This multibagger defence stock rose 18% today; should you invest?

Equity benchmarks ended in the red, with the Sensex falling 239 points and the Nifty closing just shy of the 24,750 mark. But the Nifty defence index continues to soar with government initiatives and modernizing the armed forces.

Multibagger stock Apollo Micro Systems shares jumped nearly 18 per cent today May 28, hitting a new all-time high of Rs 179 apiece, after the company bagged a Rs 113.81 crore export order for developing a cutting-edge avionics system.

The stock is now up over 46 per cent in May alone, riding on robust sentiment across defence counters post-Operation Sindoor.

Defence rally adds fuel to the fire

Apollo Micro Systems, a smallcap defence electronics player, has been on a tear lately. The stock opened at Rs 157.15 versus the previous close of Rs 155.80 and surged intraday to Rs 179, its 52-week high. In just two sessions, it has added nearly 27 per cent.
Experts say the bullish momentum is in line with investor optimism around India’s growing defence exports and localisation of technology. Many PSU defence stocks like BEL, HAL, and Mazagon Dock have also logged double-digit gains recently.

Order win for advanced avionics project

According to an exchange filing, the company said it has received an export order worth USD 13.37 million, which is roughly Rs 113.81 crore, to develop an avionic system. This high-tech solution is planned for use in both civil and military aircraft.
While specific program details remain confidential due to a Non-Disclosure Agreement (NDA) with the customer, the company highlighted that the order falls within its regular course of business.

Dividend announced 

Alongside the order win, Apollo Micro Systems also declared a final dividend of Rs 0.25 per equity share of face value Re 1 each for FY25, subject to shareholder approval at the upcoming AGM.

Performance outlook

The company’s stock performance has been nothing short of stellar. It has surged:

• 421 per cent in the last 2 years

• 1460 per cent in the last 3 years

• 2040 per cent over the last 5 years

The meteoric rise reflects strong earnings growth, improving order book visibility, and increasing relevance in India’s defence ecosystem.

Outlook

Analysts believe continued policy tailwinds, global demand for Indian defence tech, and export opportunities could keep Apollo Micro Systems in favour. Investors should, however, track execution timelines and project margins before jumping in at highs