Astra Microwave Products has secured a significant contract valued at INR 3.86 billion from BEL to provide sub-systems for Medium Power Radar, with the project spanning the next three years. This marks one of the largest contracts received by the company, offering a notable boost as it translates to an anticipated annual revenue of INR 1.3-1.4 billion over this period. This amount represents 15-16% of the forecasted revenue for FY24. The deal, being a domestic defence contract, is expected to yield robust profit margins. Given BEL’s substantial order intake of INR 320 billion in FY24, further similar contracts are anticipated for Astra Microwave Products in the short term. The recommendation to buy remains firm, with a target price of INR 800 based on DCF (Discounted Cash Flow) analysis.