Apollo Micro Systems, one of the multibagger counters of Dalal Street, has seen initiation by the domestic brokerage firm Choice Broking. AMS provides EDD services in the areas of weapons and EW, and is poised to grow at a healthy rate in the coming years, said the brokerage firm. "The government's push for the 'Make in India' initiative, supported by various policy implementations, the defense sector, particularly the defense electronics sector, will witness a high-growth cycle over the next 5-6 years. In missile technology, India has very low dependency on foreign parts and we expect AMS to benefit from local manufacturing initiatives," said Choice. Hyderabad-based Apollo Micro Systems was founded in 1985 and it started its journey by offering design services to space (ISRO). It expanded into the design and development of systems and subsystems for electronic hardware and software for DRDO, DPSUs, and others. AMS has transformed itself from a service provider. Apollo Micro Systems' shares surged more than 10 per cent to Rs 84.13 on Tuesday, hitting its new 52-week high. The company was commanding a total market capitalization of close to Rs 2,000 crore. The scrip had settled at Rs 76.28 in the previous trading session on Monday. Shares of Apollo Micro Systems have delivered a return of more than 300 per cent in the last one year, while the stock has rallied 175 per cent in the year 2023 so far. The stock is up 150 per cent in the last six months, while it has gained over 40 per cent in the previous month. The company offers complete platform-level solutions, from the development stage to manufacturing, such as underwater mines, railways, automotive, and homeland security markets. The company's wide spectrum of technological solutions and end-to-end design, assembly, and testing capabilities give it a competitive edge. "We initiate coverage on AMS driven by its participation in most of the indigenous weapon programs, commencement of production, capacity expansion to meet the rising demand from defense, shift in the business model from a solution provider to a development level solution provider, and execution of various ToT agreements from DRDO," added Choice Broking IC report. Choice expects AMS's Revenue, EBITDA and PAT to grow at a CAGR of 38 per cent, 41 per cent and 68 per cent, respectively over FY23-26. "We assign a multiple of 35x on FY26E EPS, considering the high-growth phase, and arrive at the target price of Rs 103 with an 'Outperform' rating," it said.