Multibagger penny stock below Rs 80: This aerospace & defence stock is expected to grow revenue by 45-50 per cent in FY24, scrip hits 52-week high!

The stock gave multibagger returns of 225 per cent in just 1 year whereas the BSE small-cap Index is up by 33.7 per cent.

On Friday, one of the Top Gainers on BSE, shares of Apollo Micro Systems Ltd gained 14.65 per cent to make a new 52-week high of Rs 76.45 per share with a spurt in volume by more than 2 times. At 01:30 pm, shares of the company were trading at Rs 73.50 per share, up 10.23 per cent.
Apollo Defence Industries Private Limited will collaborate with both domestic and international companies to develop defence platforms. This business aligns with Apollo Micro Systems Limited's existing business and complements it, while also expanding the parent company's horizons to larger platforms by leveraging its technological support.

The management expects revenue to grow by 45 per cent to 50 per cent from FY23 to FY24, owing to a robust order book and expected key projects. The company has bagged multiple orders in the current financial year from the Defence Research and Development Organisation (DRDO).

In addition to the new facility, Apollo Micro Systems has also recently incorporated a wholly owned subsidiary, APOLLO DEFENCE INDUSTRIES PRIVATE LIMITED, which will focus on forming alliances and technological partnerships with various international companies to provide cutting-edge defence solutions and serve the nation. The company has also signed multiple Transfer of Technology (ToT) agreements with the Defence Research and Development Organisation (DRDO).

The company is expanding its operations by setting up a new defence equipment manufacturing facility in Hyderabad and forming a new subsidiary to focus on international partnerships and technological partnerships of 3,00,000 square feet. The company is also gradually scaling up to be a weapon design, development, and manufacturing company. This expansion is in line with the Indian government's focus on the indigenization of the defence sector.
The Government allocated Rs. 5.95 lakh crore for the Ministry of Defence in the Budget 2023-24. During the year the Government notified the fourth Positive Indigenization List consisting of 101 items for which there would be an embargo on the imports.

Furthermore, in the current financial year, the company underwent a stock split, reducing its face value from Rs 10 to Rs 1. The company traded ex-stock split on May 05, 2023.

The company falls under the BSE Small-Cap Index with a market cap of over Rs 1,700 per cent. The stock gave multibagger returns of 225 per cent in just 1 year whereas the BSE small-cap Index is up by 33.7 per cent. Investors should keep an eye on this aerospace & defence company stock.

Disclaimer: The article is for informational purposes only and not investment advice.