Astra Microwave Rated 'Buy' By Motilal Oswal On Coverage Initiation — Check Target Price, Upside Potential

Astra Microwave has a strong order book of Rs 22 billion, providing revenue visibility for three years. With this, the brokerage expect revenues to clock 18% CAGR over FY25-28..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..Motilal Oswal Report.Motilal Oswal initiates coverage on Astra Microwave Products Ltd. with a 'Buy' rating and a target price of Rs 1,100 implying an upside of 24% from current market price of Rs 888.This valuation reflects a 15% discount compared to target multiple of larger defense PSUs owing to its smaller size. The brokerage consider Astra Microwave a long-term investment opportunity in defense electronics, anticipating its revenue growth to accelerate between FY27 and FY30 as larger orders are awarded by the Ministry of Defence (MoD) and defense PSUs..Strong order book, JVs, and alliances enhance revenue visibility Astra Microwave has a strong order book of Rs 22 billion, providing revenue visibility for three years. With this, the brokerage expect revenues to clock 18% CAGR over FY25-28. Along with this, the company has also formed JVs and alliances with various players to enter new areas such as explosives (with Premier Explosives to get hard-kill capabilities for anti-drones), navigation systems (with Manjeera Digital to manufacture navigation chips), tactical radio communication systems, and electronic warfare (EW) with M/s Rafael Advanced Defense Systems. These JVs and alliances further enhance revenue visibility for the company via newer areas..Key risks and concerns Key risks include: delays in awarding of larger platforms, lower-than-expected spending from the government on the defense sector, and supply-chain issues..Click on the attachment to read the full report:.Tata Power Shares In Focus: Long-Term Value Creation On Track, Says Motilal Oswal — Details Inside.DISCLAIMERThis 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.

Astra Microwave Rated 'Buy' By Motilal Oswal On Coverage Initiation — Check Target Price, Upside Potential

The brokerage consider Astra Microwave a long-term investment opportunity in defense electronics, anticipating its revenue growth to accelerate between FY27 and FY30.

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