This Radhakishan Damani-Owned Stock Doubles Investors' Money in 1 Year; Do you Own?

Radhakishan Damani Portfolio Stock: Astra Microwave Products Ltd, part of the aerospace and defense sector, hit a new high of Rs 321, surging 6 per cent on the BSE in Tuesday’s intra-day trade, amid heavy volumes in an otherwise weak market. The scrip has more than doubled investors’ money in a year. 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.

The smallcap stock bounced back after hitting a low of around 175 in February 2022. The stock with a market capitalization of more than Rs 2600 cr hit a fresh record high of Rs 313 on 19 August 2022. According to analysts, it is trading above crucial short- and long-term moving averages of 5,10,30,50,100 and 200-DMA which is a positive sign for the bulls.

Radhakishan Damani Holding in Astra Microwave Products

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

Financials

The net profit of Astra Microwave Products declined 33.44 per cent to Rs 8.10 crore in the quarter ended June 2022 as against Rs 12.17 crore during the previous quarter ended June 2021. Sales rose 25.83 per cent to Rs 162.08 crore in the quarter ended June 2022 as against Rs 128.81 crore during the previous quarter ended June 2021.

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“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.

Should you Invest?

Experts suggest short-term investors can still look at buying the stock in the next few weeks.

HDFC Securities has signaled a ‘Buy’ call on the small-cap telecommunications equipment entity. Last week the stock after corrections for a few sessions gave a breakout with higher volumes. Also, the stock has breached above the downward sloping trend line. The brokerage observes the formation of bullish patterns on a daily and weekly timeframe. As for the bullish trend in the stock, the scrip of Astra Microwave is trading above 21 EMA.

Additionally, momentum oscillators like RSI and MACD are giving bullish indications suggesting bullish movement for the stock for a few more weeks.

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