The shares of this multibagger defense stock, primarily engaged in design, development, assembly and testing of electronic and electro mechanical solutions jumped 6 percent on Tuesday after securing orders from DRDO and others.
Stock Performance
With a market capitalization of Rs 3,608.91 crore, Apollo Micro Systems Ltd jumped 6 percent in Tuesday’s trading session to a high of Rs 119 per share compared to its previous closing price of Rs 112.65. The shares retraced from the day’s high and were trading at Rs 117.75 which is 4 percent higher than the previous close.
On April 17, 2020, the shares were trading at Rs. 5.71, marking a gain of approximately 1,960 percent over the past five years.
What Happened
The company has received orders worth Rs. 7.52 crores from DRDO, Public Sector Undertaking (PSU) and a private company. Further, Apollo Microsystems has also been declared as the Lowest Bidder for orders worth Rs. 11.48 crores from DRDO & PSU.
Manufacturing Facilities
Apollo Micro Systems operates advanced manufacturing units in Hyderabad. This includes a 55,000 sq. ft facility in IDA Mallapur, featuring advanced defence-standard testing labs and a 40,000 sq. ft unit in Adibatla, supporting the Ingenious Defence Systems (IPiDS) initiative. The upcoming project in expansion is a 3,50,000 sq. ft with a dedicated weapon integration facility in Hardware Park II.
Client Base
Apollo Micro Systems Limited boasts a strong client portfolio within India’s defence and aerospace sectors, serving prestigious organizations such as DRDO, Bharat Dynamics Limited, Bharat Electronics, HAL, and ISRO. The company also collaborates with major industry players like L&T, Kalyani Bharat Forge, Adani, as well as the Indian Army and Navy, reinforcing its leadership position in the industry.
Company Overview
Apollo Micro Systems is a pioneer in the design, development, assembly, and testing of ruggedized, custom-built electronic hardware and software solutions for mission-critical applications. They serve sectors such as Transportation, Aerospace, Defence, Space, and Homeland Security. Their engineering services include customised Build-to-Specifications (BTS) and Build-to-Print (BTP) solutions.
Financials
When looking at the financial performance, the company reported a 63 percent increase in revenue from Rs 91 crore to Rs 148 crore in Q3 FY24-25. This was accompanied by a stellar 80 percent increase in net profits from Rs 10 crore to Rs 18 crore during the same period.
Written by Shwetha Sairam
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