Apollo Micro Systems Shares Post Third Consecutive Day of Gains as Analysts Report Strong Order Pipeline

Apollo Micro Systems Extends Gains as Company Reports Strong Q4 Earnings

Apollo Micro Systems shares continued their upward trend on Wednesday, marking the third consecutive session of gains, as the company delivered robust fourth-quarter earnings. Analysts at Choice Broking remain optimistic about the stock, citing a robust order pipeline and the company's transition towards system-level integration.

The stock rose nearly 5 percent to Rs 357.15 per share on the NSE around 2:15 p.m. Over the past three sessions, the stock has gained more than 21 percent. The company's strong earnings were reflected in its financial performance, with a net profit of Rs 38 crore for the January-March quarter of FY26, a significant increase from Rs 14 crore in the year-ago period.

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Revenue from operations rose 81 percent year-on-year to Rs 293.2 crore in the fourth quarter from Rs 161.8 crore a year earlier. Analysts at Choice Broking praised the company's execution, saying that management commentary indicated that the company's broader strategy remained on track.

While the brokerage acknowledged that margins could remain range-bound in the near term due to integration challenges and changes in product mix, it maintained a positive stance on the company. The brokerage highlighted the company's transition from a component supplier to a system integrator, expanding role, strong order pipeline, and margin outlook as key drivers of growth.

Choice Broking revised upward its FY27E and FY28E EPS estimates by 27.5 percent and 19.5 percent, respectively, and projected revenue, EBITDA, and PAT CAGR of 52.9 percent, 52.9 percent, and 54.6 percent, respectively, over FY27-29E. However, the brokerage downgraded the stock to "ADD" from "BUY" and set a target price of Rs 365, following the recent rally in the stock.