Top Spacetech Shares in India 2024: Spacetech Companies to Add to Your Watchlist

India's space odyssey achieved an extraordinary milestone in 2023 when, in late August, it became the first country to successfully perform a soft landing on the moon's south pole.

This landmark event has ignited global interest in India's space endeavours and brought attention to the emerging spacetech companies that are becoming key players in the sector.

The spacetech industry encompasses a diverse range of fields, including rocket launch vehicles, satellites, robotics, and computer software.

Despite a global slowdown in funding, the sector has experienced significant growth, driven by robust government support and innovative advancements.

In 2023, India's spacetech sector recorded a remarkable US$ 126 million (m) in funding, representing a 7% increase from the US$ 118 m raised in 2022 and a staggering 235% rise from US$ 37.6 m in 2021, according to a recent report.

As of 30 July 2024, funding for the sector has already reached US$ 10.8 m.

With this momentum in the industry, here are the top spacetech stocks in India to add to your watchlist.

#1 L&T

First on the list is L&T.

Larsen & Toubro (L&T) is an Indian multinational company that has been involved in India's space program for over 50 years.

For the Chandrayaan-3 mission, L&T played a vital role by manufacturing essential equipment, including the Precision Monopulse Tracking Radar (PMTR), which is crucial for accurate tracking and communication with the spacecraft.

Additionally, the company produced the Deep Space Networking Antenna, enabling communication over vast distances, as well as booster segments that support the launch vehicle's performance.

In collaboration with Hindustan Aeronautics Limited (HAL), L&T has secured a contract to construct five Polar Satellite Launch Vehicles (PSLVs) for the ISRO.

L&T is also actively engaged in two significant missions: Aditya-L1, which is focused on solar observation, and Gaganyaan, India's ambitious crewed spaceflight program. These projects highlight L&T's commitment to supporting ISRO's strategic goals and enhancing India's position in the global space arena.

In addition, L&T Defence is targeting the Small Satellite Launch Vehicle (SSLV) market, which is expected to experience high demand for launching smaller satellites. This strategic focus allows L&T to tap into emerging opportunities in the rapidly evolving space sector.

Moreover, L&T may potentially supply orbital-launch capabilities to Blue Origin, the aerospace company founded by Jeff Bezos. This collaboration could further expand L&T's footprint in the international space industry, solidifying its role as a key player in global space initiatives.

Going forward, L&T is likely to focus on further strengthening its core competency in manufacturing launch vehicle subsystems.

For more details, see the L&T company fact sheet and quarterly results.

#2 Data Patterns

Next on the list is Data patterns.

Data Patterns is involved and designing and developing electronic systems for defence and aerospace, including products for space applications.

With a focus on innovation, Data Patterns has created a variety of products that significantly contribute to the country's capabilities in accessing space at lower costs and with quicker turnaround times.

Among its notable offerings are small satellites, particularly Micro and Nano Satellites, which are essential for scientific and educational payloads. Data Patterns has developed standard off-the-shelf products for Nano satellite buses suitable for Low Earth Orbit (LEO) missions.

The company also designs Ground Stations with a generalized open frame architecture to support the space segment and relay mission data to users efficiently.

In addition to manufacturing products to customer specifications, Data Patterns operates an ISRO-approved space-grade manufacturing facility where it develops high-precision data acquisition systems, planar DC-DC converters, and more.

For over 20 years, Data Patterns' core business has revolved around developing Automated Test Equipment tailored for critical aerospace requirements.

One of their notable innovations is the DP-800, a multi-programmer with associated test automation software that was introduced in 1994.

Moreover, the company has implemented a Second Launch Pad Countdown system using VXI hardware designed specifically for application requirements.

Data Patterns also holds a licensing agreement with ISRO's IN-SPACe, which allows it to develop miniature Synthetic Aperture Radar (SAR) technology.

SAR is a sophisticated imaging technology capable of collecting data around the clock and generating high-resolution images from space, further solidifying Data Patterns' role as a key player in the spacetech sector.

For more details, see the Data Patterns company fact sheet and quarterly results

#3 MTAR Technologies

Next on the list is MTAR Technologies.

MTAR Technologies is a major industrial partner of the Indian Space Research Organization (ISRO) and has been supplying them with critical assemblies for over three decades.

Since 1989, MTAR has supplied liquid propulsion engines to the Indian Space Research Organisation (ISRO), notably including the engine for the PSLV-C25, which successfully launched the Mars Orbiter Mission Spacecraft.

In addition to liquid propulsion systems, MTAR has also been instrumental in providing cryogenic engines, encompassing vital components such as turbopumps, booster pumps, gas generators, and injector heads.

Moreover, MTAR has supplied electro-pneumatic modules specifically designed for space launch vehicles, further highlighting its diverse capabilities in supporting ISRO's initiatives.

The company played a crucial role in the development of the GSLV Mark III engine, which was integral to the success of the Chandrayaan II mission, showcasing MTAR's technical expertise in high-stakes projects.

The company's high-tech products for PSLV and GSLV like liquid propulsion rocket engines, cryogenic engine sub-systems, and electro-pneumatic modules, among other things would be used for the Aditya L1 mission.

For more details, see the MTAR Technologies company fact sheet and quarterly results.

#4 Hindustan Aeronautics (HAL)

Next on the list is Hindustan Aeronautics.

Hindustan Aeronautics is an Indian public-sector aerospace and defence company.

Hindustan Aeronautics Limited (HAL) plays a pivotal role in the Indian space sector, collaborating closely with the Indian Space Research Organisation (ISRO) to advance space exploration efforts.

Leveraging its core strengths, HAL brings significant expertise to various aspects of space technology.

The company designs heat shield assemblies that would safeguard spacecraft from the intense heat encountered during atmospheric re-entry.

It also makes nose cone assemblies, these aerodynamic structures at the forefront of rockets are optimized to reduce air resistance during launch.

It manufactures tanks capable of securely containing the fuel and oxidizer essential for rocket propulsion.

HAL contributes substantially to ISRO's launch vehicle propulsion systems by producing key components and cryogenic engines.

These highly potent engines are indispensable for powering heavy-lift launch vehicles like the GSLV Mk III.

In 2022 Hindustan Aeronautics Limited (HAL) and L&T consortium emerged as the lowest bidder to make 5 Polar Space Launch Vehicles (PSLVs) for ISRO.

This will be the first time that the industry will build an LV and will pave the way for the commercialisation of other LVs, including the small satellite launch vehicle.

The first rocket is expected to be realised sometime during the second half of 2024 and the balance of four rockets will be delivered during 2025 and 2026 at two rockets per year.

This is the first time in the ISRO's history that an entire rocket, including the heatshield, is to be made outside of the space agency.

Going forward, the company plans to expand its reach in aerospace.

For more details, see the Hindustan Aero. company fact sheet and quarterly results.

#5 Avantel

Next on the list is Avantel.

The company is engaged in developing customised solutions for Indian National Satellite (INSAT) based communication services for military applications.

It also develops wireless defence electronics, radar systems, and software applications for the defence and aerospace sectors.

In the space tech sector, Avantel specialises in creating various radio frequency components critical for space missions.

These components enable communication, navigation, and data transmission between spacecraft, launch vehicles, and ground stations.

Their product range caters to various space applications, including satellite communications, high-frequency communications for long-range transmissions and electronic warfare systems for defence purposes in space.

The company's management has said that the Indian National Space Promotion and Authorization Center and Indian Space Association (IN-SPACe) have received great interest from non-government entities to participate in the Indian space technology domain.

With the opening up of the Indian space sector for private players, Avantel is well-positioned to expand its involvement in supplying RF components for upcoming ISRO missions.

For more details, see the Avantel company fact sheet and quarterly results.

#6 Mishra Dhatu Nigam

Next on the list is Mishra Dhatu Nigam.

Mishra Dhatu Nigam (Midhani) isn't just a name in the Indian aerospace sector, it's the metallic backbone of the nation's spacefaring dreams.

Established in 1973, this public sector enterprise plays a critical role by providing the muscle and structure for India's space vehicles.

Its core strength lies in developing and producing high-performance speciality alloys. These alloys are specifically designed to withstand the extreme conditions of spaceflight, such as intense heat, cryogenic temperatures, and harsh vacuum.

With over 70 different grades and shapes in their repertoire, they cater to the diverse needs of various space missions and vehicles.

The company is ready for the Gaganyaan Mission after playing a successful role in the Chandrayaan Mission by supplying vital materials for making the launch vehicle, engine, motors, lander, and rover on the Moon.

The company also builds outer shells of rockets that can handle the immense pressure during launch. It houses the vital electronics and instruments on a satellite.

Going forward, the company is focusing on developing material with higher temperature tolerance to withstand the scorching heat during atmospheric re-entry or the intense radiation near the Sun.

For more details, see the Mishra Dhatu Nigam company fact sheet and quarterly results.

#7 Walchandnagar Industries

Next on the list is Walchandnagar Industries.

Walchandnagar Industries stands as a significant player in India's burgeoning spacetech sector, providing critical engineering, procurement, and construction solutions to the aerospace and defence industries.

Over its 50-year partnership with the Indian Space Research Organisation (ISRO), the company has been integral to numerous space missions, including its prominent contribution to the Chandrayaan 3 mission.

Walchandnagar Industries has been the trusted manufacturing partner for ISRO since 1973, playing a vital role in the production of crucial components like the S200 booster segments used in the LVM3 launch vehicle.

These segments were manufactured and rigorously tested at the company's state-of-the-art facilities, ensuring adherence to ISRO's stringent quality specifications. The firm also contributed to other key subsystems for the Chandrayaan 3 mission, including the Flex nozzle control tankages and the S200 Flex nozzle.

The Chandrayaan 3 mission's successful launch marked a golden milestone in Walchandnagar Industries' five-decade-long partnership with ISRO.

With advanced manufacturing capabilities and a commitment to reliability, the company has been instrumental in the development of critical technologies for ISRO's launch vehicles, including the PSLV, GSLV Mk II, and GSLV Mk III.

Its expertise extends to various space programs that have seen the launch of satellites like Rohini, SROSS, IRS, and GSAT.

Going forward, Walchandnagar Industries plans to continue its involvement in future ISRO missions, providing critical components and services for launch vehicles, satellites, and space exploration initiatives.

For more details, see the Walchandnagar company fact sheet and quarterly results.

#8 Infosys

Next on the list is Infosys.

Infosys, one of India's leading IT services companies is ready to make a stride in spacetech space.

Infosys' investment in GalaxEye Space Solutions marks a significant step towards positioning itself as a key player in the growing spacetech sector.

While Infosys may not be directly involved in building rockets or satellites, its strategic decision to invest up to Rs 170 m in GalaxEye, a spacetech startup, highlights its commitment to leveraging space-based innovations.

This move, announced on 19 September 2024, is part of Infosys' broader vision under the Infosys Innovation Fund to tap into high-potential industries like spacetech.

GalaxEye is at the forefront of developing multi-sensor satellites and synchronisation platforms that produce high-resolution, all-weather datasets.

This advanced technology has the potential to serve critical sectors such as defence, logistics, insurance, utilities, infrastructure, agriculture, disaster management, and mining.

By backing GalaxEye, Infosys is positioning itself to benefit from the increasing demand for real-time, precise satellite data, which can drive operational efficiency across multiple industries.

One of the major milestones for GalaxEye is the planned launch of its inaugural satellite, the Drishti Mission, set for 2025.

This satellite will further develop the multi-sensor payload technology, advancing the company's platform and opening new markets for its solutions.

Infosys' involvement will include both equity and compulsory convertible preference shares, allowing it to hold a minority stake in GalaxEye that will not exceed 20% of the startup's total share capital.

The investment, expected to close by 30 September 2024, provides Infosys with direct exposure to the innovative spacetech landscape.

For more details, see the Infosys company fact sheet and quarterly results.

#9 Cyient

Next on the list is Cyient.

Cyient, a global engineering and technology solutions company, is a key player in the space tech industry. Leveraging its extensive expertise in engineering, design, and manufacturing, Cyient offers a comprehensive range of services tailored for space organizations.

Cyient specializes in various aspects of space technology, from satellite design and development to launch vehicle systems and spacecraft integration.

The company's contributions extend beyond these areas to include ground systems and mission operations, as well as innovative space-based IoT solutions that enhance the efficiency and capabilities of space missions.

In collaboration with manufacturers, Cyient develops advanced aerospace avionics systems by providing a suite of services that includes system engineering, product design and development, prototyping, testing and qualification, and test equipment design.

Cyient also possesses direct experience in certifying products across all Design Assurance Levels (DAL) from A to E.

Further enhancing its position in the spacetech sector, Cyient entered into a partnership in 2020 with the UK-based Space Research and Innovation Network for Technology (SPRINT).

This collaboration aims to facilitate partnerships with academic institutions and small businesses for significant space data and technology projects.

Through this initiative, Cyient is poised to contribute even more effectively to the advancement of space technology and innovation.

For more details, see the Cyient company fact sheet and quarterly results.

#10 CE Info Systems

Next on the list is CE Info Systems.

Widely recognized for its flagship product, MapmyIndia, the company offers advanced mapping solutions and location-based services, significantly contributing to the spacetech sector by integrating geospatial technology into various applications.

Founded in 1995, CE Info Systems has established itself as a leader in digital mapping and geospatial data analytics in India.

The company utilizes satellite imagery, geographic information systems (GIS), and mapping technology to provide real-time data and insights across a range of industries, including logistics, urban planning, and transportation.

In 2021, CE Info Systems partnered with ISRO to create an indigenous mapping solution aimed at competing with global players like Google Maps.

This collaboration allows ISRO and MapmyIndia to combine their expertise and resources, focusing on enhancing geospatial solutions.

As part of this initiative, they will work on developing innovative products that leverage Earth observation datasets, NavIC, and various web services and APIs accessible through platforms like MapmyIndia, Bhuvan, VEDAS, and MOSDAC geoportals.

Through this partnership, CE Info Systems aims to further enrich its offerings and expand its impact within the spacetech landscape, positioning itself as a vital player in the evolving geospatial market.

For more details, see the CE Info Systems company fact sheet and quarterly results.

#11 Bharat Electronics

Next on the list is Bharat Electronics.

Bharat Electronics Limited (BEL), a key player in India's defence electronics sector, has been a significant contributor to the nation's defence since its inception in 1954 under the Ministry of Defence.

In addition to its defence-related activities, BEL is also involved in the development of space electronics and systems, highlighting its diversification into the spacetech sector.

On 19 September 2024, BEL signed a teaming agreement with Reliasat Inc., a Canadian space technology company, to collaborate on the development of space products.

This partnership is expected to leverage the strengths of both companies, positioning BEL to enhance its presence in the growing space technology sector.

This strategic collaboration aligns with the Indian government's 'Atmanirbhar Bharat' and 'Make-in-India' initiatives, bolstering BEL's entry into the space segment.

Reliasat's expertise in developing space-based smart satellites and deep space solutions, particularly in providing internet from space through high-capacity connectivity, complements BEL's leadership in India's defence and strategic electronics market, further expanding its technological portfolio.

For more details, see the Bharat Electronics company fact sheet and quarterly results.

#12 Sasken Technologies

Last on the list is Sasken Technologies.

Sasken Technologies, traditionally known for its expertise in product engineering and digital transformation solutions, is gradually making its presence felt in the spacetech sector.

In January 2024, the company announced the launch of the world's first LTE-technology-based satellite product-the Mobile Satellite Equipment (MSE). This groundbreaking solution is designed to enable mission-critical communications during natural disasters, such as tsunamis, as well as support normal day-to-day operations.

Sasken has been instrumental in designing, developing, and deploying both the hardware and software for the MSE.

The introduction of LTE technology to mobile satellite equipment has revolutionized the satellite communication industry, enabling standard 3GPP services over satellite infrastructure.

This advancement transforms the legacy satellite network into a standard and interoperable telecom network, which offers significant improvements in terms of efficiency and functionality.

In addition to being cost-effective, the MSE system allows for increased user capacity, offering satellite telecom operators new opportunities for market expansion and revenue growth.

Looking ahead, Sasken Technologies is focused on further expanding the potential impact of its LTE-based satellite product.

The company aims to play a pivotal role in advancing satellite communication technologies and capturing a larger share of the growing spacetech market.

For more details, see the Sasken Technologies company fact sheet and quarterly results.

Conclusion

In addition to the twelve companies previously mentioned, several other organizations are making significant contributions to the spacetech sector.

Bharat Heavy Electricals Limited (BHEL), Apollo Micro Systems, Paras Defence and Space Technologies, Centum Electronics, Zen Technologies, and Awfis Space Solutions are among the notable players actively involved in this dynamic field.

The spacetech sector is projected to reach a market size of US$ 77 billion (bn) by 2030. Currently, India accounts for 2-3% of the global space economy, with expectations to increase its share to over 10% by 2030.

This growth is supported by the involvement of more than 400 industrial firms, including major Indian conglomerates and SMEs, all collaborating under ISRO's leadership to develop subsystems for space launches and ground infrastructure.

NewSpace India Limited (NSIL) has been designated as the exclusive public-sector aggregator for both the demand and supply of space assets and services.

It has announced a total investment of US$ 1.2 bn over the next five years to enhance industry participation and stimulate commercial activities within the sector.

Furthermore, the union cabinet's decision to liberalise the space industry by allowing 100% foreign direct investment (FDI) in the production of satellite components and systems signifies substantial growth potential for the Indian space sector.

These positive industry trends are expected to further accelerate growth for spacetech companies.

However, like all sectors, they remain vulnerable to market fluctuations and broader economic conditions.

Therefore, investors must conduct thorough research before making any investment decisions, ensuring that their choices align with their financial objectives and risk tolerance levels.

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