Astra Microwave Products Ltd. (ASTRAMICRO) AI Stock Analysis

• Market Cap: ₹91.64B
• Dividend Yield: 0.24%
• Average Volume (3M): 50.19K
• Price to Earnings (P/E): 49.8
• Beta (1Y): 1.01
• Revenue Growth: 11.44%
• EPS Growth: 23.56%
• Country: IN
• Employees: 1,469
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 4.92
• Shares Outstanding: 94,945,010
• 10 Day Avg. Volume: 42,130
• 30 Day Avg. Volume: 50,189
• PEG Ratio: 1.65
• Price to Book (P/B): 5.94
• Price to Sales (P/S): 6.20
• P/FCF Ratio: -40.15
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,135.00
• Price Target Upside: 13.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 19
• Revenue Forecast (FY): ₹11.82B

• Rating: 51 Neutral
• Price Target: ₹1,042.00 ▲(4.16% Upside)
• Action: Reiterated Date: 11/25/25
• Date: Action: Reiterated 11/25/25

Astra Microwave Products Ltd. has strong financial performance with robust revenue growth and profitability improvements. However, significant challenges in cash flow management and bearish technical indicators weigh heavily on the stock. Additionally, the stock appears overvalued with a high P/E ratio and low dividend yield, making it less attractive for value-focused investors.

Positive Factors

Revenue growth & margin expansion

Astra's revenue growth to 10.69bn with rising gross, EBIT and net margins indicates durable demand and improving operational efficiency. Strong margins suggest pricing power and scalable production, supporting sustainable profitability across multi-year defense and space program lifecycles.

Strengthening balance sheet

Equity growth and higher ROE reflect retained earnings and improved returns, providing a larger capital buffer. A stable equity ratio with manageable leverage gives the company resilience to absorb program timing shocks and fund certification or modest expansion without excessive refinancing risk.

Niche defense/space product specialization

Focus on high-reliability RF/microwave sub-systems and integration services creates technical barriers and long-term customer relationships. Engineering, testing and production capabilities raise switching costs and position Astra to capture repeat series production and sustain revenue from defense and space programs.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flow despite revenue growth indicates weak cash conversion and working capital strain. This can force external financing, hinder timely supplier payments or ramping production for contracts, and limit strategic investments during program ramps.

Project/order-driven revenue and timing risk

An order-driven model tied to defense/space programs creates lumpy revenues and long lead times. Program delays or budget shifts can materially affect near-term deliveries and margins, making revenue recognition volatile and increasing dependency on winning discrete contract awards.

Rising leverage trend

While leverage remains moderate, the rise in debt-to-equity increases fixed obligations and reduces flexibility. When combined with negative operating cash flows, higher leverage heightens refinancing and interest-rate risk and may constrain the company's ability to self-fund long qualification cycles.

Astra Microwave Products Ltd. Business Overview & Revenue Model

Company Description

Astra Microwave Products Limited designs, develops, manufactures, and sells sub-systems for radio frequency and microwave systems used in defense, space, meteorology, and telecommunication applications in India. It offers radar electronics, including active antenna array units, TR modules, wideband TR modules, solid state power amplifiers, receiver exciters, central units, antenna beam forming units, all receiver subsystems, array group and monopulse receivers, waveform generators, and MMIC; electronic warfare comprising antennas, EDLVA and BLI super components, EW simulators, DIFM receivers, front end receivers, up/down convertors, and homodyne receivers; and strategic electronics and telemetry, such as command guidance units, radio proximity fuze, phased array based telemetry tracking system, sub-systems for gimbal based and AESA seeker, ground and air-borne data link systems, data and video telemetry transmitters, transponders, encoders and decoders, and telemetry receivers, as well as L, S, C, and X-Band transponders. The company also provides ground-based systems consisting of sub-systems for multi-object, tracking radar, coherent frequency generators, L-band modulators, 8x8 switchable routers for earth station, V/UHF T/R modules for ST radar, and Ka-band indoor/outdoor units; S-level (on-board) / flight model systems, which includes sub-systems for SAR payloads, geostationary satellites, and remote sensing satellites; water level measurement, agromet meteorological stations, automatic rain gauge, automatic weather stations, mini boundary layer masts, 50m tower masts, and agro met towers; and perimeter surveillance system and non-linear junction detector. In addition, it offers MMIC testing and assembly, and contract manufacturing services, as well as products for homeland security. The company also exports its products. Astra Microwave Products Limited was incorporated in 1991 and is based in Hyderabad, India.

How the Company Makes Money

Astra Microwave Products Ltd. generates revenue primarily through the sale of its RF and microwave components and systems to various sectors, including defense, space, and telecommunications. The company earns money by engaging in contracts with government defense organizations, private defense contractors, and commercial enterprises that require advanced RF and microwave technology solutions. Key revenue streams include the manufacturing and supply of customized components and systems for radar and communication applications. Additionally, Astra Microwave Products leverages partnerships with global defense and aerospace companies to expand its market reach and enhance its product offerings, which contributes significantly to its earnings.

Astra Microwave Products Ltd. Financial Statement Overview

Summary

Astra Microwave Products Ltd. demonstrates strong revenue growth and improved profitability, as reflected in its income statement. The balance sheet is robust, with increasing equity and manageable leverage levels. However, cash flow management remains a concern, with negative operating and free cash flows suggesting the need for better cash conversion strategies.

Income Statement

Astra Microwave Products Ltd. has shown impressive growth with total revenue increasing each year, reaching 10.69 billion in 2025. The Gross Profit Margin has improved significantly from 43.18% in 2020 to 45.97% in 2025. The Net Profit Margin also saw an increase from 9.43% in 2020 to 14.36% in 2025. EBIT and EBITDA margins have consistently improved, indicating strong operational efficiency. Overall, the income statement reflects strong revenue growth and improving profitability.

Balance Sheet

The company's balance sheet shows a healthy increase in Stockholders' Equity from 5.40 billion in 2020 to 10.98 billion in 2025, indicating strong shareholder value growth. The Debt-to-Equity Ratio increased from 0.11 in 2020 to 0.39 in 2025, suggesting higher leverage but still at manageable levels. The Equity Ratio has remained stable, showcasing a strong equity position. The Return on Equity improved from 8.15% in 2020 to 13.98% in 2025, highlighting improved profitability for shareholders.

Cash Flow

The cash flow statement reveals challenges in cash generation, as operating cash flow has been negative for several years, reaching -901.47 million in 2025. Free Cash Flow has also been negative, indicating issues with cash flow management despite revenue growth. The Free Cash Flow to Net Income Ratio indicates a need to improve cash conversion efficiency. However, there has been a significant improvement in Free Cash Flow from 2024 to 2025.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.81B	10.51B	9.09B	8.16B	7.52B	6.46B
Gross Profit	4.96B	4.56B	3.45B	2.82B	2.09B	1.88B
EBITDA	2.86B	2.66B	1.90B	1.47B	934.25M	924.05M
Net Income	1.61B	1.54B	1.21B	698.29M	378.71M	288.52M
Balance Sheet
Total Assets	17.66B	18.51B	14.74B	10.57B	9.69B	9.45B
Cash, Cash Equivalents and Short-Term Investments	1.82B	981.69M	1.26B	1.06B	760.17M	682.40M
Total Debt	2.78B	4.24B	2.38B	1.85B	704.03M	1.22B
Total Liabilities	6.04B	7.53B	5.08B	4.14B	3.83B	3.87B
Stockholders Equity	11.63B	10.98B	9.66B	6.43B	5.86B	5.59B
Cash Flow
Free Cash Flow	2.24B	-1.62B	-2.25B	-593.61M	867.36M	-300.70M
Operating Cash Flow	2.38B	-901.47M	-1.82B	-254.71M	1.15B	-263.82M
Investing Cash Flow	-168.43M	-763.22M	-435.75M	-281.94M	-259.74M	-7.65M
Financing Cash Flow	-1.44B	1.41B	2.32B	747.81M	-787.36M	337.93M

Astra Microwave Products Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1000.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ASTRAMICRO, the sentiment is Negative. The current price of 1000.4 is above the 20-day moving average (MA) of 972.51, above the 50-day MA of 954.32, and below the 200-day MA of 1007.65, indicating a neutral trend. The MACD of 14.60 indicates Positive momentum. The RSI at 48.70 is Neutral, neither overbought nor oversold. The STOCH value of 21.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ASTRAMICRO.

Astra Microwave Products Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYRMA	66 Neutral	₹147.41B	34.37	―	0.20%	1.30%	111.88%
BSOFT	62 Neutral	₹101.21B	25.31	―	1.42%	-2.00%	-25.81%
TEJASNET	62 Neutral	₹78.92B	-10.28	―	0.55%	-17.23%	-185.73%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
APOLLO	59 Neutral	₹71.64B	98.55	―	0.09%	39.76%	55.23%
HFCL	56 Neutral	₹109.84B	25.29	―	0.15%	-19.16%	-92.64%
ASTRAMICRO	51 Neutral	₹91.64B	49.76	―	0.24%	11.44%	23.56%

Astra Microwave Products Ltd. Corporate Events

Astra Microwave Plans Demerger of Space and Weather Business Into Separate Listed Entity

Astra Microwave Products has received in-principle board approval to explore the demerger of its space, meteorology and hydrology operations into a separate listed company, Astra Space Technologies Private Ltd., while the existing entity will focus solely on defence and aerospace. The restructuring is intended to unlock shareholder value by giving each business sharper strategic focus, dedicated management, clearer capital allocation and greater transparency, positioning both platforms to pursue sector-specific growth and attract new investors.

Management highlighted that the space and weather segment is already a scaled, profitable and capital-intensive business, underpinned by rising demand for satellite design, assembly and data applications across upstream hardware, midstream integration and downstream analytics. By separating this unit, Astra aims to better harness global NewSpace opportunities, leverage its two-decade track record in certified, cost-competitive space hardware, and create a structure that can more effectively draw capital and talent as Indian and global markets open simultaneously.

Astra Microwave Secures Rs.171.38 Crore Order from Indian Meteorological Department

Astra Microwave Products Ltd. has secured a significant order from the Indian Meteorological Department for the supply of six Klystron-based S-band Polarimetric Doppler Weather Radars and associated systems, valued at Rs.171.38 crores. This order, to be executed within 18 months, underscores Astra Microwave’s strong positioning in the domestic market and its capability to deliver advanced meteorological equipment, potentially enhancing its reputation and market share in the industry.