1,650% Returns: Multibagger Defence Stock Jump After Entering Into a Consortium Agreement with Redon Systems Pvt Ltd
The stock gave multibagger returns of 835 per cent in just 3 years and a whopping 1,650 per cent in 5 years.
On Thursday, shares of Apollo Micro Systems Ltd gained 3.67 per cent to Rs 132.90 per share from its previous closing of Rs 128.20 per share. The stock’s 52-week high is Rs 157 per share and its 52-week low is Rs 88.10 per share.
Apollo Micro Systems Limited (AMS) has partnered with Redon Systems Pvt Ltd. to jointly manufacture systems for Loitering Munition and allied systems. This collaboration aims to leverage the combined manufacturing capabilities of both companies for the procurement of Containerized Automatic Landing Module systems. Redon Systems, specializing in the design and manufacturing of Loitering Munition, has successfully demonstrated its products to the Indian Armed Forces. This consortium agreement will enable both companies to contribute their expertise and resources towards the joint production of these advanced systems.
Earlier, AMS and Garden Reach Shipbuilders & Engineers Limited (GRSE) partnered in a 5-year MoU to jointly develop, produce, and export advanced weapon and electronic systems, focusing on underwater and air defence technologies for both defence and commercial sectors. This collaboration will leverage the manufacturing infrastructure of both companies and in addition to developing new systems, they will also offer modernisation services. AMS has also secured orders worth Rs 7.37 crore and Rs 6.14 crore from the Defence Research and Development Organisation (DRDO) and in December 2024, FIIs increased their stake in AMS to 0.74 per cent from 0.19 per cent in September 2024.
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About the Company
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. =
According to Quarterly Results, net sales increased by 62.5 per cent to Rs 148.39 crore and profit after tax (PAT) increased by 83.1 per cent to Rs 18.24 crore in Q3FY25 compared to Q3FY24 while in its nine-month results, the net sales increased by 69.5 per cent to Rs 400.30 crore and profit after tax (PAT) increased by 133.2 per cent to Rs 42.40 crore in 9MFY25 compared to 9MFY24. In its annual results, the net sales increased by 24.91 per cent to Rs 371.63 crore and profit after tax (PAT) increased by 66.01 per cent to Rs 31.11 crore in FY24 compared to FY23.
The company falls under the BSE Small-Cap Index with a market cap of over Rs 4,000 crore. The stock gave multibagger returns of 835 per cent in just 3 years and a whopping 1,650 per cent in 5 years. Investors should keep an eye on this aerospace & defence stock.
Disclaimer: The article is for informational purposes only and not investment advice.