Multibagger defence stock surges over 100% in less than two months. Are you holding it?

Although the broader markets have remained range-bound lately, shares of Apollo Micro Systems continued to scale record highs as investor demand for the counter on Dalal Street kept rising, driven by the company’s strong growth prospects and massive returns.

Extending its bull run for the fourth straight session on Thursday, the stock touched another record high of ₹377.70 apiece, marking its third consecutive all-time high.

The continued rally in the defence stock signals that investors remain optimistic about the company’s growth prospects and its strategic transition from a component supplier to a full-fledged system integrator.

Its expanding role, robust order pipeline, and improving margin trajectory have also kept analysts bullish on the stock. Taking the latest record price into account, the shares have rebounded 110% from their March lows, marking one of the strongest recoveries the stock has witnessed in recent years.

The rally came after the stock remained under prolonged pressure between September 2025 and March 2026, during which it had lost nearly 42% of its value. Nevertheless, the stock recovered all of its six-month losses in April alone by surging 63%, marking its biggest monthly gain since June 2023.

The momentum has further extended into the current month, with the stock gaining another 21% so far, pushing its year-to-date returns to 32% and significantly outperforming the Nifty Midcap 100, which has risen a modest 1.5% during the same period.

With its strong ability to recover from sharp corrections, the stock has managed to deliver positive annual returns in each of the last six years, including two multibagger yearly performances.

Apollo Micro Systems Q4 Results FY26

The company reported a healthy set of numbers for the March quarter, with consolidated revenue from operations rising to ₹293.26 crore from ₹161.77 crore in the corresponding quarter last year, registering a sharp 81.3% year-on-year growth.

Profit after tax (PAT) surged to ₹36.79 crore from ₹13.96 crore, marking a robust 163.5% YoY jump. For the full financial year FY26, the defence company reported consolidated revenue from operations of ₹904.32 crore, compared to ₹562.07 crore in FY25, reflecting a strong 60.9% annual growth.

On the bottom line, net profit jumped to ₹107.38 crore from ₹56.36 crore, registering a strong 90.5% year-on-year increase.

Following the results, domestic brokerage firm Choice Institutional Equities revised its FY27E and FY28E EPS estimates upward by 27.5% and 19.5%, respectively, and now expects revenue, EBITDA, and PAT to expand at a CAGR of 52.9%, 52.9%, and 54.6%, respectively, over FY27–FY29E.

However, the brokerage downgraded its rating on the stock to ‘Add’ from ‘Buy’ following the recent sharp rally in the shares, although it still expects the stock to reach the ₹365 level.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.