Shares of this multibagger defence stock jumped around 7 percent on Tuesday after providing key business updates on upcoming ventures and agreements.
With a market capitalization of Rs 1,402.04 crores, the stocks of Apollo Micro Systems Limited started their trading session on Tuesday at Rs 58.56 and currently trade at Rs 60.44, gaining around 7 percent as compared to the previous close of Rs 56.73 apiece.
Such sharp movements in the stock prices were observed after the company, through a regulatory filing with the BSE, gave some key business updates.
The company has estimated a number of upcoming ventures that will require a total investment of up to 150 crores. In addition, the proposed new units will bring an incremental infrastructure of 3 lakh Sq ft and will house electro-mechanical manufacturing facilities and defence electronics capable of handling bulk production.
The company has also signed various Transfer of Technology (ToT) agreements with the ‘Defence Research and Development Organisation’ (DRDO).
Keeping a purview of one year, the company’s stock has gained multibagger returns of 232 percent, i.e., if someone had invested Rs 1 lakh into the company’s stock a year back, it would have converted to Rs 3.32 lakhs.
Coming onto the annual financials, the company’s financial performance has been good with increasing operating revenues and net profits. The operating revenues grew from Rs 243.19 crores during FY21-22 to Rs 297.53 crores during FY22-23, and, the net profits, keeping the timeframe the same, increased from Rs 14.62 crores to Rs 18.74 crores.
Moreover, the basic profitability metrics such as the return on equity (RoE) as well as the return on capital employed (RoCE) showed decent improvements with the former increasing from 4.68 percent during FY21-22 to 5.71 percent during FY22-23, and, the latter rising from 8.71 percent to 10.68 percent during the same time period.
According to the shareholding data available for the June 2023 quarter, the company’s Promoters hold a 59.1 percent stake followed by the Retail Investors holding a 37.1 percent stake in the company.
Incorporated in 1985, Apollo Micro Systems Limited, a leading company in the Indian Defence sector, is engaged in the business of providing hardware design, electronic manufacturing, IT and software, and other system integration services. The company also provides vehicle tracking solutions, minemasters, etc.
Written by Amit Madnani
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