Apollo Micro Systems Ltd. (AMSL) shares surged 14.34% intraday to a 52-week high of INR 76.45 on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Wednesday. The company, known as a Dalal Street multi-bagger, started the day at INR 66.86/share and saw over 21.85 lakh shares traded, closing at INR 72.40/share, indicating an upside gap of 8.58%.
The Hyderabad-based defense firm's stock has been on the rise, driven by its technological solutions in sectors like infrastructure, transportation, and aerospace. AMSL has been a fruitful investment with returns of 218.58% last year and a staggering 576.33% over the past three years. According to InvestingPro Tips, AMSL has shown a significant return over the last week and has been profitable over the last 12 months, which aligns with the upward trend observed in the market.
On Wednesday, AMSL also announced plans for a INR 150 crore defense equipment manufacturing facility in Telangana. Spanning 3 lakh sq ft, this initiative is part of the company's expansion into the defense sector. Its subsidiary, Apollo Defence Industries Private Ltd., is set to foster international technological partnerships for advanced defense solutions.
The company's collaboration with the Defence Research and Development Organisation (DRDO) has led to numerous Transfer of Technology (ToT) agreements. This partnership has further bolstered AMSL's position in the defense sector.
The escalating Israel-Hamas conflict has sparked global interest in defense stocks including AMSL and Mazagon Dock Shipbuilders Ltd., a Mumbai-based shipyard manufacturing warships, submarines, and support vessels for offshore oil drilling.
The new defense equipment manufacturing plant will be located in Hardware Park, Hyderabad, demonstrating AMSL's commitment to investing in future initiatives. However, investors should consider that AMSL operates with a moderate level of debt and its total debt has increased for consecutive years, as pointed out by InvestingPro Tips. For more insights like these, investors can check out InvestingPro, which offers 13 additional tips for AMSL.
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