Apollo Micro Systems stock can give good returns in long term

For the year 2021-22, the Ministry of Defence has allocated a sum of Rs 4,78,196 crore towards expenditure on salaries of armed forces and civilians, pensions, modernisation of armed forces, production establishments, maintenance, and research and development. This allocation of around 14% to the Ministry of Defence is the highest among all ministries of the central government. According to the Stockholm International Peace Research Institute, after US and China, India was the third largest defence spender in absolute terms in 2019. US spent more than India on defence, both in absolute terms, and as a percentage of GDP while China spent lower in terms of percentage of GDP, but its absolute expenditure on defence was 3.7 times that of India. The recent amendments to procurement of Defence goods indigenously under the Make in India programme has also bolstered the growth of private sector companies which are present across multiple defence establishments. Apollo Micro Systems is one of the country’s leading electronic, electro-mechanical, engineering designs, manufacturing and supplies company. It designs, develops and sells high performance, mission and time critical solutions to defence, space and home land security for the Ministry of Defence, Public sector undertakings and private sector companies. The company’s customised solutions are developed using common hardware and software technology IP’s which can be re-configured to suit the complete application and domain requirements of customers. Apollo Micro Systems has a strong research and knowledge repository, having carved out a niche in the complex defence industry landscape, delivering products that meet the needs of its consumers. The Apollo Micro stock currently quoting at Rs 220 can be a small part of every investors’ portfolio. As a disclaimer, most of the above info has been sourced from the company’s annual report and website and other print media. From a long term portfolio perspective, Apollo Micro Systems is a decent bet for solid gains.
Rajiv Kapoor is a share broker, certified mutual fund expert and MDRT insurance agent.