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Check Before You Invest : Apollo Micro Systems Ltd

BSE: 540879 NSE: APOLLO ISIN: INE713T01028
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Defence

Snapshot

Q.1 Which industry/sub-sector does Apollo Micro Systems Ltd belong to?
Apollo Micro Systems Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Defence segment.
Q.2 Is Apollo Micro Systems Ltd a good quality company?
Apollo Micro Systems Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Apollo Micro Systems Ltd undervalued or overvalued?
Apollo Micro Systems Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Apollo Micro Systems Ltd a good buy now?
Apollo Micro Systems Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Apollo Micro Systems Ltd?
Apollo Micro Systems Ltd revenue growth is 51.2% for FY-2025 , which is above its 5 year CAGR of 18% , indicating faster growth.
Q.2 Gross Profit margin of Apollo Micro Systems Ltd?
Apollo Micro Systems Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.6% for FY-2025 , which is above its 5 year median of 14.5% , indicating increasing margins.
Q.3 Operating Profit Margin of Apollo Micro Systems Ltd?
Apollo Micro Systems Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.1% for FY-2025 , which is above its 5 year median of 21.64% indicating increasing margins.
Q.4 Net Profit Margin of Apollo Micro Systems Ltd?
Apollo Micro Systems Ltd Net Profit Margin is 10.18% for FY-2025 , is above with its 5 year median of 6.41%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 17.6 14.5
Operating Profit Margin 23.1 21.64
Net Profit Margin 10.18 6.41
Q.5 Return on Asset of Apollo Micro Systems Ltd?
Apollo Micro Systems Ltd Return on Asset is 5.16%, which is above its 5 year historical median of 2.95%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Apollo Micro Systems Ltd?
Apollo Micro Systems Ltd Return on equity is 10.25% for FY-2025 , which is above its historical median of 5.8%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Apollo Micro Systems Ltd?
Apollo Micro Systems Ltd Return on capital employed is 14.52% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Apollo Micro Systems Ltd?
Apollo Micro Systems Ltd Cash conversion cycle is 300 days, below its historical median of 387 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.51 0.45
ROE 10.25 5.8
ROCE 14.52 10.78
Cash Conversion Cycle 300 days 387 days
Q.9 Debt to Equity ratio of Apollo Micro Systems Ltd?
Apollo Micro Systems Ltd Debt-to-Equity ratio is 0.48 , which is above with the industry average of 0.19 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Apollo Micro Systems Ltd?
Apollo Micro Systems Ltd Debt to cash flow from operations is 24.58 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Apollo Micro Systems Ltd?
Promoters hold 51.98% of the Apollo Micro Systems Ltd, with 34.18% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Apollo Micro Systems Ltd vs industry peers?
Apollo Micro Systems Ltd revenue CAGR is 17.98% , compared to the industry median CAGR of 26.82% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 562.1 161.4
Gross Profit 98.9 40.3
Operating Profit 129 48
Net Profit 57 19
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.51 0.59
ROE 10.25 12.43
ROCE 14.52 17.53
Cash Conversion Cycle (days) 299.87 155

Valuation & price assessment

Q.1 Stock return of Apollo Micro Systems Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 91.19% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 91.2% 93% 106.4%
Q.3 Valuation ratios of Apollo Micro Systems Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 85.23 26.20 41.06
Price to Book 6.1 0.85 7.15
Price to Sales 11.51 1.26 8.05
EV to EBITDA 42.86 8.98 35.11

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