches grows, space sector stocks in India are expected to see strong long-term tailwinds. To participate in the growth of this sector, one can allocate a certain portion of their portfolio to it.
Conclusion
On a concluding note, the space stocks become everyone’s favourite after the success of the Chandrayan-3 mission. These stocks generally benefited from the government incentives and innovative technologies. However, their success depends on how successful the mission is. Along with this, the companies’ order book, profit margins, etc., play an important role in their growth. With ISRO’s rising global presence and the growth of space sector stocks in India, this theme is gaining long-term attention among investors seeking futuristic opportunities. Therefore, it is advisable to consult your investment advisor before making any investment in Space Stocks.
Frequently Asked Questions (FAQs)
What are space-related stocks?
Space-related stocks are the shares of those companies which are primarily engaged in manufacturing and developing equipment related to systems which are used in space technology.
What are the top space-related companies?
The top companies which are engaged in space-related activities are Apollo Micro Systems Limited, Bharat Electronics Limited, Data Patterns (India) Limited, etc.
How can I invest in the stocks of space companies?
To invest in the stocks of companies engaged in the space sector, one should have a demat and trading account. Pocketful also offers you to open a lifetime free trading and demat account with zero brokerage charges.Q4. Can I invest in space stocks f
Can I invest in space stocks for short-term profit?
Yes, you can invest in space stocks for short-term profits; however, it is advisable to invest for the long term for better potential returns.
What are the risks related to investment in space stocks?
The risk related to investment in space stocks includes a delay in order execution, mission failure, debt, financial performance, and R&D capabilities.
