Multibagger defence stock rose 53% in a month; price targets, technicals and more

Multibagger stock: Shares of Apollo Micro Systems Ltd gained 53% in a month. leaving investors guessing whether they should buy, sell or hold this multibagger defence stock. In the current session, Apollo Micro Systems shares gained 4.04% to a record high of Rs 157 against the previous close of Rs 150.90 on BSE. In the afternoon session, the stock saw profit-booking and fell 4.37% to Rs 144.30 on BSE. Market cap of the defence firm slipped to Rs 4416.51 crore.

Total 10.84 lakh shares of the firm changed hands amounting to a turnover of Rs 16.20 crore. The stock has risen 298% in two years and risen 842% in three years, delivering multibagger returns during the period.

Aditya Gaggar, Director of Progressive Shares said,"The stock has given a breakout from a Falling Wedge formation. But, recently, the stock has witnessed a sharp rise leading to a limited upside in the near term."

Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox said, "Apollo Micro Systems is currently trading at Rs 145, supported by a breakout from a year-long consolidation phase. The stock is comfortably trading above its 20, 50, 100, and 200 EMAs, indicating strong bullish momentum. Technical indicators such as the RSI, at 67, reflect strength, while the robust ADX confirms the trend's sustainability.

From a fundamental perspective, Apollo Micro has solidified its position with its order book gaining traction. The company is transitioning several programs from development to production-based contracts, offering better visibility into future revenue growth. Additionally, its active participation in Make-II Defence Projects and potential collaborations for larger platforms signal promising opportunities in the defense sector."

"Given the technical and fundamental strength, Apollo Micro is a good buy-on-dips candidate for mid-term targets of Rs 175-186. The breakout has laid the groundwork for continued upside, provided the stock maintains its momentum.

However, investors should exercise caution, as our positive outlook would be negated if the stock falls below Rs 120," added 
Ranadive.

A R Ramachandran, SEBI registered Independent analyst says, "Apollo Microsystems stock price is bearish on the Daily charts with strong resistance at Rs 157. A Daily close below the support of Rs 141 could lead to a target of Rs 118 in the near term."

Apollo Microsystems shares have a one-year beta of 1, indicating average volatility during the period.

In terms of technicals, the relative strength index (RSI) of Apollo Microsystems stands at 74.1, signaling it's trading neither in the overbought nor in the overtrading zone.

Apollo Microsystems stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Apollo Micro Systems is mainly into the supply of electronics and electromechanical systems and components including design, research & development of systems which are used in missile programmes (weapon systems electronics), underwater missile programmes (weapon systems electronics), avionic systems, ship borne systems, submarine systems, etc.