Astra Microwave Stock Analysis

Astra Microwave Products Limited Detail

Astra Microwave Products Limited is in portfolio of Dilip Kumar Lakhi. He is one of the top investors in India. The company belongs to Defense sector. 

As per the Company website it is in business of RF/Microwave/Digital electronics and management of projects with high technology content. Below are product categories of the Company

• Defense
  • Radar Electronics
    • Maximum revenue area for the Company. It has designed, developed and produced various components and sub-systems that are used to build small range, medium range and long range radars for ground, naval and airborne applications.
  • Electronics War Fare
    • Sub systems for Radar warning receiver
  • Strategic Electronics
    • Transponders and Tracking systems
  • Telemetry
    • Telemetry receivers and Ground and Air borne data link systems
• Space
  • Ground Based
  • Flight Mode
  • Works closely with ISRO to design, develop and produce space grade sub-systems and components for various Indian Satellite programs. 
• Meteorology
  • Water level measurement, Meteorological stations
• Security
  • Perimeter surveillance system
• Others
  •  Antennas, MMIC testing and assembly, Contract Manufacturing and products for Homeland Security.

Astra has joint venture with Rafael advanced defense system limited for Tactical Radio Communication systems, Electronic Warfare Systems and Signal Intelligence Systems.

The Company has presence in India, Russia and European countries.

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

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Astra Microwave Products Limited Stock Performance

The stock got listed in year 2004 at listing price of 28. Since after IPO Company have 6 times return in very short span of time. But after that exceptional return in short span of time it slowly went down hill and global crisis did not help either.

The stock went into consolidation mode and traded in 50 to 40 range from 2008 to 2014 that is 6 long years. After long consolidation it again touched 150. So far Stock has not breached the top it made just after IPO. The dividend yield is excellent. At current market price dividend yield is more than 1%.

Astra Microwave Products Limited My Opinion

Astra Microwave Products Limited is an Defense Company. There are not too many Companies operating in this niche. India imports majority of its defense requirements and it makes good share of Indian imports.

This sector has scope in India. Any Company producing quality equipment which can be used by Indian defense will get benefited.  There is huge market opportunity in this field. Defense gets fair share of budget allocation every year.

The Company operates in Radar and related instruments. The electronics and tracking systems form core of modern defense system. Along with defense Company works in Satellite technologies. Recently India has become favorite nation for launch of Satellites. This can be cashed in by the Company as well.

So far it has mixed performance for investors. But surely this Company is different from most companies as it operates in niche sector. I will be tracking this Company closely for further developments. As of now I am not invested in Defense sector and may invest in future.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.