AFFLE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | AFFLE | Market Cap | 20,017 Cr. | Current Price | 1,422 ₹ | High / Low | 2,187 ₹ |
| Stock P/E | 157 | Book Value | 139 ₹ | Dividend Yield | 0.00 % | ROCE | 8.64 % |
| ROE | 6.39 % | Face Value | 2.00 ₹ | DMA 50 | 1,450 ₹ | DMA 200 | 1,616 ₹ |
| Chg in FII Hold | -1.13 % | Chg in DII Hold | 1.54 % | PAT Qtr | 36.7 Cr. | PAT Prev Qtr | 30.0 Cr. |
| RSI | 49.4 | MACD | 5.59 | Volume | 1,46,485 | Avg Vol 1Wk | 2,76,098 |
| Low price | 1,251 ₹ | High price | 2,187 ₹ | PEG Ratio | 5.86 | Debt to equity | 0.00 |
| 52w Index | 18.2 % | Qtr Profit Var | 25.4 % | EPS | 9.05 ₹ | Industry PE | 26.0 |
📊 Financials: AFFLE shows weak efficiency with ROE at 6.39% and ROCE at 8.64%. Debt-free balance sheet (0.00 debt-to-equity) is a positive. PAT improved from ₹30 Cr. to ₹36.7 Cr., reflecting earnings growth. EPS of ₹9.05 remains modest relative to valuation.
💹 Valuation: Current P/E of 157 is extremely high compared to industry average (26.0), signaling severe overvaluation. PEG ratio of 5.86 highlights expensive growth prospects. P/B ratio (~10.2) is stretched against book value ₹139, limiting intrinsic value appeal.
🏢 Business Model: AFFLE operates in digital advertising and mobile marketing, benefiting from rising demand in consumer engagement platforms. Competitive advantage lies in proprietary technology and client base. However, weak return metrics and stretched valuations reduce attractiveness.
📈 Entry Zone: Safer entry near ₹1,380–1,420, close to DMA 50 (₹1,450) and support levels. Current price ₹1,422 is slightly above fair entry zone, making staggered accumulation advisable.
📌 Long-Term Holding: Risky for long-term investors due to overvaluation and weak efficiency metrics. Suitable only for speculative positions with strict risk management.
Positive
- Debt-free balance sheet (0.00 debt-to-equity)
- Quarterly PAT growth from ₹30 Cr. to ₹36.7 Cr.
- DII holdings increased (+1.54%), showing domestic investor confidence
- EPS growth supported by 25.4% quarterly profit variation
Limitation
- Extremely high P/E (157) vs industry average (26.0)
- Low ROE (6.39%) and ROCE (8.64%)
- PEG ratio of 5.86 indicates expensive growth
- P/B ratio (~10.2) far above intrinsic value
- Price trading below 200 DMA (₹1,616), showing medium-term weakness
Company Negative News
- FII holdings decreased (-1.13%), reflecting reduced foreign investor confidence
Company Positive News
- Quarterly profit growth of 25.4% shows earnings momentum
- Strong domestic institutional support with increased DII holdings
Industry
- Industry P/E at 26.0, much lower than company’s 157, highlighting overvaluation
- Digital advertising sector has growth potential but faces competitive pressures
Conclusion
⚠️ AFFLE is a weak long-term candidate due to stretched valuations and poor efficiency metrics. Entry near ₹1,380–1,420 may offer short-term upside, but exit near ₹1,500–1,550 is advisable. Risk management is critical as fundamentals do not strongly support sustained momentum.