AFFLE - Fundamental Analysis: Financial Health & Valuation

📊 Financial Overview: Affle (India) Ltd. maintains a debt-free balance sheet (debt-to-equity: 0.00) and demonstrates modest profitability with ROCE of 8.64% and ROE of 6.39%. EPS stands at ₹8.33, and quarterly PAT was ₹29.7 Cr, slightly down from ₹30.8 Cr, but still showing a positive profit variance of 5.43%. The stock is trading near its 50 DMA and above its 200 DMA, indicating neutral-to-bullish technical positioning.

💰 Valuation Metrics: The stock trades at a steep P/E of 232, far above the industry average of 33.1, suggesting significant overvaluation. The P/B ratio is ~14.4 (₹1,927 / ₹134), and the PEG ratio of 8.62 indicates that growth does not justify the current valuation. Dividend yield is 0%, reflecting a reinvestment-focused strategy.

🏢 Business Model & Competitive Edge: Affle operates in mobile advertising and digital marketing, offering consumer engagement and analytics solutions. Its proprietary platforms and AI-driven targeting provide a competitive edge in the ad-tech space. The company benefits from rising digital ad spends and mobile penetration, though margins are sensitive to platform costs and competition.

📉 Entry Zone: A more attractive entry zone lies between ₹1,600–₹1,750, closer to the 200 DMA and below recent highs, offering better valuation comfort.

📈 Long-Term Holding Guidance: Suitable for long-term investors with high risk tolerance seeking exposure to digital advertising growth. Accumulate on dips and monitor profitability trends, platform scalability, and global expansion.