Apollo Micro Systems Sees 7% Rally Following Order Book Update
Apollo Micro Systems Shares Surge Over 7% Following Fresh Order Wins
Apollo Micro Systems, a leading defence stock, has seen its shares surge more than 7% on Friday, 8 May, following the announcement of fresh order wins worth ₹51.02 crore in the ordinary course of business. The company's filing reveals that the orders include contracts worth ₹17.47 crore from the Ministry of Defence, ₹9.52 crore from public sector defence undertakings, and ₹24.01 crore from private companies.
The order inflow has boosted investor sentiment, with the market reacting positively to the company's continued traction in the defence and aerospace segment. Last month, the firm announced that it had obtained a governmental permit to produce and conduct proof-testing for defence weapon systems. Furthermore, the company has been granted a license to manufacture ammunition by the Government of India, through the Ministry of Commerce and Industry and the Department for Promotion of Industry and Internal Trade (DPIIT).
This lifetime license permits Apollo Micro Systems to manufacture, assemble, integrate, and proof-test high-value strategic weapon systems and munitions. The license encompasses weaponry with a calibre exceeding 12.7 mm, including missiles, anti-tank guided missiles (ATGMs), torpedoes, underwater mines, aerial bombs, rockets, and loitering munitions.
| Order Source | Order Value (₹) |
|---|---|
| Ministry of Defence | 17.47 crore |
| Public sector defence undertakings | 9.52 crore |
| Private companies | 24.01 crore |
| Total Order Value | 51.02 crore |
The surge in the company's share price has been accompanied by a strong higher-top, higher-bottom formation, indicating a sustained uptrend. According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, the stock continues to exhibit this formation, with prices rising more than 5% during the session. Bhosale expects the ongoing bullish trend to continue, with the stock potentially moving towards ₹360, which marks its previous all-time high. On the downside, he identified ₹320 as the stock's immediate support zone.
Apollo Micro Systems' share price opened at ₹314.30 per share on the BSE, touching an intraday high of ₹337.40 per share and an intraday low of ₹313.10 per share.
Investor Takeaway
Investors should be optimistic about Apollo Micro Systems' continued traction in the defence and aerospace segment.
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