400 per cent returns: This multibagger smallcap stock plans to establish a cutting-edge defence equipment manufacturing facility!
These new units are poised to expand the company's infrastructure by an additional 3,00,000 square feet
On Tuesday, shares of Apollo Micro Systems zoomed more than 14 per cent to trade at an intraday high of Rs 61.50 apiece on BSE. The scrip witnessed massive spurt in volume by more than 3.14 times.
Apollo Micro Systems Limited, a prominent player in the Indian defence industry, specializing in electronic manufacturing, hardware design, weapon integration, and platform integration, has put forth plans to establish a cutting-edge defence equipment manufacturing facility in Hyderabad's Hardware Park. The proposal is subject to approval by the company's board of directors. The estimated investment for these upcoming endeavours is approximately Rs 150 crore.
These new units are poised to expand the company's infrastructure by an additional 3,00,000 square feet, serving as a hub for defence electronics and electro-mechanical manufacturing, capable of handling large-scale production. These units will incorporate a clean room for the production of inertial systems, RF systems, and space applications.
Additionally, they will be equipped with comprehensive environmental test facilities, including an EMI-EMC facility accredited by NABL laboratories. This facility will also house a dedicated test facility for the testing and calibration of navigational systems such as INS, IMU, AHRS, and more.
With the aim of pioneering innovative technologies and establishing an all-encompassing defence ecosystem, the company has recently founded a wholly-owned subsidiary named Apollo Defence Industries Private Limited. This subsidiary's primary focus will be on forging strategic alliances and technological partnerships with diverse international firms to deliver state-of-the-art defence solutions, thus contributing to the nation's security and defence capabilities. Additionally, the company has entered into several Transfer of Technology (ToT) agreements with the Defence Research and Development Organisation (DRDO).
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These agreements mark a significant milestone in their ongoing partnership with DRDO and signify their commitment to excellence in technology and innovation in defence-related projects. The company is gradually scaling up to become a Weapon Design, Development, and manufacturing company, for which the Weapon Integration facilities are being commissioned.
Apollo Micro Systems is a pioneer in design, development and assembly of custom-built electronics and electro-mechanical solutions. The company offers solutions based on state-of-the-art technologies for aerospace, defence and space as primary customers and also caters solutions for railways, automotive and home land security markets.
The stock has witnessed significant buying activity as it has given multibagger returns of more than 400 per cent in just 3 years. Keep a close eye on this trending multibagger stock.
Disclaimer: The article is for informational purposes only and not investment advice.