Shares of Astra Microwave Products surged by over 6% to Rs 869 on December 13, following the announcement that its joint venture, Astra Rafael Comsys Private Limited, had secured a significant Rs 255.88 crore order from the Ministry of Defence.
Defence Order Details
The order, which was officially disclosed on December 13, involves the supply of 93 additional sets of Software Defined Radios (SDR) LRUs. These include A kits, SBC 2 cards, and Network Centric Operations applications, all of which will be integrated into the Indian Air Force’s Su-30 MKI fighter jets. The project is expected to be completed within 24 months, as stated by the company in its regulatory filing.
Geojit Financial Services Upgrades Astra Microwave Products
In a separate development, Geojit Financial Services has upgraded Astra Microwave Products Ltd. (AMPL) to a “Buy” rating with a revised target price of Rs 976. The upgrade is based on the company’s strong growth prospects and a healthy order pipeline, which positions it for continued success in the defence, telecom, and space sectors.
Financial Performance
For Q2FY25, AMPL reported a robust 21% revenue growth, driven by efficient order execution. The company’s EBITDA grew by 18% year-on-year, maintaining a steady margin of 21.4%. However, PAT saw a 15% decline, primarily due to increased interest expenses.
Order Book and Future Outlook
The company reported order inflows of Rs 234 crore for the quarter, with around 65% of these coming from domestic defence contracts. AMPL’s order backlog now stands at a substantial Rs 2,100 crore, nearly double the projected sales for FY25, providing revenue visibility for the next two years.
Looking ahead, AMPL is eyeing Rs 8,000 crore worth of cumulative opportunities within its Rs 39,000 crore addressable market by 2030. The company has been increasingly focusing on domestic orders, which now constitute 86% of its total order mix. Geojit anticipates that EBITDA margins will stabilize around 22.2% over the next two to three years.
Stock Performance
By around 3 pm on December 13, AMPL shares were trading at Rs 836, up 2.6% from the previous session’s close on the BSE. The stock has gained an impressive 37% since the beginning of the year.
