Multibagger Apollo Micro Systems Shares Hit Life High As Defence Indigenisation Spurs Growth

Apollo Micro Systems Ltd. shares have doubled this year as India's push to modernise and indeginise its defence systems has spurred order wins and provided a robust growth outlook. The stock hit an all-time high on Monday.

The Hyderabad-based company anticipates revenue to grow at a CAGR of 45–50% over the next two years, excluding the incremental contribution from the recently-acquired IDL Explosives, according to an annual report released last week.

The management projects continued improvement in operating margins and a reduction in working capital cycle by 100–120 days from fiscal 2027, as a larger share of the order book transitions into serial production mode.

"Apollo Micro Systems aims to reinforce its R&D foundation to drive innovation and develop cutting-edge technologies in defence and strategic electronics. The Company’s strategy is focused on moving up the value chain to become a global Original Equipment Manufacturer (OEM), delivering complete, high-reliability solutions," the company said.

The company was recently declared the lowest bidder for orders worth Rs 25.12 crore from DRDO and Defence PSUs.

Apollo Micro Systems share price hit an all-time high of Rs 245.45, rising 4.4% during the early session on Monday. The benchmark Nifty 50 was up 0.3%.

The total traded volume so far in the day stood at 2.9 times its 30-day average. The relative strength index was at 80, indicating the stock is overbought.

The stock has risen 127% in the last 12 months and 106% on a year-to-date basis.