MarketsMOJO Upgrades Apollo Micro Systems to 'Hold' Rating Amid Strong Financial Performance

Apollo Micro Systems, a smallcap company in the electronics components industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's healthy long-term growth, with an annual operating profit growth rate of 34.51%. Additionally, the company has declared outstanding results for the last five consecutive quarters, with a net profit growth of 139.79%.
The company's financial indicators also show positive signs, with its ROCE (HY) at a high of 12.32% and operating profit to interest (Q) at 4.52 times. Its net sales (Q) are also at a high of Rs 160.71 crore. However, the stock is currently in a mildly bearish range, with its MACD and KST technical factors also showing a bearish trend.

Despite its strong financial performance, the stock is currently trading at a very expensive valuation, with an enterprise value to capital employed ratio of 4.2. However, it is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a negative return of -15.79%, while its profits have increased by 105%. The PEG ratio of the company stands at 1.2.

It is worth noting that 25.3% of the promoter shares are pledged, which can put additional downward pressure on the stock prices in falling markets. This proportion has also increased by 7.85% over the last quarter. In the last year, the stock has underperformed the market (BSE 500) by generating negative returns of -15.79%, while the market has generated returns of 26.22%.

In conclusion, while Apollo Micro Systems has shown strong financial performance and received a 'Hold' rating from MarketsMOJO, the stock is currently in a mildly bearish range and trading at a high valuation. Investors should carefully consider these factors before making any investment decisions.