The shares of this smallcap company jumped around 2 percent receiving an order worth Rs. 10.90 crores from Bharat Dynamics Limited. In one year, the stock has delivered more than a 90 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 3,283 crores, the shares of Apollo Micro Systems Ltd started Wednesday’s trading session on a flatter note at Rs. 105.90 compared to its previous close of Rs. 105.
During the trading session, the shares hit a high of Rs. 107.95, gaining around 2 percent and are currently trading at Rs. 107 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had received an order worth Rs. 10.90 crores from Bharat Dynamics Limited.
The company received the order for a Software Defined Universal Homing System for Heavy Weight Torpedoes. This first-of-its-kind technology was developed in collaboration with DRDO.
Additionally, the company highlighted that the Heavy Weight Torpedoes are included in the Ministry of Defence’s Embargo List, encouraging the induction of indigenous systems into the Indian Armed Forces.
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Moreover, the company has effectively developed and produced underwater warfare products, including signal processing systems for expendable decoys, which are now in production and have been integrated into the Indian Navy.
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.
This milestone represents the company’s entry into the full development and manufacturing of Rocket Guided Bombs, setting the stage for the creation of similar weapon systems for air, land, and sea applications.
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.
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
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