Astra Microwave Products (AMP) Q3FY15 result was tad better than our expectation, led by strong operating performance. Revenue dropped 19% due to higher export deliveries along with improvement in domestic execution
Strong operating performance helped the company report PAT growth of 16%. The performance was in line with the company’s guidance wherein it had estimated H1FY15 to be strong given the delivery schedule (mainly exports). Order book at INR5.7bn (down 16% QoQ) provides limited visibility, as intake remains elusive for the sector. Order intake during the quarter stood at INR0.5bn, with likelihood of uptick in ordering activity over next few quarters.
It is imperative for AMP to report major intake in coming quarters to improve revenue visibility. We believe the company is well placed to tap the large defence opportunity. Accumulate around Rs 113.50 and Rs 108 for Big Gains. One Can also BUY around Rs 120 for LONG TERM.
L&T Holds 10% in the Company
HDFC Mutual Fund also has Sizable Holding Bought Around Rs 85.
