Buy Astra Microwave Products; target of Rs 1100: Motilal Oswal

Motilal Oswal is bullish on Astra Microwave Products recommended buy rating on the stock with a target price of Rs 1100 in its research report dated December 17, 2025.

Broker Research

December 17, 2025 / 12:38 IST

Buy

Motilal Oswal's research report on Astra Microwave Products

Astra Microwave Products (AMPL) designs and manufactures high-quality radio frequency and microwave modules, subsystems, and systems in India. The company is moving from being a subsystem-level player to a complete system solutions provider and is eyeing opportunities from Active Electronically Scanned Array (AESA) radar, Uttam radar, meteorological orders, repeat orders from the Navy, and counter-drone orders over the next few years. The company’s order book stood at INR22b as of 30th Sep’25. AMPL posted 13% revenue CAGR over FY21-25. Driven by a changing business mix, the company was able to improve its EBITDA margin notably to 25.6% in FY25 from 12.3% in FY21. We expect the company’s revenue to post an 18% CAGR over FY25-28 and project its margin to improve 40bp over the same period to reach ~26% by FY28. This would lead to PAT CAGR of 23% over the same period.

Outlook

We initiate coverage on AMPL with a BUY rating and a TP of INR1,100, based on 38x Dec’27 estimates. This valuation reflects a 15% discount compared to target multiple of larger defense PSUs owing to its smaller size. We consider AMPL a long-term investment opportunity in defense electronics, anticipating its revenue growth to accelerate between FY27 and FY30 as larger orders are awarded by the Ministry of Defence (MoD) and defense PSUs.

For all recommendations report, click here