Astra Microwave shares hit record high on orders from ISRO, DRDO

Shares of Astra Microwave Products Ltd zoomed 6% to a record high in early deals today after the provider of microwave wireless technologies for use in defence, space and telecommunications said it has won new orders worth Rs 158 crore from DRDO, ISRO, and defence public sector undertakings (DPSUs).

Astra Microwave stock rose 6.47% to a high of Rs 393.95 on BSE. Market cap of the firm climbed to Rs 3,711.88 crore. Total 1.03 lakh shares of the firm changed hands amounting to a turnover of Rs 3.95 crore on BSE. The stock fell to a 52-week low of Rs 213.15 on March 28, 2023.

The defence stock has gained 17% in one year and gained 35.49% since the beginning of this year.

In terms of technicals, the relative strength index (RSI) of the Astra Microwave stock stands at 54, signaling it's trading neither in the overbought nor in the oversold zone. Astra Microwave shares have a beta of 0.8, indicating low volatility in a year. Astra Microwave shares are trading higher than the 5 day, 10 day, 20 day, 50 day and 200 day moving averages.

"This is to inform you that the company has bagged orders worth Rs 158 crore for supply of Satellite sub-systems, Airborne Radar and sub-systems of Radar and EW projects, from DRDO, ISRO and DPSUs," said the company in a stock exchange filing.

In the first quarter of the current fiscal, the company logged a revenue of Rs 132.9 crore against Rs 161.2 crore for Q1 of FY23. "The geographical spread of total revenue for the quarter stands as follows — India 40 percent and exports 60 percent which was completely the other way around in FY23, i.e., India 60 percent and exports 40 percent," the company said.

The gross margins slipped to 27.5 percent for Q1 of FY24 against 35.1 percent in Q1 of FY23 last year on decline in gross margins, which is mainly due to higher contribution from the export business.

Astra Microwave Products designs and manufactures high-value-added RF and microwave super components and sub-systems that find application in defence, space, and civil communication systems.

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