This small-cap AI stock engaged in digital advertising, utilizing AI and mobile technology to drive personalized, performance-based marketing solutions across emerging and developed markets, is in focus after Sherkhan gave a buy target price of Rs. 1,880, which has an upside potential of 35.06 percent.
Stock Price Movement
With a market capitalization of Rs. 19,709.52 crore, the shares of Affle India Limited closed at Rs. 1,402.85 per equity share, down nearly 3.91 percent from its previous day’s close price of Rs. 1,460.
Company Overview
Affle India Limited was established in 1994 and is a global technology company offering a proprietary consumer intelligence platform. It provides mobile advertising solutions through platforms like Appnext, RevX, and Vizury, enhancing marketing ROI and reducing digital ad fraud for global brands.
Target
SherKhan, a prominent brokerage firm, has recommended a “Buy” call on Affle India Limited with a target price of Rs. 1,880 per share, indicating an upside potential of 35.06 percent from today’s low of Rs. 1,392.
Rationale
Sherkan highlighted that Affle India Limited is enhancing its 3i consumer platform with Optics AI, delivering personalized, hyper-contextual, and hyper-localized creatives for an optimized user experience. The company plans significant growth by expanding its customer base through connected TVs (CTVs) and AI-driven personalization.
Additionally, with 100 AI agents trained to collaborate with more than 600 employees, Affle aims to boost productivity and contribute to authentic intelligence, reinforcing its market leadership.
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Guidance and Future Outlook
Affle India Limited is confident about achieving over 20 percent growth in FY2025 and aims to maintain this strong performance. The company’s long-term goal of 10x growth is still on track, with a focus on improving operational efficiency and profitability. In the medium term, they are targeting an EBITDA margin of around 23 percent and a PAT margin between 17 percent and 18 percent.
Innovation and Technology
Affle India Limited continues to invest in next-gen technologies, including AI, to drive innovation. The company has recently secured new patents in India for intelligent agent conversational systems and utilizing advertisement fraud data to blacklist fraudulent entities. Additionally, its Affle2.0 Consumer Platform Stack has been recognized for its exceptional performance, earning multiple awards.
Performance of 9M FY25
In 9M FY2025, Affle India Limited reported a 24.5 percent year-on-year revenue growth and a 32.9 percent increase in PAT. Additionally, CPCU revenue rose by 31.9 percent year-on-year, highlighting strong performance across key financial metrics.
Recent quarter results
Affle India Limited’s revenue has increased from Rs. 499 crore in Q3 FY24 to Rs. 602 crore in Q3 FY25, which has grown by 20.64 percent. The net profit has also grown by 29.87 percent from Rs. 77 crore in Q3 FY24 to Rs. 100 crore in Q3 FY25.
Written By- Nikhil Naik
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