Space Stocks to Buy: Goldman Sachs said in a recent report that space stocks could offer significant long-term growth opportunities as the industry expands beyond rocket launches into satellites, orbital broadband, communications, defence applications and other space-enabled services. However, the investment bank cautioned that high valuations and extreme volatility could make the investment journey uneven for investors.
According to the research report, investment opportunities are likely to extend beyond rocket-launch companies to the broader space ecosystem and its supply chain. It noted that firms operating in semiconductors, electronics, software, advanced materials, manufacturing and communications infrastructure could stand to benefit as the commercialisation of space gathers pace.
At the same time, Gupte cautioned that many of these companies are relatively small, trade at elevated valuations and are exposed to fluctuations in government order flows, which can make quarterly performance uneven. He advised investors to approach the theme with a multi-year investment horizon and prudent position sizing rather than chasing short-term gains, while maintaining a positive long-term outlook on the sector.
Here are the top space-sector stock ideas from Vedant Gupte:
Vedant Gupte said that MTAR Technologies is his strongest domestic conviction in the space sector. He noted that the company manufactures cryogenic engines and turbopumps, among the most complex engineering components in liquid propulsion, while also operating a fast-growing clean-energy segment.
According to Gupte, Q1 FY27 was exceptional, with net profit rising to Rs 50.2 crore from Rs 10.8 crore a year earlier, while revenue more than doubled to Rs 360 crore. He highlighted that the company’s order book expanded to a record Rs 5,143 crore as of June 30, compared with Rs 2,592 crore in March and that management has guided for 80 per cent revenue growth in FY27.
Gupte added that the stock is currently trading near Rs 6,000, up nearly 301 per cent over the past year, at a trailing P/E of more than 134x. While such a valuation requires strong growth delivery, he believes the company is well-positioned given that its order book now covers roughly six years of FY26 revenue. He said a 12-month price range of Rs 6,800-7,200, implying a potential upside of around 13-20 per cent, appears achievable if execution remains in line with the order book.
Vedant Gupte said that Data Patterns India reported Q1 FY27 revenue of Rs 116 crore, up 16.8 per cent year-on-year, while profit declined 13.5 per cent to Rs 22 crore due to margin compression. He said this should be viewed as a timing-related factor rather than a structural trend.
He added that the stock is trading near Rs 4,430 at a price-to-earnings multiple of around 89x and believes a 12-month target range of Rs 5,400-5,600, implying a potential upside of about 21-26 per cent, is well supported as margins normalise.
Gupte noted that the shares have declined to around $70 from a peak near $151. He said the key catalyst is the company’s announced $8 billion acquisition of Iridium, which several observers expect could help push the group toward profitability in 2027 — a milestone he described as the missing piece in the investment story.
He added that Rocket Lab remains a revenue-and-backlog-driven investment rather than a valuation-based one, but believes the risk-reward profile has improved significantly at current levels. Gupte sees a path for the stock to reach $85-95 (21-36 per cent upside) over the next 12 months, with the debut of the Neutron rocket serving as a potential upside catalyst.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
