AFFLE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | AFFLE | Market Cap | 23,139 Cr. | Current Price | 1,645 ₹ | High / Low | 2,187 ₹ |
| Stock P/E | 182 | Book Value | 139 ₹ | Dividend Yield | 0.00 % | ROCE | 8.64 % |
| ROE | 6.39 % | Face Value | 2.00 ₹ | DMA 50 | 1,701 ₹ | DMA 200 | 1,757 ₹ |
| Chg in FII Hold | -1.23 % | Chg in DII Hold | 1.68 % | PAT Qtr | 36.7 Cr. | PAT Prev Qtr | 30.0 Cr. |
| RSI | 39.0 | MACD | -47.8 | Volume | 2,63,564 | Avg Vol 1Wk | 3,55,143 |
| Low price | 1,221 ₹ | High price | 2,187 ₹ | PEG Ratio | 6.77 | Debt to equity | 0.00 |
| 52w Index | 43.9 % | Qtr Profit Var | 25.4 % | EPS | 9.05 ₹ | Industry PE | 25.4 |
📊 Financials: AFFLE’s financial strength is modest, with ROCE at 8.64% and ROE at 6.39%, reflecting weak capital efficiency. Quarterly PAT improved from ₹30 Cr. to ₹36.7 Cr., showing growth momentum. Debt-to-equity is 0.00, indicating a debt-free balance sheet. EPS of ₹9.05 is relatively low compared to its market cap of ₹23,139 Cr.
💹 Valuation: The stock trades at a P/E of 182, far above the industry average of 25.4, suggesting extreme overvaluation. P/B ratio is ~11.8 (1645/139), also expensive. PEG ratio of 6.77 highlights stretched valuations relative to growth. Dividend yield is 0%, offering no income support for investors.
🏢 Business Model & Competitive Advantage: AFFLE operates in digital advertising and mobile marketing, leveraging consumer intelligence platforms and partnerships with app developers. Its competitive advantage lies in proprietary technology and exposure to India’s fast-growing digital economy. However, profitability metrics remain weak, limiting shareholder value creation.
📈 Entry Zone: Technicals show RSI at 39 (near oversold) and MACD negative, with price below DMA 50 & 200. Accumulation may be considered near ₹1,300–1,450 for long-term investors. Current valuations are stretched, so cautious entry is recommended.
Positive
- Debt-free balance sheet (Debt-to-equity 0.00).
- Quarterly PAT growth of 25.4%.
- Strong industry tailwinds in digital advertising and mobile marketing.
Limitation
- Extremely high P/E ratio (182) compared to industry average (25.4).
- Weak ROCE (8.64%) and ROE (6.39%).
- No dividend yield, reducing investor appeal.
Company Negative News
- Decline in FII holdings (-1.23%) shows reduced foreign investor confidence.
- Weak technical momentum with MACD negative and price below DMA 200.