Astra Microwave Update - Riding On Strong Sectoral Tailwinds: ICICI Direct

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..ICICI Direct Report.Astra Microwave Products Ltd. incorporated in 1991, is engaged in design, development and manufacture of sub-systems for radio frequency and microwave systems, primarily used in defence, space and meteorology.Product range includes radars, missile electronics, electronic warfare, satellites, MMIC and communication systems.In H1 FY24, ~45% of revenue was from defence, ~51% from exports (including deemed exports) and balance ~4% from space and others..We believe Astra Microwave is well placed to witness healthy growth led by strong sector tailwinds. Governments focus on indigenisation, increasing usage of electronics in defence and space, strong order backlog, healthy orders pipeline and execution of high-margin domestic orders would drive earnings in coming period. We estimate revenue, Ebitda and profit after tax to grow at ~17%, ~25% and ~36% compound annual growth rate respectively over FY23-26E.Valuation at 33.1 times price / earning on FY26E basis looks attractive given strong growth ahead led by multiple sectoral tailwinds. We recommend 'Buy' on Astra with target price of Rs 740 per share (based on 40 times FY26E earning per share)..Click on the attachment to read the full report:.CAMS Q3 Results Review - Inline Performance, Margin Improves Sequentially: Motilal Oswal.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 Update - Riding On Strong Sectoral Tailwinds: ICICI Direct

Healthy order-book position with buoyant prospects and pipeline presents strong growth visibility.

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