Astra Microwave Products Limited

Technology — Communication Equipment · NSE

₹1,628.00+₹6.90 (+0.43%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

Driven by small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

The 60-second version of Astra Microwave Products Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Astra Microwave Products Limited designs, develops, manufactures, and sells sub-systems for radio frequency and microwave systems used in defense, space, meteorology, civil, and telecommunication applications in India.

IndustryCommunication Equipment

SectorTechnology

Employees1,684

Annual revenue₹1,163 Cr

How does it make money?

Turns over ₹1,163 Cr a year. Of every ₹100 of sales, about ₹17 reaches shareholders as profit, with ₹30 left at the operating level before interest, tax and depreciation. Each of its 1,684 employees supports ₹69.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹69.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 14.7% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE32.0%

What is the outlook?

12 analysts covering the stock expect revenue to grow about 22.8% and earnings to grow about 29.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+22.8%

Est. earnings growth+29.1%

Analysts12

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +43% while net margin moved +93% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+43%

Margin effect+93%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 82.0x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 70.3x
✗ P/B of 11.76x is a steep premium to book

Quality vs. Valuation

Company Quality

77/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

35/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

82.0x

3Y Median

70.3x

40 monthly readings · mean 72.9x · range 47.2x–117.8x

Sector Median

16.5x

median of 4 sector peers

⚠️Current valuation is approximately 17% above its 3y median of 70.3x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 395% above the peer median of 16.5x.

vs. its own history

Fair

70.3x median over 40 months · +17%

vs. sector peers

Expensive

16.5x median of 4 peers · +395%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

44.6x

PEG

2.03

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 17.7% to 30.0% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 10.9% to 14.7%.
Return on capital is rising
ROCE has improved from 16.5% to 20.8%.
High return on capital employed
ROCE of 20.8% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.22x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 54% over 3 years, from ₹186 Cr to ₹288 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 142% against revenue up 43% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 17.7% to 30.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹304 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 142% against revenue up 43%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 395% above the peer median. That premium needs a reason that persists, or it closes.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 9% a year✓ 12.6% CAGR
Latest reported year was -11.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 28%✓ 30.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹304 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 18%✓ 20.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹15,457 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

82.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

11.76x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹19.86

Profitable

Profitable on a per-share basis

ROE

14.7%

Moderate

Moderate capital efficiency

ROCE

20.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.22x

Low

Conservative leverage

Revenue Growth (YoY)

-11.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-24.6%

Falling

Profits are shrinking

Dividend Yield

0.15%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹304 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

50.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

12.0%

Average

Average margins

Net Margin

16.6%

Good

Strong bottom-line conversion

Current Ratio

3.13

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.59

Defensive

Steadier than the market

52W Range Position

70%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1643.1 / 1676.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

50.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹814 Cr	₹909 Cr	₹1,051 Cr	₹1,163 Cr	+12.6%
EBITDA	₹144 Cr	₹206 Cr	₹279 Cr	₹349 Cr	+34.2%
EBITDA Margin	17.7%	22.7%	26.6%	30.0%	—
PAT (Net Profit)	₹70 Cr	₹121 Cr	₹154 Cr	₹193 Cr	+40.3%
EPS	₹8.06	₹12.86	₹16.17	₹20.27	+36.0%
ROE	10.9%	12.5%	14.0%	14.7%	—
ROCE	16.5%	17.4%	20.8%	20.8%	—
Total Debt	₹186 Cr	₹238 Cr	₹424 Cr	₹288 Cr	+15.6%
Free Cash Flow	-₹59 Cr	-₹229 Cr	-₹169 Cr	₹304 Cr	—

🟢 Revenue has grown at 12.6% a year over 3 years.

🟢 EBITDA has grown at 34.2% a year over 3 years.

🟢 EBITDA Margin has risen from 17.7% to 30.0% over 3 years (+12.3 pts).

🟢 PAT (Net Profit) has grown at 40.3% a year over 3 years.

🟢 EPS has grown at 36.0% a year over 3 years.

🟢 ROE has risen from 10.9% to 14.7% over 3 years (+3.8 pts).

🟢 ROCE has risen from 16.5% to 20.8% over 3 years (+4.3 pts).

🔴 Total Debt has grown at 15.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹59 Cr to ₹304 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,988 Cr

Total Liabilities

₹673 Cr

Cash & Equivalents

₹175 Cr

Operating Cash Flow

₹387 Cr

Capex

-₹83 Cr

Shareholding (proxy)

Institutional Holding

23.1%

Insider Holding

30.2%

Corporate Actions

Dividend Rate

₹2.4

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

8 Buy · 2 Hold · 2 Sell

Target Price (Mean)

₹1,767.92

+8.6% vs CMP

Target Range

₹1,068 – ₹2,230

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

3 mixed3 general

Astra Microwave Products Limited (ASTRAMICRO.NS) Stock Price, News, Quote & History

Yahoo! Finance Canada, 09 Oct

Astra Microwave Products Holders Are Up 65% On A Call Earnings Did Not Back

Simply Wall Street, 04 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Astra Microwave Products shares hit record high on bagging order worth ₹2,205 crore; everything investors need to know

Upstox, 31 Jul

Astra Microwave share price surges 12% on ₹2,205 crore HAL order

Moneycontrol.com, 31 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Buy, Sell or Hold: Antique initiates coverage on Astra Microwave Products; Goldman Sachs recommends Buy on

The Economic Times, 25 Aug

ASTRAMICRO Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Revenue growth is negative (-11.5%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingRisk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑