Astra Micro Share Price Sees Sharp Spike After JV Secures Rs 256 Crore Defense Order
The order will be executed within a period of 24 months.
Shares of Astra Microwave Products Ltd. saw a sharp increase as they went up over 6% on Friday following an announcement that its joint venture, Astra Rafael Comsys Private Ltd., had secured a Rs 255.88 crore order from the Ministry of Defense.
The order, which was placed on Dec. 13, involves the procurement of 93 additional sets of Software Defined Radios (SDR) LRUs with A kits, SBC 2 cards, and a Network Centric Operations application for the Su-30 MKI fighter aircraft used by the Indian Air Force.
According to the company's filing, the order will be executed within 24 months. This deal is seen as a significant milestone for Astra Micro and its joint venture, reinforcing its position in the defence technology space.
The order is entirely domestic and highlights continued investment in modernising India's defence capabilities, with a specific focus on upgrading critical communication systems for the Indian Air Force’s fleet of Su-30 MKI aircraft.
Astra Microwave Products Ltd. specialises in designing, developing, and manufacturing sub-systems for radio frequency and microwave systems, catering to sectors such as defence, space, meteorology, and telecommunications.
The scrip rose as much as 6.54% to Rs 868.95 apiece. It pared gains to trade 2.55% higher at Rs 836.40 apiece, as of 02:52 p.m. This compares to a 0.7% advance in the NSE Nifty 50 Index.
It has risen 36.5% in the last 12 months. Total traded volume so far in the day stood at 5.24 times its 30-day average. The relative strength index was at 60.6.
Out of five analysts tracking the company, three maintain a 'buy' rating, one recommends a 'hold,' and one suggests 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 10.5%.
