Multibagger defence stock Apollo Micro Systems continued to remain higher for the third straight session on Monday, December 22, hitting another 5% upper circuit limit at ₹249.80 apiece.
This marked its second consecutive upper circuit as investor sentiment improved following key technology approvals from DRDO, enhancing the company’s defence capabilities and long-term growth prospects.
Secures 2 DRDO technology transfers
The company, in its regulatory filing today, announced that it has received approvals from the Defence Research & Development Organisation (DRDO) for two distinct Transfers of Technology (ToT) relating to Laser-Based Directed Energy Weapon (DEW) systems and the EO Tracking System for DEW, subject to the fulfilment of prescribed conditions.
“These ToTs strengthen the company’s capabilities in directed energy weapon subsystems, including laser-based engagement systems and electro-optical tracking solutions, and are aligned with India’s defence indigenisation and Atmanirbhar Bharat initiatives,” the company said.
Directed energy weapon systems use high-powered lasers to inflict damage on targets. Compared to traditional weapons, which mainly rely on physical impact and kinetic energy, DEWs use directed energy to heat up, destroy, or damage the target.
Commenting on the development, Karunakar Reddy, Managing Director, said, “The Directed Energy Weapon (DEW) technologies received through these Transfers of Technology will serve as an additional capability, complementing our ongoing development efforts, particularly in view of the rapidly evolving threat landscape posed by aerial systems.”
The company is currently developing critical anti-drone systems under the ‘Make’ category for the Indian Armed Forces, wherein both soft-kill and hard-kill solutions, including rocket-based interceptors, are being developed to counter swarm drone threats.
The Directed Energy Weapon (DEW) technologies received through these Transfers of Technology will serve as an additional capability, complementing the company’s ongoing development efforts, particularly in view of the rapidly evolving threat landscape posed by aerial systems.
Meanwhile, the company last week, announced that its step-down subsidiary IDL Explosives Limited has been granted a 15-year Industrial License for manufacturing high-energy defence explosives. The license, issued under the IDR Act, 1951, represents a significant strategic expansion into specialized defence materials manufacturing.
Apollo Micro Systems shares deliver over 160% return one year
Apollo Micro Systems’ share price witnessed severe selling pressure since October and has since lost 30% of its value amid weak sentiment over mid- and small-cap stocks.
Although the stock’s short-term trend appears weak, its long-term performance still looks solid, as it continues to trade 165% higher over the past one year and 2,060% higher over the last five-year period.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
