Multibagger stock to buy: Up 3,400% in 5 years; this defence stock has more legs to rally

Apollo Micro Systems shares target price: Domestic brokerage firms continue to remain positive on Apollo Micro Systems after the company reported a strong set of numbers in the March 2026 quarter. The stock has already delivered jaw dropping returns to investors, but analysts see more legs to its rally.

Shares of Apollo Micro Systems Ltd surged more than 8.4 per cent to Rs 369.30 on Wednesday, hitting fresh all time highs, with its market capitalization hitting Rs 13,000 crore mark. The stock has delivered a 175 per cent return in the last one year, while it has jumped nearly 35 per cent in 2026 so far.

To recall, the stock has zoomed more than 82 times from its covid-19 lows  at Rs 4.5 per shares hit in late March 2020. Even in the last five years, the stock has delivered a solid 3,415 per cent returns to investors from its level around Rs 10.5 in August 2021. Even in the last 3 years, the stock has surged nearly 1,100 per cent from Rs 31.5 levels.  

Apollo Micro Systems Q4 results Apollo Micro Systems reported a net profit at Rs 37.62 crore, up 168.7 per cent on year-on-year (YoY) basis, while its revenue increased 81.3 per cent YoY to Rs 293.26 crore for the March 31, 2026 quarter. Ebitda increased 88 per cent YoY to Rs 67.64 crore, while margins improved to 23.1 per cent for the quarter.

For the entire financial year 2025-26, its net profit more than doubled to Rs 112.92 crore, while revenue soared 60.9 per cent to Rs 904.32 crore. The stellar financial execution is backed by sustained demand for indigenous defence electronics, satellite systems, and missile programs.  

Apollo Micro Systems target prices Apollo Micro Systems recorded a stellar FY26 performance, reflected through 61 per cent YoY revenue growth and 91 per cent PAT growth in FY26 over FY25. This was led by faster execution of the orders at hand and ebitda margin expansion to 24 per cent  in FY26. This margin expansion was aided by a favorable product mix and controlled input costs, said HDFC Securities.

"We pencil in a 50 per cent revenue CAGR from FY26 to FY28E, on the back of the existing order book (Rs 1,430 crore), robust weapon pipeline, and new licenses. Two major orders are expected — MIGM (Rs 2,000 crore) and QRSAM — which would be the key monitorable, going forward. It has been awarded a license to manufacture arms of calibre above 12.7mm," it said.

With these growth levers in place, HDFC Securities build in a 62 per cent PAT CAGR over FY26-FY28E against our earlier PAT CAGR of 48 per cent  for the same period. "Following this, we maintain 'buy' and increase the multiple to 50 times for FY28E EPS, arriving at a target of Rs 400," HDFC added.

Apollo Micro reported a strong set of numbers, ahead of expectation and continues to show steady execution. The management commentary that the broader strategy remains on track, with a gradual shift towards system-level and backward integration. This should support margin in the medium term as the company gains better control over its value chain, said Choice Institutional Equities.

"We maintain our positive stance on Apollo, backed by its strategic shift, from a component supplier to a full-fledged system integrator. Its expanding role, robust order pipeline and visible margin trajectory reinforce our conviction in its long-term growth story. We revise our FY27E and FY28E EPS estimate upwards by 27.5 per cent and 19.5 per, respectively," it added with an 'add' tag and a price of Rs 365.