Astra Microwave Q4 Results Review - Numbers Inline With Expectations: Nirmal Bang

Nirmal Bang Report

Astra Microwave Products Ltd. reported good numbers for Q4 FY24. Revenue (actual/estiamte: Rs 3,540/Rs 3,468), Ebitda (active/estimate: Rs 807/Rs 716) and PAT (actual/estimate: Rs 544/Rs 398) grew by 37%, ~136%, and 302% YoY, respectively.

The management has guided the following for FY25:

• Revenue growth: Projected 18-22% growth in FY25, with full-year revenue guidance of Rs 10 billion to Rs 11 billion.

• PBT margin: Expected to remain in the same range as FY24 (16%).

• Working Capital Cycle: Targeting 240 days.

• Order inflow: Expected at Rs 12 billion - Rs 13 billion.

• Short-term borrowings: May increase by Rs 400 to Rs 500 million due to high receivables.

The management is optimistic as the JV partner Astra Rafael Comsys Pvt Ltd. has turned profitable and is backed by a strong order book.  Collaboration with Teledyne for MMIC is expected to benefit the company in the next two-three years.

The stock has risen by 25% in the last two months. However, we expect FY26 to be a blockbuster year because of the delivery of Active Array Antenna Unit for Uttam AESA Radar for LCA Mk1A fighter aircraft.

We have raised our estimate by 11% for FY26 besides increasing multiples from 40 times to 45 times. We the stock at 45 times FY26E EPS with a target price of Rs 968.

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