Multibagger defence stock with 572% returns; stuck in bear grip but brokerage says 'Buy' - Price target

Multibagger stock: Shares of Astra Microwave Products are likely to rise nearly 25% in a year, paring losses for the defence stock in the short term. The multibagger stock is down 11% in six months and lost 8% in the last one month. On the other hand, Astra Microwave shares have gained 296.71% in three years and risen 572% in five years. 

In the current session, Astra Microwave shares rose nearly 9%to Rs 923.85 amid the market relief rally on BSE and NSE in early deals. The stock closed at Rs 850 in the previous session. 
Market cap of the defence firm rose to Rs 8729 crore in early deals. 

With the current rally, the stock has gained 46% from the 52 week low of Rs 629.45 reached on April 7, 2025. 
 
Brokerage Geojit has an accumulate call on the stock with a price target of Rs 1068. 

According to the brokerage, the defence and aerospace firm is poised for a strong multi-year growth cycle, with revenues expected to double over the next 3–4 years as serial production scales up across key programs such as QRSAM, Uttam AESA radars, Su-30 EW upgrades, and Virupaksa. 

"We value the stock at P/E of 37x FY28E EPS and maintain Accumulate rating on the stock, with a target price of Rs.1,068," said Geojit. 

The brokerage finds that the margin trajectory of the defence player continues to strengthen: EBITDA margins have expanded sharply from 12% in FY22 to 25.4% in 9MFY26, supported by a favourable shift in the execution mix toward high margin indigenous products. 

"While the bulk of earnings acceleration remains back-ended (FY27–FY30), ASTM’s deep technological capabilities and its strong alignment with India’s defence indigenisation agenda position it well for sustained long-term growth," added Geojit. 

In Q3 of the last fiscal, net profit fell marginally but revenue, EBITDA rose and margin expanded. Astra Micro's net profit slipped 1.3% to Rs 46.8 crore in Q3 compared to Rs 47.4 crore in the previous year. Revenue rose 1% to Rs 260 crore from Rs 258.5 crore in the third quarter of the previous fiscal.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 8.4% to Rs 82.6 crore from Rs 76.2 crore in the previous year.

Astra Microwave Products Ltd (AMPL) designs, develops, and manufactures high-end sub-systems for Radio Frequency (RF) and microwave systems, primarily serving defence, space, and meteorology sectors.