Affle 3I Ltd. share price target

The operating margin at 24.3%, down 180 bps due to pricing pressure and salary hikes. Net Profit stood at Rs 59 Cr, including one-time gain of Rs 36 Cr Converted users stood at 29.6 mn with revenue per converted user of Rs. 40.90 at the quarter end FY21Q4 vs 30.6 mn converted users at Rs. 41...

We recommend a BUY on the stock and assign 78x P/E multiple to its FY23E earnings of Rs 74.8/share which gives a TP of Rs 5,835/share, implying an upside potential of 10%.

We expect 35% CAGR growth in organic revenues Affle has been a key beneficiary of a shift of advertising budget to digital medium. This, coupled with increasing smart phone penetration and rising online shoppers from (120 million to 450 million CAGR of 24% in the next five years) is expected to drive 35% CAGR in the Indian region (50% of revenues). As majority of regions outside India where Affle has a presence are mostly emerging markets, we believe there is tremendous growth potential outside India also. In addition, Affle sees healthy traction in 10...

We recommend a BUY and assign 58x P/E multiple to its FY23 EPS of Rs 104.4 per share to arrive at a TP of Rs 6,055/share, implying an upside of 15% from CMP.

We recommend BUY and assign 54x P/E multiple to its FY23E earnings of Rs. 88.5 per share which gives a TP of Rs. 4,800 per share, an upside of 12%.

Long term growth trend continues to be healthy The Indian region is expected to increase at 30% CAGR in the next five years led by increasing smart phone penetration and rising online shoppers from (120 million to 450 million CAGR of 24% over next five years). The company expects healthy growth in geographies outside India over the next five years (which we believe could be 25-30%). In addition, Affle sees healthy traction in 10 verticals namely e-commerce, entertainment, ed tech, foodtech, fintech, FMCG, gaming, grocery, government, healthcare (that has increased...

The company has launched its audience targeting technology on CTV in Oct 2020. The combined opportunities in mobile-app video, OTT and CTV programmatic ad spending is expected to clock a 17% CAGR over 2020-2025 Affle's revenue from its top-10 industry verticals have grown at a CQGR of 26% over the last three quarters. These top-10 industries are expected to grow in the range of 20-70% CAGR over next five years. Affle aims to achieve a 10x revenue growth and reach over 10 billion connected devices from over 2.1 billion connected devices currently in the next 10 years. We...

Strong broad based performance: On the vertical front, Enterprise Platform (4.8% of revenue) was reported at Rs 3.6 cr vs Rs 3.0 Cr in Q1FY21 grew by 17% QoQ basis. CPCU Revenue (85.2% of Consumer Platform Revenue) was reported at Rs. 67.2 Cr vs Rs 39.2 Cr grown by 71% QoQ basis.

Key beneficiary of improving digital advertisement spend Q2FY21 revenue contribution from 10 verticals (e-commerce, entertainment, ed tech, foodtech, fintech, FMCG, gaming, grocery, government, healthcare) rose from 76% in Q4FY20 to 90% in Q2FY21. Going forward, the company plans to increase its penetration in these booming categories. The healthy growth in these categories coupled with increased spend in mobile advertising (to increase at ~35% CAGR in 2019-25) and taping connected devices will drive long term revenues. In addition, Affle is...

Affle Ltd. reported sturdy growth in Q1 FY21 despite macroeconomic challenges. Revenue for the period of Q1 FY21 stood at Rs. 89.8 cr grew by 12% QoQ and 20.4% YoY. Operating margin reported a marginal decline of 50bps and stood at 25%due to pricing pressure on India business.