The shares of Apollo Micro Systems have been witnessing a spectacular bull run on the Indian stock market, emerging as one of the top performers in a holiday-shortened week. Investor sentiment towards this small-cap defence player has improved dramatically following a series of positive developments, including significant new order wins.
A Stellar Rally on the Bourses
Maintaining its upward momentum for the sixth consecutive trading session, the Apollo Micro Systems share price climbed another 4.5% on Friday, December 26, to touch ₹275 per share. This surge has resulted in a cumulative gain of 23% over the six-day period. For the entire week, the stock registered a 14% increase, marking its most substantial weekly jump since the beginning of September.
This rally comes as a major relief for investors. The stock had been under significant pressure from early September to mid-December, losing about 26% of its value during that phase. The recent sharp recovery has helped the stock reclaim most of those losses, demonstrating its potential for swift rebounds.
Catalysts Behind the Surge: Orders and DRDO Tech
The primary driver for the renewed investor confidence is a fresh order announcement. The company disclosed in a press release that it has secured orders worth ₹1,002.47 million (approximately ₹100.25 crore) from a private entity. These orders are for the supply of unmanned aerial systems and are destined for the Ministry of Defence, with a completion timeline of four months.
In another strategically crucial development this week, Apollo Micro Systems received approvals from the Defence Research & Development Organisation (DRDO) for two distinct Transfers of Technology (ToT). These pertain to advanced Laser-Based Directed Energy Weapon (DEW) systems and an EO Tracking System for DEWs, subject to standard conditions.
Directed Energy Weapons represent a frontier in modern warfare, using concentrated high-powered lasers to damage targets by heating, unlike traditional kinetic weapons. The acquisition of these DEW technologies will augment the company's in-house development capabilities, especially relevant in the context of evolving threats from aerial systems like drones.
Expanding Defence Manufacturing Footprint
The company is actively involved in developing critical anti-drone systems for the Indian Armed Forces under the 'Make' category. Its projects encompass both soft-kill and hard-kill solutions, including rocket-based interceptors designed to neutralize swarm drone attacks.
Further solidifying its position in the defence sector, Apollo Micro Systems' step-down subsidiary, IDL Explosives Limited, was recently granted a 15-year industrial licence for manufacturing high-energy defence explosives. This licence, issued under the IDR Act, 1951, signifies a major strategic foray into specialised defence materials manufacturing.
A Multibagger Performance Track Record
The ongoing six-day rally has propelled Apollo Micro Systems' year-to-date gain for 2025 to an impressive 135%, continuing its streak of positive annual returns for the sixth consecutive year.
The stock has proven to be an extraordinary wealth creator. It has delivered a staggering 1,000% return over the last three years and an even more remarkable 2,180% gain over the past five years. This performance underscores the significant wealth-generation potential inherent in equity markets when investors identify and back the right companies with strong growth drivers, particularly in niche sectors like defence manufacturing.
Disclaimer: Investors are advised to consult certified financial experts before making any investment decisions.
