Astra Microwave Products notch fresh 52-week high; here is why

Shares of Astra Microwave on Wednesday (October 18) spurted as much as 14.5 per cent in morning deals to notch a fresh 52-week high price of Rs 513.05 on the BSE. The sharp gains in the stock were triggered after the company said it had executed a licence-cum-Transfer of Technology (ToT) agreement between Bengaluru-based NewSpace India and the Indian National Space Promotion and Authorization Centre (IN-SPACe) for utilising MiniSAR: X-band Airborne SAR.

“We wish to inform you that we have executed the License - Cum - Transfer of Technology (ToT) agreement between NewSpace India Limited (NSIL), Bengaluru, and the Indian National Space Promotion and Authorization Centre (IN-SPACe), Department of Space (DOS), Ahmedabad, to utilize the know-how relating to MiniSAR: X-band Airborne SAR,” said the company’s regulatory filing.

Astra Microwave Products comprises a strong portfolio of radars, and this technology will further boost this, added the company.

At around 11:32 a.m., the scrip of the aerospace and defence player traded with gains of over 8 per cent at Rs 484.4.

ICICI Direct, in its report dated September 15, gave a buy call on the counter with a target price of Rs 510 likely to be realised in a year.

The brokerage said the company was poised to witness healthy growth led by strong sector tailwinds. “Govt’s focus on indigenisation, increasing usage of electronics in defence and space, a strong order backlog, a healthy order pipeline, and the execution of high-margin domestic orders would drive earnings in the coming period,” added the brokerage.

Share price performance

Astra Microwave Products in the past one year has zoomed 59 per cent, while in the five-year period, the stock has yielded multi-bagger returns to the tune of 504 per cent.

Astra Microwave Q1 performance

During the June quarter, the company reported a consolidated net loss of Rs 6.74 crore in comparison to Rs 8.1 crore net profit logged during the same period of the previous fiscal. The company’s sales also declined during the Q1 period by over 17 per cent year-on-year.

About Astra Microwave Products

Astra Microwave Products (AMPL), incorporated in 1991, is engaged in the design, development, and manufacture of sub-systems for radio frequency and microwave systems, primarily used in defence, space, and meteorology. Its product range includes radars, missile electronics, electronic warfare, satellites, MMICs (monolithic microwave integrated circuits), and communication systems.