Defence Stock Apollo Micro Systems Shortlisted By DRDO For PRACHAND Order

Apollo Micro Systems Ltd (AMSL), a key player in the aerospace and defence sectors, has been selected by the Armament Research and Development Establishment (ARDE), under the Defence Research and Development Organisation (DRDO), for the production of PRACHAND munition hardware. The announcement, made on Wednesday, September 18, led to a notable surge in the company's share price, which jumped 5.2% to an intraday high of Rs 112.40 per share from its previous closing of Rs 106.85. This surge in volume saw a 1.71 times increase in trading on the Bombay Stock Exchange (BSE). The stock's 52-week range sits between Rs 53.5 and Rs 161.70.

PRACHAND is a state-of-the-art anti-tank munition with full-width attack capability, a crucial asset for the Indian Armed Forces. The selection by DRDO for the Transfer of Technology (ToT) positions Apollo Micro Systems to play a vital role in manufacturing and supplying PRACHAND hardware to the military. "We are pleased to inform that the company has been shortlisted for the transfer of technology related to the production of PRACHAND Munition Hardware. We see significant market potential for this product, and our company is ready to undertake large-scale production," the company said in a filing to the stock exchange.

In addition to this DRDO project, Apollo Micro Systems continues to strengthen its order book with new contracts. The company recently secured an order worth Rs 5.72 crore from Reliable Technosystems India Pvt Ltd for the supply of electronic modules, further bolstering its business pipeline. Earlier this month, AMSL won several major orders, including a Rs 4.70 crore contract from Economic Explosives Ltd and ARDE-DRDO. Moreover, Apollo was declared the L1 (lowest) bidder for a Rs 72.26 crore GNC Kit project from Munitions India Ltd. The company also landed a Rs 10.90 crore order from Bharat Dynamics Limited to deliver innovative homing systems for heavyweight torpedoes, developed in collaboration with DRDO.

Another notable contract secured by Apollo Micro Systems includes a Rs 5.73 crore deal to develop rocket-guided bombs for anti-submarine warfare. This project marks the company's expansion into the complete development and manufacturing of advanced weapons systems, showcasing its growing expertise in the field.

The company's recent financial performance underscores its upward momentum. In Q1FY25, Apollo Micro Systems saw its total income rise by 58% to Rs 91.80 crore compared to Q1FY24. Profit after tax (PAT) surged by a remarkable 410% to Rs 8.43 crore during the same period. The annual results for FY24 also demonstrate strong growth, with net sales increasing by 24.91% to Rs 371.63 crore, and PAT climbing 66.01% to Rs 31.11 crore compared to the previous fiscal year. To reward shareholders, the Board of Directors has declared a final dividend of Rs 0.025 per share, with the record date set for September 20, 2024.

Founded in 1985, Apollo Micro Systems is a leader in designing and manufacturing high-end electronics and electro-mechanical solutions for the aerospace, defence, and space industries. The company's focus on innovation and R&D has led to the successful development of critical technologies, including torpedo-homing systems and underwater mines.