Multibagger in just 6 months & FIIs increase stake: This aerospace & defence company reports a 300 per cent jump in net profit

The stock gave multibagger returns of 418 per cent in just 1 year whereas the BSE Small-Cap Index is up by 33.6 per cent.

Apollo Micro Systems Ltd is a pioneer in design, development, assembly and testing of electronic and electro mechanical solutions. The company announced its quarterly results (Q2FY24) and half-yearly results (H1FY24) for the fiscal year 2024. Here are the details:

Quarterly Results: The net sales increased by 54.9 per cent to Rs 87.16 crore, operating profit increased by 85.5 per cent to Rs 18.61 crore and net profit increased by 300.6 per cent to Rs 6.56 crore in Q2FY24 compared to Q2FY23.

Half-yearly Results: The net sales increased by 33.7 per cent to Rs 144.85 crore, operating profit increased by 41.3 per cent to Rs 31.58 crore and net profit increased by 66.7 per cent to Rs 8.21 crore in H1FY24 compared to H1FY23.

Previously, Apollo Micro Systems Limited (AMS) has been appointed by MP3 International, a subsidiary of Grade One Group, as its official representative for the Middle East market. This collaboration will enhance AMS's market reach and engagement with clients in the region. AMS also plans to set up a new composites manufacturing facility in Hyderabad, requiring an investment of Rs 5,00,00,000. The company is also expanding its defence business by setting up a new manufacturing facility and forming a new subsidiary to focus on international partnerships.

The management expects revenue to grow by 45 per cent to 50 per cent from FY23 to FY24, owing to a robust order book and expected key projects. The company has bagged multiple orders in the current financial year from the Defence Research and Development Organisation (DRDO). 

Furthermore, 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.

Today, shares of Apollo Micro Systems Ltd surged 1.22 per cent to an intraday high of Rs 123.79 per share from its previous closing of Rs 122.30. At the closing bell, shares of the company were trading at Rs 121.27 per share, down 0.84 per cent. In September 2023, FIIs increased their stakes from 0.17 per cent to 5.27 per cent.

The company falls under the BSE Small-Cap Index with a market cap of over Rs 3,100 per cent. The stock gave multibagger returns of 418 per cent in just 1 year whereas the BSE small-cap Index is up by 33.6 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.