Shares of Apollo Micro Systems soared today, reaching a 5 percent upper circuit at Rs 109.76 per share as of July 15. This significant increase is attributable to the company securing a pivotal order from the Indian Army for the procurement of a vehicle mounted counter swarm drone system (VMCSDS) under the Make-II category of DAP-2020. Despite this upward movement, the company’s stock has experienced a slight decline of over 3 percent this year, in contrast to the 13 percent increase in the benchmark Nifty 50 index.
Securing the Defense Contract
Apollo Micro Systems has been recognized for its capability and awarded a Make-II project by the Indian Army. This project, involving no cost obligation, marks a prestigious milestone as the company’s first under the Make-II initiative. The company has committed to delivering the order within 85 weeks, which includes single stage composite trials and staff evaluation.
Financial Performance and Stability
Earlier this year, Apollo Micro Systems achieved a 52-week high of Rs 161 per share on November 20, 2023. Despite the overall decline in the stock this year, the company has reported robust financial growth. In the March-ended quarter, revenues surged by 26.7 percent year-over-year, while profits saw an impressive increase of 79.3 percent. Operating income also grew by 38 percent year-over-year in Q4FY24. Additionally, the company’s stability is further underscored by Acuite Rate and Research’s recent reaffirmation of its bank loan ratings as ‘stable.’
Company Overview and Specializations
Apollo Micro Systems specializes in the design, development, and manufacturing of mission-critical electronic systems and subsystems for a variety of sectors including aerospace, defense, space, and homeland security. The company offers an extensive array of products such as high-performance embedded computing systems, ruggedized computers, electronic systems for missile applications, and avionics systems.
With its recent contract win and strong financial performance, Apollo Micro Systems continues to solidify its position in the defense and aerospace sectors, promising further growth and innovation in its field.
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