NSEI:APOLLO

Stock Analysis Report

Executive Summary

Apollo Micro Systems Limited designs, develops, manufactures, and sells electronic, electro-mechanical, and engineering solutions in India and internationally.


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

How has Apollo Micro Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: APOLLO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.6%

APOLLO

16.9%

IN Aerospace & Defense

9.3%

IN Market


1 Year Return

-68.7%

APOLLO

-26.5%

IN Aerospace & Defense

-29.6%

IN Market

Return vs Industry: APOLLO underperformed the Indian Aerospace & Defense industry which returned -26.1% over the past year.

Return vs Market: APOLLO underperformed the Indian Market which returned -30.6% over the past year.


Shareholder returns

APOLLOIndustryMarket
7 Day9.6%16.9%9.3%
30 Day-38.4%-15.5%-23.3%
90 Day-39.7%-28.5%-28.0%
1 Year-68.7%-68.7%-23.1%-26.5%-28.2%-29.6%
3 Yearn/a-29.0%-30.6%-15.8%-20.5%
5 Yearn/a-28.0%-30.4%-4.7%-9.6%

Price Volatility Vs. Market

How volatile is Apollo Micro Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Apollo Micro Systems undervalued compared to its fair value and its price relative to the market?

4.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: APOLLO (₹45.15) is trading above our estimate of fair value (₹12.23)

Significantly Below Fair Value: APOLLO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: APOLLO is good value based on its PE Ratio (4.1x) compared to the Aerospace & Defense industry average (7.8x).

PE vs Market: APOLLO is good value based on its PE Ratio (4.1x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate APOLLO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: APOLLO is good value based on its PB Ratio (0.3x) compared to the IN Aerospace & Defense industry average (1.4x).


Next Steps

Future Growth

How is Apollo Micro Systems forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.2%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Apollo Micro Systems has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Apollo Micro Systems performed over the past 5 years?

19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APOLLO has high quality earnings.

Growing Profit Margin: APOLLO's current net profit margins (8.8%) are lower than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: APOLLO's earnings have grown by 19.8% per year over the past 5 years.

Accelerating Growth: APOLLO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: APOLLO had negative earnings growth (-12.9%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (33.5%).


Return on Equity

High ROE: APOLLO's Return on Equity (7.8%) is considered low.


Next Steps

Financial Health

How is Apollo Micro Systems's financial position?


Financial Position Analysis

Short Term Liabilities: APOLLO's short term assets (₹3.8B) exceed its short term liabilities (₹1.6B).

Long Term Liabilities: APOLLO's short term assets (₹3.8B) exceed its long term liabilities (₹130.8M).


Debt to Equity History and Analysis

Debt Level: APOLLO's debt to equity ratio (33.1%) is considered satisfactory.

Reducing Debt: APOLLO's debt to equity ratio has reduced from 159.4% to 33.1% over the past 5 years.

Debt Coverage: APOLLO's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: APOLLO's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet

Inventory Level: APOLLO has a high level of physical assets or inventory.

Debt Coverage by Assets: APOLLO's debt is covered by short term assets (assets are 4x debt).


Next Steps

Dividend

What is Apollo Micro Systems's current dividend yield, its reliability and sustainability?

2.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: APOLLO's dividend (2.24%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: APOLLO's dividend (2.24%) is low compared to the top 25% of dividend payers in the Indian market (4.16%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether APOLLO's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if APOLLO's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: Unable to calculate sustainability of dividends as APOLLO has not reported any payouts.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

₹16m

CEO Compensation


CEO

Karunakar Baddam (57yo)

no data

Tenure

₹15,500,000

Compensation

Mr. Karunakar Reddy Baddam serves as Managing Director, Founder and Director at Apollo Microsystems Private Limited. 


CEO Compensation Analysis

Compensation vs Market: Karunakar's total compensation ($USD205.70K) is above average for companies of similar size in the Indian market ($USD48.16K).

Compensation vs Earnings: Karunakar's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: APOLLO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Apollo Micro Systems Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Apollo Micro Systems Limited
  • Ticker: APOLLO
  • Exchange: NSEI
  • Founded: 1997
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: ₹928.146m
  • Shares outstanding: 20.76m
  • Website: https://www.apollo-micro.com

Number of Employees


Location

  • Apollo Micro Systems Limited
  • Plot No 128/A
  • Road No. 12, BEL Road
  • Hyderabad
  • Andhra Pradesh
  • 500076
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540879BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2018
APOLLONSEI (National Stock Exchange of India)YesEquity SharesININRJan 2018

Biography

Apollo Micro Systems Limited designs, develops, manufactures, and sells electronic, electro-mechanical, and engineering solutions in India and internationally. The company offers aerospace products, such as DSP products, missile hardware simulators, integrated avionics modules, generic PCM encoders and decoders, DSSS de-modulators, seeker electronics, RPF and signal processing systems, turret control and power units, missile interface units, launcher controllers, launcher interface units, tiger sharc DSP-signal processors, quad actuator controllers, fault tolerant relay boxes, and DSP controllers. It also provides ground defense products, including ESM-eagle kits, embedded arss controllers, PSU controllers, and auxiliary controllers; and integrated payload checkout systems, satellite data simulators, high speed frame synchronizers, time code readers/generators, bit synchronizers, monopulse tracking receivers, PCIE-HSDR systems, PCM-two channel decommutators, PCIe based two channel data acquisition cards, and PCI-X based two channel serial data acquisition cards. In addition, the company offers transportation products, such as GPA based integrated mine management systems, weight-in-motion systems, tire care products, passenger information systems, and station announcement systems; Embedded solutions, including Ethernet, base band modules, converters, USB/Ethernet protocol converters, dual data bus couplers, data bus solutions, and on-board computers; and home land security systems comprising solar smart street lighting systems, CCTV surveillance systems, vehicle tracking systems, boom barrier systems, RFID fleet management systems, and passenger information displays. Apollo Micro systems Limited was founded in 1997 and is based in Hyderabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 13:34
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.