Apollo Finvest (India) Shows Strong Long-Term Growth, But Declining Profits Raise Concerns

Apollo Finvest (India) has recently caught the attention of investors as its stock call has been upgraded to 'Hold' by MarketsMOJO on April 19, 2024. This microcap company in the finance/NBFC industry has shown strong long-term fundamental strength with an average return on equity (ROE) of 19.18%. Its net sales have grown at an annual rate of 42.60% and operating profit at 69.14%, indicating healthy long-term growth.
In terms of technical analysis, the stock is currently in a bullish range and has shown improvement from mildly bullish on April 19, 2024. Multiple factors such as RSI, MACD, Bollinger Band, and KST are also bullish for the stock.

Majority shareholders of Apollo Finvest (India) are promoters, which can be seen as a positive sign for investors. The stock has also outperformed the market (BSE 500) with a return of 83.73% in the last year, compared to the market's return of 36.27%.

However, the company has declared negative results for the last five consecutive quarters, with net sales and profits showing a decline. Its net sales have grown at -61.65% and PAT at -21.02% in the last half-year. Additionally, its PBT less OI (quarterly) is at its lowest at Rs 2.40 crore.

With an ROE of 18.4, Apollo Finvest (India) currently has a very expensive valuation with a price to book value of 7. However, the stock is trading at a discount compared to its average historical valuations. While it has generated a high return in the past year, its profits have fallen by -31.9%. Investors should carefully consider these factors before making any investment decisions.