Apollo Micro Systems shares surge 15% following Rs 25 cr order wins from DRDO, other defence PSUs

Synopsis

Apollo Micro Systems shares saw a significant rise. The company secured orders worth Rs 25.12 crores from DRDO and Defence PSUs. This news boosted investor confidence. The defence sector is gaining prominence. Government support and indigenous manufacturing are key factors. Defence stocks are attracting attention. The Indian Air Force will acquire 97 LCA Tejas Mark 1A fighter jets.

Apollo Micro Systems’ shares rallied 15.4% to reach a new 52-week high of Rs 236.45 on the BSE this past Friday. The surge in the stock price follows an announcement that the company has been declared the lowest bidder for orders worth Rs 25.12 crores from DRDO (Defence Research and Development Organisation) and other Defence PSUs (Public Sector Undertakings).

“We are pleased to inform you that the Company, in the ordinary course of its business, has been declared the Lowest Bidder for orders worth Rs. 25.12 crores from DRDO & Defence PSU’s,” the company said in an exchange filing.

This development comes at a time when the defence sector is increasingly in focus, with significant backing from both the government and the private sector. The deal highlights the growing importance of indigenous defence manufacturing and the role of companies like Apollo Micro Systems in strengthening India’s self-reliance in defence technology.

In recent years, defence stocks have seen significant attention, bolstered by an increasing emphasis on self-reliance in defence production and the strategic importance of indigenous capabilities.

A notable example is the recent approval for the Indian Air Force to acquire 97 LCA Tejas Mark 1A fighter jets, valued at Rs 62,000 crore.

Such large-scale procurements are part of a broader push by the Indian government to strengthen its defence capabilities while promoting domestic manufacturing. The Tejas programme, in particular, serves as a symbol of India’s growing capabilities in aircraft production, with Prime Minister Narendra Modi himself taking part in a sortie in the fighter jet.

Over the past year, the price has increased by 116.65%. Year-to-date, there's been a rise of 90.34%. In the last six months, the price has surged by 98.23%, while in the past three months, it has grown by 52.44%. Over the last month, the price has gone up by 24.95%.

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