Q3FY21 Company Update - Affle India - ICICI Direct

Affle India's (Affle) revenues increased 59.3% YoY (up 11.5% QoQ) to Rs. 150.5 crore, mainly led by healthy growth in organic revenues (up 21% YoY) and inorganic revenues (at Rs. 36 crore). EBITDA margins were down 340 bps YoY (flat QoQ) to 25.5%. PAT was up 42.9% YoY to Rs. 30.6 crore due to a lower tax rate.

Valuation & Outlook

Robust growth in the Indian region (30% CAGR over the next five years) led by higher online shopping and improved penetration in tier-2 & tier-3 cities of India is expected to drive topline. This coupled with geographic expansion and significant shift among consumers to adopt digital technology globally will drive long term revenues. In addition, the company's unique business model, healthy PAT growth (CAGR of 40%) prompt us to remain positive on the stock. Hence, we maintain BUY recommendation on the stock with a target price of Rs. 5100 (72x FY23E EPS) (earlier target price of Rs. 3,525).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Affle_CoUpdate_Feb21.pdf

Source : Equity Bulls

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