Rs 5,00,00,000 investment: This multibagger aerospace & defence company enters into a strategic collaboration with MP3 International!

The stock gave multibagger returns of 356 per cent in just 1 year whereas the BSE small-cap Index is up by 28.7 per cent.

Apollo Micro Systems Limited announced the company has been appointed by MP3 International as its official representative for the Middle East market. This strategic collaboration is established through a Letter of Authorization, paving the way for enhanced market reach and deeper engagement with clients in the region.

About MP3 International: A subsidiary of Grade One Group, a prominent part of the EDGE GROUP, an Abu Dhabi Government-owned entity specializing in defence products in the UAE. Grade One Group specializes in providing military hardware, equipment, pyrotechnics, ammunition, and supplies, to the various military sectors – army, special forces, navy, air force, law enforcement and rescue services. The group also provides sporting and hunting equipment, supplies and accessories.

Apollo Micro Systems Limited, a leading company in the Indian Defence sector for electronic manufacturing, hardware designing, weapon integration, and platform integration proposes to establish new composites manufacturing facility and intends to seek the Board's approval for a substantial investment of Rs 5,00,00,000 to turn this vision into reality.

Apollo Micro Systems Limited is expanding its defence business by setting up a new manufacturing facility in Hyderabad and forming a new subsidiary to focus on international partnerships. The company is also gradually scaling up to be a weapon design, development, and manufacturing company. This expansion is in line with the Indian government's focus on the indigenization of the defence sector.

The management expects revenue to grow by 45 per cent to 50 per cent from FY23 to FY24, owing to a robust order book and expected key projects. The company has bagged multiple orders in the current financial year from the Defence Research and Development Organisation (DRDO).

Furthermore, in the current financial year, the company underwent a stock split, reducing its face value from Rs 10 to Rs 1. The company traded ex-stock split on May 05, 2023.

On Friday, shares of Apollo Micro Systems gained 6.20 per cent to an intraday high of Rs 104.33 per share. At 10:00 am, shares of the company were trading at Rs 97.86 per share, down 0.38 per cent.

The company falls under the BSE Small-Cap Index with a market cap of over Rs 2,265 per cent. The stock gave multibagger returns of 356 per cent in just 1 year whereas the BSE small-cap Index is up by 28.7 per cent. Investors should keep an eye on this aerospace & defence company stock.

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