In the competitive landscape of the defense electronics market, Apollo Micro Systems Ltd is making waves with its remarkable stock performance and significant order wins. Recently, the stock reached an intraday high of ₹101.05, reflecting a robust gain of 9.7% after dipping to ₹92.15. This stability is commendable, especially when considering its 52-week high of ₹161.70 and a low of ₹65.28. The stock has shown an impressive 55% bounce back from its 52-week low and a staggering 1400% return over the last five years. Currently, Apollo Micro Systems boasts a market capitalization of ₹3,065 crores and is listed on the BSE Small Cap index.
Institutional Support and Investor Confidence
The company has recently caught the attention of institutional investors. In September 2024, Domestic Institutional Investors (DIIs) blocked approximately 2,666,460 shares, equating to about 0.87% of the company. This move has significantly bolstered foreign institutional investors’ confidence in Apollo Micro Systems, highlighting the growing trust in its business potential.
Upcoming Corporate Events
As the company continues to gain traction, it is gearing up for a Board of Directors meeting scheduled for January 25, 2025. During this meeting, the board will discuss the Q2 and half-year results for FY25, providing insights into the company’s financial health and future direction.
Robust Order Book and Market Position
Apollo Micro Systems has been busy securing substantial contracts that enhance its standing in the defense electronics sector. Recent notable orders include:
- ₹28.74 crores from Bharat Electronics Limited.
- An order from ARDE, DRDO for manufacturing PRACHAND Munition Hardware.
- Contracts totaling ₹5.72 crores from Reliable Technosystems India.
- ₹4.70 crores from Economic Explosives Limited and ARDE-DRDO.
- ₹72.26 crores from Munitions India Limited.
- A contract for the development of Rocket Guided Bombs for Anti-Submarine Warfare valued at ₹5.73 crores.
These contracts underscore Apollo Micro Systems’ increasing capabilities and market presence, positioning it as a key player in the defense and aerospace electronics domain.
Financial Performance Highlights
The financial performance of Apollo Micro Systems is equally impressive. In its Q1 FY25 results, the company reported:
- A 58% increase in total income, reaching ₹91.80 crores.
- An astounding 410% growth in profit after tax (PAT), totaling ₹8.43 crores compared to Q1 FY24.
For the FY24 annual results, the company achieved:
- A 24.91% increase in net sales, amounting to ₹371.63 crores.
- A 66.01% increase in PAT, standing at ₹31.11 crores.
This consistent growth reflects the company’s strategic focus on expanding its capabilities and market reach.
With a legacy dating back to 1985, Apollo Micro Systems Ltd has established itself as a professional entity specializing in designing, developing, and testing high-end electronics and electromechanical systems for the aerospace, defense, and space sectors. The company’s focus on R&D has led to the development of sophisticated products such as torpedo homing devices and underwater mines, solidifying its reputation as a significant player in the defense electronics market.
As Apollo Micro Systems continues to secure large orders and demonstrate strong financial growth, it stands out as a promising investment opportunity for those looking to enter the defense electronics sector. With institutional backing and a strong order book, the future looks bright for Apollo Micro Systems as it navigates the evolving landscape of defense technology.
Stay tuned for more updates on this dynamic company and its journey in the defense electronics market!
Disclaimer
The information provided in this blog is for informational purposes only and should not be considered as financial or investment advice. All opinions expressed are based on publicly available data and personal insights at the time of writing. Investing in stocks involves risks, and past performance is not indicative of future results. Readers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. The author does not hold any positions in the mentioned securities.
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