The aerospace industry in India is growing at a rapid speed. From USD 27.1 billion valuation in 2024, the aerospace industry is projected to reach USD 54.4 billion by 2033, i.e., a CAGR of 6.99%.
Many factors have influenced this growth, including:
- Growing activities from both the civil and defence aviation sector
- Rapid technological advancements,
- Government initiatives like Make in India
- Increasing defence expenditure and
- Increased private sector participation.
Aerospace is an industry ripe with potential for innovation and teamwork, opening up ample chances for both new companies and existing firms. This growth offers investors an appealing way to participate in a field ready for expansion.
This blog examines top aerospace stocks in India that are defining the future of aerospace.
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Understanding aerospace industry
The aerospace and defence sector in India involves the production of aircraft, ships, spacecraft, weapons, and other defence-related equipment.
The Indian aerospace and defence industry is experiencing swift and significant growth. The nation is likely to see a major upturn due to the technological and production advancements in all three military branches, which are the world’s largest.
The increase in the Indian government’s funding of domestic defence production has elevated the defence budget, thus expecting the potential market growth during the forecast period.
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Top 3 aerospace stocks in India
The 3 top aerospace stocks in India as per market capitalisation are as follows:
Hindustan Aeronautics or HAL
HAL is a ‘Navratna’ company established in 1964. It is the first aerospace stock as per market capitalisation. Today, it ranks as one of the main defence companies in India.
Its core activities involve:
- Designing,
- Developing,
- Producing,
- Repairing, and
- Overhauling
Aircraft, Helicopters, Engines, and Advanced systems such as avionics, instruments, and accessories.
Beyond defence, HAL also supports India’s space exploration initiative by manufacturing structural components for satellite launch vehicles with the Indian Space Research Organisation (ISRO).
As of FY24, HAL’s robust order book has risen to ₹94,000 crore, a significant increase over FY22 levels of ₹82,000 crore, and substantial new orders are expected in FY25.
Bharat Electronics
BEL/Bharat Electronics Limited came into existence in 1954. Bharat Electronics Limited is an India-based company that is a leader in the provision of high-end electronic equipment and systems primarily engineered for India’s defence sector.
It has developed state-of-art technology and services that help support the nation’s strategic needs.
Aside from defence, BEL has diversified its portfolio to engage more with the civilian market, bringing unique solutions to homeland security, cyber security, space electronics, and several more.
As of July 2024, BEL’s order book stands at ₹76,000 crore, testifying to the developing order book and expanding capabilities in diversified streams.
Data Patterns (India)
Data Patterns is an emerging leader and third aerospace stock in the rapidly advancing defence and aerospace electronics sector in India. Distinguished by its vertically integrated operations, this company is a leading partner in developing indigenous defence solutions based on its pledge to innovation with an in-house design and manufacturing capability.
The company offers comprehensive electronic solutions for all – space, air, land, sea, and underwater applications.
Data Patterns recorded a significant order book of ₹1,083 crore as of FY24, which established the company as an important entity in the industry.
Stock comparison
| Hindustan Aeronautics | Bharat Electronics | Data Patterns (India) | |
| Market Capitalisation (₹ crores) | 286382.88 | 216515.64 | 12938.72 |
| P/E | 33.81 | 47.76 | 69.92 |
| ROCE | 38.88% | 34.61% | 19.71% |
| ROE | 28.89% | 26.27% | 14.26% |
| D/E | 0.00 | 0.00 | 0.00 |
| 1 Year Return | 83.52% | 100.11% | 15.32% |
| 5 year Sales Growth | 8.71% | 10.75% | 31.73% |
Source: Screener (as of 25th November 2024)
- Hindustan Aeronautics Ltd leads with the highest market capitalisation of ₹2,86,382.88 crore and a strong 1-year return of 83.52%.
- Bharat Electronics Ltd. (BEL) follows with ₹2,16,515.64 crore and the highest 1-year return of 100.11%.
- Data Patterns, though smaller with a market cap of ₹12,938.72 crore, reflects robust sales growth over five years.
Comparing top aerospace stocks can help you select the right stocks for your portfolio!
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Bottomline
India’s aerospace industry is set for impressive expansion due to competitive benefits like affordable manufacturing, plentiful resources, a skilled workforce, and government initiatives such as “Make in India” that promote growth.
Owing to these strengths, India has become an appealing location for international companies looking to streamline production and access the booming global market. Given its strategic place, increasing aircraft orders, and solid technical knowledge, India presents huge opportunities for cooperation.
Alliances between global producers, top-tier suppliers, and Indian firms are building a dynamic aerospace network, laying the groundwork for continued advancement and creativity in this field.
FAQs
1. What is the best space stock to buy in India?
Many aerospace companies are there in India who are taking part in this fast growing aerospace industry. Selecting one company can become challenging. Here are a few top aerospace stocks in India as per market capitalisation:
- Hindustan Aeronautics
- Bharat Electronics
- Data Patterns (India)
- Azad Engineering
- MTAR Technologies
2. Which is the No 1 aerospace company in India?
India’s booming space industry has pushed out many promising companies. It is difficult to select the right stock.
Hindustan Aeronautics leads as India’s top aerospace company by market capitalisation. Other top Indian aerospace stocks by market cap include Bharat Electronics, Data Patterns (India), Azad Engineering, MTAR Technologies
3. What is the best aerospace company to invest in?
For selecting the best aerospace company in India, what will you do? Conduct an in-depth examination of their business operations, capabilities and vulnerabilities, as well as recent advances in the industry and developments specific to the company.
Now – as per market capitalisation, here are a few best aerospace stocks in India: Hindustan Aeronautics, Bharat Electronics, Data Patterns (India), Azad Engineering, MTAR Technologies
4. What 5 stocks to buy in India?
India’s growing sectors offer promising investment opportunities. You can consider stocks in these sectors which are expected to boom in the coming years Electric vehicles, Healthcare, Solar and wind energy, Fast moving consumer goods, Information technology, and infrastructure.
These industries are poised for significant growth, driven by innovation and government support, providing strong potential for investors.
5. Which stock will boom in India?
Sectors like Electric vehicles, Solar and wind energy, Healthcare, IT, FMCG, and Infrastructure are expected to thrive.
Target sectors with high growth potential to find stocks likely to perform well as the Indian economy expands. But conduct a comprehensive analysis of a company’s financials and operations before adding it to your investment portfolio.
