Multibagger defence stock hits record high on stellar Q4, FY24 earnings

Shares of Astra Microwave surged 14.25% to a record high of Rs 914 after the aerospace and defence firm reported its highest ever revenue, EBITDA and PAT for Q4 and for the last fiscal. Net profit surged 299% to Rs 54 crore in Q4 against Rs 13 crore profit in the corresponding quarter of the previous fiscal. Revenue zoomed 37% to Rs 354 crore in the last quarter against Rs 258 crore in the corresponding quarter of the previous fiscal. Market cap of the multibagger stock rose to Rs 8,355 crore. Later, the stock ended  9.78% higher at Rs 878.15 on BSE.  

Total 2.14 lakh shares of the firm changed hands amounting to a turnover of Rs 18.94 crore. The stock fell to a 52-week low of Rs 317.45 on May 26, 2023. 

The stock has delivered multibagger returns of 169% in the last one year and risen 312% in two years.

In terms of technicals, the relative strength index (RSI) of the stock stands at 74.2, signaling the stock is trading in the overbought zone. Astra Microwave shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The stock has a one-year beta of 1.1 signaling that it has seen high volatility during the period. 

Choice Broking has maintained an outperform rating on the stock. It sees an upside of 21% and assigned a price target of Rs 971. The firm is expected to get fresh orders in the coming quarters like radar for MK1, Sukhoi-30MKI upgradation, which will be largely getting executed from FY26 onwards, said the brokerage. 

Choice Broking is bullish on the stock with a price target of Rs 971. 

"We maintain our OUTPERFORM rating on the stock with a price target of Rs 971, valuating it on 45x of FY26E EPS increasing the multiple given the expectation of new order in coming quarters like radar for MK1, Sukhoi-30MKI upgradation, which will be largely getting executed from FY26 onwards, " said Choice Broking. 

"We are positive about the growth story of Astra Microwave due to its position as a long standing supplier of various equipment and systems, ongoing innovation in diverse products. We have a positive outlook on Astra Microwave, supported by 1) Huge addressable market (i.e-Rs 240-Rs 250 bn) 2) Military modernisation across all segment (Naval, Army, Air Force), 3) Diversified business model, 4) The company’s healthy order book, would support the growth story of the company," said the brokerage.

Astra Microwave Products is engaged in the business of designing, developing, and manufacturing sub-systems for radio frequency and microwave systems used in defence, space, meteorology and telecommunication.