Astra Microwave Turns Attractive on Improved Sales, Net Profit in Q4 | CORPORATE ETHOS

Astra Microwave Turns Attractive on Improved Sales, Net Profit in Q4

By: | May 28, 2018
Astra Microwave Products Ltd

May 28: Astra Microwave Products Ltd (BSE:532493, NSE: ASTRAMICRO) has rebounded from a recent low of Rs 90.5 on better Q4FY18 results. The scrip rose to a high of Rs 100.75 before correcting to Rs 96.30, a gain of 1.26% from previous close.

The company designs, develops and manufactures sub-systems for Radio Frequency and microwave systems used in defence, space, meteorology and telecommunications.

In Q4, the company achieved 70.2% growth in net profit at Rs 29.72, while net sales was highest at Rs 169.25 cr with a growth of 94.8%. The scrip is trading at a PE of 13.77 which makes it quite inexpensive and on technical charts, RSI of 60.40 indicates bullishness, ADX of 40.49 indicates uptrend while MACD has witnessed a bullish crossover.

The company had been able to reduce overall expenditure and improve operating margins despite lower sales in Q3FY18, delays in confirming orders in the defence segment was responsible for reduced sales. The company has established a large capacity that can handle a sales turnover of Rs 1000 cr annually. However, it may be attained in only two or three years time. Among new orders expected are from ISRO and some defence organistions.