Astra Microwave (ASTRAMICRO)

FairStock Score: 5/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Low debt/equity ratio of 0.24 provides financial cushion
• Positive ROE of 15.07% and ROCE of 18.72% show decent capital efficiency
• Aerospace and defense niche benefits from high entry barriers
• Latest quarter net profit margin around 18% (₹47 Cr profit on ₹260 Cr sales)

Concerns

• P/E of 57.31 and P/B of 11.19 are extreme for near-zero growth
• Sales growth of 0.66% and profit decline of -1.31% indicate stagnation
• Promoter holding of just 6.54% raises governance and alignment red flags
• Piotroski F-Score of 4/9 and dividend yield of 0.23% offer weak shareholder signals

AI Analysis

At 1135 rupees, Astra Microwave is not a business I would describe as cheap. The market is asking 57 times earnings and 11 times book value for a company whose sales grew only 0.66% and profits fell 1.31% over the latest period. That is the kind of price-to-growth mismatch that makes Benjamin Graham roll over in his grave. The PEG ratio is 86.83 — for that to make sense, profits would need to explode. I don't see evidence in the numbers. The company is not without merits. It operates in aerospace and defense electronics, a field with high barriers to entry. It carries little debt, with D/E at 0.24, and earns a respectable ROE of 15.07% and ROCE of 18.72%. The latest quarter shows sales of 260 Cr and net profit of 47 Cr, so the business is generating profits. But quality at the right price is what I look for; this is quality at the wrong price. What worries me more than valuation is ownership. Promoter holding is just 6.54%. That is a serious red flag. When promoters own so little, I question whether my interests are aligned with the people running the shop. The Piotroski score of 4/9 suggests weak operational health, consistent with stagnant sales and falling profits. A dividend yield of 0.23% means I am not getting paid to wait. I would put this in the slow grower category: no evidence of meaningful growth, but a stock priced as a fast grower. The 52-week range tells me the market itself is unsure — from 1960 down to 851 and now 1135. I'd rather miss this opportunity than overpay. Let me watch for sustained order flow and sales acceleration before I'd even consider a margin of safety.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer