Buy Affle (India); target of Rs 1270 Sharekhan

Sharekhan's research report on Affle (India)

Affle (India) revenue grew 6.1% q-o-q/ 21.6% y-o-y to Rs. 431.3 crore, in line with our estimates of 430.6 crore. led by strong CPCU revenues, up 5.9 q-o-q/21.3% y-o-y. EBITDA margin rose 26 bps y-o-y to 20.2 % due to lower Inventory & data costs and employee expenses. Management expects a multi-year growth trend in emerging markets, including India, due to advertisers being under-calibrated on verticals. The company aims Rs 1,800 crore of revenues for FY24.

Outlook

We maintain Buy on Affle (India) with unchanged PT of Rs. 1270, given consistent growth in India and global emerging markets as well as improvement across developed markets led by turnaround plans. At CMP, the stock trades at 42.2/35.8x its FY2025/FY2026E EPS.