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Last Updated : Jun 02, 2020 12:38 PM IST | Source: Moneycontrol.com

Buy Affle India; target of Rs 1775: ICICI Direct

ICICI Direct is bullish on Affle India has recommended buy rating on the stock with a target price of Rs 1775 in its research report dated Jun 01, 2020.

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ICICI Direct's research report on Affle India


Affle India (Affle) reported healthy growth in Q4FY20 revenues. Revenues increased 32.3% YoY to Rs 80 crore (organic revenue growth was ~11%). In terms of revenue split, India revenues (account for 54% of revenues) increased 45% YoY to Rs 43.4 crore (entire growth was organic) while international revenues increased 28% YoY to Rs 38.6 crore (entirely driven by acquisition & organic revenue growth fell ~15%). EBITDA and PAT adjusted for write back of creditors, were broadly flat. Adjusted EBITDA, PAT margins were at 25%, 18% vs. 33%, 24% in Q4FY19, respectively.



Outlook


The company will be a key beneficiary of increased spend in mobile advertising (to increase at ~35% CAGR in 2019-25). Further, in a post Covid world, we expect a significant shift among consumers to adopt digital technology globally, which will drive long term revenues. In addition, the company’s unique business model, healthy PAT margins (above 19%) and RoIC of 26% makes Affle an attractive company. Hence, we have a BUY recommendation on the stock with a target price of Rs 1,775/share.





For all recommendations report, click here


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First Published on Jun 2, 2020 12:38 pm
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