India’s defence sector is in the middle of a strategic transformation. With the Atmanirbhar Bharat initiative gaining momentum, the push for self-reliance and export-led growth is stronger than ever. In the last fiscal year alone, India’s defence exports surged by over thirty-two percent to cross twenty-one thousand crore rupees. Private companies contributed nearly sixty percent of that volume, reflecting a shift from public dominance to private innovation and scalability.
While heavyweights like Bharat Electronics and Hindustan Aeronautics continue to receive institutional attention, it is often the mid and small-cap players that offer strong technical setups and more room for growth. Two such companies that are currently showing impressive signals both on the charts and in their business trajectory are Unimech Aerospace and Apollo Micro Systems.
Unimech Aerospace: Technical Strength After Steep Correction
Unimech Aerospace, a recent market entrant, is a specialised defence manufacturing firm focused on advanced aerospace components and systems. The stock debuted at a high of fourteen sixty rupees, but quickly corrected by nearly forty-four percent, falling to eight fifty in a matter of months. This kind of correction is not unusual for new listings, but what has caught the attention of traders and analysts alike is its recovery.
Between April and June 2025, Unimech rebounded by sixty-four percent. The stock now trades well above its one hundred-day moving average and is holding firm on a rising trendline. Daily price action suggests continued strength, while Relative Strength Index readings remain in bullish territory. Importantly, rising volumes are aligning with price upticks, indicating that investor participation is not just speculative, but sustained.
Market watchers believe that this could mark the beginning of a larger upward trend. Unimech’s product pipeline and government contract visibility add fundamental support to what is shaping up as a technically strong breakout.
Apollo Micro Systems: Gearing Up for the Next Rally
Apollo Micro Systems, a defence electronics company, has been quietly building its base. After a sharp correction of forty-five percent from its all-time high in 2023, the stock remained in consolidation through most of 2024. But recent months have seen a decisive move above key resistance levels. The stock has broken out of its previous high and is now comfortably trading above the one sixty-two mark, which now acts as a crucial support zone.
What’s more, Apollo is trading consistently above its one hundred-day simple moving average. Technically, it has completed a retest of its breakout from an ascending triangle pattern, which many chartists see as a bullish accumulation signal. The Relative Strength Index has moved past the neutral zone and continues to form higher lows, confirming positive price momentum.
Volume action further strengthens the case. The breakout was supported by heavy trading activity, while the current dip has come with low volumes, suggesting a healthy pullback rather than a reversal.
Apollo’s product diversification and strong order book in areas like missile systems, battlefield management, and avionics provide additional tailwinds for medium-term investors.
The Bigger Picture: India’s Defence Shift Is Just Beginning
The Indian defence ecosystem is rapidly evolving. With more than fifteen hundred export authorisations granted in the last fiscal year and increasing global demand for Indian-built systems, private players are no longer in the shadows. The government’s focus on indigenisation, combined with steady global orders, is making room for new winners.
Unimech Aerospace and Apollo Micro Systems stand out because they combine strong technical indicators with solid business models. Their recent price actions suggest they are past the correction phase and entering a more sustainable growth trajectory. For investors looking to diversify within the defence space, these names are becoming hard to ignore.
As with all investments, risk management and due diligence are essential. These stocks may still face short-term volatility, but their underlying trends are worth watching. For now, they are two of the brightest hidden gems in India’s fast-moving defence sector.
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