The shares of this smallcap company jumped around 4 percent in Monday’s trading session after securing a significant order worth around Rs. 77 crores. In one year, the stock has delivered around 100 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 3,390 crores, the shares of Apollo Micro Systems Ltd started Monday’s trading session on a higher note at Rs. 109.98 compared to its previous close of Rs. 107.13.
During the trading session, the shares hit a high of Rs. 111.80, gaining around 4 percent and are currently trading at Rs. 111 apiece.
Also read: EV stock jumps 5% after company expands its EV business in Sri Lanka
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had received the orders from Economic Explosives Ltd and ARDE- Defence Research and Development Organisation (DRDO) worth Rs. 4.70 crores.
Additionally, the company also mentioned that it has been awarded the status of Lowest Bidder (L1) for the GNC Kit project by Munitions India Ltd, valued at Rs. 72.26 crores.
Financials:
Looking at the company’s financial performance, the revenue decreased by 33 percent from Rs. 135.44 crores during the March quarter to Rs. 91.20 crores in the June quarter. On the other hand, the net profits declined by 35 percent from Rs. 12.93 crores to Rs. 8.43 crores during the same timeframe.
Also read: Semiconductor stock jumps 6% after signing MoU with Asus for manufacturing notebooks
Recent Development:
Earlier, the company received an order worth Rs. 10.90 crores from Bharat Dynamics Limited for a Software Defined Universal Homing System for Heavy Weight Torpedoes. This first-of-its-kind technology was developed in collaboration with DRDO.
Furthermore, the compnay was also declared as L1 for the Controllerate of Naval Armament (OF) order for a value of Rs. 5.73 crores.
This project entails the development of a Rocket Guided Bomb for Anti-Submarine Warfare, designed to be launched from ships in salvos.
Future Outlook:
The company is expecting the revenue to grow by 25 percent in FY25 led by growth opportunities in Defence and the key interest of the Indian Government to enhance Defence production and capability of the domestic market.
Important Financial Ratios:
In terms of key financial metrics, the company reported a return on equity of 6 percent and a return on capital employed of 13.17 percent for the period spanning FY23-24. Additionally, the net profit margin stood at 8.37 percent during the same timeframe.
Company Profile:
Headquartered in Hyderabad, Apollo Micro Systems Limited is a leading Indian company that specializes in the design, development, assembly, and testing of high-performance electronic and electromechanical solutions for critical applications in the aerospace, defence, space, transportation, and homeland security markets.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
