Apollo Micro Systems downgraded to 'Sell' by MarketsMOJO, stock in Mildly Bearish range.

Apollo Micro Systems, a smallcap company in the electronics components industry, has recently been downgraded to a 'Sell' by MarketsMOJO on August 1, 2024. This downgrade is due to the stock being in a Mildly Bearish range and its technical trend deteriorating from Mildly Bullish on August 1, 2024. Since then, the stock has generated a -3.02% return. The MACD and KST technical factors are also Mildly Bearish.
In terms of valuation, Apollo Micro Systems has a ROCE of 10.5 and a Very Expensive valuation with a 5.4 Enterprise value to Capital Employed. However, the stock is currently trading at a discount compared to its average historical valuations. Over the past year, the stock has generated a return of 100.62%, while its profits have risen by 58.4%. The PEG ratio of the company is 15.6.

One concerning factor is the falling participation by institutional investors, who have decreased their stake by -2.66% over the previous quarter and now collectively hold 7.42% of the company. This could indicate that these investors, who have better capability and resources to analyze fundamentals of companies, have lost confidence in Apollo Micro Systems.

On a positive note, the company has shown healthy long-term growth with an annual rate of 34.51% in operating profit. In the last quarter, Apollo Micro Systems declared Very Positive results with a growth in net profit of 79.33%. The company has also consistently declared positive results for the last 3 consecutive quarters. Its operating profit to interest ratio is the highest at 3.46 times, and its net sales have grown at 26.76%.

In terms of returns, Apollo Micro Systems has consistently outperformed the BSE 500 index in the last 3 annual periods, along with generating 100.62% returns in the last 1 year. However, with the recent downgrade and other concerning factors, it may be wise for investors to approach this stock with caution.