Buy Affle (India): target of Rs 6580: Sharekhan
Sharekhan is bullish on Affle (India) has recommended buy rating on the stock with a target price of Rs 6580 in its research report dated March 12, 2021.
March 15, 2021 / 02:31 PM IST
Sharekhan's research report on Affle (India)
The change relating to third-party cookies on browsers could be positive for Affle as more advertiser budgets would flow to mobile in-app and on-device advertising. In a year, Q3 continues to remain the highest quarter for Affle on account of business seasonality. We expect revenue to grow by 68% y-o-y to ~Rs. 135 crore in Q4FY2021, while margins are expected to contract on a y-o-y basis. Anticipated proceeds (Rs. 1,080 crore) from the forthcoming fund-raising activities via securities would be used to enhance its reach to connected devices by 5x over the next 10 years. We expect Affle to report a 35% CAGR in revenue over FY2020-FY2023E.
We maintain Buy on Affle (India) Limited with a revised price target (PT) of Rs. 6,580, given its presence in high-growth industries, unique CPCU business model, and possible beneficiary from the change relating to cookies on browsers.
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