Buy Astra Microwave Products, target price Rs 510: ICICI Direct

ICICI Direct has buy call on Astra Microwave Products with a target price of Rs 510.The current market price of Astra Microwave Products is Rs 418.25. Time period given by analyst is a year when Astra Microwave Products price can reach defined target.

Astra Microwave Products, incorporated in the year 1991, is a Small Cap company (having a market cap of Rs 3978.20 Crore) operating in Defence sector.

Astra Microwave Products key Products/Revenue Segments include Microwave Components, Sale of services and Other Operating Revenue for the year ending 31-Mar-2023.


Financials
For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 135.72 Crore, down -47.68 % from last quarter Total Income of Rs 259.40 Crore and down -16.68 % from last year same quarter Total Income of Rs 162.89 Crore. Company has reported net profit after tax of Rs -6.59 Crore in latest quarter.

Investment Rationale
The brokerage believes the stock is well placed to witness healthy growth led by strong sector tailwinds. Govt’s focus on indigenisation, increasing usage of electronics in defence & space, strong order backlog, healthy orders pipeline and execution of high-margin domestic orders would drive earnings incoming period. ICICI Direct estimates revenue, EBITDA and PAT to grow at 15.5%,26.3% and 46.7% CAGR respectively over FY23-25E.

Promoter/FII Holdings
Promoters held 6.54 per cent stake in the company as of 30-Jun-2023, while FIIs owned 3.03 per cent, DIIs 9.86 per cent.