3 hrs ago
Systematix Sees 46% Upside for Apollo Micro Systems
Systematix is a brokerage that has started following Apollo Micro Systems.
It believes the company’s share price could rise by 46%.
Apollo makes electronic parts and subsystems for defence equipment.
The company may eventually start making complete weapons and larger defence platforms.
Apollo is aiming to win about ₹12,000 crore in orders during the next 24 months.
These orders could involve mines, torpedoes and missiles.
The government’s proposed Defence Acquisition Procedure 2026 may give private defence companies more opportunities.
However, the order target and potential growth described in the article are expectations, not guaranteed results.
Systematix initiated coverage on Apollo Micro Systems with a potential 46% upside, using an average valuation of 55 times estimated FY28 and FY29 earnings per share.
Apollo Micro Systems is targeting approximately ₹12,000 crore in orders over the next 24 months, mainly from mines, torpedoes and missiles.
The brokerage expects Apollo could shift from supplying subsystems and electronics to manufacturing complete weapon systems.
Proposed changes under Defence Acquisition Procedure 2026 could increase private-sector access, indigenisation requirements and research funding.
Apollo has programmes involving MIGM mines, Pinaka, QRSAM, EHWT and LWT torpedoes, while expanding into UAVs, anti-tank mines and larger platforms.
- Who
- Systematix and Apollo Micro Systems are the principal organisations discussed.
- What
- Systematix initiated coverage of Apollo Micro Systems and projected a potential 46% upside, while highlighting a possible shift toward complete weapon-system manufacturing.
- Where
- The opportunities concern India’s domestic defence-manufacturing sector.
- When
- The order target covers the next 24 months; the brokerage’s valuation uses estimated FY28 and FY29 earnings, and the proposed framework is DAP 2026.
- Why
- Systematix expects higher private-sector participation, technology transfers, indigenisation and Apollo’s expansion into larger defence platforms to support future growth.
Key facts
- Brokerage
- Systematix
- Potential upside
- 46%
- Valuation assumption
- Average of 55 times estimated FY28 and FY29 earnings per share
- Target order pipeline
- Approximately ₹12,000 crore over the next 24 months
- Main order areas
- Mines, torpedoes and missiles
- Five-year stock performance
- The stock has risen 3,455% in five years
- Key programmes
- MIGM mines, Pinaka, QRSAM, EHWT torpedoes and LWT torpedoes
Sources
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