Astra makes waves on tie-up

STOCK IN THE NEWS

The stock of Astra Microwave Products gained 29 per cent last week, with trading volumes jumping by 125 per cent. The surge in stock prices was trigerred by the company's proposal to tie up with a US company to make and supply combat aircraft to the Indian defence ministry.

The company has entered into a non-exclusive memorandum of understanding (MOU) with a USA firm, M Raytheon Company, to identify and explore technologies and products.

The company is engaged in designing and manufacturing high value-added RF and microwave super components and sub systems. The products are widely used in VSAT operations, radars, navigational equipment, public mobile trunk radio, WLL, cellular GSM/DCS and PCS networks.

The company posted 42 per cent fall in net profit to Rs 8.20 crore (Rs 13.96 crore) in the first nine months of FY2007-08, as against a profit of Rs 28.46 crore profit in FY2006-07. At the current market price, the stock is trading at PE multiple of 26 on trailing twelve months earnings of Rs 4.23.

The stock has appreciated by 49 per cent on the BSE from its February 15 low of Rs 74.