After Rallying 114% YTD, Multibagger Stock Apollo Micro Systems Locked In 10% Upper Circuit Today: Here's Why

Apollo Micro Systems opened today on the BSE at Rs 60.62 apiece and locked in an upper circuit of Rs 65.37 while closing after logging in an intraday gain of 10%. After the firm proposed to build a cutting-edge defence equipment manufacturing plant in Hardware Park, Hyderabad, subject to permission from the company's board of directors, the stock price sharply surged. The company seeks to finish the plant within nine months and will perform Bhumi Pooja for it during the upcoming Dusshera festival. The company stated that around Rs 150 crores would be invested overall in the upcoming projects.

"The proposed new units will add an additional infrastructure of 3,00,000 Sq ft to its existing infrastructure and will house a defence electronics and electro-mechanical manufacturing facility capable of handling bulk production. The new units will include a clean room for product ionization of Inertial Systems, RF Systems and for Space Applications. They will also be equipped with complete Environmental Test Facilities including EMI-EMC facility which will be accredited with NABL Laboratories. This facility will also establish an exclusive Test Facility for testing and calibration of Navigational Systems Like INS, IMU, AHRS and many more," said Apollo Micro Systems in a stock exchange filing.

The company has recently set up Apollo Defence Industries as a completely owned subsidiary. This subsidiary's main goals will be to build strategic relationships and technology alliances with several foreign businesses in order to offer state-of-the-art defence solutions. Multiple Transfer of Technology (ToT) agreements between the company and the Defence Research and Development Organization (DRDO) have also been made.
Mr. Baddam Karunakar Reddy, Founder and Managing Director, Apollo Micro Systems Ltd said, "Company has entered into significant agreements with the Defence Research and Development Organisation. These agreements mark a significant milestone in our ongoing partnership with DRDO and signify our commitment to excellence in technology and innovation in defense-related projects. Company is gradually scaling up to be a Weapon Design, Development and manufacturing company for which the Weapon Integration facilities are being commissioned."
According to Mr. Baddam Karunakar Reddy, the company's managing director, the company is in talks with several foreign companies that want to produce their products under the Make in India initiative and this facility will be used to suit their manufacturing requirements.

A leader in the design, development, and manufacturing of custom-built electronics and electro-mechanical systems, Apollo Micro Systems was founded in 1985. As its primary clients, in the aerospace, defence, and space industries, the company provides solutions based on cutting-edge technology. It also serves the railways, automotive, and homeland security markets. The aerospace systems, ground defence, space, avionics systems, homeland security, and transportation industries are just a few that utilise the company's products. The company employs 300+ people, including 150+ in research and development.

On Wednesday, the shares of Apollo Micro Systems closed on the BSE at 10% upper circuit limit at Rs 65.37 apiece. In the last 1 year, the stock has generated a multibagger return of 244.60% and on a YTD basis, the scrip has rallied 113.77% so far in 2023.