Defence Stock of the Day: Apollo Micro Systems – Today, Apollo Micro Systems has captured the attention of investors with its impressive performance in the stock market. After opening at ₹101.81, the shares surged to an intraday high of ₹104.31 on the NSE, marking a notable increase of over 3% from the previous close of ₹101.11. Despite a temporary dip due to profit-booking activities, the underlying strength of the stock remains robust.
Strong Fundamentals Aid Growth
Market analysts highlight that Apollo Micro Systems is well-positioned for long-term growth, supported by solid fundamentals and strategic capital expansion plans. The company’s management has offered optimistic guidance, projecting a revenue growth of 50% and a 25% increase in the order book over the next two to three years. Following the recent order from Bharat Electronics Limited (BEL), experts recommend employing a ‘buy-on-dips’ strategy with an eye on short to mid-term price targets set around ₹150 per share.
What Drives Apollo Micro Systems’ Share Price?
According to Seema Srivastava, Senior Equity Research Analyst at SMC Global Securities, the rise in Apollo Micro Systems’ share price is driven by several key factors. The company has been awarded a significant contract from BEL, and its management has projected a growth in the order book from ₹2,000 crore to ₹2,500 crore in the coming years, alongside plans to invest ₹1,000 crore in capital expenditures. Furthermore, the Defence Research and Development Organisation (DRDO) has shortlisted Apollo for upcoming aerospace projects, adding to its growth prospects.
Price Targets for Apollo Micro Systems
Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, provides insight into the stock’s price potential. Currently trading between ₹85 and ₹110, he notes that a close above ₹110 could see the stock reach ₹125 soon. If it breaches the ₹128 to ₹130 levels decisively, Apollo Micro Systems may target ₹150 in the medium term. Investors are encouraged to hold their positions while setting a stop loss at ₹85 and to consider accumulating on any significant dips.
Investment Strategies for New Investors
For fresh investors contemplating entry into Apollo Micro Systems, Ganesh Dongre suggests purchasing the stock within the ₹90 to ₹95 range, or above ₹110. Should the stock fail to surpass the ₹110 barrier, buying around ₹90 to ₹95 remains a sound strategy, with a stop loss set at ₹85. If the stock successfully closes above ₹110, buying above this price point while maintaining a stop loss at ₹100 is recommended. Once the stock breaks past ₹130, investors eyeing the ₹150 target can adjust their stop loss to ₹120 for further risk management.
Recent Developments at Apollo Micro Systems
Apollo Micro Systems recently announced secure contracts valued at ₹28.74 crores from Bharat Electronics Limited (BEL) and CNA (OF) Pune, Indian Navy. This news has further solidified investor confidence and highlights the company’s competitive edge in the defence sector.
Disclaimer: The opinions and recommendations provided in this article are those of individual analysts and do not reflect the views of the publication. Investors should consult certified financial experts before making any investment decisions.
