Defence stock engaged in designing, developing and manufacturing Radar, Strategic & Space Electronics Systems, sub-systems, and others jumped 5 percent in the day’s trade upon forming new JV to manufacture NavIC chip and GNSS products.
Price Action
With a market capitalization of Rs. 7,681 Crores, the shares of Astra Microwave Products Limited closed at Rs. 809 per equity share, up 4.63 percent from its previous day’s close price of Rs. 773.20.
What Happened
Astra Microwave Products Limited has signed a Joint Venture Agreement with Manjeera Digital Systems Private Limited, Hyderabad, for the manufacturing of NavIC chip and GNSS products using NavIC Chip. Both parties will hold equal shareholding in the joint venture company.
About the Company
Astra Microwave Products Limited is engaged in the business of designing, developing and manufacturing Radar, EW, Strategic & Space Electronics Systems, sub-systems, and others for radio frequency, microwave systems, etc used in defence, aerospace, meteorology, space, and telecommunications.
The segment-wise revenue breakup of Astra Microwave Products Limited consists of Defence/Public 65.2 percent, Space 11.5 percent, Meteorological 1.4 percent, exports 21 percent, and others 0.9 percent. As of Q1FY25, It has a strong order book of Rs. 2,099 Crores,
Astra Microwave Products Limited has a strong client base with esteemed clients such as HAL, Larsen & Toubro, ISRO, Bharat Dynamics, Bharat Electronics, Brahmos, and many more.
In Q2FY25 the Mutual Fund Corporations increased their holding in Astra Microwave Products Limited from 8.91 percent in Q1FY25 to 10.42 percent in Q2FY25 by purchasing an additional 1.51 percent stake.
Financials & Ratios
Its Revenue from operations grew by 16 percent from Rs. 133.73 Crores in Q1FY24 to Rs. 155.18 Crores in Q1FY25, accompanied by a loss of Rs. 6.74 Crores to a profit of Rs. 7.20 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 15 percent, and a return on capital employed (ROCE) of 18.8 percent. It has reported a debt-to-equity ratio of 0.25.
Written by: Bharath K.S
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