Promoters & FIIs increase stake in this multibagger aerospace & defence stock with 1,000 per cent returns; Scrip in green after business expansion update – know more here!
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 Micro Systems Limited widely known as AMS, is a Telangana-based publicly listed company working on critical Defence & Space technologies and entered its 40th year of operation this year. The company is headed by its Founder & Managing Director, Mr. B. Karunakar Reddy, with its headquarters in Hyderabad. The company is into the development of Indigenous technologies and is one of the first companies in Hyderabad working for the Department of Space and Defence, offering design services.
This company develops and manufactures defence electronics for air, land, and sea applications, with a specific focus on home-grown technologies and state-of-the-art surveillance solutions. Their 350 employees, including 150 dedicated engineers, contribute to research and development efforts aimed at capturing the growing market potential driven by the increasing demand for indigenous technologies in the defence sector. To meet this demand, the company is expanding its manufacturing infrastructure by 5 acres in Telangana.
The company intends to manufacture Missiles and its sub-systems and also undertake MRO of the weapons in this facility. The company is also working closely to manufacture Unmanned Aerial Systems and Unmanned Ground Systems through this facility. This manufacturing facility shall be built on around 5 acres of land with a total built-up area of 3,50,000 sq. ft. with end-to-end manufacturing and qualification set-up as per international standards with a total investment of Rs 210 Crores. The company intends to provide additional employment to around 400 people.
The Hon'ble Minister of Telangana inaugurated the IPiDS facility, praising the company's contribution to Indian defence and highlighting Telangana's position as a leading aerospace and defence hub. To further strengthen the glory of the Telangana State, Hon’ble Minister assured that their Government, under the leadership of Chief Minister Sri Revanth Reddy, would continue to encourage the industry by strengthening the MSME’s by bringing new Industrial policy, especially for MSME companies in the State.
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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.
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 2.21 per cent to Rs 127.05 per share from its previous closing of Rs 124.30 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. T
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 3,500 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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