Muhurt Trading: Astra Microwave Products Set for Strong Growth

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ICICIdirect sees robust earnings and margin expansion for Astra Microwave Products (AMPL), backed by a ₹2,236 crore order book, defence sector tailwinds, and rising share of high-margin domestic contracts.

By S JHA

Mumbai, October 20, 2025 — According to a research report by ICICIdirect.com, Astra Microwave Products Ltd (AMPL) is well-positioned for sustained growth, driven by its expanding presence in high-end defence electronics and a healthy order pipeline. The brokerage has maintained a “Buy” rating on the stock with a target price of ₹1,320, valuing it at 52x FY27E EPS.

AMPL is engaged in the design, development, and manufacture of subsystems for radio frequency (RF) and microwave systems used across defence, space, meteorology, and telecommunications. Its diverse product portfolio includes radars, missile electronics, electronic warfare (EW) systems, satellite payloads, MMICs (Monolithic Microwave Integrated Circuits), and advanced communication systems.

As of June 2025, the company’s consolidated order book stood at ₹2,236 crore, equivalent to roughly twice its trailing twelve-month revenue — providing strong visibility for future growth. ICICIdirect notes that the share of defence and space contracts has increased to about 89%, up from 72% at the end of FY24, highlighting the company’s improving product mix and focus on higher-margin domestic orders.

AMPL has five state-of-the-art facilities in Hyderabad, equipped with R&D capabilities in RF and microwave systems, as well as environmental test chambers for space applications. The company has also strengthened partnerships with DRDO and international collaborators, developing cutting-edge technologies like Gallium Nitride (GaN) Transmit/Receive Modules (TRMs) and NavIC chips.

ICICIdirect expects AMPL’s revenue and profit after tax (PAT) to grow at 20% and 25% CAGR, respectively, over FY25–27E. With projected order inflows of ₹1,400 crore in FY26E and opportunities worth ₹24,000–25,000 crore across radar and EW systems through FY28E, AMPL is seen benefiting from robust sectoral demand.

The brokerage believes execution of high-margin domestic contracts (constituting ~92% of the current order backlog) will support profitability improvement going forward.

On the technical front, Astra Microwave’s stock shows strong momentum, supported by sectoral strength and order visibility. The stock is expected to find support near ₹1,120–1,150 levels and faces resistance around ₹1,300–1,350 in the near term. Sustained trade above ₹1,300 could open the path toward ICICIdirect’s long-term target of ₹1,320.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)