This smallcap stock hits 5% upper circuit as subsidiary wins LoI from UAE firm

Shares of a smallcap company rose 5 per cent to touch the upper price band of Rs 21.70 in Wednesday's trade. At the current level, the stock has delivered a staggering gain of 4,073.08 per cent over the last five years, but has declined 46.49 per cent in the past one year. The company, Aerpace Industries Ltd (formerly known as Supremex Shine Steels Ltd), saw the uptick after its subsidiary secured a Letter of Intent (LoI) from a leading defence firm in the United Arab Emirates (UAE).

"In this communication, the UAE defence company confirmed that they have evaluated our advanced defence drone portfolio and expressed strong interest. Their authorities will be visiting India shortly to witness live demonstrations of the drones developed under our aerShield programme. Subject to satisfactory demonstrations and validation of technical capabilities, the UAE entity has indicated its intent to proceed with procurement of Aerpace defence drones for its defence requirements. Due to the confidentiality and non-disclosure agreements (NDA) in place, the name of the company has not been disclosed at this stage," the company stated in a BSE filing.

The counter saw heavy trading volume today on BSE as around 3.26 lakh shares were last seen changing hands on BSE today, higher than the two-week average volume of 2.40 lakh shares. Turnover on the counter came at Rs 70.65 lakh, commanding a market capitalisation (m-cap) of Rs 333.87 crore.

Bourses BSE and NSE have put the securities of Aerpace under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

The scrip traded higher than the 5-day simple moving average (SMA) but lower than the 10-day, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 42.62. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a negative price-to-equity (P/E) ratio of 58.65 against a price-to-book (P/B) value of 9.52. Earnings per share (EPS) stood at (-)0.37 with a return on equity (RoE) of (-)16.20. According to Trendlyne data, Aerpace has a one-year beta of 0.5, indicating low volatility.

As of June 2025, promotors held a 45.35 per cent stake in the company.