2,000 Per Cent Returns: Multibagger Defence Stock Acquires 100 Per Cent Stake in IDL Explosives for Rs 107 Crore to Boost Defence Manufacturing

2,000 Per Cent Returns: Multibagger Defence Stock Acquires 100 Per Cent Stake in IDL Explosives for Rs 107 Crore to Boost Defence Manufacturing

DSIJ Intelligence-2

The stock gave multibagger returns of 700 per cent in just 3 years and a whopping 2,000 per cent in 5 years.

Apollo Micro Systems Limited has taken a strategic leap in strengthening its defence manufacturing capabilities with the acquisition of IDL Explosives Limited. The company, through its wholly owned subsidiary Apollo Defence Industries Private Limited, has entered into a Share Purchase Agreement to acquire 100 per cent equity stake in IDL Explosives for Rs 107 crore. This move is expected to significantly enhance Apollo’s manufacturing footprint in defence-grade industrial explosives.

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The acquisition involves the purchase of 78,65,000 equity shares at a price of Rs 136.04 per share. It aligns with Apollo’s broader vision to become a Tier-I OEM Weapon Systems Supplier, offering end-to-end solutions—from system design to complete weapon integration. IDL Explosives, a subsidiary of GOCL Corporation Limited, reported a turnover of Rs 623 crore in FY 2023–24, indicating strong revenue potential that Apollo aims to tap into. The transaction, expected to close in the next 2 to 3 months, is not a related-party transaction and has no promoter group involvement.

As of May 02, 2025, Apollo Micro Systems Ltd stock trades at Rs 116.4, reflecting an 8.43 per cent return over the past one year and a remarkable 785.84 per cent return over the past three years—signaling multibagger potential in the Small-Cap space. The stock hit a 52-week high of Rs 144.25 and a low of Rs 91.2. With a market capitalization of Rs 3,591 crore and a Price-to-Earnings (PE) ratio of 64.89, the company demonstrates both growth potential and investor interest.

Apollo Micro Systems is known for its specialized work in electronic and electromechanical systems catering to the defence and aerospace sectors. With a strong innovation pipeline and recent expansion through acquisition, the company is poised to play a pivotal role in India’s defence manufacturing ecosystem.

This strategic acquisition underlines the company’s ambition to scale and diversify its operations, strengthening its case for long-term investors tracking opportunities in small-cap defence manufacturing stocks.

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

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