US tie-up boosts Astra Microwave Products

Astra Microwave Products moved up 5.29% to Rs 107.40 at 13:26 IST on BSE after the company said it had tied-up with a US firm to make and supply combat aircraft to the Indian defence ministry.

The stock has risen 14.31% from Rs 93.95 on Tuesday, 26 February 2008, when it announced the deal.

Meanwhile, the BSE Sensex was down 86.02 points, or 0.48%, to 17,739.97, as a sharp drop in US durable goods orders and US home sales fueled recession concerns in the world's biggest economy.

On BSE, 2.18 lakh shares of the scrip were traded. The stock had an average daily volume of 89,604 shares on BSE in past one quarter.

The scrip had touched a high of Rs 109.70 and a low of Rs 102 so far during the day. The stock had hit a 52-week high of Rs 187 on 18 July 2007 and a 52-week low of Rs 73.50 on 15 February 2008.

The scrip had underperformed the market in the one month to 27 February 2008, falling 2.06% as against the Sensex's 1.47% decline. It had also underperformed the market in the past three months, sliding 17.97% against the Sensex's 6.20% slide.

The small-cap electronics equipment maker has an equity capital of Rs 10.75 crore. Face value per share is Rs 2.

At the current price of Rs 107.40, the scrip trades at a PE multiple of 32.25, based on Q3 December 2007 annualised EPS of Rs 3.33.

Astra Microwave Products’ net profit declined 45% to Rs 4.48 crore on 22.4% growth in net sales to Rs 26.47 crore in Q3 December 2007 Q3 December 2006.

The company is engaged in designing and manufacturing high value added RF and microwave super components and sub systems. The products are widely used in VSAT operations, radars, navigational equipment, public mobile trunk radio, WLL, cellular GSM/DCS or PCS networks.