10:1 stock split and 900 per cent multibagger returns in this multibagger aerospace & defence stock: Promoter was allocated 1,65,06,000 shares & FIIs increase stake!

The stock gave multibagger returns of 230 per cent from its 52-week low of Rs 32.05 per share and a whopping 900 per cent in 3 years.

Apollo Micro Systems Ltd issued 1,65,060,000 new equity shares with a face value of Rs 1 each upon conversion of 16,506,000 warrants post-stock split of equity shares. The issue price per share was Rs 186, raising a total of Rs 23,02,58,700. This conversion increased the promoter of the company, Mr Baddam Karunakar Reddy's holding from 53.21 per cent to 55.80 per cent.

Additionally, Apollo Micro Systems Ltd secured a Rs 252.5 crore loan agreement with the State Bank of India (SBI) to fund their upcoming Integrated Plant for Ingenious Defence Systems (IPiDS) project and boost working capital. The loan consists of a new Rs 110 crore term loan repayable over seven years with quarterly instalments, and a renewal and enhancement of existing working capital facilities including an increased cash credit limit, inland bank guarantee limit, and inland letter of credit limit. These working capital facilities are repayable on demand and carry a slightly higher interest rate than the term loan. To secure the loan, the company pledged various assets and obtained personal guarantees from four individuals. This financing comes alongside recent positive developments for Apollo Micro Systems, including a significant new order from Indian Oil Corporation Limited (IOCL) and L1 bidder status for new orders from I.G. Mint and DRDO. 

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Established in 1985, Apollo Micro Systems is at the forefront of creating, constructing, and validating crucial electronics and electro-mechanical solutions for sectors such as aerospace, defence, and space. The company is renowned for its commitment to research and development, resulting in notable projects such as torpedo-homing systems and underwater mines.   

Results: According to Quarterly Results, the net sales increased by 10.9 per cent to Rs 91.34 crore, profit before tax (PBT) increased by 57.3 per cent to Rs 14.37 crore and profit after tax (PAT) increased by 50.9 per cent to Rs 9.96 crore in Q3FY24 compared to Q3FY23 while in its nine-month results, the net sales increased by 23.87 per cent to Rs 235.20 crore, profit before tax (PBT) increased by 47.1 per cent to Rs 25.93 crore and profit after tax (PAT) increased by 57.7 per cent to Rs 18.18 crore in 9MFY24 compared to 9MFY23.

In March 2024 (Q4), FIIs increased their stake to 11.14 per cent compared to 11.01 per cent in December 2024. The company falls under the BSE Small-Cap Index with a market cap of over Rs 3,000 crore. The stock gave multibagger returns of 230 per cent from its 52-week low of Rs 32.05 per share and a whopping 900 per cent in 3 years. Investors should keep an eye on this aerospace & defence stock.

Disclaimer: The article is for informational purposes only and not investment advice.