Shares of a defence company soared 8 percent higher on Friday’s early trades to reach a fresh 52-week high of ₹ 398.40 apiece on the National Stock Exchange (NSE). This happened after the company bagged orders worth ₹ 158 crores. At 11:46 AM, its shares were trading at ₹ 383.15 apiece.
Astra Microwave Products informed the exchanges that it has bagged orders worth ₹ 158 crores for the supply of satellite sub-systems, airborne radars and sub-systems of radar and EW projects from ISRO, DRDO and DPSUs.
Astra Microwave Products designs, develops and manufactures sub-systems for radio frequency and microwave systems used in defence, space, meteorology and telecommunication.
The company’s share price increased from ₹ 152.35 to ₹ 398.40 apiece in a span of two years, to deliver multibagger returns of 161.50 percent. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares two years ago, the value of their holdings would have been ₹ 2.61 lakhs today!
With a market capitalization of ₹ 3,513 crores, Astra Microwave Products is a small-cap company. It has a low return on equity of 14.12 percent and an ideal debt-to-equity ratio of 0.29. Its shares were trading at a price-to-earnings ratio (P/E) of 63.90, which is higher than the industry P/E of 15.50, indicating that the stock might be overvalued as compared to its peers.
Retail investors hold an 81.62 percent stake in the company, followed by promoters with 6.54 percent, mutual funds with 6.44 percent, foreign institutions with 3.03 percent and other domestic institutions with 2.37 percent.
Written by Simran Bafna
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