From Rs 50 to Rs 950! Multibagger defence stock get thumbs-up from analysts; check targets

Astra Microwave shares: Brokerage firms continue to remain positive on multibagger defence stock Astra Microwave Products Ltd as they see more upside in the stock. They believe that the stock is transitioning to a system-based player and long term strategic goal of scaling-up.

Incorporate in 1991, Hyderabad-based Astra Microwave Products is a leading designer and manufacturer of a wide array of radio frequency systems, microwave chips, and microwave-based components and subsystems for defence, telecom, and space.

Astra Microwave designs and manufactures high-quality radio frequency and microwave modules, subsystems, and systems in India. It is moving from being a subsystem-level player to a complete system solutions provider and is eyeing opportunities from active electronically scanned array (AESA) radar, Uttam radar, meteorological orders, repeat orders from the Navy, and counter-drone orders over the next few years, said Motilal Oswal Financial Services.

Its order book stood at Rs 2,200 as of September 30, 2025. It posted 13 per cent revenue CAGR over FY21-25. Driven by a changing business mix, the company was able to improve its Ebitda margin notably to 25.6 per cent in FY2, said Motilal Oswal, which expect its revenue to post an 18 per cent CAGR over FY25-28 and project its margin to improve 40 bps over this period.

"We initiate coverage on Astra Microwave with a 'buy' rating and a target price of Rs 1,100, premised on 38 times December 2027 estimates. This valuation reflects a discount compared to larger defense PSUs. We consider AMPL a long-term investment opportunity in defense electronics, anticipating its revenue growth to accelerate between FY27 and FY30," it added.

Shares of Astra Microwave Products have zoomed 1,800 per cent from its covid-19 lows below Rs 50 apeice to 949.90 on Tuesday, with a market capitalization of Rs 9,000 crore. The stock rose nearly 1.7 per cent during the session, but down 20 per cent from its 52-week high at Rs 1,195.65, hit in June 2025.

In H1FY26, revenue grew by 8 per cent YoY, due better execution. Ebitda grew by 21 per cent YoY, margins expanded by 240 bps YoY to 21.4 per cent, supported by higher margins domestic order execution. Consequently, reported PAT increased by 23.3 per cent YoY, said Geojit Investments.

The order pipeline looks promising, with potential opportunities within Astra Microwave's total addressable market of Rs 25,000 crore by FY28, it said. "We anticipate Ebitda margin in the range of 25 per cent for the next 2-3 years considering higher domestic order execution in defence and other sectors."

Geojit said that Astra Micro is set for a strong growth cycle, leveraging its leadership in radar systems, electronic warfare, and space technologies. Management targets revenue to double in 3-4 years through programs such as QRSAM, Uttam radars, Su-30 EW upgrades, and Virupaksha. It has given it an 'accumulate' rating with a target price of Rs 1,067.