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Defence Stock Rockets 6% on Strong Order Inflows
22 Sep
Summary
- Apollo Micro Systems shares surged 6% on Tuesday.
- ICICI Direct predicts a 25% upside with a target of ₹485.
- Order book grew from ₹735 crore to ₹1,704 crore.
Apollo Micro Systems Limited saw its shares jump approximately 6% in intraday trading on Tuesday, continuing a positive trend from recent weeks. This surge is attributed to robust execution and a steady stream of incoming orders, bolstered by the company's increasing contributions to defence systems.
ICICI Direct has issued a 'Buy' rating for Apollo Micro Systems, projecting a 25% upside and a 12-month target price of ₹485 per share. The brokerage highlights the company's strong capabilities in developing niche, mission-critical solutions for the aerospace and defence sectors, supported by proprietary designs and involvement in numerous indigenous defence initiatives.
The company's financial health is further underscored by a significant expansion of its order book, which grew from ₹735 crore in Q1 FY26 to ₹1,704 crore by Q1 FY27. Management anticipates an additional ₹2,500-3,000 crore in orders during FY27, indicating strong future revenue potential.
As of Tuesday, Apollo Micro Systems was trading at ₹408.9 per share on the BSE, with a market capitalization of ₹15,194.70 crore. The stock has shown considerable growth over the past six months, surging approximately 106%, and around 49% year-to-date.
