Motilal Oswal Sees 60% Upside in Astra Micro: A Long-Term Defense Bet

• Motilal Oswal initiated "buy" on Astra Microwave Products, setting a price target of ₹1,100 (24% upside) and a bull case target of ₹1,430 (nearly 60% upside).
• Astra Micro, a defense electronics firm, is transitioning to complete system solutions, eyeing opportunities in AESA radar, Uttam radar, and counter-drone systems.
• The company's order book stands at ₹2,200 crore (Sep 2025), with revenue projected to grow at an 18% CAGR and PAT at 23% CAGR from FY25-28.
• EBITDA margins improved to 25.6% by FY25 and are expected to reach 26% by FY28, driven by a changing business mix.
• Key risks include delays in large defense orders, lower government spending, and supply chain issues.

Why It Matters: Motilal Oswal projects significant upside for Astra Micro, citing its strong defense electronics growth potential.