Why did Geojit downgrade Astra Microwave to 'Accumulate'? Check target

Analysts at Geojit valued the Astra Microwave stock at 35x FY28 estimated earnings per share (EPS), with a target price of ₹1,067

Geojit Investments on Astra Microwave Products: Domestic brokerage Geojit Investments has downgraded the radio frequency systems manufacturer Astra Microwave Products to 'Accumulate', saying that while the company is positioned for strong long-term growth driven by its leadership in radar systems, electronic warfare, and space technologies, near-term growth remains back-ended, particularly over the financial year 2027 to 2030 (FY27-FY30). 

 

The brokerage noted that the company's H1FY26 performance was marked by an 8 per cent year-on-year (Y-o-Y) increase in revenue and a 21 per cent Y-o-Y rise in Ebitda, with margins expanding 240 basis points (bps) to 21.4 per cent, supported by higher domestic order execution. 

 

Analysts at Geojit valued the stock at 35x FY28 estimated earnings per share (EPS), with a target price of ₹1,067. The target price implies an upside potential of 14 per cent from the December 22, 2025, closing price of ₹935.3 on the NSE.

 

On the NSE, Astra Microwave share price rose over 1.5 per cent to an intraday high of ₹949.9. At 12:05 PM, ASTM share price was trading at ₹948.6, up 1.4 per cent from the previous session's close. In comparison, the benchmark NSE Nifty50 was trading almost flat at 25,189 levels.

 

The company has a current order backlog of ₹1,916 crore (1.6x FY26E projected sales) and an anticipated inflow of ₹1,000 crore in H2FY26. On a year-to-date (YTD) basis, the company's order inflow is ₹376 crore.

 

It expects Ebitda margin in the range of 25 per cent for the next 2-3 years, considering higher domestic order execution in defence and other sectors.  

 

"ASTM is set for a strong growth cycle, leveraging its leadership in radar systems, electronic warfare, and space technologies. Management targets revenue to double in 3–4 years through programs such as QRSAM, Uttam radars, Su-30 EW upgrades, and Virupaksha," the brokerage said in its note.

 

Geojit noted that Astra’s full-system integration strategy and upcoming programs improve margin visibility, while the planned Astra SAT-1 launch within 24 months adds growth with minimal capex. The company's management targets revenue to double in 3-4 years through programs such as QRSAM, Uttam radars, Su-30 EW upgrades, and Virupaksha. 

 

The brokerage said it downgraded the stock to 'Accumulate' from 'Buy' as growth remains back-ended (FY27– FY30), though Astra’s technological edge and alignment with India’s defence indigenisation roadmap support long-term prospects.  (Disclaimer: Target price and stock outlook has been suggested by Geojit Investments. Views expressed are their own.)