Prabhudas Lilladher has given Buy recommendation for Affle (India) with a target price of Rs. 7023 in its research report issued on Sep 24, 2021

Prabhudas Lilladher’s research report on Affle (India)

We are initiating coverage on Affle India with BUY rating as- 1) It is a play on rising digital adoption with mobile being the preferred channel, 2) It operates in emerging markets that have high growth in digital advertising (30% CAGR over FY21-25E) & are underpenetrated at ~30% digital ad spend vs ~50% globally, 3) It has differentiated end-to-end digital advertising capability with high ROI driven pricing model, 4) ability to expand addressable market share by profitably scaling up acquisitions with unique tech capabilities and 5) It maintained above average margins despite operating in emerging markets with low unit economics.


We expect revenue/EPS CAGR of 54%/30% over FY21-24E and arrive at DCF based TP of Rs 7023 (implies 92/61x P/E on FY23/24E EPS of 76/116).

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