1 week ago
Astra Microwave Seen Delivering 20% Upside Amid Defence Electronics Upcycle
Antique believes Astra Microwave could benefit from increased defence spending and new electronics programmes.
The brokerage estimates the stock has about 20% upside.
Astra Microwave already has orders worth roughly Rs 4,300-4,350 crore.
More than 90% of these orders are BTS orders, which involve greater value addition, according to Antique.
The company recently received an order for equipment used in Uttam Radar.
It is also expected to participate in programmes such as QR-SAM, Virupaksha and software-defined radios.
Astra wants complete systems to contribute 50% of its sales, compared with 15% now.
Antique expects this shift to support sales, margins and capital efficiency.
The brokerage forecasts profit after tax to grow by 35% annually between FY26 and FY29E.
Antique identified Astra Microwave as a defence stock with an estimated 20% upside.
The company has an order book of about Rs 4,300-4,350 crore, with more than 90% comprising BTS orders.
Astra Microwave is targeting Rs 8,000-10,000 crore in order wins over the next five years.
Its Uttam Radar order includes 122 Active Antenna Array Units and 121 interface frames.
Antique expects profit after tax to grow at a 35% CAGR over FY26-29E.
- Who
- Astra Microwave Products Limited, as assessed by brokerage Antique.
- What
- Antique identified the company as a defence stock with potential for about 20% upside, supported by order growth and a shift toward complete systems.
- Where
- The programmes and orders are related to India's defence and aerospace sector.
- When
- The outlook covers the next three to five years, with profit estimates for FY26-29E; the article also refers to FY26 and the first quarter of FY27.
- Why
- Antique cited a potential addressable opportunity of about Rs 25,000 crore, a large order book, expected future wins and greater systems-level participation.
Key facts
- Estimated upside
- About 20%, according to Antique
- Current order book
- Approximately Rs 4,300-4,350 crore
- Order-book composition
- More than 90% consists of BTS orders
- Order-win target
- Rs 8,000-10,000 crore over the next five years
- Uttam Radar order
- 122 Active Antenna Array Units and 121 interface frames
- Systems revenue target
- Increase from 15% currently to as much as 50% over the next three to five years
- Profit forecast
- 35% CAGR in profit after tax over FY26-29E
- Potential programmes
- QR-SAM, Virupaksha, software-defined radios and Doppler Radar for Mission Mausam
Sources
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