AFFLE - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.4

Here’s a detailed breakdown of Affle (India) Ltd (AFFLE)

🧾 Core Financials

Profitability & Growth

PAT remained flat QoQ at ₹29.7 Cr vs ₹30.8 Cr, with a modest 5.43% YoY growth.

EPS: ₹8.33 — relatively low for a ₹29,657 Cr market cap.

ROE: 6.39% and ROCE: 8.64% — below ideal, suggesting limited capital efficiency.

Debt & Liquidity

Debt-to-equity: 0.00 — debt-free, a major strength in volatile tech sectors.

Dividend Yield: 0.00% — reinvestment-focused, typical for high-growth digital firms.

📊 Valuation Indicators

Metric Value Industry Avg Remarks

P/E Ratio 253 32.2 Extremely overvalued

P/B Ratio ~15.7 ~5.2 High premium to book value

PEG Ratio 9.43 ~1 Price far exceeds growth

Intrinsic Value ~₹1,400–₹1,600 — Overpriced vs fundamentals

The valuation is highly stretched, with PEG suggesting growth expectations are not supported by earnings momentum.

🏢 Business Model & Competitive Edge

Core Operations: Mobile advertising and consumer engagement platforms using AI and data analytics.

Strengths

Proprietary tech stack and global reach across emerging markets.

Strong FII interest (+2.33%) reflects institutional optimism.

Risks

Sluggish profit growth and weak return ratios.

DII outflows (-1.49%) may signal domestic caution.

📉 Technical & Entry Zone

Current Price: ₹2,109

DMA 50/200: ₹1,959 / ₹1,761 — trading above key averages.

RSI: 63.3 — approaching overbought.

MACD: 45.1 — bullish momentum.

Suggested Entry Zone: ₹1,600–₹1,750 range, ideally near DMA 200 or below intrinsic value.

🕰️ Long-Term Holding Guidance

Hold only if already invested, especially for exposure to digital advertising and AI-driven platforms.

Avoid fresh entry unless valuation cools and ROE improves.

Ideal for long-term only if

PAT growth accelerates above 20% CAGR.

ROE/ROCE improve above 15% and PEG drops below 2.

Would you like a peer comparison with Nazara Technologies or a breakdown of Affle’s international revenue mix?

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