Astra Microwave share price jumps over 7% on bagging ₹158-crore order from ISRO, others

Astra Microwave Products share price jumped more than 7% to hit a fresh 52-week high on Friday after the company won orders worth ₹158 crore for satellite and radar systems. Astra Microwave share price jumped as much as 7.72% to a 52-week high of ₹398.60 apiece on the BSE.

Astra Microwave bagged orders for supply of Satellite sub-systems, Airborne Radar and sub-systems of Radar and EW projects, from Defence Research and Development Organisation (DRDO), the Indian Space Research Organisation (ISRO) and Defence Public Sector Undertakings (DPSUs), the company said in an exchange filing.

Astra Microwave designs, develops and manufactures sub-systems for RF and microwave systems used in defense, space, meteorology and telecommunication.

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The company had reported a net loss of ₹6.74 crore in the quarter ended June 2023 as compared to a profit of ₹8.10 crore in the same quarter last year. 

The company’s revenue in Q1FY24 dropped 17.5% to ₹13.37 crore from ₹16.21 crore, YoY.

The company’s Q1 results were mainly impacted by higher proportion of export sales and low margin domestic sales. Export sales was 60% of overall sales.

During Q1FY24, the company received order inflow of ₹1.9 billion, which includes defence orders worth ₹1.6 billion, export orders worth ₹0.13 billion and meteorological orders worth ₹0.12 billion. Orderbook as on June 2023 end was ₹15.8 billion, of which export orders were around 19% and the rest were domestic orders.

The company’s management is expecting order inflow of more than ₹1,000 crore during FY24 and majority of these orders will be awarded in Q3FY24 and Q4FY24. These include order for naval system, Mk1 engines, anti-drone radars, defence satellite subsystem, development contract for airborne radar, etc.

The company has also maintained its FY24 revenue guidance of over ₹9 billion including domestic revenue of more than ₹6 billion. The management has guided for export orders at only 22% of overall revenue in H2FY24.

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ICICI Securities, its report dated August 15, said this is likely to be margin accretive as besides lower proportion of exports, good margin domestic orders may also get executed.

As high margin domestic orders are likely to be executed from Q3FY24, the brokerage firm believes the prospects remain bright.

“In our view, any fall in the stock price post Q1FY24 earnings is an opportunity to participate in the long-term growth story of the company as guidance on FY24 revenue, margin and cumulative revenue target of ₹100 billion in next five years is largely intact. In our view, AMW’s order potential is robust and its solution-oriented approach being built on the twin planks of collaboration with external parties and internal competencies – may result in better margins,” ICICI Direct said.

It maintained a ‘Buy’ rating on the stock with a target price of ₹425 per share.

Astra Microwave shares have rallied 13% in the last three months, while they are up more than 33% YTD. Astra Microwave share price has given impressive returns of over 206% in the last three years.

At 1:30 pm, Astra Microwave share price was trading 2.34% higher at ₹378.65 apiece on the BSE.

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