1. At a Glance
From radars to space antennas, Astra Microwave is India’s signal-slinging sniper in the defense electronics game. But under that shiny ₹969 stock lies a low-promoter-holding, high-debtor-days, P/E-59 contraption that’s either cooking a defence-tech masterpiece—or heating leftover hype.
2. Introduction with Hook
Imagine ISRO, DRDO, and the armed forces all crowding one chai tapri—but the tapri serves RF modules instead of samosas. That’s Astra Microwave. They don’t just play in defense—they whisper to satellites and scream at enemy radars.
- Order Book: ₹2,304 Cr as of May 2025
- EPS FY25: ₹16.17, up 100%+ in 2 years
- Promoter Holding: An eyebrow-raising 6.54%
And yes, they just raised ₹174 Cr via preferential warrants. For once, dilution is not a dirty word—it’s war-fueled working capital.
3. Business Model (WTF Do They Even Do?)
Astra designs and manufactures RF (radio frequency) and microwave subsystems that go into:
- Radars
- Electronic warfare systems
- Satellite communication
- Missile guidance
- Civil & meteorological applications
Revenue split:
- Defense & Space (core focus)
- Telecom (low share, but synergy potential)
They also operate via JVs like Astra Rafael Comsys (defense electronics) and Navictronics (NavIC chipsets with Manjeera Digital). Yes, they’re pushing “Make-in-India” dreams into literal orbit.
4. Financials Overview
Profit & Loss (₹ Cr):
| FY | Sales | OPM % | Net Profit | EPS |
|---|---|---|---|---|
| FY21 | 641 | 12% | 29 | 3.33 |
| FY22 | 750 | 12% | 38 | 4.37 |
| FY23 | 816 | 18% | 70 | 8.06 |
| FY24 | 909 | 21% | 121 | 12.75 |
| FY25 | 1,051 | 26% | 154 | 16.17 |
Highlights:
- 5-year revenue CAGR: 18%
- 5-year profit CAGR: 29%
- FY25 OPM: 26% (from 18% in FY23)
- Consistent PAT growth even with occasional quarterly blips
5. Valuation
Current Price: ₹969
EPS (TTM): ₹16.17
P/E: ~60 (yep, that’s the price of a future defense-tech monopoly baked in)
EduInvesting Fair Value Range:
- Base Case (25x P/E): ₹400
- Bullish Defense Hyped Case (40x): ₹650
- Over-the-top India-on-Mars case (55x): ₹875
Conclusion: Current market is pricing perfection + ISRO IPO + DRDO moon base. Beware.
6. What’s Cooking – News, Triggers, Drama
- Preferential Allotment (Jun 2025): 20.14 lakh warrants @ ₹864 → ₹174 Cr incoming
- Dividend Declared: ₹2.20/share for FY25
- Order Book: ₹2,304 Cr—2.2x FY25 revenue
- New JVs:
- Astra Rafael Comsys: ₹255 Cr order from Ministry of Defence
- Navictronics Pvt Ltd: Indigenous NavIC chipset play
- Teledyne e2v JV: Semiconductor tie-up = entry into space-grade hardware
Also worth noting: Q4 FY25 revenue at all-time high of ₹408 Cr, with 29% margins. That’s not just growth—it’s an arms race.
7. Balance Sheet
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 19 |
| Reserves | 1,079 |
| Borrowings | 424 |
| Total Liabilities | 1,851 |
| Fixed Assets | 229 |
| Investments | 32 |
| Other Assets | 1,587 |
Notables:
- Borrowings doubled from ₹186 Cr to ₹424 Cr → funding growth or feeding CCC?
- Net-worth healthy at ₹1,098 Cr
- Capex underway: ₹59 Cr asset addition over 2 years
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net |
|---|---|---|---|---|
| FY23 | -25 | -28 | +75 | +21 |
| FY24 | -182 | -44 | +232 | +7 |
| FY25 | -90 | -76 | +141 | -25 |
Diagnosis:
- Negative CFO in FY24–25 despite profits → bloated working capital
- Customer advances low relative to debt → poor cash discipline
- Raising equity was necessary, not optional
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 19% |
| ROE | 14.9% |
| P/E | 59.9 |
| P/B | 8.38 |
| Debtor Days | 273 |
| Inventory Days | 389 |
| CCC | 614 (Yes, SIX-HUNDRED-FOURTEEN) |
Stress Zone:
- Astronomical debtor and inventory days → defense cycle woes?
- CCC nearing TCS employee ID numbers
- ROCE respectable but not industry-leading
10. P&L Breakdown – Show Me the Money
| FY25 (₹ Cr) | Amount |
|---|---|
| Sales | 1,051 |
| EBITDA | 269 |
| Other Income | 27 |
| Interest | 57 |
| Depreciation | 35 |
| PBT | 204 |
| Net Profit | 154 |
Margins finally aligning with revenue—sign of operating leverage working.
11. Peer Comparison
| Company | CMP | P/E | ROCE | Sales (Cr) | PAT (Cr) | OPM |
|---|---|---|---|---|---|---|
| HAL | ₹4,652 | 37.2 | 33.9% | 30,981 | 8,360 | 31.0% |
| BEL | ₹395 | 54.2 | 39.0% | 23,769 | 5,321 | 28.8% |
| Zen Tech | ₹1,880 | 60.6 | 36.7% | 974 | 280 | 38.4% |
| Data Patterns | ₹2,758 | 71.8 | 21.0% | 708 | 215 | 38.8% |
| Astra | ₹969 | 59.9 | 19.1% | 1,051 | 154 | 25.6% |
Summary: Astra’s valuation is almost on par with Zen/Data Patterns—despite significantly weaker cash flows and promoter holding. It’s riding sentiment, not just earnings.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun ’25 |
|---|---|
| Promoters | 6.54% |
| FIIs | 6.46% |
| DIIs | 14.37% |
| Public | 72.63% |
- Public shareholding ballooned from 49% (FY23) to 73% → dilution + retail frenzy
- FIIs steadily buying since FY24
- Promoters sitting on the side (or selling?) = concern
- Shareholder count: 1,07,384 and rising like an EV IPO
13. EduInvesting Verdict™
Astra Microwave is everything the defence-tech bull wants: high margin, record order book, multiple JVs, and next-gen space/semiconductor dreams. But under the surface, it’s grappling with bloated receivables, promoter vanishing act, and a valuation that assumes it’s the next Lockheed Martin.
If execution matches the hype and debtor days fall below Everest Base Camp, this could be a multi-decade compounder.
But till then—it’s flying on hope, hype, and radar.
Fair Value Range: ₹400–₹875 (depending on execution, cash flow repair, and defense momentum)
Metadata
– Written by EduInvesting Research Team | July 19, 2025
– Tags: Astra Microwave, Defense Stocks, Make In India, Preferential Allotment, Order Book Heavy Stocks, Aerospace & RF Engineering
