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Check Before You Invest : Astra Microwave Products Ltd

BSE: 532493 NSE: ASTRAMICRO ISIN: INE386C01029
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Defence

Snapshot

Q.1 Which industry/sub-sector does Astra Microwave Products Ltd belong to?
Astra Microwave Products Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Defence segment.
Q.2 Is Astra Microwave Products Ltd a good quality company?
Astra Microwave Products Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Astra Microwave Products Ltd undervalued or overvalued?
Astra Microwave Products Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 73.83 59.33
Price to Book 9.19 5.03
Price to Sales 10.16 5.55
EV to EBITDA 35.83 28.54
Q.4 Is Astra Microwave Products Ltd a good buy now?
Astra Microwave Products Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Astra Microwave Products Ltd?
Astra Microwave Products Ltd revenue growth is 15.5% for FY-2025, which is below its 5-year CAGR of 17.74%, indicating slower growth.

Q.2 Gross Profit margin of Astra Microwave Products Ltd?
Astra Microwave Products Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.8% for FY-2025, which is above its 5-year median of 15.6%, indicating increasing margins.

Q.3 Operating Profit Margin of Astra Microwave Products Ltd?
Astra Microwave Products Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 24.95% for FY-2025, which is above its 5-year median of 18.56% indicating increasing margins.

Q.4 Net Profit Margin of Astra Microwave Products Ltd?
Astra Microwave Products Ltd Net Profit Margin is 13.73% for FY-2025, is above its 5-year median of 9.49%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 21.8 15.6
Operating Profit Margin (%) 24.95 18.56
Net Profit Margin (%) 13.73 9.49

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Astra Microwave Products Ltd?
Astra Microwave Products Ltd Return on Asset is 8.14%, which is above its 5-year historical median of 7.49%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Astra Microwave Products Ltd?
Astra Microwave Products Ltd Return on capital employed is 18.51% for FY-2025, which is in line with its 5-year historical median of 17.98%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Astra Microwave Products Ltd?
Astra Microwave Products Ltd Return on equity is 13.93% for FY-2025, which is above its 5-year historical median of 12.34%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Astra Microwave Products Ltd?
Astra Microwave Products Ltd Cash conversion cycle is 381 days, above its 5-year historical median of 290 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.59 0.69
ROE (%) 13.93 12.34
ROCE (%) 18.51 17.98
Cash Conversion Cycle 381 days 290 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Astra Microwave Products Ltd?
Astra Microwave Products Ltd Debt-to-Equity ratio is 0.38, which is above the industry average of 0.09, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Astra Microwave Products Ltd?
Astra Microwave Products Ltd Debt to cash flow from operations is -4.22, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Astra Microwave Products Ltd?

Q.1 Promoter shareholding and pledge status of Astra Microwave Products Ltd?
Promoters hold 6.54% of the Astra Microwave Products Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Astra Microwave Products Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Astra Microwave Products Ltd vs industry peers?
Astra Microwave Products Ltd revenue CAGR is 17.74%, compared to the industry median CAGR of 18.15%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 15.5 18.2
Gross Profit Growth (%) 29.6 33
Operating Profit Growth (%) 34.5 27.2
Net Profit Growth (%) 26.6 33.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.59 0.56
ROE (%) 13.93 12.34
ROCE (%) 18.51 15.01
Cash Conversion Cycle (days) 381.15 155

Valuation & price assessment

Q.1 Stock return of Astra Microwave Products Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 25.7% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
25.7% 57.9% 54.4% 29.9%
Q.2 Valuation ratios of Astra Microwave Products Ltd vs historical?
The current P/E ratio of 73.83 is higher than its historical median of 59.33, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 73.83 59.33 64.82
Price to Book 9.19 5.03 7.10
Price to Sales 10.16 5.55 8.19
EV to EBITDA 35.83 28.54 33.96

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