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'Chandrayaan 2': My Top Aerospace and Defense Stock to Bet on Today

Aug 14, 2019

Editor's note: Dear reader, Chandrayaan 2 left Earth's orbit today. It will reach the moon on 20th August. On the day of the launch, I wrote to you about my top pick in the aerospace and defense sectors. On this historic day, I think it's appropriate I share this with you again.


Richa Agarwal, Research analyst

Whoever said that sky is the limit.

If ISRO's mission is successful, India will become only the fourth country, after the US, Russia and China to land on the moon.

It would also be unique in a way.

At less than Rs 10 billion, Chandrayaan 2 is the lowest cost lunar mission ever. As the western media reports, it is less than half the budget of the recent hit movie 'Avengers Endgame'. What's more, the mission is fuelled by homegrown technology.

This is India's second moon mission. It aims to study lunar terrain and atmosphere. It's too early to say if understanding moon's surface would lead to any direct tangible benefits to mortal beings on earth.

But regardless of the findings, along with the recent Mission Shakti, Chandrayaan 2 proves India's growing technological prowess in space and defense capabilities.

At its peak, the Apollo program is said to have employed 400,000 people. And over 20,000 industrial firms supported it.

Back home, ISRO's ambitious mission could set a whole new 'lunar economy' bustling. The day is not far when India will be at the centre of commercial satellite deals.

But take that with a pinch of salt.

That's because real beneficiaries of India's rise as a space and defense power will be few. However, I'll not be surprised if in the wake of this event, defense stocks start shooting up and become next 'hot' theme.

I hope you, dear reader, won't fall for the fad and will look before you leap.

Defense is a capital intensive and regulated industry with long gestation periods. You must be selective while picking stocks in the defense sector.

Nonetheless, there lies a great investment opportunity in the sector. And I for one am quite excited to see this defense and technology megatrend unfold.

You see, one of my small cap stock recommendations, is a highly regarded vendor to the aerospace and defence industry. The company enjoys the clientele of some of the best companies catering to this sector. Besides, it has more than one arrow in its quiver to meet good return target for long-term investors. These include cyber security, data analytics, communications, and utilities.

Hidden Treasure subscribers can access the initial recommendation report here.

For those who have not taken any exposure to small cap stocks yet, I believe it's a great time.

I'll be tracking the developments in this space and share with you the specific stock opportunities.

But here's what you need to be cautious of.

You may hear a lot more announcements that might draw you to fundamentally unsound stocks. Don't get carried away by the propaganda. Stick to a disciplined process of picking stocks.

Warm regards,

Richa Agarwal
Richa Agarwal
Editor and Research Analyst, Hidden Treasure

PS: Equitymaster's small cap expert, Richa Agarwal, believes a select group of 4 small-cap stocks are on the verge of a rebound. Get the details here.

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2 Responses to "'Chandrayaan 2': My Top Aerospace and Defense Stock to Bet on Today"

Sushil Kapur

Aug 14, 2019

Which is this top Aerospace and defense stock?

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Sushil Kapur

Aug 14, 2019

Chandrayan 2 is a very prestigious project. Top Aerospace and defense stock,participated in this successful

venture is bound to shine in near future.

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