Buy Affle (India): target of Rs 6580: Sharekhan

Sharekhan is bullish on Affle (India) has recommended buy rating on the stock with a target price of Rs 6580 in its research report dated July 02, 2021.

Broker Research

July 05, 2021 / 02:06 PM IST

live

bselive
nselive

Volume

Todays L/H

Sharekhan's research report on Affle (India)

Affle completed the acquisition of Jampp for $41.3 mn. This acquisition would expand its market presence in LatAm and North America, though it would be earnings dilutive in FY2022. Affle is confident of expanding Jampp’s EBITDA margins to high-single digits within a year. Further, margin would improve to company’s level of around 25-27% by FY2024. Presence in high-growth verticals, robust CPCU business model and favourable industry tailwinds makes the management confident of clocking a 25-30% CAGR in revenues over five years. We expect revenue/earnings to post a CAGR of 54%/23% over FY2021-FY2023E.

Outlook

We maintain a Buy on Affle (India) Limited with a PT of Rs. 6,580, given strong revenue growth potential, inorganic expansion into new markets and a presence in high-growth markets.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.