Shares of Apollo Micro Systems jumped 9 percent to Rs 61 on the BSE on October 3 after the defence component maker proposed to set up a manufacturing facility in Hardware Park in Hyderabad, subject to its board’s approval. The S&P BSE Sensex was down 417 points or 0.6 percent to 65,411 levels, as of 10:05am.
In the past six months, the stock of this smallcap company has soared 110 percent, as against 11 percent surge in the benchmark Sensex. It had scaled to a 52-week high of Rs 63 on August 8.
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In an exchange filing on October 2, the company said that it intends to perform Bhumi Pooja for the plant during upcoming Dusshera and plans to complete it within nine months. It has estimated the total investment in the upcoming ventures at Rs 150 crore.
“The proposed new units will add an additional infrastructure of 3 lakh square feet to its existing infrastructure and will house a defence electronics and electro-mechanical manufacturing facility capable of handling bulk production. The new units will include a clean room for product ionization of Inertial Systems, RF Systems and for Space Applications,” the company added.
The company has also incorporated a wholly owned subsidiary, Apollo Defence Industries, which will focus on forming alliances and technological partnerships with various international companies to provide defence solutions.
Apollo Micro Systems deals in design, development, and assembly of custom-built electronics and electro-mechanical solutions. The company also offers solutions based on state-of-the-art technologies for aerospace, defense and space as primary customers and also caters solutions for railways, automotive and home-land security markets.
In the June-ended quarter of FY24 (Q1FY24), the company’s net profit had jumped 11 percent year-on-year (YoY) to Rs 1.8 crore, while revenue from operations surged to Rs 58.06 crore from Rs 56.41 crore, in the year-ago period.
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