Multibagger Defence Stock Jump After Signing MoU with Garden Reach Shipbuilders & Engineers Ltd
The stock gave multibagger returns of 820 per cent in just 3 years and a whopping 1,660 per cent in 5 years.
On Thursday, shares of Apollo Micro Systems Ltd gained 7.25 per cent to an intraday high of Rs 131.10 per share from its previous closing of Rs 124.10 per share. The stock’s 52-week high is Rs 157 per share and its 52-week low is Rs 88.10 per share.
Garden Reach Shipbuilders & Engineers Limited (GRSE) and Apollo Micro Systems Limited (AMS) have signed a five-year Memorandum of Understanding (MoU) to collaborate on the joint research, development, co-production, and export of advanced weapons and electronic systems. This partnership focuses on underwater weapons and vehicles, underwater mines and communication systems, and air defence systems and vehicles, targeting both defence and non-defence industries. The agreement, signed on January 29, 2025, aims to supply these advanced systems and modernize existing ones.
The collaboration will leverage and enhance the manufacturing infrastructure of both GRSE and AMS to produce critical components and sub-assemblies. Beyond development and production, the partnership will also offer services for the modernization and upgrade of existing systems, ensuring they remain technologically advanced. This strategic alliance seeks to address the increasing demands of the Defence, Aerospace, and Commercial markets, both within India and internationally.
This MoU demonstrates the commitment of GRSE and AMS to bolstering indigenous capabilities and contributing to national security through innovation in advanced technologies. Both organizations emphasized their dedication to driving technological excellence and promoting India's self-reliance in critical sectors. They reaffirmed their commitment to developing new products and technologies for the Indian Defence sector and expressed their shared intention to jointly target global markets.
DSIJ’s 'multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
Earlier, the company was declared as the Lowest Bidder (L1) for orders worth Rs 7.37 crore from the Defence Research and Development Organisation (DRDO) and also received an order worth Rs 6.14 crore from the Defence Research and Development Organisation (DRDO). In December 2024, FIIs bought 16,62,374 shares and increased their stake to 0.74 per cent compared to 0.19 per cent in September 2024.
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 85 per cent to Rs 161.30 crore and profit after tax (PAT) increased by 140 per cent to Rs 15.73 crore in Q2FY25 compared to Q2FY24 while in its half-yearly results, the net sales increased by 74 per cent to Rs 253.09 crore and profit after tax (PAT) increased by 194 per cent to Rs 24.16 crore in H1FY25 compared to H1FY24. 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 820 per cent in just 3 years and a whopping 1,660 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.