ASTRA MICROWAVE share price Technical Analysis
ASTRA MICROWAVE share price (ASTRA MICROWAVE) looking strong in its technical chart with strong trading volume over the last 10 trading days. The trading volume of the script is above 100 DMA during this period. It seems the counter is ready to move up sharply. ASTRA MICROWAVE share price formed a flag pattern at a range of 347 to 370 levels.
Once the stock crossed above this flag it will start to move up again. ASTRA MICROWAVE share price is trading above all its short and long-term moving averages on the daily chart. The stock is also trading above its super trend signals and is in a bullish up move. Buy at this level or on Dip. Defense industry-related companies are buzzing now in the stock market. Refer fundamental analysis below.
ASTRA MICROWAVE share price is also looking strong in the weekly chart with strong volume over the last four weeks. The counter also formed a ‘W’ bottom pattern in the weekly chart and gave a breakout at 298 level with strong volume. ASTRA MICROWAVE share price looks strong for both short- and long-term investments at this level. Once the counter closes above 375 level, it will move toward a new all-time high of 400-450 level.
Momentum indicators ADX and MACD of ASTRA MICROWAVE share price are looking bullish on the daily chart. One may buy on dips for a 10 to 20% gain in short term. ASTRA MICROWAVE share price is trading at 81.11 Price to Earnings (PE) and available at 5.25 price-to-book (PB) value while sector PE is 25.81 PE and 7.26 PB. The debt-to-equity ratio of the company is 0.12 in FY22 which is negligible. The fundamentals of the company with a low debt-to-equity ratio make it attractive. ASTRA MICROWAVE share is a good stock to accumulate in correction.
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ASTRA MICROWAVE share price Fundamental Analysis
Fundamentally, ASTRA MICROWAVE is a strong company. Astra Microwave Products Limited was founded in 1991. The company is a leading manufacturer of RF and Microwave subsystems and systems for strategic applications. The company’s products cater to various industries such as defense, space, meteorology, homeland security, and systems.
The company has three production units and two R&D units including an exclusive space qualified facility. Astra is an ISO9001:2008 company, along with AS 9100 Rev D certification for its special projects division. The company is a highly integrated manufacturing company.
Taking the advantage of Make in India policy of the Government of India, Astra microwave is targeting to move up the value chain using partnerships as a strategy. The company announced its joint venture company, Astra Rafael Comsys (in which the company and its associates own a 51% stake) will take up the development, manufacture, integration, customization, and product support of Electro-Optic (EO) systems in addition to its existing business line. Radhakishan Damani, one of the ace investors in India, holds over a 1% stake in Astra Microwave.
ASTRA MICRO share Financial Analysis
Astra delivered strong operating revenue last quarter. The company’s revenue stood at Rs. 161.2 crores for Q1FY23 as against Rs. 120.2 crores for Q1FY22 recording a growth of 34% YoY. As per the latest presentation, the company reported a Profit after Tax of Rs. 11.4 crores in Q1FY23 as against Rs. 9.7 crores in Q1FY22; growth of 18% YoY.
However, gross margins reduced from 39% in Q1FY22 to 35% in Q1FY23 due to an increase in material costs. Further, the company has a strong order book with excellent execution capacity. Order book of Rs. 1,663 Crores as on June 30, 2022, which is executable in the next 12 to 30 months period.
ASTRA MICRO is a small-cap company with a market cap of INR 3071 crores with a face value of INR 2. Return on capital employed is ~11 percent while return on equity is ~7 percent. Promoter’s shareholdings remain the same from Sept 2021 to March 2022 at 8.71%. Promoters diluted their stake and reduced their holding to 8.46% in June 2022.
FIIs have increased their holdings from 1.01 % in June 2021 to 2.17 % in June 2022. However, DII holdings in the company declined from 0.29% in March 2022 to 0.16% in June 2022. This reflects that FIIs are confident about the company’s performance. Maximum shares are held by the public, and this is a negative point in the company for long-term investment.
Company Promoters and Management
ASTRA MICRO is run by strong leadership. One of the key assets of the company is the combined experience of its employees & hands-on experience in the RF/Microwave domain.
Mr. B. Malla Reddy is one of the core founders of the company. Before starting this company, he worked for over two decades in the Systems Division of the Indian Space Research Organisation.
Mr. P.A. Chitrakar is also one of the founders of the company. He had been with the Defence Electronics Laboratory, Hyderabad, as a scientist for over 20 years before co-founding Astra Microwave.
C. Prameelamma is the third member of the founding team. Before this assignment, she worked with the Electronics Research and Development Establishment, Bangalore, and the Defence Electronics Research Laboratory, Hyderabad.
