Multibagger defence inventory edges nearer to file excessive after Q3 outcomes 2025. Purchase or promote?

Multibagger defence inventory: Shares of Apollo Micro Methods surged 7.4% in intraday commerce on February 5, reaching ₹138 per share, as buyers reacted positively to the corporate’s December quarter efficiency, which was launched post-market hours on Tuesday. At the moment’s rise has introduced the inventory close to to its all-time excessive of ₹157 apiece.

The corporate reported a 62.5% leap in income to ₹148 crore in Q3 FY25, in comparison with ₹91 crore in Q3 FY24. This progress was pushed by the profitable execution of its order e-book, reflecting sturdy demand and operational effectivity.

EBITDA additionally confirmed sturdy progress, rising 58.1% year-on-year (YoY) to ₹37 crore in Q3 FY25. Nevertheless, the EBITDA margin remained secure, with a minor 70 foundation level decline, settling at 25.6% in comparison with Q3 FY24.

Web revenue surged 83.1% to ₹18 crore, in comparison with ₹9.9 crore in Q3 FY24, with the PAT margin bettering by 140 foundation factors to 12.3% in Q3 FY25. 

With a stable order e-book, a strategic give attention to India’s rising defence sector, and a dedication to innovation and operational excellence, the corporate is well-positioned to capitalize on rising alternatives. “Our give attention to leveraging key defence initiatives will be certain that we’re on observe to create sustained worth for our stakeholders,” Apollo Micro Methods acknowledged in its earnings submitting.

Earlier in January, Apollo Micro Methods and Backyard Attain Shipbuilders & Engineers signed a five-year Memorandum of Understanding (MoU) for a enterprise partnership specializing in joint analysis and improvement (R&D), co-production, and export of underwater weapons & autos, underwater mines, underwater communication techniques, and air defence techniques.

The collaboration additionally consists of the availability of superior weapons and digital techniques for each defence and non-defence industries.

Wealth Creator

The corporate’s shares, which have been buying and selling at ₹12.40 apiece two years in the past, have soared 956% to their present degree of ₹131. Over the past 4 years, the inventory has delivered a staggering 1,719% return. From June 2022 to November, the inventory skilled a pointy, one-way surge, producing a formidable 1,370% return for buyers.

Regardless of the current downturn in mid-and small-cap shares, the inventory is presently 16.5% under its current excessive of ₹157 per share.

Apollo Micro Methods, a Hyderabad-based firm, specialises within the design, improvement, and sale of high-performance, mission-critical options for defence, area, and homeland safety. It serves the Ministry of Defence, government-controlled public sector undertakings, and personal sector entities.

Is there extra upside left within the inventory?

Avinash Gorakshkar, Head of Analysis at Profitmart Securities, mentioned, “Apollo Micro Methods’ share worth is rising following its sturdy Q3 FY25 outcomes, and the optimistic steerage shared by the corporate’s administration. The defence firm reported a considerable improve in income, pushed by a robust order e-book in the course of the third quarter of the present fiscal yr. Moreover, the corporate has posted a major rise in web revenue, and administration expects a gentle movement of orders, which is prone to maintain its sturdy efficiency within the upcoming quarters.”

Mahesh M. Ojha, AVP, Analysis at Hensex Securities, acknowledged, “Apollo Micro Methods’ share worth is presently buying and selling within the ₹118–142 vary. If it breaks above the ₹142 mark on a closing foundation, the defence inventory might quickly attain ₹155. Ought to it maintain above ₹155 for just a few classes, we count on it to the touch ₹175 and ₹185 per share within the medium time period.”

He, due to this fact, suggested shareholders to carry the inventory whereas sustaining a cease loss at round ₹115 for the aforementioned short-term and medium-term targets. “Contemporary buyers also can contemplate momentum shopping for on the present market worth, adopting a buy-on-dips technique till the inventory sustains above the ₹120 per share mark,” he added.

Disclaimer: The views and proposals given on this article are these of particular person analysts. These don’t signify the views of Mint. We advise buyers to examine with licensed consultants earlier than taking any funding selections.