This Smallcap defence stock which is engaged in the business of design, development and manufacture of sub-systems for Radio Frequency and microwave systems up 7% after the company received an order worth Rs. 255.88 crores from the Ministry of Defence.
Price Action
With a market capitalization of Rs. 8,075 Crores, the shares of Astra Microwave Products Limited were up by 6.5 percent in the day’s trade touching a day’s high of Rs. 868.50 per share. The stock reiterated from the day’s high and was trading at Rs. 841.40 per share which is up 3.21 percent higher from the previous closing price of Rs. 815.25 apiece. The stock has delivered a 37 percent return in the past year and outperformed the Nifty Index.
What Happened
The stocks of Astra Microwave Products rose after the company’s Joint venture Astra Rafael Comsys Private Limited received an order worth Rs. 255.88 crore on December 13th, 2024 for the supply of 93 No.s of additional sets of software-defined radios LRUs with A kits, SBC 2 card, and Network Centric Operations application for the Su-30 MKI fighter aircraft. The period for the execution of the order is 24 months and it is not a related party transaction. The company expects more order inflow in this JV.
About the Company
Astra Microwave Products Limited specializes in designing and manufacturing advanced microwave and RF components which is primarily for defense and aerospace applications. Their business model focuses on providing high-quality, customized solutions that meet stringent industry standards. They engage in both domestic and international markets, leveraging their expertise to cater to clients in sectors such as telecommunications, space, and radar systems.
By investing in research and development, Astra aims to innovate and enhance its product offerings continually. The company also focuses on strategic partnerships and collaborations to expand its market reach and capabilities. This approach enables Astra to maintain a competitive edge while addressing the growing demand for sophisticated microwave technologies in various applications.
Financials & Ratios
Its Revenue from operations grew by 21 percent year on year from Rs. 190 Crores in Q2FY24 to Rs. 230 Crores in Q2FY25, accompanied by profits of Rs. 30 Crores to Rs. 25 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 15.05 percent and a return on capital employed (ROCE) of 17.61 percent. It has reported a debt-to-equity ratio of 0.26.
Shareholding Pattern
As of September 2024, the shareholding pattern with promoters stake holding a share of 6.54 percent in Astra Microwave Products, Foreign Institutional Investors (FII) holdings stood at 5.69 percent, Domestic Institutional investors (DII) standing at 14.99 percent, and public holdings standing at 72.79 percent.
Written by Santhosh S
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