Apollo Micro extends rally, zooms 42% in August; time to book profit?

The average trading volumes on the counter jumped nearly four-fold with a combined 48.46 million equity shares representing 14.52% of total equity of Apollo Micro changed hands on the NSE and BSE.

Apollo Micro Systems share price today

 

Shares of Apollo Micro Systems hit a new high of ₹247.20, surging 5 per cent on the BSE in Monday’s intra-day trade, extending its Friday’s rally backed by heavy volumes. 

 

In the past two trading days, the stock price of the smallcap aerospace & defence company has soared 21 per cent after the company was declared the Lowest (L1) Bidder for orders worth ₹25.12 crore from the Defence Research and Development Organisation (DRDO) & Defence Public Sector Undertakings (PSU’s).

 

Thus far in the month of August, Apollo Micro Systems has outperformed the market by zooming 42 per cent. Thus far in the calendar year 2025, the stock price of the company has more-than-doubled or skyrocketed 102 per cent, as compared to 4 per cent rise in the BSE Sensex.

 

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At 01:35 PM; Apollo Micro Systems was trading 4 per cent higher at ₹243.80, as compared to 0.51 per cent gain in the BSE Sensex. The average trading volumes at the counter jumped nearly four-fold. A combined 48.46 million equity shares representing 14.52 per cent of total equity of Apollo Micro Systems changed hands on the NSE and BSE.  FOLLOW STOCK MARKET LIVE UPDATES TODAY 

Defence sector/ company outlook

 

The recent geopolitical developments, particularly the escalation of tensions between India and Pakistan, have further accelerated the demand for indigenous, mission-critical defence solutions. Several of the company’s systems were successfully tested and demonstrated during this period, attracting significant interest from key stakeholders across India's defence value chain, the management said. Apollo Micro Systems unexecuted order book position stands at ₹735 crore. 

 

Moving forward, Apollo Micro Systems in its financial year 2024-25 (FY25) annual report said that the company aims to reinforce its R&D foundation to drive innovation and develop cutting-edge technologies in defence and strategic electronics. The company’s strategy is focused on moving up the value chain to become a global Original Equipment Manufacturer (OEM), delivering complete, high-reliability solutions. The company aims to expand its presence in the Indian market by leveraging indigenous capabilities and aligning with national defence initiatives. Simultaneously, it seeks to grow its footprint in international markets by offering advanced, export-ready systems. 

 

Meanwhile, with increased pressure from the US, NATO countries are set to commit to an enhanced military budget moving forward. As Europe prepares for reduced American military involvement in the continent, the ReArm Europe plan, presented in March 2025, proposes to leverage €800 billion through national fiscal flexibility. European Investment Bank will further support defence spending and a new €150 billion loan fund called SAFE will be set up to help countries purchase military equipment.  ALSO READ | JM Financial initiates coverage on ITC Hotels, sees 12% downside: Check why 

India is the fourth-largest spender of military resources in the world and possesses the second-largest active military force in the world. The nation has made a significant achievement in recent years in curbing its dependence on foreign suppliers from 65 per cent-70 per cent to reaching 65 per cent indigenous manufacturing capacity.

 

Moving forward, the defence budget has been targeted by the government at ₹6.81 trillion for the financial year 2025-26 (FY26) with a view to further strengthening the country's military strength. Of this, 27 per cent is targeted for capital expenditure. Defence production is likely to increase from ₹1.46 trillion in FY25 to ₹3 trillion by 2029, reflecting an estimated compound annual growth rate of 20 per cent and firmly establishing India as a global leader in defence manufacturing.  However, currently Apollo Micro Systems is trading above Choice Equity Broking firm’s target price of ₹240 per share. The brokerage firm has ‘buy’ rating on the stock, backed by its strategic shift from a component supplier to a full-fledged system integrator. The company’s expanding role across key defence programs, robust order pipeline and visible margin trajectory reinforce the brokerage firm’s conviction in its long-term growth story.