Stock Market News: Apollo Micro Systems shares today traded higher in-line with the buying in the broader market. The stock traded at Rs 76 and made a high of Rs 79.
Stock Market News: Apollo Micro Systems shares today traded higher in-line with the buying in the broader market. The stock traded at Rs 76 and made a high of Rs 79. The stock’s 52-week high of Rs 80. Choice Equity Broking has given Outperform BUY call on the defence stock and set a target of Rs 103, which is around 37 per cent upside from the current market price.
It initiated the coverage on AMS driven by its participation in most of the indigenous weapon programs, commencement of production of these programs following successful trials, capacity expansion to meet the rising demand from defense, shift in the business model from a solution provider to a development-level solution provider and execution of various ToT agreements from DRDO.
It expects AMS’s Revenue/EBIDTA/PAT to grow at a CAGR of 38%/41%/68% over FY23-26. It has assigned a multiple of 35x on FY26E EPS, considering the high-growth phase and arrive at the target price of Rs 103 with an Outperform rating.
The company was founded in 1985. Initially, it started its journey by offering design services to space (ISRO).The company offers complete platform-level solutions, from the development stage to manufacturing, such as underwater mines.
AMS also provides solutions for the railways, automotive, and homeland security markets. It is also recognised as a Collaborative R&D Partner by Bharat Electronics Limited. AMS offers Build to Specifications, Build to Print, and New Product Introduction Services.
The company has also missiles dedicated product portfolio. It has has participated in 55-60 programs, catering to Missiles, Naval Torpedoes and Underwater Mines.
With strong order execution visibility and capacity expansion, management expects to increase revenue to grow by 35-40% over FY24-25.
The company is looking to increase its facility size from the current 55,000 square feet to 3.3 lakh square feet over the next 12 months, with a capex of Rs. 150 crore.