Affle India Share Price Hit 52 Week high on Citi 'Buy' Rating, Predicts 17% Upside

Affle India shares surged 9.4% to reach a new 52-week high of ₹1,465 during morning trade on July 9, continuing their upward trend for the second consecutive session. This rally followed Citi's initiation of coverage with a 'buy' rating, highlighting the company's strong growth prospects.

Around 9:45 am IST, Affle India share price were trading at ₹1,425, marking a 6.3% increase from the previous close on the NSE. Over the past three months, the company's shares have climbed 26.5%.

Citi analysts have set a target price of ₹1,600 per share, suggesting a potential upside of 17% from the current levels. Affle India offers mobile advertisement services through its information technology and software development platforms.

The brokerage firm emphasized that Affle India is well-positioned to capitalize on the recovery in mobile ad budgets and is positively leveraged towards digital ad spending. Additionally, Citi noted that the company's return on equity (RoE)-focused M&A strategy is expected to drive a business turnaround in major developed markets like the US. They project a 20% compound annual growth rate (CAGR) in topline from FY24 to FY27, along with a 400 basis points (bps) expansion in EBIT margins during this period.

For the March quarter (Q4FY24), Affle India reported a 40% year-on-year increase in consolidated net profit, reaching ₹87.5 crore, up from ₹62 crore in the same period the previous year. Sequentially, net profit rose 14% from ₹76.8 crore in the December quarter.

The company's revenue from operations increased by 42% to ₹506 crore in Q4FY24, compared to ₹356 crore a year earlier. For the entire fiscal year FY24, Affle India's net profit grew by 21.5% to ₹297 crore, up from ₹244.58 crore at the end of FY23.

Affle (India) Limited operates as a technology company, providing a consumer intelligence platform that facilitates consumer engagements, acquisitions, and transactions through mobile advertising. The platform aims to enhance returns on marketing investments via contextual mobile ads and reduce digital ad fraud. Affle (India) serves customers globally.