Analysts remain selective on space-related stocks as govt eases FDI norms

Valuations wise, most are trading at price to equity multiples of 50-100 times on a 12-month trailing basis, data from BSE shows. Apollo Micro Systems, for instance, commands a PE of 152 times

The government last week relaxed foreign direct investment (FDI) norms for the space sector by allowing 100 per cent FDI in manufacturing of components, systems or sub-systems for satellites, ground segments, and user segments.

It also permitted 74 per cent FDI in satellite manufacturing and operation, satellite data products and 49 per cent in development of launch vehicles and spaceports. 

Following this, stocks of related companies saw an uptick at the bourses. Among the lot, Mishra Dhatu Nigam, MTAR Technologies, Data Patterns, Astra Microwave Products, Centum Electronics, Walchandnagar Industries, Paras Defence have risen 4-25 per cent since the announcement on February