Apollo Micro Systems share price continued to attract bulls during Tuesday’s trading session, December 23, even as the broader market remained volatile, as it was locked in another 5% upper circuit limit, reaching ₹262, marking its third straight day at the maximum limit.
Investor sentiment towards Apollo Micro Systems share price strengthened after the company secured key approvals, including laser-based Directed Energy Weapon (DEW) systems and a manufacturing license for high-energy defence explosives, as it aims to strengthen its presence in the country’s fast-growing defence production ecosystem.
The company, on Monday, announced that it has received approvals from the Defence Research & Development Organisation (DRDO) for two distinct Transfers of Technology (ToT) relating to Laser-Based Directed Energy Weapon (DEW) systems and the EO Tracking System for DEW, subject to the fulfilment of prescribed conditions.
Directed energy weapon systems use high-powered lasers to inflict damage on targets. Compared to traditional weapons, which mainly rely on physical impact and kinetic energy, DEWs use directed energy to heat up, destroy, or damage the target.
The Directed Energy Weapon (DEW) technologies received through these Transfers of Technology will serve as an additional capability, complementing the company’s ongoing development efforts, particularly in view of the rapidly evolving threat landscape posed by aerial systems.
The company is currently developing critical anti-drone systems under the ‘Make’ category for the Indian Armed Forces, wherein both soft-kill and hard-kill solutions, including rocket-based interceptors, are being developed to counter swarm drone threats.
Last week, the company’s step-down subsidiary IDL Explosives Limited was granted a 15-year industrial license for manufacturing high-energy defence explosives. The license, issued under the IDR Act, 1951, represents a significant strategic expansion into specialized defence materials manufacturing.
Apollo Micro Systems share price rebounds from recent correction
Over the last four trading sessions, including today, Apollo Micro Systems share price has advanced 17.6%, contributing to a 127% rally year-to-date. After maintaining a steady winning run between March and September, which propelled the stock to a record high of ₹354, it came under selling pressure in the subsequent months.
Despite the recent rebound, the Apollo Micro Systems share price is still down by 26% from the peak. Although the stock’s short-term trend appears weak, its long-term performance remains solid, as it continues to trade 165% higher over the past year and 2,060% higher over the last five years.
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