Promoters & FIIs increase stake in this multibagger aerospace & defence stock: Company receives Rs 110 crore for upcoming project for Department of Space and Defence
The stock gave multibagger returns of over 400 per cent from its 52-week low of Rs 24.63 per share and a whopping 1,000 per cent in 3 years.
Apollo Mirco Systems Ltd informed that the company has received sanction for a term loan of Rs 110 crore from the State Bank of India for the implementation of our upcoming project in Hardware Park, Hyderabad. This funding is allocated towards the establishment of the Integrated Plant for Ingenious Defence Systems (IPiDS) at Hardware Park, Hyderabad
In addition to the term loan, the State Bank of India has also sanctioned the renewal and enhancement of the following credit facilities for twelve months, up to February 08, 2025:
1. The Cash Credit (CC) limit has been renewed and enhanced from an existing limit of Rs 52.50 crore to Rs 57.50 crore.
2. The Inland Bank Guarantee (IBG) limit has been renewed and enhanced from an existing limit of Rs 40 crore to Rs 50 crore.
3. The Inland Letter of Credit (ILC) limit has been renewed for Rs 35 crore.
Apollo Micro Systems, a 40-year-old Hyderabad-based company led by B. Karunakar Reddy, has grown into a major player in India's defence and space sector. This publicly traded firm, with 350 employees including 150 engineers, prioritizes R&D and homegrown technologies, serving Defence and Space departments. To capitalize on the rising demand for indigenous defence solutions, they focus on air, land, and sea defence electronics, with a focus on surveillance tech. Their commitment is further emphasized by a 5-acre expansion in Telangana, featuring a 3,50,000 sq. ft. facility for missile and subsystem manufacturing, weapon maintenance, and UAS/UGS production.
This Rs 210 Crore investment, adhering to international standards, is expected to generate 400 jobs. The recent inauguration by Telangana's Minister highlights their contribution and reinforces the state's position as an aerospace and defence hub. With continued government support, Apollo Micro Systems is poised for a bright future in driving defence innovation in India.
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.
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Earlier, the company received a letter of acceptance (LOA) from Indian Oil Corporation Limited (IOCL) for an order worth Rs 25.58 crore after successfully being declared as the lowest bidder (L1). Consequently, the total outstanding orders from IOCL amount to Rs 41.03 crore, including the above LOA, all of which are scheduled for execution in the current financial year. The company also announced the lowest bidder (L1) status and new orders worth Rs 2.29 crore secured from I.G. Mint and the Defence Research and Development Organization (DRDO).
Today, shares of Apollo Micro Systems Ltd gained 4.75 per cent to Rs 128.95 per share from its previous closing of Rs 123.10 per share. 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.
In December 2023, promoters 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 3,600 crore. The stock gave multibagger returns of over 400 per cent from its 52-week low of Rs 24.63 per share and a whopping 1,000 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.
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