Astra Microwave Products - Research report
Astra Microwave Products -
Research Report
Astra Microwave Products Limited is a A / - group Aerospace & Defense sector company having Face value of Rs 2.00. Astra Microwave Products Ltd is engaged in designing and manufacturing of high value-added RF and microwave super components and sub-systems finding applications in Defence Space and Civil communication systems. The company products are widely used in VSAT operations radars navigational equipment public mobile trunk radio (PMTR) WLL Cellular GSM/DCS or PCS networks.
Fundamentals (FY23):
|
CMP |
329.50 |
|
52 - week high |
Rs. 330.00 |
|
52 – week low |
Rs 149.85 |
|
Dividend yield |
0.43% |
|
ROE |
6.46% |
|
BVPS |
68.08cr. |
|
Revenue |
161.16 cr. |
|
Debt to Equity |
-0.01 |
|
P/E ratio |
67.20 |
|
EPS |
4.85 |
|
P/B ratio |
4.79 |
|
Market Cap |
2,822 cr. |
|
Face value |
Rs. 2.0 |
Financial Results:
Company’s Net Sales was Rs 162.89 crore in June 2022 up by 25.83%, Quarterly Net Profit was Rs. 8.10 crore in June 2022 down by -33.44% and its EBITDA stands at Rs. 25.25 crore in June 2022 up by 17.1% compared to June 2021.
Recent Updates:
- Its joint venture company, Astra Rafeal Comsys (in which the company and its associates own 51% stake) will take up development, manufacture, integration, customization and product support of Electro Optic (EO) systems in addition to its existing business line.
- Company will produce, service and upgrade the EQ systems are used on board UAVs, unmanned platforms and guided munitions to provide wide range of capabilities including range finding, target acquisition, imaging and surveillance. Airborne EQ systems for Laser Designation & Recce applications being used on fighter aircrafts.
- Ace investor Radhakishan Damani held 896,387 equity shares, or 1.03% stake, in Astra Microwave Products at the end of June quarter.
- The company bagged Rs. 310 crore order from one of its overseas costumers to supply critical radar sub-systems which is one of the largest defense orders bagged by mid-tier Indian firm,
- The company also bagged order worth Rs 21.6 crore for design, development, testing, installation and commissioning of transmit receive modules and MET towers from ISRO Telemetry Tracking and Command Network.
- Astra Microwave Products bagged a purchase order worth Rs 14.56 crore from Electronics Corporation of India (ECIL) for supply of " Front end " with antenna for defence communication project.
- It also bagged an order worth Rs 26 crore from a state-run public sector undertaking for supplying critical microwave subsystems.
- the company has received an order for Rs 25.5 crores from Indian Meteorological Department for supply installation and commissioning of remote unmanned automatic weather stations in 550 locations across India.
In past three years the stock gave a return of 353.49% as compared to Nifty which gave a return of 62.06% and 350.45% return compared to 60.75% rise in Sensex on the back of big orders bagged by the company. Currently the stock is trading near its all-time high.
The company see opportunities coming in from various programs planned by Government through Defense Research labs (DRDO) and from the Make-II opportunities from Ministry of Defence (MoD). Many of these are, especially, in radar and electronic warfare systems where the company has proven expertise.
Astra had a strong order book position of Rs 1,663 crore as on June 30, 2022 (Q1FY23), which is executable in the next 12 to 30 months period. In the last 5 years, Astra's revenue has grown at a CAGR of 20 % and the company's management is confident that in the years to come the company will continue this stride as the macro environment for defense sector is very positive.
Considering the company’s growth potential along with bag full of orders, Government’s aggressive steps in Defense field and company being one of the biggest private leader in defense sector and having monopoly in manufacturing many defense and space related equipment and instruments. The stock is recommended for long term period.
- Het Zaveri
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