⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
AFFLE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | AFFLE | Market Cap | 18,955 Cr. | Current Price | 1,347 ₹ | High / Low | 2,187 ₹ |
| Stock P/E | 149 | Book Value | 139 ₹ | Dividend Yield | 0.00 % | ROCE | 8.64 % |
| ROE | 6.39 % | Face Value | 2.00 ₹ | DMA 50 | 1,512 ₹ | DMA 200 | 1,679 ₹ |
| Chg in FII Hold | -1.23 % | Chg in DII Hold | 1.68 % | PAT Qtr | 36.7 Cr. | PAT Prev Qtr | 30.0 Cr. |
| RSI | 39.2 | MACD | -63.8 | Volume | 3,80,452 | Avg Vol 1Wk | 3,35,758 |
| Low price | 1,221 ₹ | High price | 2,187 ₹ | PEG Ratio | 5.54 | Debt to equity | 0.00 |
| 52w Index | 13.1 % | Qtr Profit Var | 25.4 % | EPS | 9.05 ₹ | Industry PE | 23.1 |
📊 Financials
- Revenue & Profitability: PAT improved from ₹30 Cr. to ₹36.7 Cr., showing 25.4% quarterly growth. EPS at ₹9.05 remains modest relative to valuation.
- Margins & Returns: ROCE at 8.64% and ROE at 6.39% are weak, reflecting poor efficiency compared to industry peers.
- Debt & Liquidity: Debt-to-equity ratio of 0.00 indicates a debt-free balance sheet, enhancing financial stability.
- Cash Flow: No dividend yield, suggesting reinvestment but limited direct shareholder returns.
💹 Valuation
- P/E Ratio: 149 vs Industry PE of 23.1 — extremely overvalued.
- P/B Ratio: Current price ₹1,347 vs Book Value ₹139 — trading at ~9.7x book value, very expensive.
- PEG Ratio: 5.54 — indicates stretched valuation relative to growth.
- Intrinsic Value: Current price far exceeds fair value, offering little margin of safety.
🏢 Business Model & Competitive Advantage
- Operates in digital advertising and mobile marketing, leveraging technology-driven solutions.
- Strong industry positioning but profitability metrics remain weak.
- Debt-free structure is a competitive advantage, but high valuations dilute attractiveness.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Reasonable accumulation range between ₹1,220 – ₹1,300, near its 52-week low.
- Long-Term Holding: Fundamentals are weak relative to valuation. Suitable only for high-risk investors betting on digital advertising growth. Accumulate cautiously on dips.
✅ Positive
- Debt-free balance sheet enhances financial resilience.
- Quarterly PAT growth of 25.4% shows earnings momentum.
- DII holdings increased by 1.68%, reflecting domestic institutional confidence.
⚠️ Limitation
- Extremely high P/E ratio (149) compared to industry average.
- Weak ROCE and ROE highlight poor efficiency.
- No dividend yield reduces attractiveness for income investors.
📉 Company Negative News
- FII holdings declined by 1.23%, showing reduced foreign investor confidence.
- RSI at 39.2 and MACD negative (-63.8) reflect bearish technical signals.
📈 Company Positive News
- Quarterly PAT growth highlights improving earnings trajectory.
- DII holdings increased, showing confidence from domestic institutions.
🏭 Industry
- Digital advertising industry benefits from rising mobile penetration and online commerce.
- Industry PE at 23.1 is far lower than company’s valuation, highlighting relative overpricing.
🔎 Conclusion
AFFLE shows strong industry positioning and debt-free stability but suffers from weak efficiency and extremely high valuations. While earnings growth is visible, the stock trades at a steep premium with limited margin of safety. Best strategy: accumulate cautiously near ₹1,220–₹1,300 only if confident in long-term digital advertising growth, otherwise avoid due to valuation risks.