1,200 per cent returns and promoters & FIIs increase stake: Heavy buying in this multibagger aerospace & defence stock; hit upper circuit on February 26
The stock gave multibagger returns of 470 per cent from its 52-week low of Rs 24.63 per share and a whopping 1,200 per cent in 3 years.
Today, one of the Top Gainers on BSE, shares of Apollo Micro Systems Ltd hit 5 per cent upper circuit to Rs 140.50 per share from its previous closing of Rs 133.85 per share. The stock’s 52-week high is Rs 161.75 and its 52-week low is Rs 24.63. The shares of the company saw a spurt in volume by more than 2.5 times on BSE.
Established in 1985, Apollo Micro Systems is at the forefront of creating, constructing, and validating crucial electronics and electro-mechanical solutions for sectors such as aerospace, defence, and space. The company is renowned for its commitment to research and development, resulting in notable projects such as torpedo-homing systems and underwater mines.
Apollo Micro Systems Ltd secured a Rs 110 crore term loan from the State Bank of India for their new Rs 210 crore Integrated Plant for Ingenious Defence Systems (IPiDS) in Hyderabad. Additionally, SBI renewed and enhanced credit facilities: a Cash Credit limit from Rs 52.50 crore to Rs 57.50 crore, an Inland Bank Guarantee limit from Rs 40 crore to Rs 50 crore and renewed the Inland Letter of Credit limit of Rs 35 crore.
This investment will create a 3,50,000 sq. ft. facility for missile and subsystem manufacturing, weapon maintenance, and UAS/UGS production, generating 400 jobs. The inauguration by Telangana's Minister solidifies their contribution to the state's aerospace and defence hub, and with continued government support, Apollo Micro Systems is poised for growth in driving defence innovation in India.
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Results: According to Quarterly Results, the net sales increased by 10.9 per cent to Rs 91.34 crore, profit before tax (PBT) increased by 57.3 per cent to Rs 14.37 crore and profit after tax (PAT) increased by 50.9 per cent to Rs 9.96 crore in Q3FY24 compared to Q3FY23 while in its nine-month results, the net sales increased by 23.87 per cent to Rs 235.20 crore, profit before tax (PBT) increased by 47.1 per cent to Rs 25.93 crore and profit after tax (PAT) increased by 57.7 per cent to Rs 18.18 crore in 9MFY24 compared to 9MFY23.
Earlier, the company received a letter of acceptance (LOA) from Indian Oil Corporation Limited (IOCL) for an order worth Rs 25.58 crore after successfully being declared as the lowest bidder (L1). Consequently, the total outstanding orders from IOCL amount to Rs 41.03 crore, including the above LOA, all of which are scheduled for execution in the current financial year. The company also announced the lowest bidder (L1) status and new orders worth Rs 2.29 crore secured from I.G. Mint and the Defence Research and Development Organization (DRDO).
In December 2023, promoters increased their stake to 53.21 per cent compared to 52.67 per cent in September 2023 while FIIs increased their stake to 11.01 per cent in December 2023 compared to 5.27 per cent in September 2023.
The company falls under the BSE Small-cap Index with a market cap of over Rs 3,900 crore. The stock gave multibagger returns of 470 per cent from its 52-week low of Rs 24.63 per share and a whopping 1,200 per cent in 3 years. Investors should keep an eye on this aerospace & defence stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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