Affle India Ltd - Fundamentals and Technicals

Can Affle India Ltd become a multibagger stock? What is it’s business model? What is the right time to invest?

Affle (India) Ltd . is a portfolio stock with a huge potential to become multibagger. Why I’m saying this is because of this company’s wonderful business model as well as the fundamentals. A little brief about the company are as mentioned below:

1. Affle India is a technology company with a proprietary consumer intelligence platform that delivers consumer acquisitions, engagements, and transactions through relevant mobile advertising.

2. Technology Enabled by a Rich Patent Portfolio - 18 Patents granted and filed in fields of Consumer acceptable advertising, Messaging, Search & Ad Fraud Detection.

3. Recent Acquisitions

* Vizury platform – 2018

* Shoffr, Revx – 2019

* Mediasmart, Appnext – 2020

4. 95% of its business is Mobile apps advertisement focused & Mobile advertising spend is projected to reach a share of 64% of total digital ad spends by 2022.

5. With market Cap of Rs .13,845 the company is very small this this point of time and considering the business model, have a huge potential to become a giant.

6. ROCE - 42.7%, ROE - 43.5% which is very impressive, P/E is 151 which makes valuation of this stock look costlier but considering the fundamentals it’s not gonna stop soon.

7. Topline (Turnover) of the company has grown to aprx three times in last 4 years since listing from 167 Cr in 2018 to 455 Cr in 2021, so does bottomline (Net profit) from Rs .28 Cr in 2018 to Rs .92 Cr in 2021.

8. The company have borrowings of Rs .101 Cr in 2021 balance sheet which is negligible considering the net worth of the company.

9. On the charts long-term trend is in uptrend but short-term trend is in downtrend as you can see on the charts. This is because the stock is taking time correction after giving huge up move consistently since listing.

10. Wait for sometime buy as soon as the stock again comes in uptrend and hold for 3–4 times. (Never buy falling chart pattern, is a very basic rule of technical analysis no matter how strong is the company).

FRESH BUY - Above 5796
TARGET - At least double i.e. 12000.
Trade active: Date: 26/08/2021; CMP: 4155.6
Affle India board approves share Split in the ratio of 1:5 i.e. 1 equity will be subdivided into 5 equity shares.
Good news for long term investors, this is the right time to invest if you have not invested earlier.


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