Multibagger defence stock Apollo Micro Systems jumped 5% on Wednesday, December 31, following orders worth ₹420 crore, including one from Maharatna PSU Coal India‘s subsidiary.
The company said its subsidiary IDL Explosives bagged an order worth ₹419.39 crore for the supply of bulk explosives to Coal India’s subsidiaries, along with an export order of ₹1.5 crore for the supply of cartridge explosives.
Apollo Micro Systems earlier today, in an exchange filing, said, “M/s. IDL Explosives Limited, a step-down subsidiary of the Company in the ordinary course of its business, has been granted a Running Contract (RC) for the supply of bulk explosives to Subsidiaries of Coal India Limited, amounting to INR 4193.96 Million and an export order value of INR 15 Million for the supply of cartridge explosives. The cumulative value of orders received amounts to INR 4208.96 Million.”
Last week, the company, on December 26, also announced an order win of ₹100.25 crore from a private company, deliverable to the Ministry of Defence, for the supply of Unmanned Aerial Systems.
These orders further strengthen the company’s already robust project pipeline, which stood at ₹7,850 crore at the end of the September quarter. A strong order book enhances revenue visibility and provides greater stability in earnings over the coming quarters, thus increasing investor interest in the stock.
During the second quarter, its revenue recorded a robust 40% YoY rise to ₹2,253 crore while its profit jumped 91% to ₹300 crore.
Apollo Microsystems share price trend
Following the latest order win, Apollo Micro Systems’ share price rallied nearly 5% to hit the day’s high of ₹272.50 apiece on the BSE, and also snapped its two-day losing streak.
However, prior to that, the multibagger defence stock was in an uptrend for six straight sessions, likely prompting investors to book profits.
So far this year, Apollo Micro Systems shares have been on a tear amid a robust rally in the defence pack. The multibagger small-cap defence stock has jumped 124% on a year-to-date (YTD) basis, while it is up 134% in a year, as per data from BSE.
Over five years, Apollo Micro Systems returns are even more impressive with a solid 2079% rise.
Disclaimer: This story is for educational purposes only. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
