Mulitbagger aerospace & defence stock at Rs 103.55 & promoters increase stake: Board allocated 76,24,700 equity shares to promoters & non-promoters on conversion of warrants

The stock gave multibagger returns of over 200 per cent from its 52-week low of Rs 34.37 per share and a whopping 800 per cent in 3 years.

Established in 1985, Apollo Micro Systems Ltd 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.

According to Quarterly Results, the net sales increased by 26.76 per cent to Rs 135.44 crore, an EBITDA increased by 25.61 per cent to Rs 28.74 crore and profit after tax (PAT) increased by 79.23 per cent to Rs 12.93 crore in Q4FY24 compared to Q4FY23 while in its annual results, the net sales increased by 24.91 per cent to Rs 371.63 crore, EBITDA increased by 30.85 per cent to Rs 83.87 crore and profit after tax (PAT) increased by 66.01 per cent to Rs 31.11 crore in FY24 compared to FY23.  

Following the company's December 05, 2022, announcement about issuing 98,85,070 warrants convertible into 10 equity shares (after a stock split) for Rs 186 each, this update informs you that they've approved converting 76,24,700 warrants into regular shares. This conversion happened upon receiving Rs 10,63,64,565 as the exercise price from warrant holders. As a result, the company's issued and paid-up capital has increased to Rs 30,64,89,560, consisting of 30,64,89,560 equity shares of Re 1 each.

Earlier, The promoter Apollo Micro Systems Ltd bought 1,65,060,000 new equity shares with a face value of Rs 1 each upon converting 16,506,000 warrants post-stock split of equity shares. This conversion increased the company's promoter, Mr Baddam Karunakar Reddy's holding from 53.21 per cent to 55.80 per cent.

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Apollo Micro Systems Limited (AMS) management highlighted their achievements in Q4 and FY24, emphasizing their commitment to innovation and growth. The transition of several programs to production contracts bolstered their order book and future revenue visibility. They are developing cutting-edge defence solutions with export potential, as evidenced by their participation in Make-II Defence Projects. The groundbreaking ceremony for their Integrated Plant for Ingenious Defence Systems (IPiDS) reinforces their capabilities in defence and space. AMS is expanding its manufacturing footprint to meet growing demand and capitalize on opportunities in the defence and electronics sectors.

Looking ahead, AMS is optimistic about growth driven by robust defence demand and strategic initiatives. They plan to explore innovation avenues, collaborate with partners, and pursue operational excellence. Management expects 25 per cent revenue growth in FY25 with EBITDA margins between 22 per cent to 24 per cent. They anticipate a healthy order book from recent defence PSU and private company orders. Their subsidiary, Apollo Defence Industries Private Limited, is exploring acquisitions to further strengthen their position.

The company falls under the BSE Small-Cap Index with a market cap of over Rs 2,900 crore. Today, shares of Apollo Micro Systems Ltd plunged 5 per cent to Rs 103.55 per share. The stock gave multibagger returns of over 200 per cent from its 52-week low of Rs 34.37 per share and a whopping 800 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.