The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E. Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

live

bselive
nselive

Volume

Todays L/H

Sharekhan's research report on Affle (India)

Affle’s huge addressable market (mobile ad spend to grow much higher than the 12-13% CAGR for global digital ad spending over CY21-25E), focus on high growth client verticals (e-commerce, EdTech, Foodtech, gaming and Healthtech) and 2V/2O strategies would sustain high revenue growth (expect 33% PAT CAGR over FY22-25E). Gradual scale-up of Jampp’s EBITDA margin over next two years to high-teens level would drive 231 bps improve in Affle’s EBITDA margin over FY22-25E. Further, management aims to ramp-up Jampp’s revenue to $100 million (versus $54 mn in FY22) over next couple of years. Management expects Google’s blocking of pop-up add-on gaming would have a minimal impact as revenue share from gaming is less than 10% and pop-ups are the least preferred user targeting tool for Affle.

Outlook

We maintain a Buy on Affle (India) Limited with a revised PT of Rs. 1,515 given its presence in high-growth emerging markets, robust cost per converted user (CPCU) business model, strong tech platforms and patents, focus on 2V and 2O strategies and successful acquisitions in the past. We expect revenue/earnings to post a CAGR of 33%/37% over FY2022-FY2025E.

Buy Affle (India); target of Rs 1515: Sharekhan

Sharekhan is bullish on Affle (India) has recommended buy rating on the stock with a target price of Rs 1515 in its research report dated September 12, 2022.

Related stories