Prabhudas Lilladher has given Buy recommendation for Affle (India) with a target price of Rs. 1496 in its research report issued on Nov 12, 2021

Prabhudas Lilladher’s research report on Affle (India)

Affle reported exceptionally strong revenue growth +103.6% YoY much above our & cons estimates (Ple: 66.6%, Cons: 68%) led by strong growth in organic business (34% YoY) as well as Jampp (revenue of ~INR 824 mn, ~50% above pre-acquisition quarterly revenue run-rate of ~INR 545 mn). This reflects Affle’s success in bringing back growth focus in Jampp which was struggling with growth & profitability pre-acquisition. Converted users in CPCU business grew at strong rate of 73% YoY and CPCU rate jumped to INR 51.3 (+22.1% QoQ) led by higher share of international revenue (66.9% in Q2, Jampp based in LATAM contributed 30% of revenue). Affle’s deep domain vertical capabilities has led to continued growth in contribution from direct customers, 74% revenue in H1FY22 (vs 67% in FY21, 57% in FY20).


Our EPS estimates increase by ~16%/6%/2% for FY22/23/24 led by increase in revenue estimates. We arrive at a DCF based TP of INR 1496 (implied earnings multiple of 63.3x on FY24EPS). Affle is currently trading at 72.3/49.5 on FY23/24 EPS of 16/24 with revenue/EPS CAGR of 39%/37% over FY22-24E.

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