Buy Affle for 60% upside

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Pee Vee
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Joined: Mon Dec 26, 2016 10:45 pm

Buy Affle for 60% upside

Post by Pee Vee »

Affle has a unique business model, unmatched network effects & prudent acquisition strategy. It is well-positioned to capitalize on growth in digital advertising in high-potential sectors such as e-commerce, fintech, gaming & entertainment. TP ₹2538 (60%)

"View & valuation

Affle achieved strong revenue growth, coupled with margin expansion fueled by operating leverage, resulting in significant gains in EBITDA and PAT. This performance is driven by the Company’s continued investment in operational efficiency, leveraging synergies from its consumer platform, and integrating GenAI capabilities into its operations. As digital advertising continues to expand in India and other emerging markets, it is well-positioned to capitalize on this growth, particularly in high-potential sectors such as e-commerce, fintech, gaming, and entertainment. With a unique business model, unmatched network effects, and a prudent acquisition strategy, we have revised our estimate and maintain our BUY rating on Affle with a target price of Rs. 2,538 (60x FY27E EPS)."

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