Systematix Institutional Equities has initiated coverage on Apollo Micro Systems with a Buy rating and target price of ₹570, indicating a potential upside of around 46% from the brokerage's reference price of ₹390. According to reports from The Economic Times, following the coverage announcement, shares of the defence company climbed 4.4% to ₹406 on the National Stock Exchange (NSE) around 11:37 am on Monday. The stock opened at ₹391 and touched an intraday high of ₹406.50, compared with its previous close of ₹388.90. As per The Hindu BusinessLine, the current market price stands at ₹403.90, with the target price based on 55 times the average of its estimated FY28 and FY29 earnings per share.
As reported by The Economic Times, Apollo Micro Systems shares have gained over 46% on a year-to-date basis, sharply outperforming the benchmark's 2.33% decline on NSE. The stock touched its 52-week high of ₹466.50 on July 3, 2026. Systematix valued the company at 55 times the average of its estimated FY28 and FY29 earnings per share, arriving at the target price of ₹570.
According to the brokerage report, Apollo Micro Systems is present across missile, rocket, torpedo and underwater-mine programmes, with capabilities including guidance and navigation systems, actuators, safety-arming mechanisms, onboard computers and other electromechanical systems. The firm highlighted that the government's focus on transferring defence technology to private companies could allow Apollo Micro Systems to secure larger platform-level orders and move towards becoming a tier-I defence supplier. As per The Hindu BusinessLine, the company is a major production partner in missile systems (across land, air, and water) and a market leader in underwater homing systems for torpedoes and mines. Systematix sees a potential structural opportunity for the company to evolve from a subsystem and electronics supplier into an integrated weapon systems manufacturer.
As reported by The Economic Times, Apollo Micro Systems expects potential orders of around ₹12,000 crore over the next 24 months from mines, torpedoes and missile programmes. The brokerage estimates an opportunity of around ₹7,000 crore from mines and torpedoes, including Multi-Influence Ground Mines, moored mines, limpet mines and several torpedo programmes. Near-term opportunities from QRSAM, Akash-NG and Pinaka alone could be worth around ₹3,000-4,000 crore for the company. The integration of IDL and PEL should provide Apollo Micro Systems with complete platform capabilities in missiles, in line with GoI's objective of missile integration capability development by private companies. The company's significant presence in key programmes like MIGM mines, Pinaka and QRSAM, EHWT & LWT torpedoes provides significant near-term order inflow visibility.
According to the brokerage report, Apollo Micro Systems plans to invest around ₹600 crore in capacity expansion across three phases. The company acquired IDL Explosives for approximately ₹107 crore in November 2025, gaining access to explosives, propellants and warhead materials. Systematix expects the company's revenue to grow at a compound annual rate of 65% between FY26 and FY28, rising from ₹904 crore to ₹2,460 crore. EBITDA is projected to increase from ₹218 crore in FY26 to ₹625 crore in FY28, translating into a CAGR of around 70%.
