The shares of Apollo Micro Systems Ltd continued their spectacular upward trajectory on Tuesday, December 23, defying broader market volatility. The stock was locked in a 5% upper circuit for the third consecutive trading session, reaching a price of ₹262 per share.
Defence Tech Approvals Fuel Investor Confidence
This sustained bullish run is directly linked to a series of strategic approvals received by the company, strengthening its position in India's rapidly expanding defence manufacturing sector. Investor sentiment received a significant boost after Apollo Micro Systems announced key clearances for advanced laser-based Directed Energy Weapon (DEW) systems and a crucial manufacturing license for high-energy defence explosives.
On Monday, the company disclosed that it has secured approvals from the Defence Research & Development Organisation (DRDO) for two distinct Transfers of Technology (ToT). These pertain to Laser-Based Directed Energy Weapon (DEW) systems and the EO Tracking System for DEW, subject to the fulfilment of prescribed conditions.
What Are Directed Energy Weapons?
Directed Energy Weapon systems represent a frontier in modern warfare technology. Unlike conventional weapons that rely on kinetic impact, DEWs employ concentrated high-powered lasers to inflict damage by heating, destroying, or disabling targets. The acquisition of these DEW technologies will augment the company's existing development portfolio, especially in light of the evolving threats posed by advanced aerial systems.
This development aligns with Apollo Micro Systems' ongoing work on critical anti-drone systems for the Indian Armed Forces under the 'Make' category. The company is developing a comprehensive suite of solutions, encompassing both soft-kill and hard-kill mechanisms like rocket-based interceptors, designed to neutralize swarm drone threats.
Strategic Expansion into Defence Explosives
In another major strategic move last week, the company's step-down subsidiary, IDL Explosives Limited, was granted a 15-year industrial license for manufacturing high-energy defence explosives. This license, issued under the IDR Act of 1951, marks a significant foray into the specialized domain of defence materials manufacturing, diversifying and deepening the company's defence ecosystem offerings.
Stock Performance: A Stellar Multibagger Journey
The recent approvals have triggered a powerful rebound in the Apollo Micro Systems share price. Over the last four trading sessions, the stock has surged by 17.6%. This adds to an already impressive year-to-date rally of 127%.
The stock enjoyed a sustained bull run between March and September, catapulting to an all-time high of ₹354. It subsequently faced corrective pressure in the following months. Despite the recent recovery, the share price remains approximately 26% below its peak.
However, the long-term performance narrative remains exceptionally strong. The stock has delivered staggering returns of 165% over the past year and an extraordinary 2,060% over the last five years, solidifying its status as a multibagger in the defence space.
Disclaimer: Investors are advised to consult certified financial experts before making any investment decisions.
