Stock Snapshot
Price Performance
Recommendation Rationale
Favorable growth outlook supported by strategic initiatives and strong order inflows.
Basis of our Recommendation
Apollo Micro Systems is poised for significant growth driven by strategic initiatives, including a major capacity expansion and a focus on indigenization in the defense sector. The company is leveraging government initiatives and rising global defense spending to enhance its market position. While there are challenges related to raw material volatility and high working capital, the overall outlook remains positive with a strong order book and anticipated revenue growth.
Why We Like This Stock
- Strong revenue growth driven by strategic initiatives and government support
- Significant capacity expansion planned to enhance manufacturing capabilities
- Robust order book with large ticket projects and export opportunities
Things To Watch Out For
- Challenges related to raw material volatility and high working capital
- Potential margin dilution from historical losses of subsidiary IDL Explosives
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 372 | 562 | 904 | 1,245 | 1,717 |
| Profit Before Tax (Cr.) | 44 | 83 | 155 | 222 | 305 |
| PBT Margin | 11.8% | 14.8% | 17.1% | 17.8% | 17.7% |
| Net Profit (Cr.) | 38 | 64 | 125 | 171 | 234 |
| EPS | 1.1 | 1.8 | 3.7 | 4.8 | 6.6 |
Company Overview
Show Company Profile
Apollo Micro Systems Limited designs, develops, and assembles electronic and electromechanical solutions in India. The company offers DSP, missile hardware simulators, integrated avionics modules, generic PCM encoders and decoders, DSSS de-modulators, seeker electronics, RPF and signal processing systems, turret control and power units, missile interface units, launcher controllers, launcher interface units, tiger sharc DSP-signal processors, quad actuator controllers, fault tolerant and system relay boxes, and DSP controllers; ESM-eagle kit, embedded arss, PSU, and auxiliary controllers; and integrated payload checkout systems, satellite data simulators, high speed frame synchronizers, time code readers/generators, bit synchronizers, monopulse tracking receivers, PCIE-HSDR, PCM-two channel decommutators, PCIe based two channel data acquisition cards, and PCI-X based two channel serial data acquisition cards. It also provides avionics and transportation solutions; public address display systems, warning systems, vehicle tracking solutions and command control solutions, minemaster, weight-in-motion systems, tyre care, passenger information systems, and station announcement systems; ethernet, base band modules, converters, USB/Ethernet protocol converters, dual data bus couplers, data bus solutions, and various formulas; and solar smart street lighting, CCTV surveillance, vehicle tracking, boom barrier, RFID fleet management, UAV detecting and jamming, GSM interception, Wi-Fi and lawful interception, and portable x-ray inspection systems, as well as passenger information displays, wall radar, reactive convoy and stationary jammers, and portable and stationary bomb jammers. In addition, the company offers electronic manufacturing, hardware design, IT and software, and electronic and mechanical CAD services. Apollo Micro Systems Limited was incorporated in 1985 and is based in Hyderabad, India.