Mehabe score: 6 G Factor: 2 Piotski Score: 4 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 2 and Piotski score of 4.
Description
Astra Microwave Products is engaged in the business of design, development and manufacture of sub-systems for Radio Frequency and microwave systems used in defense, space, meteorology and telecommunication.Site:ASTRAMICROMain Symbol:ASTRAMICRO
Stock trades at 273.0, above its 50dma 174.28. It also trades above its 200dma 148.15. The stock remains bullish on techicals
The 52 week high is at 214.00 and the 52week low is at 103.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– has been maintaining a healthy dividend payout of 27.27%
Weakness
– Stock is trading at 4.23 times its book value
-Promoter holding is low: 8.71%
– has a low return on equity of 4.75% for last 3 years.
– has high debtors of 151.95 days.
-‘s cost of borrowing seems high
-Promoter holding has decreased over last 3 years: -4.55%
Competition
– The industry trades at a mean P/E of 37.9x. ITI trades at the industry’s max P/E of 441.14x. ASTRAMICRO trades at a P/E of 55.5x
– Industry’s mean G-Factor is 2.4 while the mean Piotski score is 7.0. ASTRAMICRO has a G-Factor of 2 and Piotski scoreof 4.
– Average 1 month return for industry is 3.5%. The max 1- month return was given by Astra Microwave: a return of 27.81 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 179.86 cr compared to Rs 109.68 cr for period ended Sep 2020, a rise of 64.0%
Operating Profits reported at Rs 11.68 cr for period ended Sep 2021 vis-vis 0.88 for period ended Sep 2020 .
Operating Margins expanded 569.2 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 0.39 compared to Rs 1.41 for previous quarter ended Jun 2021 and Rs -0.8 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 741.0 cr for period ended TTM vis-vis sales of Rs 641.0 cr for the period ended Mar 2021, a healthy growth of 13.5%. The 3 year sales cagr stood at 36.2%.
Operating margins expanded to 14.0% for period ended TTM vis-vis 12.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs 53.0 cr for period ended TTM vis-vis sales of Rs 29.0 cr for the period ended Mar 2021, rising 45.3%.
Company recorded a healthy Net Profit CAGR of 74.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 5.0% compared to 5.0% over the last 3 Years. – The stock has given a return of 155% on a 1 Year basis vis-vis a return of 50% over the last 3 Years. – The compounded sales growth on a TTM bassis is 25% vis-vis a compounded sales growth of 21% over the last 3 Years. – The compounded profit growth on a TTM basis is -17% vis-vis a compounded profit growth of -20% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 1.45% vis-vis 1.01% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 88.16% vis-vis 86.82% for Jun 2021
Conclusion
– has been maintaining a healthy dividend payout of 27.27% – Stock is trading at 4.23 times its book value
-Promoter holding is low: 8.71%
– has a low return on equity of 4.75% for last 3 years.
– has high debtors of 151.95 days.
-‘s cost of borrowing seems high
-Promoter holding has decreased over last 3 years: -4.55%
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 174.28 and is trading at 273.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
