Apollo Micro surges 10% on inking multiple agreements with DRDO

The company also announced that it recently was declared as the lowest bidder in multiple projects from the DRDO and another government sector company.

Live stock market trading action

SI Reporter Mumbai

Listen to This Article

Shares of Apollo Micro Systems (AMS) surged 10 per cent to Rs 59.15 on the BSE in Monday’s intra-day trade on the back of heavy volumes after the company said it has entered into significant agreements with the Defence Research and Development Organisation (DRDO). 

The stock of the company engaged in aerospace & defense business is quoting close to its 52-week high of Rs 63.58 touched on August 8, 2023. The average trading volumes at the counter jumped over four-fold. A combined 4.8 million equity shares representing 2.3 per cent of total equity of AMS had changed hands on the NSE and BSE so far. In comparison, the S&P BSE Sensex was down 0.28 per cent at 65,826 at 11:12 AM.

In an exchange filing, Apollo Micro said these agreements includes, Transfer of Technology (ToT) agreement for Guidance and Navigation Technology, ToT agreement for Weaponisation of Hand-Held Thermal Imager with LRF (WHHTI), agreement for Rotary Electro Mechanical Actuator and ToT agreement for Unified Avionics Computer. CLICK HERE FOR MORE DETAILS

Meanwhile, in another exchange filing, AMS said it recently was declared as the Lowest Bidder in multiple projects from the DRDO and another government sector company. These projects hold a cumulative value of Rs 28.15 crore. This significant development occurred within the past week, and the company said it is eagerly anticipating the release of the corresponding orders in the near future.

AMS is an electronic, electromechanical and engineering design, manufacturing and supplies company. It designs, develops, and sells high performance, mission and time critical solutions to Aerospace, Defence, Space & Homeland Security for the Ministry of Defence, government controlled public sector undertakings, and the private sector.

Acuite believes that AMS will continue to maintain a ’stable’ outlook over the medium term from its promoters' extensive industry experience, and its strong research and development capabilities and healthy financial risk profile.

The outlook may be revised to 'Positive' in case of higher- than expected revenue growth while maintaining profitability and capital structure, or sustained improvement in the working capital cycle. Conversely, the outlook may be revised to 'Negative' in case of a steep decline in profitability margin, or significant weakening in capital structure caused by large, debt-funded capital expenditure or stretched working capital cycle, the rating agency said in rationale.

First Published: Sep 25 2023 | 11:47 AM IST

Explore News