Astra Microwave
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Astra Microwave is navigating a transformative phase, shifting from a component supplier to a systems integrator, which is expected to significantly enhance its revenue growth and competitive positioning. Management's confidence in a recovery during the second half of FY27, driven by key defense programs like Uttam Radar and QRSAM, underpins Vista's forecast of a 15-20% revenue growth trajectory. The strategic demerger of its space and meteorology business is anticipated to unlock value and focus on higher-margin opportunities, aligning with the broader industry trend of increasing government procurement and indigenization in defense. However, the company faces challenges, including execution delays and a high working capital cycle, which could pressure margins. Despite these headwinds, the robust order book and government support for defense spending provide a solid foundation for Astra's long-term growth. The current premium valuation reflects cautious investor sentiment, but the expected upside remains attractive, with a 12-month target price of ₹1859. Overall, Astra is well-positioned to capitalize on the expanding defense sector, although careful monitoring of execution risks and market dynamics will be essential over the next 12-24 months
Why We Like This Stock
- Transitioning to a systems integrator enhances revenue potential and competitive positioning
- Strong order book and government support for defense spending provide significant revenue visibility
- Strategic demerger expected to unlock value and focus on high-margin opportunities
Things To Watch Out For
- Execution delays and supply chain bottlenecks may impact short-term performance
- High working capital cycle poses risks to margin stability
- Cautious investor sentiment reflected in the company's premium valuation
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 909 | 1,051 | 1,163 | 1,120 | 1,424 |
| Profit Before Tax (Cr.) | 159 | 198 | 261 | 262 | 335 |
| PBT Margin | 17.5% | 18.8% | 2244.2% | 23.4% | 23.5% |
| Net Profit (Cr.) | 121 | 150 | 194 | 195 | 249 |
| Earnings Per Share | 12.7 | 15.8 | 20.4 | 20.5 | 26.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Goldman Sachs | ▲ Buy | 1,455 | 27-May-2026 |
| ICICI Securities | ▲ Buy | 1,600 | 29-May-2026 |
| Moneycontrol | ▲ Overweight | nan | 27-May-2026 |
| Motilal Oswal | ▲ Buy | 1,900 | 12-Aug-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, receivers, 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.