ICICI Securities Limited recently issued Buy Call on Astra Microwave Products Ltd, along with a new Target Price for the company. Now, let’s examine the research reports and explore their overviews.
Astra Microwave Products Ltd is an Indian company that specializes in the design, development, and manufacture of microwave and radio frequency (RF) components and systems. It was founded in 1991 by Dr. B.M. Sreenivasaiah and Mr. K.T. Rama Rao, with the vision of establishing a prominent presence in the RF and microwave technology domain. The company is headquartered in Hyderabad, India.
Astra Microwave serves a diverse range of industries, including defense, space, telecommunications, and industrial sectors. They offer a comprehensive portfolio of products, including microwave components like filters, couplers, amplifiers, switches, and antennas.
First of all, let’s take a look at the current share price of Astra Microwave Products Ltd. To visualize these changes, we can refer to the Astra Microwave Products Ltd Share chart which displays the historical share prices, indicating the ups and downs over time.
Research Report
ICICI Securities Limited’s Report Overview
Astra Microwave Ltd (AMW) reported a strong performance in Q4FY23, with its EBITDA increasing by 34% YoY to Rs343 million. The company witnessed a significant increase in the proportion of exports, accounting for 54.6% of total sales in Q4FY23 compared to 31.5% in Q3FY23. However, this led to a decline in the quarter-on-quarter EBITDA margin due to the lower-margin nature of exports.
During the quarter, AMW received new orders worth Rs1.2 billion, including Rs722 million from the defense sector. At the end of FY23, the company’s order book stood at Rs15.4 billion, equivalent to 1.9 times its revenue, which is executable over the next 12-36 months. Notably, domestic orders constitute 76% of the order book.
The board of directors has recommended a dividend of Rs1.6 per share. Looking ahead, AMW’s management reaffirmed its guidance of achieving sales execution of Rs100 billion over the next five years. The company is also focusing on transitioning from a systems/subsystems provider to a complete solutions provider. It aims to identify specific opportunities for collaboration with third parties to enhance its offerings.
Considering AMW’s solution-oriented approach and its potential to capitalize on opportunities in the domestic defense space, it is expected to achieve better margins in the medium term. Consequently, we maintain a positive outlook on AMW’s prospects and reiterate our BUY rating on the stock. Our revised target price of Rs425 (previously Rs380) is based on a discounted cash flow (DCF) valuation, implying a multiple of 23 times FY25E EPS.
ICICI Securities Limited Buy Call: Astra Microwave Products Ltd
Astra Microwave Products Ltd’ current market price is Rs 328. Recently, ICICI Securities Limited recently issued Buy Call on Astra Microwave Products Ltd with a new Target Price of Rs 425.
| Company | Astra Microwave Products Ltd |
|---|---|
| AUTHOR | ICICI Securities Limited |
| DATE | 30 May 2023 |
| Current Price | Rs 328 |
| TARGET | Rs 425 |
| Type | Buy |
| Report |
Here’s a table summarizing the ownership structure of the company.
| Shareholding Pattern (%) | Sep ’22 | Dec ’22 | Mar ’23 |
|---|---|---|---|
| Promoters | 8.3 | 8.3 | 7.2 |
| Institutional Investors | 3.2 | 2.3 | 2.4 |
| MFs and Others | 0.1 | 0.1 | 0.1 |
| FIs/Insurance | 0.0 | 0.0 | 0.0 |
| FIIs | 3.1 | 2.2 | 2.3 |
| Others | 88.5 | 89.4 | 90.4 |
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