Multibagger Defence Stock Wins Drone System Order Deal By Indian Army; Do You Own?

Apollo Micro Systems (AMS), a small-cap firm in the aerospace and defence industry, is In focus after the Indian Army gave the company a Make II project and selected it based on capacity. On Friday, the shares of Apollo Micro Systems closed at Rs 104.60 apiece level.

"This project is for the procurement of a Vehicle Mounted Counter Swarm Drone System (VMCSDS) (Version I) under the Make II category of DAP-2020. This project is very prestigious and first Make II project for the Company. The company is happy to share that the systems developed out of it are 'state of the art' and highly futuristic in nature," said Apollo Micro Systems in a regulatory filing.

85 weeks for single-stage composite trials and staff evaluation is the time period by which the order(s)/contract(s) is to be executed and as a Make II project, there will be no cost obligation involved, according to the company.

In the previous month, the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on 04th June 2024 granted trading approval for 1,65,06,000 equity shares of Re. 1/- each, issued and allotted on a preferential issue basis to the promoters.

The Securities Allotment Committee of the Board of Directors of the company on June 3, 2024, considered and approved the allotment of 76,24,700 equity shares of Re. 1/- each, upon conversion/exchange of/for such number of warrants. The committee received an amount totalling Rs. 10,63,64,565 as the warrant exercise price.

Commenting on the growth outlook of the company in FY25, the management said, "Revenue is expected to grow by 25% in FY25 led by growth opportunities in Defence and key interest of Indian Government to enhance Defence production and capability of domestic market. EBITDA margins are expected to be in the corridor of 22%-24% led by increasing in scale of operations. The company is anticipating a healthy growth in the order book from recent orders released to various Defence PSUs and Private Defence Companies. The Company's subsidiary Apollo Defence Industries Private Limited informed that it is in discussion with few companies for acquiring partial or full stake."

Since its founding in 1985, Apollo Micro Systems Limited (AMS) has grown to become one of India's top companies for electrical, electromechanical, and engineering designs, manufacture, and supply. For missions and time-sensitive operations, AMS specialises in the design, development, and marketing of high-performance systems. Numerous industries, including aerospace systems, ground defence, space, avionics systems, homeland security, and transportation, employ the company's products. The manufacturing plant of AMS is situated in Hyderabad and occupies a built-up area of 55,000 square feet. It employs over 300 individuals, including more than 150 in research and development. Prominent government organisations including the Indian Navy, DPSUs, and DRDO, as well as private companies like Adani, L&T, Solar Industries, and many more, make up the company's clientele.