Affle 3i has reported an impressive revenue growth of 19.3% year-over-year, reaching Rs 12.7 billion in the first half of FY26. The company's CPCU revenue grew by 18.2% year-over-year, accounting for approximately 98.8% of the total revenue.
The recent 20-22% correction in the stock price was mainly due to lower-than-estimated CPCU revenue, caused by ad-budgets shifting to Q3 from Q2 in the US amid tariff-related uncertainty and partial RMG impact in India. However, the company is optimistic about its future growth, expecting a topline growth of 18-20% year-over-year in the near term, and over 20% thereafter.
With a strong balance sheet and a net cash of approximately Rs 14.6 billion, Affle 3i is well-positioned for inorganic acquisitions. The company's valuation is also attractive, with a price-to-earnings ratio of 45x Sep'27e earnings. We upgrade our rating to BUY with an unrevised target price of Rs 2,000.
The near-term key trigger for the company would be good inorganic acquisitions, which could further boost its growth prospects. With the festive season in India and the revival in developed markets, Affle 3i is poised for a strong performance in the coming quarters.
Disclaimer: The views and investment tips expressed are those of the investment experts and not of the website or its management. It is advised to check with certified experts before taking any investment decisions.
Download the TradeKaizen app to practice F&O trading with real-time market data anytime, anywhere.
Get it on Google PlayConnect with fellow traders, share strategies, and improve your trading skills in our Telegram group.
Join Telegram