Defence stocks to buy: India’s push to strengthen domestic defence manufacturing could create a fresh growth opportunity for defence electronics companies, with Systematix Research initiating coverage on Astra Microwave Products and Data Patterns with BUY ratings.
The brokerage has set a target price of ₹2,600 for Astra Microwave against its closing price of ₹1569.75, indicating an upside potential of almost 66%. Meanwhile, Data Patterns has a target of ₹5,100 against ₹4127.90, implying an upside of 23.5%.
Systematix Research said the two companies were positioned to benefit from rising demand for radar, electronic warfare, communications and space-related systems. It highlighted their indigenous design capabilities, research and development investments, and opportunities arising from new defence programmes.
The brokerage described Astra Microwave as a company undergoing a structural transformation, while identifying Data Patterns as a capability leader among private defence manufacturers. Both companies could see stronger order inflows and earnings growth as existing programmes move towards execution.
Astra Microwave has expanded beyond its traditional radio-frequency component business into a broader systems and development-cum-production partner for aerospace, defence and space platforms. Its order book tripled over three years to approximately ₹43 billion, providing visibility for future revenue.