Synopsis:
Apollo Micro Systems received DRDO approval as a production agency for the Multi-Influence Ground Mine (MIGM) – Vighana under the DcPP and also signed an agreement with DRDO for the transfer of technology (ToT) of an Omni-Directional Multi-EFP warhead for the NASM-SR missile.
With a market capitalization of Rs 8,769 crore, the shares of Apollo Micro Systems Ltd made a day high of Rs 271.60 per share (all-time high), up by 12 percent from its previous day closing price of Rs 242.50 per share. Over the past five years, the stock has delivered a multibagger return of 1,939 percent.
About the announcement
The company has just received the green light from DRDO to step in as a production partner for the Multi-Influence Ground Mine (MIGM), Vighana, which is a cutting-edge defense product. This partnership means the company will play a key role in producing vital defense equipment, further solidifying its position in the defense manufacturing arena.
In another exciting development, the company has inked a deal with DRDO to acquire the technology necessary for creating a unique warhead known as the Omni-Directional Multi-EFP warhead.
This warhead is set to be utilized in the NASM-SR missile. With this new capability, the company is now positioned to manufacture these essential components, enhancing its expertise and footprint in the defense sector.
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Financial Highlights
The company reported a revenue of Rs 134 crore in Q1 FY26, up by 47 percent from its Q1 FY25 revenue of Rs 91 crore. On a quarterly basis, it declined by 17 percent from Rs 162 crore.
Coming to its profitability, it reported a net profit of Rs 18 crore in Q1 FY26, up 125 percent from Rs 8 crore in Q1 FY25. On a quarterly basis, it grew by 29 percent from Rs 14 crore.
The stock has delivered an ROE and ROCE of 10 percent and 14 percent respectively, and is currently trading at a high P/E of 132x as compared to its industry average of 65.77x.
Apollo Micro Systems Limited is an Indian-based company that designs, develops, and assembles high-technology electronic and electro-mechanical systems ranging from defense to aerospace applications.
The product range includes avionics modules, missile simulators, seeker electronics, launch controllers, and data acquisition, as well as electronic systems for surveillance, public transport and safety, communication, and command control systems for railways and civil aviation.
Written by Satyajeet Mukherjee
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