Apollo Micro Systems shares, which have remained strong in recent weeks and broken above multi-month highs, extended their winning run after the company reported better-than-expected performance for the March quarter.
The stock ended Tuesday’s session nearly 10% higher at ₹340 apiece after gaining 6% in the previous session, taking its cumulative two-day gain to 16% and significantly outperforming the broader market.
The company’s net profit surged to ₹36.79 crore from ₹13.96 crore, marking a robust 163.5% year-on-year jump. Consolidated revenue from operations rose to ₹293.26 crore from ₹161.77 crore in the corresponding quarter last year, registering a strong growth of 81.3% YoY.
For the full financial year FY26, the defence company reported consolidated revenue from operations of ₹904.32 crore, compared to ₹562.07 crore in FY25, reflecting a strong annual growth of 60.9%.
Apart from the earnings, the company’s shares have also remained in focus amid multiple positive developments, helping the stock recover a large portion of its earlier losses.
While the stock has rallied sharply following the results, domestic brokerage firm Choice Institutional Equities expects the momentum to continue. The brokerage said the company’s March quarter performance came ahead of its estimates and continued to reflect steady execution.
Backed by the company’s strategic transition from a component supplier to a full-fledged system integrator, the brokerage maintained its positive stance on the stock.
“We gleaned from the management commentary that the broader strategy remains on track, with a gradual shift towards system-level and backward integration. We believe this should support margins in the medium term as the company gains better control over its value chain,” the brokerage said.
The brokerage added that the company’s expanding role, robust order pipeline, and improving margin trajectory reinforce its conviction in the long-term growth story.
Accordingly, it revised its FY27E and FY28E EPS estimates upward by 27.5% and 19.5%, respectively, and now expects revenue, EBITDA, and PAT to expand at a CAGR of 52.9%, 52.9%, and 54.6%, respectively, over FY27–FY29E.
The brokerage cut its rating on the stock to ‘Add’ from the earlier ‘Buy’ amid recent run-up in shares but expects the stock to reach the ₹365 level.
Apollo Micro Systems shares recover 87% in under 2 months
The company’s shares resumed their winning run in April, surging sharply by 63%, which ended a three-month losing streak. So far in the current month, the stock has advanced another 15%, taking the cumulative gain to 87%.
The stock had come under severe selling pressure after hitting a fresh all-time high of ₹354.70 apiece, with the correction persisting until March and eroding nearly 44% of its value.
Nevertheless, the stock recouped most of those losses in April alone, highlighting its strong rebound capability from lower levels.
Although the stock’s short-term trend remains volatile, its long-term performance continues to stay robust, with the shares still trading 940% higher over the past three years and 3,111% higher over the last five years.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
