ICICI Securities's research report on Astra Microwave Products
Astra Microwave Products (AMP) Q3FY25 performance was steady. Key points: 1) Consolidated EBITDA margin was at 29.5%, benefitting from execution of defence orders. 2) EBITDA rose 15% YoY at INR 762mn. 3) Standalone order book (OB) was at INR 19.6bn, of which 73% is for defence orders. 4) Interest cost rose 83% YoY, mainly due to working capital build-up, pursuant to the execution. 5) Share of JV (ARC) rose 3x to INR 76mn. Management expects to meet its FY25 revenue guidance of INR 11–12bn and achieve an order inflow (OI) of INR 10bn. Further, looking at the order pipeline and orders in hand, EBITDA margin is likely to stay at its current levels and even rise further.
Outlook
We remain positive on AMP’s prospects and maintain BUY with an unchanged TP of INR 935 on DCF-based methodology.
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