Upstox Originals
4 min read | Updated on July 17, 2024, 15:49 IST
SUMMARY
India's historic landing on the Moon's south pole in 2023 was a landmark moment, showcasing the nation's growing space prowess. But this is just the beginning! With private players joining the mission, the Indian space industry is poised for even greater achievements. What does the future hold for India's space industry?
India's space sector is expected to grow at 16% over next few years
India's space industry was valued at $8.4 billion in 2022. However, with the implementation of the Indian Space Policy 2023, this figure is expected to reach $44.0 billion by 2033, growing at a CAGR of 16%, capturing a significant 8% share of the global market.
Driven by ambitions to become a global hub for small satellite manufacturing and expand its presence across the Indo-Pacific region's space industry value chain, India's space exports are projected to surge by nearly 39% annually during 2022-33, targeting an $11.0 billion market.
Source: In-SPACe
The image below summarizes the growth expectations of some of the key segments:
Source: IN-SPACe
Besides the above-mentioned reasons, a vibrant start-up ecosystem is further bolstering this segment. From a lone start-up in 2014, the number has exploded to 189 by 2023 and attracted over $285 Mn in funding during the period. The table below looks at some key players.
Startups | Total Funding ($ Mn) | Total Valuation ($ Mn) |
---|---|---|
Kepler Aerospace | 168 | - |
Skyroot Aerospace | 100 | 509 |
Agnikul | 67 | 201 |
Newspace Research & Technologies | 68 | 112 |
Dhruva Space | 16 | 104 |
SatSure | 22 | 59 |
Bellatrix Aerospace | 11 | 35 |
Omnipresent Robot Technologies | 6 | 6 |
Source: Tracxn
Finally, we look at some of the listed players within this segment. Revenue contribution from this sector is currently low. That said, as participation from the private sector increases, contribution is expected to increase.
Company | Market Cap (₹ Crore) | ROE (%) | D/E | EV/EBITDA | Stock price 5 Years CAGR (%) |
---|---|---|---|---|---|
Larsen & Toubro | 5,00,410 | 14.7 | 1.4 | 18.0 | 21 |
HAL | 3,64,820 | 28.9 | 0.0 | 28.4 | 75 |
Bharat Electronics | 2,41,369 | 26.4 | 0.0 | 39.8 | 59 |
Cyient | 20,360 | 18.8 | 0.2 | 14.8 | 28 |
Data patterns | 18,656 | 14.3 | 0.0 | 69.1 | 117* |
Astra Micro | 8,753 | 15.0 | 0.3 | 41.1 | 64 |
Average | 1,92,395 | 19.7 | 0.3 | 35.2 | 49 |
The Indian space industry is a testament to the nation's growing technological prowess and ambitious vision. By leveraging its cost-efficiency, technical expertise, and collaborative approach, India is poised for a significant leap in the coming years. This burgeoning industry presents an investment opportunity, offering a positive growth outlook for investors with a long-term vision.
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