This multibagger defence stock rises 12% today, triples investors wealth in 10 months

Defence stocks have been in the flavour lately with a number of defence related counter delivering multibagger returns to the investors. One such stock from the defence basket posted double-digit gains on Friday to scale its new highs and interestingly, this stock has tripled investors wealth in just 10 months.

The stock is Apollo Micro Systems, which surged another 12 per cent to hit new all time highs of Rs 271.60 on Friday, with its total market capitalization hitting Rs 9,000 crore mark. The stock had settled at Rs 242.50 on Thursday. The stock has turned multibagger in 2025 so far, with 125 per cent rise.

Shares of Apollo Micro Systems have zoomed more than 3 times, delivering a whopping 205 per cent returns from its 52-week low at Rs 88.10, hit on October 23, 2024. The stock has delivered an astounding 6,500 per cent returns from its covid-19 lows around Rs 4.13 in March 2020. An investment of Rs 10,000 back then in the company is worth Rs 6.57 lakhs as of today.

More than 2.98 lakh retail investors own nearly 11.49 crore equity shares, or 34.45 per cent stake, in the company as of June 30, 2025. Only four mutual funds own 51,55,992 equity shares or 1.55 per cent stake in the defence player, while FPIs hold 2,11,75,963 equity shares or 6.35 per cent stake as of the given period. Promoters held a 50.65 per cent stake in the company.

Apollo Micro Systems recently announced that it has been declared the lowest bidder for orders worth Rs 25.12 crore from the Defence Research and Development Organisation (DRDO) and other Defence Public Sector Undertakings (PSUs). On the outlook, G Chokkalingam, Founder and MD of Equinomics Research, advised investors to book profits in a phased manner.

Sunil Shah, Fund Manager and Partner at SRE PMS, said the overall defence theme remains intact. The seasoned market expert highlighted Apollo Micro Systems  from the private sector space. "Apollo Micro is among the few small or mid-sized private defence companies that is a tier-one supplier to the Indian defence system," he said.

Choice Broking identifies Apollo Micro Systems as promising due to its dual-growth strategy of organic innovation and inorganic expansion. This is supported by acquiring IDL Explosives and expanding RF capabilities, expected to enhance profitability and market position. "We view Apollo's dual-growth engine, i.e. organic innovation and inorganic expansion, as a solid foundation for scalable growth," said Choice Broking in its report dated August 5.

The firm's consistent performance aligns with its guidance, showing operational stability. Apollo's involvement in key missile programmes under India's defence modernisation offers a strategic advantage. Choice Broking stated, "We believe Apollo has delivered a steady quarter, broadly in line with its guidance."

Looking forward, Apollo is set to benefit from its INR 735 crore order book, project pipeline, and export opportunities. The addition of Unit-3 will augment capacity and enhance deliveries from FY27. "Looking ahead, with Unit-3 adding capacity, Apollo is well-placed to capitalise on strong order momentum," noted Choice Broking.

Choice had a 'buy' rating on the stock with a target price of Rs 240. Its target have already been met. This stock has surged nearly 60 per cent from the date of this report.