After India became the first country to probe the Moon’s unexplored south pole following Chandrayaan-3’s successful landing, stocks of companies that played a part in ISRO's ambitious Moon Mission rallied up to 12% as investors took an affinity to companies betting on India's cosmic power.
Share market analysts are bullish on space-related companies as they believe that Chandrayaan-3 opens up the global market for Indian companies. "This should strengthen the ‘Make in India’ theme and open up global rocket, launch and satellite markets for Indian players such as L&T," said Bharat Parekh of CLSA.
MTAR Technologies was involved in supplying equipment such as Vikas engines, and cryogenic engine subsystems, including turbo pump and booster pump for Chandrayaan-3 mission. The company had also supplied the engine for PSLV-C25 used in the Mangalyaan mission. The company's shares ended 5% higher in the previous session, and jumped another 8% to hit a 52-week high of Rs 2,440 today.
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Hindustan Aeronautics Limited (HAL) worked on development of lander and key mechanical support equipment for Chandrayaan-3. The PSU company provided mechanical hardware for the Moon Mission. After ending with a 3.6% rally on Wednesday, the HAL stock jumped to 52-week high of Rs 4,135 on NSE today.
Paras Defence and Space Technologies is involved in Technologies for Rocket & Missiles, Space & Space Research, Naval Systems, Land & Armoured Vehicles, Electronic Warfare & Surveillance, and ElectroMagnetic Shielding. It specialises in defence and space optics, defence electronics, heavy engineering, etc, and supplied the navigation system for Chandrayaan-3. After a 5% rally yesterday, the stock surged over 12% to hit a 52-week high of Rs 842.00 on NSE today.
The aerospace wing of L&T supplied crucial components, conducted manufacturing and testing of booster segments and integrated the launch vehicle of Chandrayaan-3. It did proof pressure testing for the Chandrayaan at its facility in Powai. The heavyweight stock rallied to hit a fresh 52-week high of Rs 2,766.80 on NSE today after successful moon landing.
Hyderabad-based PSU metal manufacturer Mishra Dhatu Nigam supplied critical materials such as cobalt base alloys, nickel base alloys, titanium alloys and special steels for various components of the launch vehicle used in the lunar mission Chandrayaan-3. After 3% upside on August 23, the stock jumped around 2% to a fresh 52-week high of Rs 426.30 on NSE today.
PSU Bharat Heavy Electricals supplied titanium tanks for Chandrayaan-3. It also supplied the 100th battery pack to ISRO for the lunar mission. Shares of BHEL jumped 1% to hit a 52-week high of Rs 113.05 on NSE today. In the last five days, the stock has rallied around 10%.
Bharat Electronics was said to be involved in manufacturing Chandrayaan-3's payloads. On Thursday (August 24), the stock jumped 2% to hit a 52-week high of Rs 135.50 on NSE today. BEL share price has risen 4.03% in the last five trading sessions.
The company provides design, development and manufacturing of electronics systems for space applications. It is a large component supplier that makes 300-500 electronics parts for each mission including Chandrayaan-3. Centrum Electronics shares zoomed 14% on Wednesday, and rallied another 10% to hit a 52-week high of Rs 1,948.65 on NSE today.
The global space market is $447 billion and India has less than 5% share. Next India should launch a mission for a solar observatory and put a man on the moon. Success would solidify India’s right to win in the global market and its vendors such as L&T, according to CLSA. Santosh Meena, Head of Research at Swastika Investmart, has picked HAL, L&T and MTAR as preferred bets in 'over the moon' theme.