According to Systematix, Astra Microwave is at an inflection point of an unprecedented structural transformation. Over the past three decades, the company has evolved from a sub-tier radio frequency component supplier into a Tier-1 Systems and Development-cum-Production Partner, with presence across India's critical aerospace, defence, and space platforms whereas Data Patterns has emerged as a capability leader amongst private defence players. Its focus on indigenous design, supported by the largest private sector R&D team, a COTS-based building block model and expanding capabilities across airborne, space, counter drone platforms spanning radar, electronic warfare and avionics, positions it well to capitalise on the fast-growing defence market.
NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Report
Systematix has initiated coverage on Astra Microwave Products Ltd. and Data Patterns India Ltd. with a Buy rating on both the defence stocks.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
For Astra Micorwave, the brokerage has set a target price of Rs 2,600, implying a potential upside of 68% from the reports market price of Rs 1,544.
The brokerage has set a target price of Rs 5,100 for Data Patterns, indicating an upside of about 31% from the reports market price of Rs 3,885.
According to the brokerage, the global and Indian defence spending is on an upswing, driven by multiple conflicts worldwide. India's defence budget is expected to grow at double digits, while the private sector could outpace industry growth, supported by government's focus on indigenisation and an increasing role in exports.
ALSO READ | KEI Industries Q2 Review: PL Capital Stays Bullish On Healthy Growth Outlook; Check Target Price
Systemaitx highlighted that Astra and Data Patterns occupy pole positions in India's defence electronics space spanning radar, electronic warfare, communications and space, underpinned by strong in-house IP and research and development capabilities.
FY27 could mark an inflection point, as years of investments and capability building translates into substantial order inflows running into thousands of crores.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
