India’s ambitious space mission, Chandrayaan 3, has caught the world’s attention. As India reaches for the moon, the value of shares connected to this endeavor has witnessed a remarkable surge.
ISRO’s Lunar Ambitions
The Indian Space Research Organisation (ISRO) has set its sights on the moon’s surface. The value of shares associated with ISRO’s lunar missions has experienced significant growth. These companies were uncovered by TV9 Bangla. However, the decision to invest in them hinges on each investor’s discretion.
Chandrayaan 3: A Fresh Attempt
Just a few days ago, India successfully launched Chandrayaan 3. Surprisingly, the mission’s cost is lower than the budgets of many Hollywood films. Notably, Chandrayaan 3 represents India’s second attempt to achieve a soft landing on the moon’s surface. The spacecraft is currently orbiting the moon, collecting vital data. On August 23, it is poised for a soft landing, marking a historic achievement as India becomes the fourth country to make lunar contact.
Mapping India’s Space Economy
In 2020, India’s burgeoning space economy was valued at $9.6 billion. Projections from Ernest & Young indicate that by 2025, this value could nearly reach $13 billion. Over the past five years, ISRO has launched 177 satellites for 19 countries, yielding around 1100 crore INR. This clearly demonstrates the growth trajectory of India’s space economy and ISRO’s significant contributions.
Stocks and Investments
Investing in ISRO-related ventures carries inherent risks, especially within government-affiliated institutions. However, several publicly-listed Indian companies collaborate with ISRO on its missions. These companies include Paras Defence & Space Technologies, Larsen & Toubro, MTAR Technologies Limited, HAL, and Bharat Heavy Electricals Limited (BHEL). Their contributions span technologies and components crucial to ISRO’s space ambitions.
If someone currently wishes to invest in ISRO, it’s not feasible to do so directly within a government entity. However, there are several listed companies in India’s stock market that have partnered with ISRO and are assisting in various missions.Fc
Paras Defence & Space Technologies
In 2018, Paras Defence entered the space optics sector and received a significant order for space optics from ISRO. In 2022, they earned 51% of their revenue from the defense and space optics sector. Paras is strategically positioned for advanced technology, research, development, and manufacturing in India’s indigenous design category. Apart from ISRO, Paras has collaborated with companies like Bharat Dynamics Limited, Bharat Electronics, HAL, and L&T. They also supply various components to companies in Israel, Singapore, and the US. Despite delivering a return of 3.2% in the past year, investing in Paras carries inherent risks.
Larsen & Toubro (L&T)
L&T played a crucial role in Chandrayaan 3 by developing critical booster segments. They manufactured the Head End Segment, Middle Segment, and Nizal Bucket Plunge. The company’s shares have gained approximately 43% returns in the last year.
MTAR Technologies Limited
Located in Telangana, MTAR produced engines used in ISRO’s space missions. They create components for nuclear power plants, fueling machine heads, grid plates, and FM bridges. MTAR also manufactures liquid propulsion rocket engines and cryogenic engines for ISRO. They collaborate with SSC, Rafale, Tata, and other companies. MTAR achieved around 55% returns on its shares in the past year.
HAL (Hindustan Aeronautics Limited)
HAL is a government-owned entity primarily engaged in aerospace engineering and manufacturing. They create aircraft, helicopters, engines, and various aerospace components. HAL established a 208 crore INR rocket engine manufacturing facility for ISRO. The integrated cryogenic engine they produce facilitates using multiple engines under the same roof. HAL’s Chairman and MD, CBI Ananthakrishnan, announced orders worth 84,000 crore INR and an additional 50,000 crore INR in the pipeline. The majority of HAL’s revenue comes from the Indian armed forces. HAL’s shares provided returns of almost 76% in the past year.
Bharat Heavy Electricals Limited (BHEL)
BHEL, India’s largest engineering and manufacturing company, sourced necessary lithium-ion batteries for ISRO’s space missions. With its technology-sharing partnership with ISRO, BHEL will manufacture these batteries in India. They also produced the electric propulsion system and titanium-made fuel tank for Chandrayaan. BHEL’s shares yielded returns of around 92% in the past year.
It’s essential to note that investing in any stock involves market risks. This report primarily focuses on the returns in the past year, and your investment decisions should be based on thorough research and understanding of market dynamics. Always consider the associated risks before making any investment.