Apollo Micro Systems Limited shares surged 6% during Tuesday's intraday trading session, extending gains made over the past few weeks. According to reports from Mint, the stock was trading 5.96% higher at ₹408.9 per share on BSE with a market capitalisation of ₹15,194.70 crore at 11:50 am on Tuesday. The defence stock has demonstrated remarkable performance with a 106% surge in six months and 49% year-to-date growth. However, the stock has declined around 3% in three months, showing some volatility in the short term. During Tuesday's session, the stock's share price value dipped to an intraday low of ₹389.50 per share and reached an intraday high of ₹410.50 per share, reflecting the typical trading range for the stock.
Apollo Micro Systems' order book has shown significant improvement, rising sharply from ₹735 crore in Q1FY26 to ₹1,704 crore by Q1FY27. As reported by Mint, management expects ₹2,500-3,000 crore of additional orders during FY27. The company's strong execution capabilities, consistent order inflows, and rising contribution in defence systems are likely to boost earnings growth, according to ICICI Direct. The brokerage notes that strong execution, consistent order inflows and rising contribution in defence systems are likely to boost the company's earnings growth, with the stock's return on equity (ROE) standing at 15.67%.
According to the ICICI Direct report, Apollo Micro Systems has a distinctive competitive advantage built over 4 decades in defence electronics with 700 technological innovations and involvement in 150+ indigenous defence initiatives. The Hyderabad-headquartered company designs, develops, and sells high-performance, mission and time-critical solutions to aerospace, defence, space sectors. The brokerage highlights that the company's proprietary design capabilities, 700 technological innovations and involvement in 150+ indigenous defence initiatives position it well to capture upcoming opportunities in existing and new markets. The company is well positioned to capture upcoming opportunities in existing and new markets due to its strong capabilities in developing niche products.
ICICI Direct has given a 'Buy' rating to Apollo Micro Systems stock with a target price of ₹485 per share for 12 month duration. As reported by Mint, the brokerage stated that it recommends BUY on AMSL with a TP of ₹485 (based on 60x P/E to consolidated FY28E EPS & ₹67/share to Premier Explosives). The key rationale behind the bullish outlook includes the company's strong abilities to build niche products, deep technology base, programme participation, and expanding order pipeline. The brokerage believes that the company would be able to capitalise on its capabilities to expand its contribution in existing programs and upcoming projects including loitering munitions, UAVs, Directed Energy Weapons, and Hypersonic vehicles.
The stock's return on equity (ROE) stood at 15.67%. According to Mint, the stock's share price value has surged 6.48% in one week, but it has declined around 3% in three months. The company's strong abilities to build niche products, deep technology base, and programme participation are expected to help it expand its contribution in existing programs and upcoming projects including loitering munitions, UAVs, Directed Energy Weapons, and Hypersonic vehicles. The stock's performance reflects the broader defence sector rally driven by strong order inflows and earnings growth prospects.
