Defence Stock: The shares of small-cap defence stock Apollo Micro System jumped nearly 3 per cent during the intraday trading on January 1 after its subsidiary, Apollo Defence Industries, entered into a Rs 150 crore contract with a private company.
The defence sector stock started the session slightly down at Rs 271.90 against last session's closing of Rs 272.0 per share. However, the scrip picked up the momentum during the morning trade to hit an intraday high of 280.0 per share. At around 1:15 PM, the company's shares were trading in positive territory at Rs 275.40, up 1.25 per cent.
In an exchange filing today, the Hyderabad-based company said that the agreement was made in the ordinary course of business.
Also Read: Cigarettes, Pan Masala To Cost More As Centre Announces Higher Taxes; Tobacco Stocks Plunge
This is to inform you that Apollo Defence Industries Private Limited, a subsidiary unit of Apollo
Micro Systems Ltd, in its ordinary course of business, has entered into an Agreement with a Private Company for the execution of a contract worth Rs 1500 million," the exchange filing said.
Stock Performance
In the last 30 days, the stock remained flat, jumping merely 2.6 per cent, while in the last 6 months the scrip zoomed over 43 per cent. In a year, it gave a triple-digit return of over 125 per cent and in a period of 5 years, the stock rose over 2,000 per cent.
Company Secures Rs 419 crore Order From A Public Company
Earlier last month, the company informed the stock exchanges that its subsidiary, IDL Explosives, had secured an order worth Rs 419.39 crore to supply explosives in bulk to subsidiaries of Coal India, in addition to an export order worth Rs 1.5 crore for cartridge explosives.
Also Read: Vodafone-Idea Shares Jump 5% On Optimism Around Official AGR Relief Announcement
It has also announced securing an order worth Rs 100.25 crore from a private entity. Under the order, the defence firm will supply Unmanned Aerial Systems to the Ministry of Defence.
Disclaimer: This story is for informational purposes only. It should not be considered as investment advice. Please consult an adviser for investment-related opinion.