Stock in Focus: Defense company Astra Rafael Comsys Private Limited has received an order worth Rs 275.27 crore (including taxes) from the Indian Air Force. This is a joint venture between Astra Microwave Products and Rafael Advanced Defense Systems Ltd of Israel. This order is related to integration and installation of software in the aircraft.
What’s included in the order
Under this contract, Software Defined Radio (SDR) will be integrated in MiG-29 fighter jets. Along with this, Network Centric Operation (NCO) application will also be installed in MiG-29 aircraft.
Apart from this, supply of 24 Software Defined Radios for Light Combat Aircraft LCA Tejas Mk-1A is also part of this order.
When will the project be completed
The contract has been awarded by a domestic defense entity and is to be completed within 12 months. That means this entire project will be executed in the next one year. The company will get a part of this order through its joint venture Astra Rafael Comsys.
Astra Microwave Products has clarified that this order is not any kind of related party transaction. According to the company, neither the promoter nor the promoter group has any interest or stake in the Indian Air Force.
Why is this deal important for Astra Rafael
This contract is being considered a big boost for Astra Rafael Comsys. It also reflects the growing domestic collaboration on software defined and network centric technologies in the defense sector in India.
This is expected to strengthen the company’s aerospace and defense electronics portfolio, especially in the areas of avionics integration and mission-critical communication systems.
Status of Astra Microwave shares
Shares of Astra Microwave Products closed at Rs 1,005.20, up 1.77% on the NSE on Thursday, January 8. The stock is up 14.19% in 1 month. At the same time, it has given a return of 27.58% in 1 year. It has given a multibagger return of 680.74% in 5 years. The market cap of Astra Microwave is Rs 9.54 thousand crore.