Affle India Q3 Review - Robust Results; Outlook Remains Healthy: Axis Securities

Axis Securities Report

Financial Performance:

In Q3 FY24, Affle India Ltd. posted revenue of Rs 499 crore, registering a growth of 15.6% on a QoQ basis and 32.6% on a YoY basis. Its consolidated Ebitda for the quarter grew by 10.9% QoQ to Rs 97 crore, led by the sharp recovery in the International business.

However, the company’s Ebitda margins declined by 120 basis points QoQ to 19.4%. It reported a net income of Rs 77 crore, up 15% QoQ.

Outlook:

From a long-term perspective, we believe Affle India has strong device and client additions. We also believe that the company has superior penetration in the International business and strong revenue growth potential going ahead.

Valuation and Recommendation:

We recommend a 'Buy' rating on the stock and assign a 39 times price/earning multiple to its FY26E earnings of Rs 34.8/share to arrive at a target price of Rs 1,350/share, implying an upside of 13% from the current market price.

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