New Delhi: Affle India Limited's stock surged 9.4 percent to reach a fresh 52-week peak of Rs 1,465 on July 9 in early trading, continuing its upward trend for the second consecutive day following a 'buy' rating from Citi based on strong growth potential. Around 9:45 am, the company's shares were being traded at Rs 1,425, showing a 6.3 percent increase from the previous closing price on the NSE. Affle India's stocks have increased by 26.5 percent over the past three months.
Citi analysts have set a target price of Rs 1,600 per share, suggesting a 17 percent increase from current market levels. Affle India delivers mobile advertising services by utilizing IT and software development.
Additionally, its focus on return on equity (RoE) in mergers and acquisitions is expected to lead to a business revival in key developed markets such as the US. Citi also mentioned that they anticipate a 20 percent CAGR in revenue and a 400 basis points increase in EBIT margins from FY24 to FY27.
In the March quarter (Q4FY24), the company's consolidated net profit increased by 40 percent year-on-year to Rs 87.5 crore, compared to Rs 62 crore in the previous year. In succession, the net income increased by 14% to Rs 76.8 crore in the December quarter.
In Q4FY24, the company saw a 42 percent increase in revenue from operations, reaching Rs 506 crore, up from Rs 356 crore from the previous year. In FY24, the company saw a 21.5 percent increase in net profit to Rs 297 crore, up from Rs 244.58 crore in FY23.
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