Aerospace & defence company bags order worth Rs 10.90 crore from Bharat Dynamics & Lowest bidder for order worth Rs 5.73 crore from Controllerate of Naval Armanent

Kiran Shroff
Aerospace & defence company bags order worth Rs 10.90 crore from Bharat Dynamics & Lowest bidder for order worth Rs 5.73 crore from Controllerate of Naval Armanent

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 52.05 per share and a whopping 1,320 per cent in 5 years.

Today, shares of Apollo Micro Systems Ltd jumped 2.62 per cent to Rs 107.70 per share from its previous closing of Rs 104.95 per share. The stock’s 52-week high is Rs 161.70 per share and its 52-week low is Rs 52.05 per share. 

Order Received from Bharat Dynamics Limited

The company has secured a significant order worth Rs 10.90 crore from Bharat Dynamics Limited is responsible for developing and producing state-of-the-art Software-defined Universal homing systems for heavy-weight torpedoes. This innovative technology, developed in collaboration with DRDO, marks a major breakthrough in underwater warfare capabilities. As the sole qualified vendor for this critical component, the company is proud to contribute to the Strategic Submarine Programme(s). The order signifies the commencement of production by Bharat Dynamics Limited, who have been designated as the official production agency for the entire torpedo.

Beyond the Heavy Weight Torpedoes, the company has successfully adapted its Homing System technology for Light Weight Torpedoes in partnership with Bharat Dynamics Limited. This cutting-edge technology is designed to address complex underwater threats and will be among the world's leading lightweight heating systems. The company's expertise in underwater warfare extends to other critical components such as Signal Processing for Expendable Decoys and Underwater Mines. These products have undergone rigorous testing and are being integrated into the Indian Navy's arsenal. The current project solidifies the company's position as a leading player in the underwater warfare sector, leveraging its three decades of experience in Homing Systems development.

Lowest Bidder Status (L1) from Controllerate of Naval Armanent (OF)

The company has been awarded a significant contract, valued at Rs 5.73 Crore, to develop a Rocket Guided Bomb for Anti-Submarine Warfare. This project, commissioned by the Controllerate of Naval Armament (OF), represents a major milestone for our organization as it marks our entry into the complete development and manufacturing of Rocket Guided Bombs. This capability opens the door for the development of similar weapon systems for air, land and sea applications.

The company has a strong history of delivering innovative underwater warfare solutions. We have already established a reputation for our Expendable Decoys, which are currently in production and serving the Indian Navy. Additionally, our Underwater Mines have successfully undergone technical trials and are poised to enter user trials shortly. This new project further solidifies our position as a leading player in the Underwater Warfare Systems domain. Our extensive experience in developing systems for various weapons, coupled with our commitment to Atmanirbhar Bharat, empowers us to tackle the complex task of developing a complete weapon system. With the necessary building blocks in place, we are well-prepared to design and configure this Rocket Guided Bomb, contributing significantly to the capabilities of the Indian Armed Forces.

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About Apollo Micro Systems Ltd.

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, total income increased by 58 per cent to Rs 91.80 crore and profit after tax (PAT) increased by 410 per cent to Rs 8.43 crore in Q1FY25 compared to Q1FY24 while 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's Board of Directors announced a final dividend of Rs 0.025 per share; for the same, the Board fixed the record date as Friday, September 20, 2024.

The company falls under the BSE Small-Cap Index with a market cap of Rs 3,298 crore. The promoters of the company bought 1,86,66,000 shares and increased their stake to 55.12 per cent in June 2024 compared to 53.21 per cent in March 2024. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 52.05 per share and a whopping 1,320 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. 

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