Multibagger penny stock below Rs 60: This aerospace & defence company incorporates a new subsidiary for business expansion!

The stock gave multibagger returns of 200 per cent in just 1 year whereas BSE small-cap Index is up by 28 per cent.

Apollo Micro Systems Ltd is a pioneer in the design, development, assembly and testing of electronic and electro mechanical solutions.

Apollo Micro Systems Ltd informed that the company has incorporated a subsidiary company named “APOLLO DEFENCE INDUSTRIES PRIVATE LIMITED”.

Mr Karunakar Reddy Baddam, the promoter of Apollo Micro Systems Ltd, subscribed to 1,400 Equity Shares of Rs 10 each in Apollo Defence Industries Private Limited.

Apollo Defence Industries Private Limited will collaborate with both domestic and international companies to develop defence platforms. This business aligns with Apollo Micro Systems Limited's existing business and complements it, while also expanding the parent company's horizons to larger platforms by leveraging its technological support.

The company's financial performance in Q1FY24 was positive, with revenue and profitability growing. Total revenue stood at Rs 57.69 crore, up 2.53 per cent year-over-year. Operating profit and Profit After Tax also grew significantly, up 29.19 per cent and 1 per cent year-over-year, respectively. The EPS for Q1FY23 remained flat, but this is likely due to the fact that the company issued new shares in Q1FY24. Overall, the company is on track to achieve its growth targets for the year, and its profitability is improving.

According to the annual results, net sales increased by 1.13 per cent to Rs 106.85 per cent and net profit increased by 28.18 per cent to Rs 18.74 crore in FY23 over FY22. The company announced a final dividend of 0.025 per equity share of the face value of Rs 1 each for the financial year 2022-2023. The record date was Yesterday, September 22, 2023.  

Earlier, in the current financial year, the company underwent a stock split, reducing its face value from Rs 10 to Rs 1. The company traded ex-stock split on May 05, 2023.

On Friday, shares of Apollo Micro Systems plunged 0.51 per cent to Rs 53.87 per share with an intraday high of Rs 56.57 and an intraday low of Rs 53.50. The company has a market capitalization of 1,250 crore.

The stock gave multibagger returns of 200 per cent in just 1 year whereas BSE Small-Cap Index is up by 28 per cent. Investors should keep an eye on this aerospace & defence company stock.

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