Apollo Micro Systems Reports 139.79% Net Profit Growth Amid Market Underperformance

Apollo Micro Systems, a small-cap player in the electronics components sector, has recently reported impressive financial metrics, showcasing its operational strength. The company achieved a remarkable annual growth rate of 34.51% in operating profit, while net profit surged by an impressive 139.79% in the quarter ending September 2024. This marks a continuation of positive performance, with the company posting favorable results for five consecutive quarters.
The return on capital employed (ROCE) stands at 12.32%, indicating efficient use of capital, although the valuation appears high with an enterprise value to capital employed ratio of 4.2. In terms of sales, Apollo Micro Systems recorded net sales of Rs 160.71 crore, the highest in recent quarters.

Despite these strong financial indicators, the stock has faced challenges, underperforming the broader market with a return of -12.70% over the past year, while the BSE 500 index gained 15.70%. Additionally, 25.3% of promoter shares are pledged, which could exert further pressure on stock prices in a declining market. Overall, while the company demonstrates solid growth metrics, its stock performance has been less favorable in the current market landscape.