In a historic moment, India has become the first country to land on the South pole of the moon after a successful landing on Wednesday, August 23. Over 10 companies have contributed to the Chandrayaan-3 mission, including L&T, BHEL, HAL and MTAR. Experts said these companies will benefit from India’s improving position in the global space market, which is expected to rise from 3 per cent to 10 per cent in the next decade.
Mukesh Kochar, national head (wealth management) at AUM Capital, said, “It (Chandrayaan-3) is one of the biggest milestones for India. India currently contributes around 2-3 per cent to the global space economy and it is expected to contribute around 8-10 per cent in the next 8-10 years.”
After the successful touchdown of Chandrayaan-3 mission’s Vikram lander on the Moon, shares of companies related to aerospace and defence sectors on Thursday continued to remain in the limelight, with firms such as Centum Electronics rallying nearly 20 per cent.
Shares of Centum Electronics zoomed 19.69 per cent, Paras Defence and Space Technologies Ltd rallied 17.30 per cent, MTAR Technologies jumped 10.32 per cent and Hindustan Aeronautics Ltd climbed 2.69 per cent on the BSE.
Kochar said the Chandrayaan-3 mission will establish India as a cost-effective satellite launcher and a global opportunity may emerge.
“Sectors like aerospace and defence will get a boost. There are around 140 registered space startups in India. These startups should attract a lot of investments after the success of this remarkable journey. The budgetary allocation is also expected to increase going forward. So overall this will give a boost to the Indian economy,” Kochar said.
On shares to buy related to space, one needs to look at the order book and balance sheet together while finding out a potential stock to buy after success of Chandrayaan-3 success. Only rise in order book may not be enough as free cash flow holds key for higher returns and strong fundamentals, according to a livemint report quoting Sandeep Pandey of Basav Capital.
“The near-term market outlook has turned distinctly positive with the US economy’s soft landing narrative lifting sentiments globally and Chandrayaan-3’s successful soft landing on the Moon boosting sentiments in India,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
After the successful soft landing of Chandrayaan-3 on moon, defense and space stocks are expected to reap benefit in long term and one can look at stocks like L&T, L&T Tech, Walchandnagar Industries, Bharat Forge, Astra Microwave Products, Avantel, Linde India, HAL, MTAR Technologies, BEL and BHEL for long-term perspective, said Anuj Gupta, market expert at HDFC Securities, according to the livemint report.
Santosh Meena, head of (research) at Swastika Investmart, said the successful landing of Chandrayaan-3 is likely to generate positive sentiment for these companies, potentially boosting their stock prices. Despite the short-term gains, the overall long-term outlook for these counters remains bullish.
“Investors would be wise to maintain their positions, viewing any profit booking as a chance for long-term entry. However, for traders, chasing these stocks immediately after the event might not be advisable. Waiting for potential profit booking could offer more favourable entry points, aligning with a strategic long-term investment approach. HAL, L&T and MTAR technologies are our preferred bet,” Meena added.
India’s Moon mission Chandrayaan-3 touched down on the lunar south pole at 6.04 pm on Wednesday, making it the first country to land on the uncharted surface.