Buy Affle India; target of Rs 1880: Sharekhan

Sharekhan's research report on Affle India

Affle’s revenue grew 10.8% q-o-q/20.6% y-o-y to Rs. 602 crore, beating our estimate of Rs. 591 crore. EBITDA margin improved 96 bps q-o-q/245 bps y-o-y to 21.8%, beating our estimate of 21%. Converted users grew 9% q-o-q/23.3% y-o-y to 103.3 crore. Despite global macroeconomic uncertainty, management is confident of achieving and sustaining over 20% growth in FY25, as industry tailwinds remain intact.

Outlook

We maintain BUY on Affle with revised PT of Rs. 1,880 (valued at 27x FY27E EPS). At the CMP, the stock trades at 60.5/49.6/39.2x its FY25/FY26/FY27E EPS.