YouAppi

Aug 10, 2023

Sharekhan is bullish on Affle (India) has recommended buy rating on the stock with a target price of Rs 1270 in its research report dated August 07, 2023. Broker Research Buy Affle (India) reported revenue at Rs 407 crore, up 14.3% q-o-q/ 17% y-o-y beating estimates aided by organic growth and largely on account of contribution from the acquired business YouAppi. Converted users grew 11% y-o-y to 6.9 crore, while the CPCU rate grew by 5.6% y-o-y with higher revenue mix from international markets. EBITDA margin declined 55 bps y-o-y to 19.2% in Q1FY24 due to higher Inventory and data costs, and employee expenses. The management aims to increase the CPCU rate to Rs.55-58 and eventually reach Rs. 58 for the remainder of FY24. Management is confident of achieving 20% plus growth in India and emerging markets globally and has guided for 20% growth in PAT for FY24. Outlook We maintain Buy rating on Affle India with revised PT of Rs. 1270, given the consistent growth in key markets and further supplemented by turnaround in developed markets on account of implemented strategies and contribution from YouAppi acquisition. At CMP, the stock trades at 50.5/40.4x its FY2024/FY2025E EPS.