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

Apollo Micro Systems share price surged by nearly 30% this week. The defence stock rose close to 10%, reaching a 52-week high during Thursday's trading session. On Wednesday, Apollo Micro Systems announced that it has received an export order worth USD 13.36 million. This order involves the creation of an advanced avionics system designed for civil and military aircraft applications, AMSL stated in a filing. 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.
The company disclosed that it has been awarded an export order amounting to USD 13,366,500 (approximately ₹ 113.81 crore) for developing an avionic system.
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, AMSL provides technology-driven solutions across various sectors such as infrastructure, transportation, aerospace, and defence, among others.
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. In the January-March period of 2023-24, the company had reported a net profit of ₹ 12.9 crore, according to their statement. 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, totaling ₹ 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.
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Apollo Micro Systems share price have seen a spectacular run this week, with a rally of almost 30%. Momentum is on the bullish side but indicators are in overbought zone. Traders can hold on to longs but fresh long at current levels should be avoided, 165 - 170 is a strong support if any dip towards it can be bought on the upside 205 is the immediate resistance.
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.
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.

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