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 February 27, 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.
Technically, the stock is currently in a bullish range and has generated a return of 10.04% since February 15, 2024. Multiple factors such as MACD, Bollinger Band, and KST are also bullish for the stock. Majority shareholders of Apollo Finvest (India) are promoters, which is a positive sign for investors.

In the long term, the stock has outperformed BSE 500 and has generated a return of 129.89% in the last year. However, the company has declared negative results for the last five consecutive quarters, with net sales and profits showing a decline. The net sales for the last half-year have decreased by -61.65%, while the PAT has fallen by -21.02%. The PBT less OI(Q) is also at its lowest at Rs 2.40 cr.

Despite its strong ROE of 18.4, Apollo Finvest (India) has a very expensive valuation with a price to book value of 7.2. However, the stock is currently trading at a discount compared to its average historical valuations. While the stock has generated a high return of 129.89% in the past year, its profits have declined by -31.9%. Investors should carefully consider these factors before making any investment decisions regarding Apollo Finvest (India).