AFFLE INDIA LTD - SUPER COMPANY - SUPER AGGRESSIVE MANAGEMENT
Affle is a global technology company with a proprietary consumer intelligence platform that delivers consumer engagement, acquisitions and transactions through relevant Mobile Advertising. The platform aims to enhance returns on marketing investment through contextual mobile ads and also by reducing digital ad fraud. While Affle's Consumer platform is used by online & offline companies for measurable mobile advertising, its Enterprise platform helps offline companies to go online through platform-based app development, enablement of O2O commerce and through its customer data platform.
This is a follow-up idea of the original idea posted on May 31, 2021 when the stock was in good runup mode but the stock started consolidating. Then the management decided to split the stock in 1:5 ratio. After giving price and time consolidation for around 6 months the stock again started it’s runup just after the split announcement (same time we updated the comment on previous post to take fresh entry).
We have discussed enough about the company fundamentals in our previous post let’s look at the stock from fresh perspective this time:
1. The company posted its quarterly results twice and both times the profits bets its old records.
2. The company’s India business acquired Mobile Advertising Technology Company for over $41 Million in the month of June 21.
3. Affle got US Patent Grants in the month of Sep 21.
4. Sharekhan forecast Affle India’s revenues and earnings to report a CAGR of 26% and 32%, respectively, over FY2022-FY2024E. They also believe that Affle India is better placed to capture opportunities from favourable industry tailwinds given its competencies in both in-app and on-device ecosystems, end-to-end offerings in the CPCU business model and a first-mover advantage in emerging markets.
5. From the technical point (i) the stock is trading above 50 and 200 DMAs, (ii) volume got dried up during consolidation phase now again the volume is picking up as highlighted in blue box at the bottom, (iii) Recently the stock created rounding bottom pattern and cup and handle patter in short term, (iv) the stock is ready to give fresh breakout and give another good runup.
Fresh Buy – At CMP 1197
Old Buy – Hold
Target – Hold tight, book as per comfort.
Risk Management Tip: Never invest more than 5% of your capital in any single stock.
Your likes and comments motivate us to bring more profitable studies like this.
Happy Investing!
ShareMktSchool
This is a follow-up idea of the original idea posted on May 31, 2021 when the stock was in good runup mode but the stock started consolidating. Then the management decided to split the stock in 1:5 ratio. After giving price and time consolidation for around 6 months the stock again started it’s runup just after the split announcement (same time we updated the comment on previous post to take fresh entry).
We have discussed enough about the company fundamentals in our previous post let’s look at the stock from fresh perspective this time:
1. The company posted its quarterly results twice and both times the profits bets its old records.
2. The company’s India business acquired Mobile Advertising Technology Company for over $41 Million in the month of June 21.
3. Affle got US Patent Grants in the month of Sep 21.
4. Sharekhan forecast Affle India’s revenues and earnings to report a CAGR of 26% and 32%, respectively, over FY2022-FY2024E. They also believe that Affle India is better placed to capture opportunities from favourable industry tailwinds given its competencies in both in-app and on-device ecosystems, end-to-end offerings in the CPCU business model and a first-mover advantage in emerging markets.
5. From the technical point (i) the stock is trading above 50 and 200 DMAs, (ii) volume got dried up during consolidation phase now again the volume is picking up as highlighted in blue box at the bottom, (iii) Recently the stock created rounding bottom pattern and cup and handle patter in short term, (iv) the stock is ready to give fresh breakout and give another good runup.
Fresh Buy – At CMP 1197
Old Buy – Hold
Target – Hold tight, book as per comfort.
Risk Management Tip: Never invest more than 5% of your capital in any single stock.
Your likes and comments motivate us to bring more profitable studies like this.
Happy Investing!
ShareMktSchool
Fresh breakout on the chart friends and Nifty after consolidating for sometime now showing positive signs for another good runup. Omicron outbreak is a matter of concern but now that we have learned living with that that should not be much of a issue. Accumulate more at CMP.