Defence stock alert: Shares of Apollo Micro Systems Limited surged around 6% during Tuesday’s intraday trading session, extending gains made over the past few weeks. Strong execution, consistent order inflows and rising contribution in defence systems are likely to boost the company’s strong earnings growth, according to ICICI Direct which sees 25% upside in the stock.
The Hyderabad-headquartered company designs, develops, and sells high-performance, mission and time-critical solutions to aerospace, defence, space, etc.
Given the company’s strong capabilities in developing niche products, it is well placed in terms of capturing upcoming opportunities in existing and new markets, according to the ICICI Direct report.
With its proprietary design capabilities, 700 technological innovations and involvement in 150+ indigenous defence initiatives, ICICI Direct, highlights that Apollo Micro Systems has a distinctive competitive advantage built over 4 decades in defence electronics.
“We believe that company would be able to capitalise on its capabilities to expand its contribution in existing programs and upcoming projects including loitering munitions, UAVs, Directed Energy Weapons, Hypersonic vehicles etc,” stated the brokerage in its report.
Key rationale behind bullish outlook
Apollo Micro Systems’ strong abilities to build niche products, stronghold in the deep technology base and programme participation and expanding order pipeline are the key rationale behind ICICI Direct’s rating for the stock.
Apollo’s order book has improved sharply from ₹735 crore in Q1FY26 to ₹1,704 crore by Q1FY27. Management expects ₹2,500-3,000 crore of additional orders during FY27.
Apollo Micro Systems share price target
The brokerage gave ‘Buy’ rating to Apollo Micro Systems stock with a target price of ₹485 per share for 12 month duration. “We recommend BUY on AMSL with a TP of ₹ 485 (based on 60x P/E to consolidated FY28E EPS & ₹ 67/share to Premier Explosives)”
Apollo Micro Systems share price trend
The stock was trading 5.96% higher at ₹408.9 per share on BSE with a market capitalisation of ₹15,194.70 crore at 11:50 am on BSE on Tuesday. Its share price dipped to an intraday low of ₹389.50 per share and an intraday high of ₹410.50 per share. Its return on equity (ROE) stood at 15.67%.
The stock’s share price value has surged 6.48% in one week, but it has declined around 3% in three months. The defence stock has surged around 106% in six months and around 49% year to date (YTD).
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