Introduction
Apollo Microsystems has established itself as a trusted supplier to Defence PSUs, the Defence Ministry, and other government bodies like Indian Railways, providing cutting-edge electronic systems. With India’s increasing focus on self-reliance in defence technology, Apollo is well-positioned to benefit from growing demand.
Financial Overview & Growth Potential
Following a stock split, Apollo’s current face value stands at ₹1, with an Earnings Per Share (EPS) of ~₹1.8 and a Price-to-Earnings (PE) ratio of ~69. Investors are optimistic about its future, with projections indicating EPS growth to 4-5, backed by a strong order book of ₹550-600 crore.
However, given its high PE ratio and volatile nature, investors should be cautious about entry points.
Investment Strategy: When to Enter?
- Current Market Price: ~₹124 (up ~7% due to a new acquisition)
- Ideal Entry Point: Below ₹90 for better upside potential
- Exit Strategy: If acquired at ₹90, consider exiting around ₹120 for a solid return
Apollo Microsystems falls into the small-cap category, with a market capitalization below ₹5000 crore. This means it carries higher risk but also higher reward potential.
Future Outlook
Apollo’s growth trajectory depends on continued government contracts, defence modernization, and expansion into new tech domains. If the Government of India, PSUs, and private players ramp up investments in defence electronics, Apollo could see significant revenue expansion.
For investors looking at long-term gains, monitoring order inflows, acquisitions, and defence sector policies will be crucial.
Lateral Thinking 
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