Multibagger in just 6 months: This aerospace & defence company gets trading approval of 1,67,45,640 equity shares allotted under preferential issue!

The stock gave multibagger returns of 170 per cent in just 1 year whereas the BSE small-cap Index is up by 10.14 per cent.

Apollo Micro Systems Ltd informed that the company got trading approval for 1,67,45,640 equity shares of Rs 1 each, issued and allotted on a preferential issue basis to the non-promoters, have been granted by the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on January 04, 2024.

Today, shares of Apollo Micro Systems Ltd plunged 2.19 per cent to Rs 127 per share from its previous closing of Rs 129.85 per share with an intraday high of Rs 131.50 and an intraday low of Rs 126. The stock’s 52-week high is Rs 161.75 and its 52-week low is Rs 24.63.  

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. Currently, they are enhancing their Hyderabad facility by incorporating clean rooms dedicated to advanced systems. The company's diversification efforts, including subsidiary ventures and substantial orders from the Ministry of Defence, indicate a promising future for this prominent Indian entity.

AMS blazes a financial trail, breaking quarterly records with a 55 per cent revenue increase and a staggering 300 per cent rise in net profit. In H1, revenue roars up by 34 per cent, and net profit soars by 67 per cent. Beyond figures, AMS expands globally, dominating the Middle East with MP3 International and establishing a stronghold in Hyderabad.

Prepping for defence leadership, AMS creates an international subsidiary and inaugurates a new manufacturing unit. A robust order book foresees a 45-50 per cent surge in FY24 revenue and secured DRDO contracts confirm AMS's trajectory toward global aerospace mastery. Investors, brace yourselves – this rocket is set for an unstoppable journey!

Recently, the company secured multiple orders totalling Rs 20.76 crore from the Ministry of Defence, including confirmed orders and successful lowest bid tenders. This underscores the company's ongoing involvement in the defence sector. Additionally, the company obtained orders worth Rs 15.82 crore from a private company.

After the December 5 allotment of 98,85,070 warrants, convertible into 10 equity shares each post a stock split, Netxpact Limited (FII) exercised warrants for 29,54,360 equity shares, paying Rs 4,12,13,322. This approval by the company's securities allotment committee results in a post-split value of Rs 35,89,54,740.

The company falls under the BSE Small-Cap Index with a market cap of over Rs 3,500 crore. The stock gave multibagger returns of 170 per cent in just 1 year whereas the BSE small-cap Index is up by 10.14 per cent and over 3 years the stock is up by 940 per cent.

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