Promoters bought 2,75,40,000 shares & FIIs bought 5.74 per cent stake: This multibagger aerospace & defence stock enters into an agreement with State Bank of India

The stock gave multibagger returns of 271 per cent from its 52-week low of Rs 27 per share and a whopping 950 per cent in 3 years.

Apollo Micro Systems Ltd informed that the company has entered into a loan agreement with the State Bank of India (SBI) worth Rs 252.50 crore. This includes a new Term Loan of Rs 110 crore to implement the IPiDS project and a renewal and enhancement of existing Working Capital credit facilities.

The Working Capital facilities consist of a renewed Cash Credit limit increased from Rs 52.50 crore to Rs 57.50 crore, a renewed Inland Bank Guarantee limit increased from Rs 40 crore to Rs 50 crore and a renewed Inland Letter of Credit limit of Rs 35 crore. The Term Loan has an interest rate of 1.40 per cent above 6M MCLR (currently 9.95 per cent p.a.) and will be repaid in 27 quarterly instalments of Rs 3.93 crore each with a final instalment of Rs 3.89 crore, starting from March 31, 2025 and ending on December 31, 2031.

The Working Capital facilities have an interest rate of 2 per cent above 6M MCLR (currently 10.55 per cent p.a.) and are repayable on demand. The loan is secured by various charges on the company's assets and personal guarantees from four individuals.

Today, one of the Top Gainers on BSE, shares of Apollo Micro Systems Ltd hit 5 per cent upper circuit to Rs 100.06 per share from its previous closing of Rs 95.30 per share. The stock’s 52-week high is Rs 161.75 and its 52-week low is Rs 27.

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.   

Earlier, the company secured a significant new order worth Rs 25.58 crore from Indian Oil Corporation Limited (IOCL) after being declared the lowest bidder (L1). This adds to their outstanding orders from IOCL, now totalling Rs 41.03 crore and scheduled for completion this fiscal year. Additionally, the company was awarded the lowest bidder (L1) status for new orders totalling Rs 2.29 crore from I.G. Mint and the Defence Research and Development Organization (DRDO).

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.

In December 2023, promoters bought 2,75,40,000 shares and 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 2,800 crore. The stock gave multibagger returns of 271 per cent from its 52-week low of Rs 27 per share and a whopping 950 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.