Apollo Microsystems share price continues to rise on Wednesday. The defence stock surged as much as 3 per cent to ₹301.75 apiece on September 3. The scrip opened at ₹294.40 in early morning session, as compared to previous close of ₹292.70.
Apollo Microsystems shares have skyrocketed nearly 23 per cent in five days and 74 per cent in last one month.
“Apollo Micro Systems’ share price has witnessed a significant trendline breakout on the monthly chart, particularly above the ₹230 mark, indicating the potential for a strong upward move. This breakout is visible on the weekly and monthly timeframes, suggesting robust bullish sentiment,” said Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi.
What’s driving the rally?
The surge in the company’s share price follows its recent approval to serve as the production agency for the Multi-Influence Ground Mine (MIGM) – Vighana under DcPP by DRDO. Additionally, it has signed an agreement with DRDO for the Transfer of Technology (TOT) of the Omni-Directional multi-EFP warhead for the NASM-SR Missile.
Apollo Micro Systems specializes in providing cutting-edge technology solutions primarily for the Aerospace, Defence, and Space sectors, while also offering solutions for Railways, Automotive, and Homeland Security markets.
On August 21, the company said in an exchange filing, “We are pleased to inform you that the company has been declared the lowest bidder for orders worth ₹25.12 crore from DRDO and defence PSUs.”
Apollo Microsystems Q1 results 2025
The defence firm posted a 110% year-on-year (YoY) surge in its net profit, reaching ₹176.8 million for the June quarter this year, compared to ₹84.3 million in the same period last year.
“ This performance also translated into robust bottom-line growth. . Our PAT margin expanded by 400 basis points, improving to 13% from 9% year-onyear and quarter-on-quarter,” the company said in an exchange filing.
Meanwhile, revenue recorded a substantial year-on-year (YoY) increase of 46 per cent, rising to ₹1,335.8 million from ₹912.0 million in the same period last year. The company attributed this growth mainly to the smooth execution of its robust order book and the commencement of full-scale production for several high-value systems.
EBITDA surged by 83 per cent to ₹409.4 million, compared to ₹223.7 million in the corresponding quarter of the previous year. The EBITDA margin expanded by 600 basis points to a record 31 per cent, up from 25 per cent in Q1 FY25, highlighting the company’s strong operating leverage and improved execution efficiency.
Should you buy or sell?
Ganesh Dongre of Anand Rathi suggested investors to consider ‘buy on dips’ strategy looking at the overall structure.
“Considering the overall structure, traders may adopt a “buy on dips” strategy, especially around the ₹220 to ₹250 zone, which now acts as a crucial support area and could offer an attractive entry point for medium to long-term gains. So the Investor can hold and buy this stock with a stop loss of ₹210 for the target price of ₹330 to ₹340,” Dongre said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
