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On Monday, Citi analyst Vijit Jain increased the price target for Affle India Ltd (NSE:AFFL) (AFFLE:IN) to INR 1,920, up from INR 1,850, while reiterating a Buy rating on the company’s shares.
Affle India reported a robust revenue growth, with figures reaching Rs 6.0 billion, marking a 21% year-over-year (YoY) increase and an 11% quarter-over-quarter (QoQ) rise. This performance was attributed to widespread growth in both India and emerging markets (EM), which saw a 20% YoY growth, and developed markets (DM), which experienced a 23% YoY increase.
The company has continued to demonstrate strong growth in conversions for its clients, with a notable 23% YoY improvement, while effectively managing to keep costs stable. Affle’s EBITDA (earnings before interest, taxes, depreciation, and amortization) and EBIT (earnings before interest and taxes) margins stood at 22% and 18% respectively, benefiting from consistent gross margins and reduced employee expenses.
On a year-over-year basis, the company’s revenue, EBITDA, and profit after tax (PAT) have all seen significant increases of 21%, 36%, and 30%, respectively. However, these figures are tempered by a higher tax rate compared to the previous year.
In light of these results, Citi has revised its estimates for Affle India. The forecasted earnings per share (EPS) for the fiscal years 2025 and 2026 have been reduced by approximately 4% from earlier predictions, while EBITDA projections for the same periods have been slightly lowered by 1%, factoring in higher taxes and depreciation and amortization expenses than previously estimated.
The new target price set by Citi, at INR 1,920 per share, is based on a 48 times September 2026 PE (price-to-earnings ratio), a slight adjustment from the 50 times March 2026 PE used earlier.
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