This defence stock, which specializes in designing, developing, and manufacturing advanced electronic systems essential for defence and space security, skyrocketed 13 percent after securing a multiple order worth Rs. 18 crores from the Ministry of Defence and a private company.
Stock Price Movement:
With a market capitalization of Rs. 3,644.16 crores, the share of Apollo Micro Systems Limited has reached an intraday high of Rs. 120 per equity share, rising nearly around 12.89 percent from its previous day’s close price of Rs. 106.30. Since then, the stock has retreated and is currently trading at Rs. 118.90 per equity share.
What Happened:
Apollo Micro Systems has secured new orders worth Rs. 12.07 crore from a private company, as per its latest filing to Indian stock exchanges. Additionally, the company has been identified as the lowest bidder for contracts worth Rs. 5.97 crores from India’s Ministry of Defence, further strengthening its position in the defence sector.
Management Guidance:
Apollo Micro Systems Limited has set ambitious growth plans, aiming for Rs. 1,000 crore in revenue for FY25 and a 15-20 percent increase in FY26, reaching Rs. 1,200-Rs. 1,300 crore. The company expects Rs. 1,300-Rs. 1,500 crore in new orders, primarily from the radar segment.
Additionally, the company is also driving innovation with new products like drone-penetrating radar and weather solutions at Aero India. For FY27, the company targets at least 20 percent YoY order book growth and plans to expand exports, aiming for 10-15 percent revenue contribution from global markets in FY26.
Manufacturing Facilities:
The company is expanding its manufacturing capabilities in Hyderabad with three major projects. The first is a 55,000 sq. ft facility in IDA Mallapur, featuring advanced defence-standard testing labs. The second, a 40,000 sq. ft unit in Adibatla, supports the Ingenious Defence Systems (IPiDS) initiative.
The largest project in expansion involves a 3,50,000 sq. ft weapon integration facility in Hardware Park II, scheduled for completion by FY25. This expansion will enhance production capacity and solidify the company’s leadership in the defence manufacturing sector.
Client Base:
Apollo Micro Systems Limited has a robust client base in India’s defence and aerospace sector, catering to key organizations like DRDO, Bharat Dynamics Limited, Bharat Electronics, HAL, and ISRO. It also partners with L&T, Kalyani Bharat Forge, Adani, and the Indian Army and Navy, strengthening its industry leadership.
Recent quarter results:
Apollo Micro Systems Limited’s revenue has increased from Rs. 91 crore in Q3 FY24 to Rs. 148 crore in Q3 FY25, which has grown by 62.64 percent. The net profit has also grown by 80 percent from Rs. 10 crore in Q3 FY24 to Rs. 18 crore in Q3 FY25.
Written By – Nikhil Naik
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