Affle India Ltd Stock Review

Affle India Ltd

ABOUT 

Affle India is engaged in the business of providing mobile advertisement services through information technology and software development services for mobiles.

• Market Cap₹ 13,515 Cr.
• Current Price₹ 5,301
• High / Low₹ 6,287 / 1,255
• Stock P/E147
• Book Value₹ 106
• Dividend Yield0.00 %
• ROCE42.7 %
• ROE43.5 %
• Face Value₹ 10.0
• Industry PE25.3
• Pledged percentage0.00 %
• Profit growth41.8 %
• Sales growth44.9 %
• PEG Ratio
• Sales growth 5Years%
• CMP / FCF378
• Debt to equity0.37
• Reserves₹ 246 Cr.
• Profit Var 5Yrs%
• Free Cash Flow 3Yrs₹ 107 Cr.
• Price to book value49.8
• Price to Sales29.7
• Return on assets33.4 %

PROS

• Company is expected to give good quarter

CONS

• Stock is trading at 49.81 times its book value
• Though the company is reporting repeated profits, it is not paying out dividend
• Promoter holding has decreased over last quarter: -1.20%
• Debtor days have increased from 62.57 to 81.40 days.

Our Business Platforms

ConsumerPlatform

We hold a leading market position in India 

and a strong competitive advantage in 

international markets. Our consumer

platform delivers consumer acquisitions, 

engagements and transactions through 

relevant mobile advertising for leading 

brands and B2C companies globally. 

Our  consumer platform optimi ses the 

integrated online and offline consumer

journeys to drive incremental ROIs and 

deep funnel conversions for customers 

across their owned digital assets as well as 

the paid digital media ecosystem.

This platform is a result of strong R&D over

the past 15 years. It consists of multiple 

machine learning algorithms, in particular

predi c ti o n and re co m m e ndati o n

algorithms, and operates in real time and 

at a significant scale.

We pride ourselves 

on delivering consumer acceptable 

advertisements that users are likely

to engage with through rich media 

experiences paired with data-centric 

scientific targeting and retargeting.

Connected

Devices Reached

2.1+ billion

Data Points

Processed

550+ billion

Primary

Markets:

India,

South East Asia,

Middle East &

Africa and

Latin America

Other key

Markets:

North America, 

Europe and

Japan, Korea

and 

Australia

Affle is well placed as over 95% of our business is Mobile apps focused

Indian Perspective & Outlook: Digital economy in India has crossed inflexion point and is now on a rapid growth 

trajectory. In the last few years, the Government of India has undertaken several initiatives that are helping 

India transform into a broad-based digital led economy. India’s digital leap is well under way propelled by both 

public and private-sector actions and majorly driven by (a) young and aspirational population, (b) increased 

adoption of smartphones and (c) growing per capita income.

In India, the average monthly mobile data usage per smartphone continues to show robust growth boosted by 

the rapid adoption of 4G. Only 4% of households have fixed broadband, making smartphones the only way to 

access the internet in many cases.

More and more consumers are preferring to use smartphones to interact with digital platforms across 

e-commerce, OTT/entertainment, fintech, online gaming, healthcare, telecom, education, and others. 

 This in   turn, is driving the need for advertisers to reach consumers on smartphones and adopt omnichannel marketing 

strategy.

Digital Advertising Trends & Opportunities in India

Digital Advertising Industry (Rs. billion)

The total Digital ad spend in India increased by 

37.6% from Rs. 116 billion in FY2018 to Rs. 160 billion 

in FY2019; and it is further projected to increase to 

Rs. 539 billion by FY2024, representing a (FY19 - 

FY24) CAGR of 27.5%. 

Indian digital advertising channel is set to become 

the largest amongst all media channels including 

TV, print, radio, Out-of-Home, etc. as ad spends 

are expected to be increasingly redirected towards 

digital formats. A segment that is fuelling growth for 

digital advertising segment is mobile advertising, 

driven by 4G penetration, cost-effective data 

packages, proliferation of the mobile apps and 

social media, m-commerce and rapid growth in 

smartphone penetration