Multibagger Stock: Apollo Micro Systems Shares up 20 Percent in 2 days; May Jump Another 25 Percent

Stock Market News: Apollo Micro Systems shares today again jumped 10 per cent to get locked in the upper circuit limit. The stock was off to a positive start in early morning deals and later locked in the upper circuit limit at Rs 146.70. The circuit limits for each stock range from 2 to 20 per cent as per the rule.
The limit depends on the liquidity, volume and category of the stocks. Both the upper and lower circuit limits for each stock is defined by the exchanges. When a stock jumps to touch the upper circuit limit, then trading is suspended in the respective trading session. Accorrding to an equity research report published, the company is looking to increase its facility size from the current 55,000 square feet to 3.3 lakh square feet over the next 12 months, with a capex of Rs 150 crore. This investment will be allocated to machinery and testing equipment.

The management intends to fund this capex with a 70:30 ratio of debt to equity. Unit-2, spanning 50,000 square feet, is set to be commissioned by December-January. Unit-3, which spans 240,000 square feet, will be commissioned in H1FY25. The management anticipates that 3-4 programs, for which they have received product development approval, will undergo trials in the upcoming season, with the torpedo program having AMS supplying the seeker and accounting for roughly 50% of the total content value. It has given a target price of Rs 163 with “OUTPERFORM” rating. Last week, Apollo Micro Systems has declared its earnings for the quarter that ended on September 30, 2023. It said that the profit more than doubled led by aided by higher income.

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