Multibagger Astra Microwave share price spikes over 14% to record high on firm’s stellar performance in Q4

Shares of Astra Microwave Products zoomed 14.25% in today's early morning trade to record a new lifetime high of ₹914 apiece following the company's announcement of its best performance on both a quarterly and full-year basis in terms of revenue and profitability.

For Q4FY24, the company reported a revenue of ₹354 crore as compared to ₹258 crore in Q4FY23, with 76% of the total revenue attributed to India and the remaining 24% to exports. 

PAT for Q4FY24 stood at ₹54 crore, a 315% YoY increase from ₹13 crore in Q4FY23. For FY24, profit after tax reached ₹121 crore compared to ₹70 crore in FY23, alongside a rise in revenue to ₹909 crore from ₹816 crore in FY23. 

The company's order book as of March 31, 2024, amounted to ₹1,956 crore, which is more than 2x of revenue of FY24, according to the company's Q3 earnings report. 

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Astra Microwave Products is engaged in the business of designing, developing, and manufacturing defence, aerospace, and space electronics systems, sub-systems, and components. It designs and develops radar, EW, strategic, and space electronic systems and sub-systems. 

It has in-house capabilities in design, engineering, simulation, manufacturing, functional testing, environmental qualification for defence, and critical microwave and radio frequency-based equipment.  The company has moved up the value chain from modules and sub-systems to systems and systems of systems.

Stellar growth

The company has seen its shares steadily rising from a low of ₹213.80 in March 2023 to the current price of ₹897.95, marking a remarkable gain of 320%.

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For long-term investors, the stock has yielded even more substantial returns, surging by 543% over the past three years and an impressive 929% over the last five years. 

In March, the company secured a substantial order worth ₹385.58 crore from Bharat Electronics for the supply of MPR sub-systems.

Strong sectoral tailwinds

India's defence sector is poised for robust growth driven by extensive modernisation plans, an increased emphasis on homeland security, and the Make in India initiative, leading to higher government allocations for defence expenditure. 

Concurrently, ISRO's ambitious plans for multiple deep space and experimental missions are expected to bolster India's position in the global space industry through technological advancements. 

Additionally, indigenous shipbuilding capabilities have witnessed significant growth, further complemented by the implementation of the Defence Acquisition Procedure.

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The company, as outlined in its Q4 investor presentation, foresees substantial business potential across various sectors until 2028. With opportunities projected at ₹4,000 crore in defence & aerospace, ₹500 crore in space, ₹1,500 crore in turnkey projects and metrology & systems, and ₹1,000 crore in export, the cumulative potential reaches ₹7,000 crore, indicating promising growth prospects ahead.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.