Rs 2,299 crore order book & FIIs increase stake: Heavy buying in this multibagger aerospace & defence stock - hit fresh 52-week high & PAT zooms 240 per cent

The stock gave multibagger returns of 170 per cent from its 52-week low of Rs 342 per share and a whopping 450 per cent in 3 years.

Today, the shares of Astra Microwave Products Ltd gained 10.4 per cent and made a fresh new 52-week high of Rs 980 per share from its previous closing of Rs 887.90. The shares of the company saw a spurt in volume by more than 4.69 times on BSE. The stock gave multibagger returns of 170 per cent from its 52-week low of Rs 342 per share and a whopping 450 per cent in 3 years.

Astra Microwave Products Ltd. is a leader in advanced technology for national security and communication systems, specializing in radio frequency (RF) and microwave components. They design, develop, and manufacture not only individual high-performance parts (super components) but also entire subsystems and complete systems for defence, space exploration, meteorology, telecommunication, and even civil communication applications. In simpler terms, their technology plays a critical role in everything from military radars and spacecraft electronics to weather stations and mobile phone networks.

The company has a market capitalisation of over Rs 8,000 crore. The company has been maintaining a healthy dividend payout of 22.5 per cent. As of March 31, 2023, the company’s order book stands at Rs 2,299 crore which is executable in the next 12 to 36 months period. Additionally, as of March 2024, an ace investor, Atim Kabra owns a 3.53 per cent stake in the company and FIIs have increased their stake to 3.17 per cent in March 2024 compared to 2.32 per cent in March 2023.

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Earlier, Astra Microwave Products Ltd partnered with Teledyne e2v HiRel Electronics to offer semiconductor solutions specifically designed for the demanding requirements of the aerospace, defence, and high-reliability electronics sectors. This collaboration comes on the heels of two significant contract wins for Astra Microwave. The first is a Rs 56 crore project to deliver, install, test, and commission a Precision Approach Radar (PAR) system for Hindustan Aeronautics Limited, Bangalore, along with a 10-year maintenance agreement, all to be completed within 10 months. Additionally, Astra Microwave secured a Rs 385.58 crore order from Bharat Electronics Limited for MPR sub-systems, with a fulfilment timeframe of 36 months.

The company announced stellar Quarterly Results (Q4FY24) and annual results (FY24). Here are the details:

Quarterly Results (Q4FY24 vs Q4FY23)

• Revenue stood at Rs 354 crore for Q4FY24 as against Rs 258 crores for Q4FY23, up 37.2 per cent.
• EBITDA stood at Rs 81crores for Q4FY24 as against Rs 34 crore for FY23. EBITDA margin for Q4FY24 stood at 22.8 per cent vs 13.3 per cent in Q4FY23
• PAT was at Rs 54 crore for Q4FY24 as against Rs 13 crore in Q4FY23, up 315 per cent.

Annual Results (FY24 vs FY23)

• Revenue stood at Rs 909 crore for FY24 as against Rs 816 crore for FY23, up 11.4 per cent
• EBITDA stood at Rs. 192 crores for FY24 as against Rs. 148 crores for FY23, up 29.8 per cent. EBITDA margin for FY24 stood at 21.1 per cent vs 18.1 per cent in FY23
• Profit after Tax of Rs 121 crore in FY24 as against Rs 70 crore in FY23, up 72.6 per cent and 4.7 percentage points of margin expansion.

Investors should keep an eye on this Small-Cap aerospace & defence stock. 

Disclaimer: The article is for informational purposes only and not investment advice.