Shares of this smallcap company locked a 5 percent upper circuit after it was awarded a Make II project by the Indian Army for the procurement of a Vehicle Mounted Counter Swarm Drone System. In one year, the stock has delivered more than 80 percent returns to its shareholders.
Price Movemnet:
With a market capitalisation of Rs. 3,282, the shares of Apollo Micro Systems Ltd started Monday’s trading session on a higher note at Rs. 109.76, clocking a 5 percent upper circuit compared to its previous close of Rs. 104.54 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had been shortlisted keeping in view the capability and was awarded the Make II project by the Indian Army
This project is for the procurement of a Vehicle Mounted Counter Swarm Drone System (VMCSDS) (Version I) under the Make II category of DAP-2020. Further, the company stated that the systems developed out of it are ‘state of the art’ and highly futuristic in nature.
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Financials:
Looking at the company’s financial statements, the revenue magnified by 48 percent from Rs. 91 crores during the December quarter to Rs. 135 crores in the March quarter. In addition, the net profits zoomed by 30 percent from Rs. 10 crores to Rs. 13 crores during the same timeframe.
Order Book:
As per the latest data, Apollo Micro Systems had an unexecuted order book position of Rs. 344.88 crores. Furthermore, the company is anticipating healthy growth in the order book from recent orders released to various Defence PSUs and Private Defence Companies.
Management Guidance:
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
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