Astra Microwave
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Astra Microwave is navigating a pivotal transition from a component supplier to a systems integrator, aligning with India's defense indigenization initiatives. Management's optimistic outlook is supported by a record order book of INR 4,300 crores, driven by key programs like the Uttam Radar and QRSAM. However, execution risks remain, particularly in managing complex projects and potential supply chain bottlenecks. Vista's forecast reflects a cautious revenue outlook, anticipating contraction due to these execution challenges and the company's premium valuation. Despite strong government support for defense spending and a favorable industry backdrop, Astra's margins are expected to remain under pressure as it adapts to a 'build-to-spec' model. Over the next 12-24 months, opportunities lie in the successful execution of high-margin contracts and the strategic demerger of its space technology vertical, while headwinds include potential delays in project clearances and the high working capital intensity of defense contracts. Overall, Astra's long-term growth trajectory remains promising, but near-term volatility and execution risks warrant careful monitoring
Why We Like This Stock
- Record order book of INR 4,300 crores indicates strong demand and revenue visibility
- Strategic shift towards high-margin, complex subsystems aligns with government defense initiatives
- Demerger of the space technology vertical is expected to unlock value and enhance operational focus
Things To Watch Out For
- Execution risks associated with complex, long-cycle defense projects could hinder revenue growth
- Margins are under pressure as the company transitions to a 'build-to-spec' model
- Dependence on timely government project clearances poses a risk to revenue realization
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 909 | 1,051 | 1,163 | 1,111 | 1,243 |
| Profit Before Tax (Cr.) | 159 | 198 | 261 | 245 | 281 |
| PBT Margin | 17.5% | 18.8% | 22.4% | 22.1% | 22.6% |
| Net Profit (Cr.) | 121 | 150 | 194 | 182 | 209 |
| Earnings Per Share | 12.7 | 15.8 | 20.4 | 19.2 | 22.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| HSBC | ▲ Buy | 1,800 | 16-Sep-2026 |
| Jeffries | ▲ Buy | 2,055 | 08-Sep-2026 |
| Antique | ▲ Buy | 2,000 | 25-Aug-2026 |
| ICICI Securities | ► Hold | 1,660 | 12-Aug-2026 |
| Motilal Oswal | ▲ Buy | 1,900 | 12-Aug-2026 |
| Goldman Sachs | ▲ Buy | 1,455 | 27-May-2026 |
| Moneycontrol | ▲ Overweight | nan | 27-May-2026 |
Company Overview
Show Company Profile
Astra Microwave Products Limited designs, develops, manufactures, and sells sub-systems for radio frequency and microwave systems used in defense, space, meteorology, civil, and telecommunication applications in India. It offers radar electronics, including active antenna array units, transmit receive (T/R) modules, wideband T/R modules, solid state power amplifiers, receivers, exciters, central units, antenna and electronic beam forming units, digital receivers, array group and monopulse receivers, waveform generators, and MMIC; and electronic warfare products comprising wideband and ultra-wideband subsystems, antennas, EDLVA and BLI super components, EW simulators, DIFM receivers, front end receivers, up and down convertors, and homodyne receivers. The company also provides strategic electronics and telemetry, such as command guidance units, radio proximity fuse, transponder, phased array-based telemetry tracking system, sub-systems for gimbal based and AESA seeker, and ground and air-borne data link systems; and data and video telemetry transmitters, and decoders, as well as PCM encoders, integrated telemetry transponders, auto-track antenna systems, and high-altitude proximity sensors. In addition, it offers ground-based systems consist of sub-systems for multi-object tracking radar, coherent frequency generators, modulators, switchable routers, V/UHF T/R modules, and Ka-band indoor/outdoor units; sub-systems for SAR payloads, geostationary satellites, and remote sensing satellites, as well as fabrication of flight sub-systems and screening; automatic weather stations, agromet meteorological stations, water level measurement, and automatic rain gauge, as well as avalanche, wind profile, and weather radars; global navigation satellite systems; unmanned ground vehicles; and homeland security products. The company also exports its products. Astra Microwave Products Limited was incorporated in 1991 and is based in Hyderabad, India.