Multibagger Defence Stock Astra Microwave Up Nearly 10 Times In Five Years — Time To Book Profit Or Stay Put?

Astra Microwave Products Ltd. has been on a tear at the bourses, delivering a stellar 980% return over the past five years and rising 38% so far in 2025. But after the recent rally, analysts see limited room for further upside in the near term.

Three out of the five analysts tracking Astra currently have a 'buy' rating on the stock, while one recommends hold and another suggests sell, according to Bloomberg data. The average of 12-month consensus price targets stands at Rs 1,169.6, implying a potential upside of 8.9% from current levels.

The company reported its highest-ever annual revenue, operating profit and net profit in financial year 2025, according to its investor presentation. Revenue crossed Rs 1,000 crore for the first time, growing 15.5% year-on-year to Rs 1,044 crore. Net profit surged 27% to Rs 143 crore, while Ebitda jumped nearly 38% to Rs 266 crore, driven by higher-margin domestic defence orders.

The company’s standalone Ebitda margin expanded to 25.5% in financial year 2025, up from 21.4% a year earlier. It executed Rs 429 crore worth of orders in the March quarter and ended the year with a healthy order book of Rs 1,952 crore, nearly twice its annual revenue.

Astra, which designs and manufactures radar, electronic warfare, missile electronics and telemetry systems, has been a key supplier to India's defence and space sectors. It has delivered sub-systems for platforms like the light combat aircraft, Ashlesha and Arudhra radars, and ISRO's satellites.

The company is also involved in high-value projects such as AESA radar components and electronic warfare systems for the Indian Air Force’s Su-30MKI and LCA Mk1A programmes.

With India's defence and aerospace spending on the rise and the government pushing for import substitution under the self-reliant India initiative, Astra is poised to benefit from strong structural tailwinds.

The company spent Rs 52.7 crore on research and development in financial year 2025 which is about 5% of its revenue. It continues to invest in next-generation systems through joint ventures and strategic alliances, including partnerships with Rafael Advanced Defense Systems and Manjeera Digital Systems.