990 per cent returns and promoters & FIIs increase stake: This multibagger aerospace & defence company reports stellar Q3FY24 & 9MFY24 results and expansion of business!

The stock gave multibagger returns of over 420 per cent from its 52-week low of Rs 24.63 per share and a whopping 990 per cent in 3 years.

Apollo Micro Systems Ltd, a leading Small-Cap forging company, announced stellar Quarterly Results (Q3FY24), nine-month results (9MFY24) and a business expansion update. Here are the details:

Results: According to quarterly results, the net sales increased by 10.9 per cent to Rs 91.34 crore, profit before tax (PBT) increased by 57.3 per cent to Rs 14.37 crore and profit after tax (PAT) increased by 50.9 per cent to Rs 9.96 crore in Q3FY24 compared to Q3FY23 while in its nine-month results, the net sales increased by 23.87 per cent to Rs 235.20 crore, profit before tax (PBT) increased by 47.1 per cent to Rs 25.93 crore and profit after tax (PAT) increased by 57.7 per cent to Rs 18.18 crore in 9MFY24 compared to 9MFY23.

Expansion: The purchase of property in Gurgaon District, Haryana and the proposal for purchasing land at Hardware Park, Hyderabad were both approved as a part of the expansion. The latter is subject to Telangana State Industrial Infrastructure Corporation (TSIIC) approval, and if approved, an estimated investment of Rs 60 crore will be made for setting up a manufacturing facility there.

Earlier, the company received a letter of acceptance (LOA) from Indian Oil Corporation Limited (IOCL) for an order worth Rs 25.58 crore after successfully being declared as the lowest bidder (L1). Consequently, the total outstanding orders from IOCL amount to Rs 41.03 crore, including the above LOA, all of which are scheduled for execution in the current financial year. The company also announced the lowest bidder (L1) status and new orders worth Rs 2.29 crore secured from I.G. Mint and the Defence Research and Development Organization (DRDO).

Today, shares of Apollo Micro Systems Ltd hit a 5 per cent upper circuit to Rs 130.30 per share from its previous closing of Rs 124.10 per share. The stock’s 52-week high is Rs 161.75 and its 52-week low is Rs 24.63.  

Established in 1985, Apollo Micro Systems is at the forefront of creating, constructing, and validating crucial electronics and electro-mechanical solutions for sectors such as aerospace, defence, and space. The company is renowned for its commitment to research and development, resulting in notable projects such as torpedo-homing systems and underwater mines. Currently, they are enhancing their Hyderabad facility by incorporating clean rooms dedicated to advanced systems.

In December 2023, promoters increased theirs to 53.21 per cent compared to 52.67 per cent in September 2023 while FIIs increased their stake to 11.01 per cent in December 2023 compared to 5.27 per cent in September 2023.

The company falls under the BSE Small-cap Index with a market cap of over Rs 3,600 crore. The stock gave multibagger returns of over 420 per cent from its 52-week low of Rs 24.63 per share and a whopping 990 per cent in 3 years. Investors should keep an eye on this aerospace & defence stock.

Disclaimer: The article is for informational purposes only and not investment advice.