Apollo Micro Systems shares more than double investor wealth in 2025, does this rally have more legs?

Shares of Apollo Micro Systems more than doubled investor wealth in 2025 backed by strong earnings performance and multiple order wins. Apollo Micro Systems stock rose 147% on a year-to-date basis against a 2.42% fall in the benchmark BSE small cap index during the same period. The multibagger defence stock has gained 239% from its 52-week low of Rs 88.10 reached on October 23 last year. 

The multibagger stock gained 3.13% to close at Rs 298.05 in the Diwali Muhurat trading session against the previous close of Rs 289.Market cap of the defence firm climbed to Rs 9940 crore.

The stock has risen 209% in a year and climbed 295% in two years, delivering multibagger returns during the period. 

The defence stock has zoomed 1256.62% in three years.

This year's rally has  been backed by strong quartely earnings.

In the beginning of February, the defence firm posted a 83 per cent rise in its consolidated profit after tax to Rs 18.24 crore in the December 2024 quarter against a profit of Rs 9.96 crore in the October-December quarter of preceding 2023-24 fiscal. 

In FY25, the firm posted highest ever revenue and net profit. Revenue climbed to Rs 562 crore, up 51% YoY in the last fiscal compared to Rs 372 crore in FY24. Net profit rose 81% to Rs 56 crore in FY25 over Rs 31 crore in FY24. 

In Q4, consolidated net profit climbed 8% to Rs 13.96 crore, while net sales climbed 19% to Rs 161.77 crore compared to Q4 of March 2024.

The Q1 earnings show further added shine to the results performance of the company. 

The defence firm clocked a 119% rise in net profit at Rs 18.5 crore in Q1 against Rs 8.43 crore profit in the Q1 of the previous fiscal. Revenue from operations rose 46.46% to Rs 133.58 crore in the last quarter against Rs 91.20 crore revenue in the corresponding quarter of the previous fiscal. 

Shitij Gandhi, Sr. Research Analyst (Technicals) SMC Global Securities says the stock has been on a strong run in recent weeks. 

Gandhi says Rs 315 is a key resistance level and a strong push above this zone could open the door for the next rally phase. 

Jigar S Patel from Anand Rathi says a decisive move above the Rs 300 mark may trigger a further upside of Rs 310. "The expected trading range will be between Rs 260 and Rs 310 for the short-term, " he adds. 

Kunal Kamble, Sr. Technical Research Analyst at Bonanza Portfolio said the broader trend remains positive, and the stock is expected to move towards Rs 360– Rs 400 levels in the coming sessions. 

Apollo Microsystems is an electronic, electro-mechanical, engineering designs, manufacturing and supplies company. Its designs, develops and sells high-performance, mission and time critical solutions to defence, space and home land security for ministry of defence, government-controlled public sector undertakings and private sectors.