ICICI Securities Bullish on Astra Microwave Products, Sees Healthy Growth Ahead

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Astra Microwave Products (AMPL), a leading Indian defence company, is well-placed for healthy growth led by strong sector tailwinds, according to ICICI Securities.

Key Drivers of Growth:

  • Government’s focus on indigenisation
  • Increasing usage of electronics in defence and space
  • Strong order backlog and healthy orders pipeline
  • Execution of high-margin domestic orders

Financial Projections:

ICICI Securities has estimated AMPL’s revenue, EBITDA, and PAT to grow compounded annually at 15.5%, 26.3%, and 46.7% respectively over FY23-25.


The brokerage firm has recommended ‘buying’ shares of AMPL with a target price of Rs 510 per share based on 32 times FY25 Earnings Per Share (EPS).

Order Book Outlook:

AMPL’s order book position stands healthy at Rs 1,580 crore as of June 2023 end, which is 1.9 times its FY23 revenue.

Government Support:

The government’s commitment to invest heavily in the defence and space industries, decrease reliance on foreign imports, and boost local production by using homegrown materials and components is expected to lead to a significant increase in future orders for AMPL, both within the country and for international exports.

Execution Improvement:

The overall execution is expected to improve as the risk of supply chain issues recedes with increase in domestic procurement of raw materials and sub-components.

Key Strengths:

AMPL has expertise in microwave and radio frequency technology, manufactures a wide range of advanced equipment, and has strong in-house capabilities for order execution.


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