Buy Astra Microwave; target of Rs 180: Edelweiss

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26 Aug, 2025 12:21

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Edelweiss's research report on Astra MicrowaveOur recent interaction with Astra Microwave’s (AMWP) Managing Director further entrenched our confidence in the company’s burnished growth prospects. Our optimism is pillared by: 1) company confident of clocking 15% plus revenue growth over FY16‐18 even sans factoring in upside from new JVs and benefits of recent policy changes; 2) it will completely exit off‐set business and sharpen focus on domestic defence business; 3) R&D focus (4‐5% of sales) will sustain, which should aid new product development and spur growth; and 4) near to medium term ordering pipeline, especially in radar segment—its forte—remains robust. AMWP is favourably placed to deliver 25% earnings CAGR (FY16‐18E) with 20% RoE led by select large‐value project awards over the following 12‐15 months. Maintain ‘BUY/SO’ with TP of INR180 (18x FY18E P/E). While AMWP is poised to clock stable earnings over FY16‐18 thanks to growing incumbent business from BEL/BDL etc., in select projects, we are also enthused by its current focus on R&D to augment capabilities and offerings, which could materially boost long‐term (3‐5years) growth. AMP’s strategy to target new business opportunities in areas of its core competence lends growth comfort. Maintain ‘BUY’. For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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