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100% FDI in the Space Sector? Here are Stocks That Might be Beneficial.

Created on 24 Feb 2024

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Updated on 26 Feb 2024

Top Space Stocks to Look For in 2024

The Cabinet Government changed India's economic prospects for the better by releasing this development regarding Foreign Direct Investment (FDI) in a press release.

"Under the amended FDI policy, 100% FDI is allowed in the space sector. The liberalized entry routes under the amended policy are aimed to attract potential investors to invest in Indian companies in space."

Hence, the government eased the foreign investment policy in India's space sector by bringing fixed criteria for the same. With this decision, Indian space companies can access foreign funds for expansion, research and development, and accelerating growth.

Plus, our players would also get the chance to experiment with foreign technologies; hence, advancement in the satellite and other space areas is guaranteed.

But you know what the best part is? Investors in the stock market can leverage the rapidly growing space market, bringing some fantastic additions to your portfolios.

So, are you excited to know some of the top space-related stocks in India?

8 Best Space Stocks to Look For in 2024

Without further ado, let’s get to the list.

1. Walchandnagar Industries Ltd. (WIL)

Walchandnagar Industries Ltd. (WIL) is a diversified heavy engineering company founded in 1908 by the visionary industrialist Seth Walchand Hirachand. WIL initially focused on sugar production before venturing into diverse sectors like defence, aerospace, nuclear power, and industrial products.

Source: Finology Ticker
Data as of February 2024

With a market capitalisation of around ₹1,068.89 crore, WIL is a supplier of critical equipment to India's strategic sectors. From rocket casings for space missions to gearboxes for power plants, the company's expertise spans a wide range.

2. Hindustan Aeronautics Ltd. (HAL)

Hindustan Aeronautics Limited (HAL) is a state-owned aerospace and defence company, proudly serving as the backbone of India's aviation sector. Established in 1940, HAL boasts a rich heritage of being one of the earliest aircraft manufacturers in the country.

It is a strategic partner for the Indian Air Force and other defence establishments, producing a diverse range of fighter jets, helicopters, trainers, and transport aircraft.

Source: Finology Ticker
Data as of February 2024

HAL has given about 136% CAGR return in a year in the share market and is now a behemoth with over ₹2 lakh crore market cap.

Beyond its manufacturing prowess, HAL is actively involved in research and development, helping India become self-reliant in the defence sector.

3. MTAR Technologies:

Established in 1970, MTAR Technologies is a major Indian engineering group with a proud history of contributing to critical national infrastructure projects. Their core strengths lie in space (as a key partner of ISRO), defence & aerospace, clean energy, and manufacturing of crucial components (ball screws & roller screws).

Another thing that makes it an attractive choice is the firm's commitment to the "Make in India" initiative. It also shows a profit growth of 48.91% for the past 3 years, with a market capitalisation of ₹6,241.43 crore.

MTAR Technologies - Company essentials
Source: Finology Ticker
Data as of February 2024

MTAR has been instrumental in strengthening India's security by supplying high-precision components and subsystems for strategic missile programs, Active Phased Array (APA) radars, electronic warfare systems, and microwave components.

4. Apollo Microsystems:

Headquartered in Hyderabad, Telangana, Apollo Microsystems stands out for its expertise in designing, developing, and manufacturing mission-critical electronic hardware and software solutions. They specialise in rugged systems capable of withstanding harsh environments, making them ideal for aerospace, defence, space, transportation, and homeland security applications.

Apollo Microsystems - Company essentials
Source: Finology Ticker
Data as of February 2024

The IT geek of this list, Apollo Microsystems, rocks the stock market with a whopping 310% CAGR return in a year. Apollo Microsystems also offers a comprehensive suite of products and services, including software development, systems integration, cybersecurity, and cloud computing.

5. Bharat Electronics:

Bharat Electronics Limited (BEL) is a leading state-owned enterprise in India, renowned for its specialisation in developing, manufacturing, and supplying various electronic equipment for the Indian armed forces.
Their product portfolio encompasses a vast array of defence electronics, including radars, communication systems, missiles, sonars, and electronic warfare equipment.

Bharat Electronics - Company essentials
Source: Finology Ticker
Data as of February 2024

With a rich history dating back to 1954, BEL has established a strong reputation for quality, reliability, and innovation. The renowned firm has a market cap of over ₹1 lakh crore and a 104% CAGR return for 1 year in the market.

6. Paras Defence and Space Technologies:

Paras Defence and Space Technologies is a Tier 2 defence engineering company known for its extensive product portfolio and turnkey solutions. They specialise in defence & space optics, defence electronics, heavy engineering, and niche technologies (large space mirrors, submarine periscopes, and remote weapon systems)

Source: Finology Ticker
Data as of February 2024

Fundamentally, Paras Defence & Space Technologies is virtually debt-free, with a profit growth of 22.28% in the past 3 years.

Paras Defence & Space Technologies became listed in 2021. They also provide specialised solutions to safeguard sensitive equipment from electromagnetic interference.

7. Zen Technologies:

Zen Technologies was established in 1993 and specialises in designing, developing, and manufacturing defence training solutions. They create realistic combat simulations that enhance soldier readiness and operational effectiveness.

Zen Technologies - Company essentilas
Source: Finology Ticker
Data as of February 2024

Zen Technologies is virtually debt-free, with a CAGR return of over 240% in a year.

Keeping an emphasis on realism, innovation, and effectiveness in training, Zen Technologies is now present in multiple locations in India, including Bengaluru and Hyderabad.

8. Centum Electronics:

Centum Electronics is a global company offering electronic manufacturing services (EMS) and design & engineering solutions across various sectors. Their diverse capabilities span aerospace, space, defence, medical, industrial, and telecommunications sectors.

Centum Electronics - Company essentials
Source: Finology Ticker
Data as of February 2024

Portraying a CAGR return of 210% in 1 year, Centum Electronics is customer-centric, quality-driven, and committed to innovation. It is also a leading manufacturer of Printed Circuit Boards (PCBs), passive components, and magnetics.

The Bottom Line

With this, I would like to end the list of the best space-related stocks in India. Most of these companies have portrayed outstanding upward movements with the release of the FDI news, and experts believe there is space for further hikes.

But before you start adding them to your portfolios, do your due diligence. What is that? Research, dear reader! You can access Finology Ticker to learn more about the company's financials and go through Annual Reports to notice growth prospects.

Do not, and I repeat, do not skip this step, as it will guide you towards a promising and safe investment path.

*Disclaimer: The stocks and companies discussed above aren't a recommendation from Finology Insider and shall not be construed as a replacement for professional advice. Consult a professional or conduct the necessary research before making investment decisions.

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A book-lover who adores everything fictional, Preeti has undertaken the life mission of tasting every flavour available in the pantry. A science student with a Master's in Mass Communication, she now wishes to conquer the Finance world as a writer. With the power invested by the randomly chosen music, she is here to make Finance fun for you.

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