Defense Stock Jumps 5% Following SBI Term Loan Agreement: Do You Own?

The military contractor Apollo Micro Systems’ (AMSL) stock rose 5% on Monday, reaching the upper circuit. The share touched the upper circuit at Rs 100.05. It had begun flat at Rs 96.95.

The biggest public sector bank in the nation, State Bank of India (SBI), and the firm have engaged in a term loan agreement, the company said via an exchange filing.

The business said in its exchange filing, “To avail term loan of Rs 110 crore for implementation of the upcoming project, Integrated Plant for Ingenious Defence Systems (IPiDS) at Hardware Park, Hyderabad and renewal cum enhancement of Working Capital (WC) credit facilities from the State Bank of India.”.

The lender had approved a Rs 110 crore credit earlier in February for the business’s new project in Hyderabad. is developing a facility that would need a Rs 210 crore investment. At the future site, defense equipment will be manufactured.

In the December quarter of the current fiscal year, AMSL saw a roughly 35 percent increase in its net profit, coming in at Rs 10 crore in Q3 FY24. Year over year, the overall revenue increased from Rs 82.69 crore to Rs 91.84 crore. During the quarter, its costs came to Rs 77.46 crore, compared to Rs 71.73 crore in the third quarter of the previous fiscal year.

After being incorporated in 1985, Apollo Micro Systems grew to include the design and development of electronic hardware and software systems and subsystems for DPSUs, DRDOs, and other applications. The Hyderabad-based business provides comprehensive platform-level solutions for industries including undersea mining, railroads, automobiles, and homeland security, starting at the research phase and ending with manufacture.