This article we can explore the possibility of Affle India Ltd as a multibagger 2022 Stock based on Value Investing principles.
| Website | https://affle.com |
| CMP | Rs. 1148.00 |
About Affle India Ltd
Affle is a global technology company with a proprietary consumer intelligence platform that transforms ads into recommendations helping marketers to effectively identify, engage, acquire and drive transactions with their potential and existing users. Affle India successfully completed its IPO in India on 08.08.19 and now trades on the stock exchanges (BSE: 542752 & NSE: AFFLE).
Affle is a global technology company that uses its consumer intelligence platform to deliver targeted mobile advertising. Its consumer platform is used by online & app companies for mobile advertising and mobile monetization, while its enterprise platform helps offline companies get online through platform based app development, O2O commerce and data analytics. The company was founded in 2005 and is backed by investors such as Microsoft, D2 Communications Inc. – a subsidiary of NTT Docomo, Bennett Coleman & Co. Ltd., Itochu, and Centurion Private Equity among others. Affle has 4 offices spread across India and South East Asia. These include offices in Gurugram (India), Jakarta (Indonesia), Mumbai (India) and Singapore.
Affle has been active in the mobile advertising domain since 2005. The first platform launched by Affle in 2006 i.e. SMS2.0 focused on bringing content and advertisements to the mobile on an enhanced messaging application. Affle’s strategic partnership with D2C Inc. in 2011 aimed to provide mobile advertising solutions to companies in Asia. Affle entered into multiple partnerships with companies such as Yahoo, NDTV, Multi Screen Media, Micromax and others to bring mobile advertising solutions to their users. Currently Affle leverages its in-house built platforms (MAAS, mSSP, mKr8, mDMP, mCDP, mFaaS etc.) to deliver contextual mobile ads, while reducing ad fraud and addressing consumer privacy concerns.
Affle (India) Limited was incorporated as a private limited company with the name Tejus Securities Private Limited’ on August 18 1994. As on January 2006 the Company was owned and managed by Mukesh Tusayan Raj Pal Singh Rana and certain other shareholders. Subsequently in January 2006 the entire equity share capital of Tejus Securities Private Limited was acquired by Anuj Khanna Sohum individual Promoter along with Anuj Kumar and Madhusudan Ramakrishna. Thereafter the name of the Company was changed to Affle (India) Private Limited’ on September 29 2006. The Company was subsequently converted to a public limited company and the name of the Company was changed to its present name i.e. Affle (India) Limited’ on July 13 2018.
Products
- Appnext
- Jampp
- MAAS
- FaaS
- MEDIASMAAT
- MTraction Enterprise
- RevX
- VIZURY
Services
- Digital Transformation
- Digital Consultation
- Application Services
- Cloud Services
Profit & loss
Warren Buffett Checklist
| Factor | Value |
| Economic moat | Good |
| Growth | Good |
| Valuation | High |
| Debt | Good |
| Integrity | Good |
Positives
- Company is in Expansion Spree accelerated by the Digital Marketing Push during the COVID-Pandemic times. The growth is set to continue through long-term locked in client relations
- The ROCE & ROE are 40% above which is high accolade
- The Debt of the company is low & Promoter is holding 60%
- The Intrinsic Value shows 50% Discount still
- Trading at 30% Discount due to the Russia-Ukraine war issues
Negatives
- Stock is trading at 15X its Book Value
- The PE Ratio is clocking high at 75
Summary
As per the Expansion & Value Investing grounds the company have Multibagger Potential.
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