Apollo Micro Systems
Apollo Micro Systems
Aerospace & DefenseKey Fundamentals
SmallcapEngineeringAerospace & DefenseTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Strengths
2- Company is expected to give good quarter
- Company has delivered good profit growth of 61.8% CAGR over last 5 years
Weaknesses
5- Stock is trading at 10.7 times its book value
- Promoter holding has decreased over last quarter: -2.00%
- Company has a low return on equity of 10.2% over last 3 years.
- Promoters have pledged 30.5% of their holding.
- Company has high debtors of 194 days.
Growth Rate
AI Analysis — Bull vs Bear
Apollo Micro Systems has a market capitalisation of about ₹15,091 crore and trades at a P/E of 130.3 and a P/B of 10.42. Growth has been strong: 3-year sales CAGR is 45%, 3-year profit CAGR is 76%, and TTM sales and profit growth are 69% and 83%. Against that, 3-year ROE is only about 10%, promoters have pledged 30.5% of their holding, and debtor days stand at 194.
- Profit has compounded at 62% CAGR over 5 years and 76% over 3 years, and TTM profit growth has picked up to 83%.
- Revenue growth is speeding up: TTM sales growth is 69%, compared with 45% CAGR over 3 years and 35% over 5 years.
- Profit growth has been faster than sales growth over every period shown (for example 76% vs 45% over 3 years), which points to widening margins and operating leverage.
- ROE has improved from a 5-year average of 9% to 12% last year, a sign that returns are getting better as the company scales.
- The stock has returned 101% CAGR over 5 years and 92% over 3 years, reflecting sustained market recognition of its growth.
- At a market cap of about ₹15,091 crore, the company is exposed to India's domestic defence electronics theme, and 69% TTM sales growth indicates it is winning orders in that space.
- Near-term momentum is supportive, with the company expected to report a good quarter following 83% TTM profit growth.
- The P/E of 130.3 leaves little room for error, since it assumes very high growth will continue for years.
- A P/B of 10.42 (around 11x book) looks stretched next to a 3-year average ROE of only 10.2%.
- Promoters have pledged 30.5% of their holding. If the share price falls sharply, this could lead to forced selling and adds governance risk.
- Debtor days are high at 194, meaning cash is tied up in receivables. This strains working capital and may hold back cash flow conversion despite 83% TTM profit growth.
- Promoter holding fell by 2.00% last quarter, which may signal dilution or promoter selling.
- Returns on capital are modest: ROE averaged 9% over 5 years and 10% over 3 years, which is low for a stock valued at 130x earnings.
- The stock's 1-year return has slowed to 23%, well below the 92% 3-year CAGR, which may mean the re-rating is losing steam.
- The dividend yield is 0.06%, so shareholders get almost no income support if growth or valuation disappoints.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Equity dilution from preferential issue Sep 23
The proposed preferential issue covers 2.28 crore equity shares and 5.69 crore warrants, which will dilute existing shareholders. The company clarified its EGM notice, including allottee shareholding patterns, after regulatory observations.
- Rich valuation leaves little margin Sep 22
ICICI Direct values the stock at 60x consolidated FY28E P/E, and Systematix uses 55x average FY28-29 EPS. Both depend on 65% revenue CAGR being delivered, so any execution slip carries de-rating risk.
- Short-term price momentum soft Sep 22
The stock is down about 3% over three months even after a 106% six-month rally. At ₹408.9 it trades about 12% below its 52-week high of ₹466.50, set on Jul 3, 2026.
- Order book more than doubles Sep 22
The order book rose from ₹735 crore in Q1FY26 to ₹1,704 crore by Q1FY27, and management expects ₹2,500-3,000 crore of additional orders in FY27. The company sees a pipeline of about ₹12,000 crore over 24 months from mines, torpedoes and missiles.
- Systematix initiates Buy, ₹570 target Sep 7
Systematix initiated coverage with a ₹570 target, implying about 46% upside, and the stock rose 4.4% to ₹406 on the day. It projects revenue rising from ₹904 crore to ₹2,460 crore and EBITDA from ₹218 crore to ₹625 crore over FY26-28.
- ICICI Direct Buy, ₹485 target Sep 22
ICICI Direct set a 12-month target of ₹485, about 19% above the ₹408.9 price (the headline says 25%), including ₹67/share for Premier Explosives. The stock gained 5.96% intraday, taking market cap to ₹15,194.70 crore, with ROE at 15.67%.
- CCI clears Premier Explosives acquisition Sep 23
CCI said no approval is needed because the target's turnover is below thresholds, so the open offer can go ahead. Together with the ₹107 crore IDL Explosives buy in Nov 2025, this builds full missile platform capability.
- SALHS Transfer of Technology win Sep 16
The company received Transfer of Technology for the Semi Active Laser Homing System, presented by Defence Minister Rajnath Singh. This strengthens its precision-guidance work and its path toward being a tier-I defence supplier.
- FY26 final dividend record date Sep 8
The record date for the FY26 final dividend is September 23, 2026. The payout still needs shareholder approval at the AGM on September 30.
- Investor meets in Hyderabad, Mumbai Sep 14
Physical analyst meetings were scheduled for Sep 17-18, 2026 in Hyderabad and at the Anand Rathi G-200 Summit in Mumbai on Sep 22. Only publicly available information was to be shared.
TL;DR: Apollo Micro Systems is building strong operating momentum: its order book more than doubled to ₹1,704 crore, the SALHS ToT win and Premier Explosives deal push it toward integrated weapon-systems capability, and two brokerages see ₹485-570 targets. The main risks are rich 55-60x forward valuations that depend on 65% revenue CAGR, shareholder dilution from the preferential issue of 2.28 crore shares and 5.69 crore warrants, and choppy short-term price action below the ₹466.50 high. The fundamental trend is improving, and converting the ₹12,000 crore pipeline (QRSAM, Akash-NG, Pinaka, torpedoes) into orders will decide whether the premium holds.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 58 | 87 | 91 | 135 | 91 | 161 | 148 | 162 | 134 | 225 | 252 | 293 | 251 |
| Expenses | 45 | 69 | 67 | 107 | 69 | 128 | 110 | 126 | 93 | 166 | 202 | 226 | 198 |
| Operating Profit | 13 | 18 | 24 | 29 | 22 | 33 | 38 | 36 | 41 | 59 | 50 | 68 | 54 |
| OPM % | 22% | 21% | 26% | 21% | 25% | 20% | 26% | 22% | 31% | 26% | 20% | 23% | 21% |
| Other Income | 0 | 0 | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 3 | 2 |
| Interest | 8 | 7 | 7 | 8 | 8 | 7 | 9 | 11 | 12 | 13 | 14 | 9 | 11 |
| Depreciation | 3 | 3 | 3 | 3 | 3 | 4 | 4 | 4 | 4 | 5 | 6 | 7 | 8 |
| PBT | 3 | 9 | 14 | 18 | 12 | 22 | 26 | 22 | 25 | 43 | 32 | 55 | 38 |
| Tax % | 42% | 25% | 31% | 29% | 29% | 30% | 30% | 36% | 30% | 30% | 28% | 33% | 33% |
| Net Profit | 2 | 7 | 10 | 13 | 8 | 16 | 18 | 14 | 18 | 30 | 23 | 37 | 25 |
| EPS in Rs | 0.08 | 0.28 | 0.35 | 0.46 | 0.28 | 0.51 | 0.6 | 0.46 | 0.55 | 0.93 | 0.72 | 1.05 | 0.72 |
Profit & Loss
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|
| Sales | 246 | 203 | 243 | 298 | 372 | 562 | 904 | 1,022 |
| Expenses | 197 | 165 | 198 | 233 | 288 | 433 | 685 | 791 |
| Operating Profit | 49 | 39 | 46 | 64 | 84 | 129 | 219 | 231 |
| OPM % | 20% | 19% | 19% | 22% | 23% | 23% | 24% | 23% |
| Other Income | 2 | 1 | 1 | -2 | 2 | 3 | 5 | 8 |
| Interest | 15 | 16 | 17 | 22 | 30 | 34 | 47 | 46 |
| Depreciation | 10 | 9 | 9 | 10 | 11 | 15 | 22 | 25 |
| PBT | 25 | 14 | 20 | 29 | 44 | 83 | 155 | 167 |
| Tax % | 45% | 29% | 28% | 35% | 29% | 32% | 31% | — |
| Net Profit | 14 | 10 | 15 | 19 | 31 | 56 | 107 | 115 |
| EPS in Rs | 0.67 | 0.49 | 0.7 | 0.9 | 1.1 | 1.84 | 3.16 | 3.42 |
| Div. Payout % | 7% | 5% | 4% | 3% | 5% | 14% | 8% | — |
Balance Sheet
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|
| Equity Capital | 21 | 21 | 21 | 21 | 28 | 31 | 36 |
| Reserves | 275 | 284 | 299 | 363 | 490 | 576 | 1,277 |
| Borrowings | 83 | 117 | 116 | 144 | 208 | 335 | 543 |
| Other Liabilities | 86 | 110 | 164 | 165 | 230 | 357 | 512 |
| Total Liabilities | 465 | 532 | 599 | 693 | 956 | 1,299 | 2,368 |
| Fixed Assets | 50 | 49 | 86 | 106 | 144 | 182 | 477 |
| CWIP | 37 | 52 | 30 | 32 | 35 | 72 | 196 |
| Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Assets | 378 | 430 | 484 | 555 | 777 | 1,045 | 1,694 |
| Total Assets | 465 | 532 | 599 | 693 | 956 | 1,299 | 2,368 |
Cash Flow
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|
| Operating | 47 | 6 | 43 | -16 | -76 | 10 | -130 |
| Investing | -19 | -23 | -24 | -35 | -60 | -91 | -357 |
| Financing | -36 | 17 | -19 | 51 | 136 | 121 | 536 |
| Net Cash Flow | -8 | 0 | 0 | 0 | 0 | 40 | 49 |
| Free Cash Flow | 20 | -16 | 21 | -50 | -131 | -82 | -357 |
| CFO/OP | 108 | 24 | 98 | -21 | -87 | 13 | -50 |
Ratios
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|
| Debtor Days | 201 | 305 | 205 | 180 | 231 | 155 | 194 |
| Inventory Days | 421 | 546 | 597 | 594 | 612 | 553 | 478 |
| Days Payable | 115 | 189 | 258 | 195 | 239 | 258 | 230 |
| Cash Conversion Cycle | 507 | 661 | 544 | 579 | 605 | 450 | 442 |
| Working Capital Days | 312 | 372 | 314 | 319 | 348 | 253 | 256 |
| ROCE % | — | 8% | 9% | 11% | 12% | 14% | 15% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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63 extracted metrics + investor summaries across FY16–FY27.
Documents
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Company Information
Apollo Micro Systems Ltd is a pioneer in design, development, assembly and testing of electronic and electro mechanical solutions.[1]
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