Apollo Micro Systems share price surges 30% this week. Should you buy, sell or hold this multibagger defence stock?

Multibagger defence stock: Apollo Micro Systems stock rallied nearly 10% on Thursday, May 29, reaching its 52-week high. With this, the multibagger defence stock has risen 30% in a week.

Apollo Micro Systems share price today opened at ₹183.95 apiece on the BSE. The stock touched an intraday high of 193.55 per share and an intraday low of ₹182.40 apiece.

On Wednesday, Apollo Micro Systems announced that it has received an export order worth $13.36 million. This order involves the creation of an advanced avionics system designed for civil and military aircraft applications, the company stated in a filing.

However, due to the sensitive nature of the project, specific technical and program information is restricted by a Non-Disclosure Agreement (NDA) with the client, it noted.

Based in Hyderabad, Apollo Micro Systems provides technology-driven solutions across various sectors such as infrastructure, transportation, aerospace, and defence, among others.

Apollo Micro Systems Q4 Results

Apollo Micro Systems reported a consolidated net profit of ₹14 crore for the March quarter, marking an 8% increase compared to the previous year, propelled by enhanced operational revenues. For the January-March period of 2023-24, the company had reported a net profit of ₹12.9 crore. 

The operational revenues of the company grew by 19% to ₹161.7 crore, up from ₹135.4 crore in Q4 FY24.

Managing Director Baddam Karunakar stated that FY25 has been a pivotal year for the company, showcasing its best performance ever. The firm reached a significant milestone in revenue, totalling ₹562.07 crore, which reflects an impressive year-on-year growth of 51.24%.

Karunakar mentioned that EBITDA reached ₹132 crore, representing a 54% increase year-over-year, with a solid EBITDA margin of 23.50%. This achievement is attributed to a strong order book, effective execution of strategic defence programmes, and the smooth transition of several high-value products into production, he noted.

Should you buy, sell or hold?

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Apollo Micro Systems share price has seen a spectacular run this week, with a rally of almost 30%.  

“Momentum is on the bullish side, but indicators are in the overbought zone. Traders can hold on to longs, but fresh longs at current levels should be avoided. 165-170 is a strong support; any dip towards it can be bought on the upside; 205 is the immediate resistance,” Bhosale said.

Anshul Jain, Head of Research at Lakshmishree Investments, explained that Apollo Micro Systems' share price broke out of an 85-day-long cup and handle pattern at ₹155 and swiftly hit its initial target of ₹182. 

“The multibagger defence stock is now extended from its 50-day EMA, making a mean reversion towards ₹170 likely. If the pullback unfolds with low volumes and compressed candles—indicating ideal quality—then the stock may resume its upward trajectory. In that case, bulls could eye the next leg of the rally towards ₹220,” Jain added.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.