Astra Microwave Products stock gains 6% after JV secures Rs 259-cr defence order

The Astra Microwave Products stock has gained 37 percent since the start of the year.

Shares of Astra Microwave Products rallied over 6 percent to Rs 869 in the afternoon on December 13 after the company announced that Astra Rafael Comsys Private Limited, a joint venture, has won a Rs 255.88 crore order from the Ministry of Defence.

The order, announced on December 13, is for 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 to be integrated into the Indian Air Force's Su-30 MKI fighter aircraft.

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The project is expected to be completed within 24 months, the company said in a regulatory filing on December 13.

Yesterday, Geojit Financial Services upgraded Astra Microwave Products Ltd. (AMPL) to a "Buy" rating with a target price of Rs 976, citing robust growth prospects and a healthy order pipeline.

AMPL, a key player in designing and manufacturing radio frequency systems and microwave components for defence, telecom, and space, reported a 21 percent revenue growth in Q2FY25, driven by solid order execution. While EBITDA grew by 18 percent year-on-year, margins remained steady at 21.4 percent. However, PAT dipped 15 percent due to higher interest costs.

The company reported order inflows of Rs 234 crore in the quarter, with approximately 65 percent coming from domestic defence contracts. Its current order backlog stands at Rs 2,100 crore, nearly double the projected sales for FY25, ensuring revenue visibility for the next two years.

AMPL is eyeing cumulative opportunities worth Rs 8,000 crore in its Rs 39,000 crore addressable market by 2030, with an increasing focus on domestic orders, which now make up 86 percent of the mix. Geojit expects EBITDA margins to stabilize around 22.2 percent over the next two to three years.

At about 3 pm, shares of the company were trading at Rs 836, higher by 2.6 percet from the last close on the BSE. The Astra Microwave Products stock has gained 37 percent since the start of the year.

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