Apollo Micro Systems Shares Soar 12% to ₹155: What You Need to Know About This Hot Defense Stock!
Defence Sector Stock Surge: Apollo Micro Systems Gains Attention
The stocks of Apollo Micro Systems, a company listed on the BSE Smallcap Index under the defence sector, have been making headlines. The company’s shares surged up to 12%, reaching an intraday high of ₹155.65 today, climbing from a previous close of ₹138.80. The sharp rise in share prices can be attributed to the financial results from March and a key board meeting scheduled for May 28, which is set to discuss a proposed dividend for shareholders.
Board Meeting and Dividend Proposal
The board meeting on May 28 will focus on the recommendation of a final dividend for the financial year 2024-25. With investors keen to gain insights into the company’s financial health and payout plans, this meeting has sparked considerable interest among stakeholders.
March Quarter Financials: A Robust Performance
Apollo Micro Systems reported an 8% year-on-year growth in consolidated Profit After Tax (PAT) for the March quarter, rising to ₹13.9 crore from ₹12.9 crore in the same period last year. Additionally, the company’s revenue exhibited a 19% increase, climbing to ₹161.7 crore from ₹135.4 crore. The highlights of the financial report include:
- EBITDA for the quarter stood at ₹35.9 crore, a 25% increase compared to ₹28.7 crore in the same quarter last year.
- The EBITDA margin improved by 500 basis points to 22%.
- The profit margin for the quarter was recorded at 9%.
For the entire financial year 2025, Apollo Micro Systems reported a staggering 81% increase in PAT, reaching ₹56.3 crore compared to ₹31.1 crore the previous year. The company achieved revenues of ₹561 crore for the fiscal year, up 51% from ₹371.6 crore in FY 2024.
Stock Performance and Historical Returns
The stock performance of Apollo Micro Systems has been impressive over the past year, yielding a positive return of around 40%. The returns over longer periods are striking as well:
- 2-Year Return: 309%
- 3-Year Return: 1066%
- 5-Year Return: 1584%
Currently, the stock’s 52-week range has fluctuated between ₹88.10 and ₹157, demonstrating a strong upward trajectory. Based in Hyderabad, Apollo Micro Systems specializes in electronic, electromechanical, and engineering design, manufacturing, and supplies, catering to sectors including infrastructure, transport, and railways.
Market Sentiment: A Rush for Defence Stocks
The uptick in Apollo Micro Systems’ stocks is not an isolated event; it comes amidst a broader surge in defence sector stocks as investors seek opportunities in this burgeoning field. With government initiatives to bolster defense capabilities, companies like Apollo Micro Systems are well-positioned to benefit. The strategic importance of the Indian defence sector cannot be overstated, as investment in technological advancements leads to increased demand for innovative solutions.
As June approaches, investors are following Apollo Micro Systems closely. The anticipated board meeting could provide additional clarity on future dividends—a significant driver of stock prices and investor confidence. It will be important to monitor how these developments will impact market sentiment and the overall valuation of the company in the coming days.
Conclusion: A Stock to Watch
Given the robust financial performance and strategic positioning of Apollo Micro Systems in the defence sector, the company’s stock presents a compelling case for investors. As expectations rise surrounding potential dividends and continued growth, now may be an opportune time to keep an eye on this stock. With the potential for both short-term gains and long-term value, Apollo Micro Systems is proving to be a key player in the dynamic landscape of defence investments.
