This Radhakishan Damani-owned stock has zoomed 66% in 2 months

Shares of hit a new high of Rs 321, surging 6 per cent on the BSE in Tuesday’s intra-day trade, amid heavy volumes.

At 12:52 pm, the stock was trading 4 per cent higher at Rs 315. In comparison, the S&P BSE Sensex was up 0.07 per cent at 58,813 level, after hitting an intra-day low of 58,172. Trading volumes on the counter jumped 1.6 times with a combined 1.95 million equity shares having changed hands on the NSE and BSE.

In the past two months, the stock of the defence company has zoomed 66 per cent from level of Rs 193 on the BSE. Moreover, over the past six months, it has soared 65 per cent as against 2.6 per cent rise in the S&P BSE Sensex. In the past one year, the stock has surged 111 per cent as compared to 5.7 per cent gain in the benchmark index.

Ace investor Radhakishan Damani held 896,387 equity shares, or 1.03 per cent stake, in at the end of June quarter, the shareholding pattern data shows.

Astra is engaged in design, development, manufacture and supply of high value added RF and microwave super components, sub-systems and systems finding for Defense, Space, Telecom, Meteorology and Civil communication applications.

Last week, the company said that its joint venture company (JVC) Astra Rafael Comsys Private Limited, (where Astra and its associates own 51 per cent stake) will take up development, manufacture, integration, customization and product support of Electro Optic (EO) systems in addition to its existing business line.

“This new product line (EO) will enable JVC to compete in the upcoming EQ systems business of about $600 million in India in the next 5 to 8 years,” Astra said in an exchange filing.

Meanwhile, Astra had a strong order book position of Rs 1,663 crore as on June 30, 2022 (Q1FY23), which is executable in the next 12 to 30 months period. In the last 5 years, Astra’s revenue has grown at a CAGR of 20 per cent and the company’s management is confident that in the years to come the company will continue this stride as the macro environment for defense sector is very positive.

Astra see opportunities coming in from various programs planned by Government through Defense Research labs (DRDO) and from the Make-II opportunities from Ministry of Defence (MoD). Many of these are, especially, in radar and electronic warfare systems where the company has proven expertise.

“We believe going forward, our revenue mix will increase in the domestic area as compared to last three previous years which should give improved bottom line. We have clear opportunities of about Rs 3,000 crore for next three years out of a market potential of about Rs 14,500 crore upto year 2028,” Astra said in its FY22 annual report.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link

Comments are closed.