Apollo Micro Gains 5%

Apollo Micro Systems' stock has been on a roll for the third straight session, hitting another 5% upper circuit limit at ₹249.80 apiece. This surge comes after the company received key technology approvals from the Defence Research & Development Organisation (DRDO), boosting its defence capabilities and long-term growth prospects.

What's Behind the Surge?

The company has secured two distinct Transfers of Technology (ToT) from DRDO, relating to Laser-Based Directed Energy Weapon (DEW) systems and the EO Tracking System for DEW. These ToTs will strengthen the company's capabilities in directed energy weapon subsystems and are aligned with India's defence indigenisation and Atmanirbhar Bharat initiatives.

Directed Energy Weapon Systems

Directed energy weapon systems use high-powered lasers to inflict damage on targets. Compared to traditional weapons, which mainly rely on physical impact and kinetic energy, DEWs use directed energy to heat up, destroy, or damage the target.

Company's Comments

Karunakar Reddy, Managing Director, commented, "The Directed Energy Weapon (DEW) technologies received through these Transfers of Technology will serve as an additional capability, complementing our ongoing development efforts, particularly in view of the rapidly evolving threat landscape posed by aerial systems."

Other Developments

The company is currently developing critical anti-drone systems under the ‘Make’ category for the Indian Armed Forces. Additionally, its step-down subsidiary IDL Explosives Limited has been granted a 15-year Industrial License for manufacturing high-energy defence explosives.

Stock Performance

Apollo Micro Systems' share price has delivered over 160% return in one year, despite losing 30% of its value amid weak sentiment over mid- and small-cap stocks. The stock's long-term performance still looks solid, trading 165% higher over the past one year and 2,060% higher over the last five-year period.

Investor Alert: Remember, this is perspective, not prediction. Do your own research before making any investment decisions.