Apollo Micro Systems has been hogging the spotlight at Dalal Street as the defence and aerospace player remained at the radar of investors. Shares of Apollo Micro Systems have delivered multibagger returns in less than a year, the data suggests.
Apollo Micro Systems has jumped 220 per cent from its 52-week low at Rs 109.35 in March 2022. The scrip tested its 52-week high of Rs 349.35 on Monday, January 16, 2023. The stock was trading at 335.80 on Tuesday, rising 3 per cent, compared to its previous close at Rs 325.80.
Shares of Apollo Micro System have delivered a return of 150 per cent in the last six months, whereas the stock has gained about 50 per cent in the last three months. Even in the last one month, the counter had jumped 25 per cent to reward the investors.
Analysts suggest that defence stocks are likely to continue to gain momentum ahead of the Union Budget 2023, which will be tabled by the Finance Minister on February 1, 2023. The government has been focusing on increasing manufacturing and procurement from the domestic players.
"Defence sector, as every year before the budget has a wishlist out of which the important one is outlay for emphasis on indigenization, which means emphasis on local production, " said Ashwin Patil, Senior Research Analyst at LKP Securities.
"The Government definitely does a lot for the sector every year, also on the R&D side where they plan to spend a substantial amount. Therefore, even this year we expect them to announce a significant budget for space and research, electronic equipment and advancement on further localization," he added.
Apollo Micro System has also been on the radar of various fund houses. Recently, Quant Mutual Funds picked up 5,52,774 equity shares or 2.66 per cent stake in the company.
After placing swing high of at Rs 350 levels recently, the stock price witnessed sharp correction. Technically, however, the stock is still showing underlying strength in most of the momentum indicators and oscillators on a daily basis, said Ravi Singh, VP and Head of Research at ShareIndia Securities.
"The stock is still trading above its 200 MA showing inherent strength in the counter. However, the current selling pressure may push the stock towards 300 levels from which fresh value buying may trigger from a long-term perspective," he said.
Apollo Micro System's board of directors is scheduled to meet on Saturday, January 21, 2023 to consider and approve the proposal for the sub-division or split of the company's equity shares, as determined by the company board, it said in a regulatory filing earlier this month.
Incorporated in 1997, Apollo Micro Systems is engaged in the business of electronic, electro-mechanical, engineering designs, manufacturing and supply. The company made its Dalal Street debut in January 2018, when the company raised Rs 156 crore by selling its shares for Rs 275 per piece. The stock has risen 25 per cent from its issue price so far.
Apollo Micro Systems' stock hit a record high of Rs 480 on listing day, January 22, 2018, thanks to robust bidding for the issue, which was subscribed a whopping 248.5 times. However, the counter is currently 27 per cent below its all-time high.
The Hyderabad based company designs, develops and sells high-performance, mission and time critical solutions to defense, space and homeland security for the Ministry of Defense, government controlled public sector undertakings and private sectors.
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