Defense stock jumps 9% after management expects ₹1500 Cr orders by March 2025

Defense stock jumps 9% after management expects ₹1500 Cr orders by March 2025


In a promising development, India’s leading defence and aerospace company is poised for unprecedented growth, with potential mega-projects on the horizon. According to Director A Krishna Sai Kumar, these upcoming contracts could match the company’s combined revenue from the past three years, with individual orders potentially exceeding Rs 1,500 crore.

Share Price Movement 

The share price of Apollo Micro Systems Limited reached an intraday high of 9.1 percent to Rs. 117.50 per share on Tuesday, an increase from its previous close of Rs. 107.7 per share. The market capitalisation now stands at approximately Rs. 3,556 crore as of December 31, 2024.

Share Price Surge: Why?

Apollo Micro Systems Ltd. company director has given guidance that the company is poised to achieve 100% revenue growth in FY26, driven by significant “big-ticket” projects expected in the next few months. The company currently holds an order book valued at Rs 550-570 crore and anticipates future projects potentially exceeding Rs 1,000 crore, with some reaching up to Rs 1,500 crore.

Apollo is involved in missile programs with DRDO, contributing to 60% of the technologies for these initiatives. These projects, entering the production phase soon, are expected to drive consistent revenue growth of 45–50% over the next few years.

Executive Commenty 

Some very big-ticket projects are also expected in the next three to four months in our company, which is, to the tune of something like our revenues of the last three years put together and much more than that in a single order—Rs 1,000 crore and above, Rs 1,500 crore and above.” by Director A Krishna Sai Kumar

Financial Highlights

According to its recent filing, in the quarter ending September 2024, Apollo Micro Systems’s consolidated revenue from operations has increased by 85 percent YOY from Rs. 87 crore in Q2 FY24 to Rs. 161 crore in Q2 FY25 and increased by 76.9 percent QoQ from Rs. 91 crore in Q4 FY24. 

The company’s consolidated net profit has increased by 128.5 percent, from Rs. 7 crore in Q2 FY24 to Rs. 16 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has increased by 77.7 percent QoQ from Rs. 9 crore.

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Market Outlook 

The global aerospace and defence industry rebounded strongly in 2023, achieving record revenue of $829 billion. Global defence spending surged by 18.5% to $2,012 billion, driven by heightened geopolitical tensions and evolving security challenges. Investments in advanced technologies like AI, hypersonic defence, and autonomous systems are reshaping the sector.

Key growth areas include airborne platforms, naval vessels, and army modernization. With nations prioritising defence readiness and modernisation, the industry is set for sustained growth, reflecting strategic responses to global instability.

Shareholding Pattern

As of the September 2024 shareholding pattern, Apollo Micro Systems Limited is primarily held by the promoters at 55.12 percent, foreign institutional investors hold 0.19 percent, and the public with 43.82 percent.

About Company 

Apollo Micro Systems Limited (AMS), established in 1985 and headquartered in Hyderabad, is a prominent leader in India’s defence and aerospace sectors. Transitioning from a private entity in 1997 to a public company in 2017, AMS specialises in designing and assembling rugged electronic hardware and software for mission-critical applications, contributing significantly to India’s defence and aerospace capabilities.

The company serves diverse sectors including defence, aerospace, railways, and homeland security, providing cutting-edge aerospace systems like integrated avionics and PCM encoders, as well as rugged military electronics and engineering services such as PCB fabrication and embedded software design. Key clients include DRDO, ISRO, and leading firms like TATA and L&T. Notable milestones include delivering indigenous systems to ISRO in 2000 and raising ₹156 crore through an IPO in 2018. With a robust portfolio and a visionary management team, AMS continues to strengthen its market presence and drive growth in defence electronics through innovation and precision.

Written By Fazal Ul Vahab C H

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.


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