AFFLE - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 3.8

📊 Fundamental Analysis Summary

Affle India Ltd (AFFLE) is a high-growth digital tech company with strong profitability, minimal debt, and rising institutional interest. However, its valuation is significantly stretched, which tempers its attractiveness for long-term investors unless earnings growth continues at a robust pace.

Metric Value Interpretation

Market Cap ₹27,915 Cr Mid-to-large cap — stable and scalable

Stock P/E 69.6 Highly overvalued vs. industry PE of 31.8

PEG Ratio 3.27 Overvalued relative to growth — caution signal

ROE / ROCE 14.0% / 16.8% Solid capital efficiency — supports long-term potential

Dividend Yield 0.00% No dividend — pure growth play

Debt-to-Equity 0.03 Virtually debt-free — low financial risk

EPS ₹28.5 Strong earnings — supports valuation

Book Value ₹210 Price-to-book ~9.4× — premium valuation

PAT Growth (QoQ) +21.8% Strong earnings momentum

RSI / MACD 59.0 / -5.14 RSI neutral; MACD slightly negative — mixed technical signals

FII/DII Holding Change +2.33% / -1.49% FII buying — bullish sentiment; DII trimming — neutral

52W Price Range ₹1,221 – ₹2,080 Near 52-week high — momentum-driven

📉 Valuation & Entry Price Zone

PEG ratio above 3 suggests significant overvaluation. While growth is strong, a better entry point would improve risk-reward.

Ideal Entry Zone: ₹1,750 – ₹1,850

This range aligns with DMA levels and offers a safer accumulation zone.

Wait for consolidation or broader market correction to enter.

🧭 If You Already Hold the Stock

Holding Strategy

Time Horizon: 3–5 years — suitable for compounding via digital ad tech growth

Exit Strategy: Consider partial exit if price exceeds ₹2,200–₹2,300 without corresponding EPS or PEG improvement

Monitor: PEG ratio, PAT trend, and ROCE sustainability

Key Triggers to Watch

PAT consistently above ₹110 Cr per quarter

PEG ratio falling below 2.0

ROCE improving to 18%+

🧠 Final Thoughts

Affle is a high-quality digital growth stock with strong fundamentals and minimal debt. While valuation is rich, its earnings momentum and sector tailwinds justify a premium. Best suited for growth-oriented investors with a long-term horizon and tolerance for volatility.

Would you like a comparison with other digital tech or ad-tech players like Nazara Tech or Route Mobile to explore alternatives with better valuation metrics?

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