SSJ Finance and securities has come out with its report on Apollo Micro systems IPO , The research firm has recommended to “ Subscribe ” the IPO in its research report as on December 09, 2017.
Incorporated on March 3, 1997 Apollo Micro Systems Limited (AMSL) is an Electronic, Electro-Mechanical, Engineering Designs, Manufacturing and Supplies Company. The company Design, Develop and Sell High performance, Mission and Time Critical Solutions to Defence, Space and Home Land Security for Ministry of Defence, government controlled public sector undertakings and private sectors.AMSL intends to diversify its services and solution categories into other industries or marketplaces. Although its focus has always been defence sub-systems / systems development and manufacturing including space, defence, aerospace, strategic electronics, it intends to develop technologies for railways, homeland security to expand its roots in non-defence sectors. It also intends to foray into emerging market like e vehicles. It is also planning to foray into missiles and other system integration including wiring harness. It also intends to participate into growth opportunities arising out of the Digital India and the Make-in-India programs of the Indian Government
AMSL has reported a CAGR of 54.2% and 58.3% on revenue and net profit fronts respectively over FY2013-2017. On its upper band of price of Rs 275, the issue is priced at PE ratio of 27.1x of its H1FY2018 annualised EPS of Rs 10.2. We believe that the IPO is fairly priced leaving a room for upside. Hence, we recommend to Subscribe the IPO.
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