Apollo Micro Systems shares: Small-cap defence stock jumps 3% after receipt of order from Bharat Dynamics

Apollo Micro Systems share price jumped 3% in early trade on Wednesday after the defence company received an order worth ₹10.90 crore from Bharat Dynamics. The smallcap defence stock Apollo Micro Systems shares gained as much as 2.90% to ₹108 apiece on the BSE.

Apollo Micro Systems said the order from Bharat Dynamics is for Software Defined Universal Homing System for Heavy Weight Torpedoes. This first-of-its-kind technology was developed in collaboration with DRDO.

Bharat Dynamics is the nominated agency for the production of the entire torpedo, while Apollo Micro Systems is the only qualified vendor for this Homing System as on this date. These Heavy Weight Torpedoes will be integrated into Strategic Submarine Programme(s).

“The current production order is the start of a larger requirement for this class of Heavy Weight Torpedoes, which will be equipped on all strategic submarines. We are fully prepared to meet the demand for large-scale production, with our UnitIII facility on track to be commissioned by February 2025 at Hardware Park, Hyderabad,” the company said in a release.

It highlighted that the Heavy Weight Torpedoes are included in the Ministry of Defence’s Embargo List, which encourages the induction of indigenous systems into the Indian Armed Forces.

Additionally, Apollo Micro System also informed that it has been declared as L1 for the order from Controllerate of Naval Armanent (OF) for a value of ₹5.73 crore.

“This project involves the development of a Rocket Guided Bomb for Anti-Submarine Warfare, capable of being fired from ships in salvos. This achievement marks our entry into the complete development and manufacturing of Rocket Guided Bombs, paving the way for similar weapon systems for air, land, and sea applications,” Apollo Micro System said.

Apollo Micro System Share Price

Apollo Micro System share price has fallen 12% in the past one month and over 6% year-to-date (YTD). However, the smallcap defence stock has given more than 93% return in one year and multibagger returns of over 825% in three years.

At 10:05 am, Apollo Micro System shares were trading 1.95% higher at ₹107.00 apiece on the BSE.