Suryaa Business Desk: Surya Defense & Stock Market Desk, Mumbai: Leading companies in India's defense sector are Astra Microwave Products, Data Patterns... Surya Defense & Stock Market Desk, Mumbai: Leading domestic brokerage Systematics Institutional Equities has initiated new coverage on shares of Astra Microwave Products and Data Patterns India, leading Indian defense manufacturing companies, with a highly positive outlook. It has analyzed that these two stocks have the potential to register a growth of 39 percent to over 68 percent in the coming period in the context of modernization of Indian armed forces, encouragement given by the central government to the procurement of indigenous defense products, and a huge pending order book. Astra Microwave – Leader in Defense Radars, Subsystems: Systematics has given a clear 'Buy' rating to Astra Microwave, a leading manufacturer of defense electronics, radars, electronic warfare (EW) equipment and missile subsystems.
It said that the steady flow of huge orders from the Ministry of Defense and the expansion of international exports will accelerate the company's earnings. The brokerage report has made it clear that the company's operating margins have improved significantly and the stock market is likely to continue its excellent rally in the coming days. Data Patterns – Aggression in Avionics, Space Technology: Data Patterns has established itself as a key player in supplying indigenously developed high-end defense electronics, radars and avionics systems to the Indian Air Force and Navy. Analysts said that the company's business model, zero-debt status and financial indicators such as excellent return on equity (RoE) should provide investors with stable returns over the long term.
The ability to develop complex systems using indigenous technology is bringing in a series of orders for the company. 'Aatmanirbhar Bharat' for defense electronics sector: Significant increase in allocation for domestic procurement in India's defense budget has ushered in a golden age for private defense companies, the report said. With a ban on defense imports and a mandate for indigenous products, private giants like Astra Microwave and Data Patterns are taking on mega projects at par with public sector firms. According to the target prices set in the latest review, market experts believe that investments in these two stocks are likely to bring significant returns to investors.