Small-Cap Defence Stock Apollo Micro Systems Soars After Securing Big BEL Order – Experts Predict More Growth

Apollo Micro Systems, a small-cap defence stock, saw its shares rise sharply in early trading on Thursday. The stock opened higher at ₹101.81 on the NSE and hit an intraday peak of ₹104.31, marking over a 3% gain. However, the stock retraced slightly due to profit-booking.

Experts believe the stock is strong because of the company’s significant capital expenditure (Capex) plans and expected growth in both revenue and its order book. Recently, the stock gained after securing a new order from Bharat Electronics Limited (BEL). Experts suggest a “buy-on-dips” strategy, with a short-to-mid-term target of ₹150 per share.

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Why Apollo Micro Systems Shares Are Rising

Seema Srivastava, Senior Equity Research Analyst at SMC Global Securities, explained that Apollo Micro Systems’ recent rise is due to the company winning an order from BEL. The company’s management has provided strong guidance, forecasting 50% revenue growth and 25% order book growth over the next 2-3 years. They expect the order book to grow from ₹2,000 crore to ₹2,500 crore and have plans to invest ₹1,000 crore in Capex. Additionally, the DRDO has shortlisted Apollo Micro Systems for the aerospace segment.

Apollo Micro Systems Share Target

Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, suggests that if the stock breaks above ₹110, it could reach ₹125 soon. A break above ₹130 could push it to ₹150 in the medium term. He advises current shareholders to hold the stock with a stop loss at ₹85 and accumulate more on dips.

For new investors, Dongre recommends buying in the ₹90-₹95 range or after the stock closes above ₹110, with a stop loss at ₹100. If the stock breaks the ₹130 level, shareholders aiming for ₹150 should move their stop loss to ₹120.

Apollo Micro Systems’ Latest News

Apollo Micro Systems recently announced that it won a ₹28.74 crore order from Bharat Electronics Limited (BEL) and the Indian Navy. The company was declared the Lowest Bidder (L1) for the order, which is proprietary to BEL.