Buy Affle 3I; target of Rs 2250: Sharekhan

Sharekhan's research report on Affle 3I

Reported revenue was up 3.1% q-o-q/19.5% y-o-y at Rs. 620.7 crore, in line with our estimates of Rs. 622.1 crore. EBITDA margin expanded~30 bps q-o-q/240 bps y-o-y to 22.5%, beating our estimate of 21.8%. Converted user base grew 2.9% q-o-q/17.8% y-o-y to 10.7 crore. The company expects to achieve 20% organic revenue growth in FY26 and is eyeing 23% EBITDA margin in the medium term.

Outlook

We maintain Buy on Affle with unchanged PT of Rs. 2,250. At CMP, the stock trades at 55.5/44.2x FY26/FY27E EPS.