₹1,150 - That's What Analysts Think Astra Microwave Products Limited (NSE:ASTRAMICRO) Is Worth After These Results
Last week, you might have seen that Astra Microwave Products Limited (NSE:ASTRAMICRO) released its second-quarter result to the market. The early response was not positive, with shares down 3.6% to ₹1,010 in the past week. Results were roughly in line with estimates, with revenues of ₹2.1b and statutory earnings per share of ₹16.17. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the current consensus from Astra Microwave Products' four analysts is for revenues of ₹12.5b in 2026. This would reflect a solid 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 6.2% to ₹17.65. In the lead-up to this report, the analysts had been modelling revenues of ₹12.7b and earnings per share (EPS) of ₹19.00 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
See our latest analysis for Astra Microwave Products
Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 11% to ₹1,150, suggesting the revised estimates are not indicative of a weaker long-term future for the business. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Astra Microwave Products, with the most bullish analyst valuing it at ₹1,454 and the most bearish at ₹767 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Astra Microwave Products' rate of growth is expected to accelerate meaningfully, with the forecast 32% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 12% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 24% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Astra Microwave Products is expected to grow much faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Astra Microwave Products. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Astra Microwave Products going out to 2028, and you can see them free on our platform here..
It might also be worth considering whether Astra Microwave Products' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.