India Markets open in 7 hrs 39 mins

Buy Astra Microwave Products; target of Rs 124: Geojit

Subhash Helgaokar
1 / 1

Buy or sell: Top stock trading ideas by market experts which are good short term bets

Rajesh Agarwal of AUM Capital recommends buying Cipla with stop loss at Rs 604 and target of Rs 632, Colgate Palmolive with stop loss at Rs 1165 and target of Rs 1208 and Tata Motors with stop loss at Rs 261and target of Rs 279.

Geojit's research report on Astra Microwave Products

Astra-microwave products Ltd (AMPL) is leading designer and manufacturer of wide array of radio frequency systems, microwave chips, microwave based components and subsystems for Defence, Telecom and Space. FY18 PAT grew by 7% YoY. EBITDA margins improved by 510bps due to execution of higher margin domestic orders. Current order book is at Rs503cr, whereas order intake guidance of Rs600cr for FY19E is encouraging. Given execution of better margin domestic orders, we factor EBITDA margin in the range of 28% vs. 22% (last 5 year average) over FY18-FY20E. To benefit from improvement in demand for radars and subsystems due to ongoing indigenous missiles programmes. Further, company’s focus in new projects will drive future growth. However, we lower our earnings estimates for FY19E by 12% to factor in delay in certain orders during FY18. Considering the earnings downgrade, we lower our valuation to P/E 13x (16x earlier) as we roll forward to FY20E.


We maintain our Buy rating with a revised target price of Rs124.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Astra Microwave Products_210618