Affle India is a digital mobile advertising company that uses artificial intelligence (AI) to show ads to customers based on their behavior. The company’s focus is heavily on the Indian market, which accounts for around 49.3% of its revenue. Affle India has registered 18 patents in its business, making it difficult for new companies to enter the market.
The company’s main competitors, such as Google and Facebook, charge customers for each click or impression, but Affle India charges for conversions using AI. The company has seen a 63% compounded growth in sales over the last three years, and its net profit margin has increased by 25% each year. In this article, we will take a closer look at Affle India’s future growth prospects and attempt to estimate the company’s share price targets for 2023, 2024, 2025, and 2030.
To get a better understanding of Affle India’s growth potential, it is important to analyze the company’s financial performance. According to its financial statements, the company has a debt of around INR 150 crore (approximately $20 million) and a cash reserve of INR 1100 crore (approximately $150 million). The company’s return on capital employed (ROCE) has increased by 40% year-on-year, while its return on capital (ROC) has increased by 46%. These are positive indicators of the company’s financial health and growth potential.
Future of Affle India
One of the key drivers of Affle India’s future growth is the increasing shift towards digital advertising. As more and more companies move away from traditional mediums such as TV, radio, and print, the digital advertising industry is expected to grow at a rate of 28% in the coming years. Affle India, with its strong AI technology and customer data, is well-positioned to take advantage of this growth. The company’s focus on the Indian market, where it has a strong understanding of consumer behavior, also puts it in a good position to capture a significant share of the market.
Now that we have a better understanding of Affle India’s business and financial performance, let’s attempt to estimate the company’s share price targets for the next few years.
Based on the company’s strong financial performance and growth potential, analysts believe that the share price could reach INR 1350 to INR 1480 in 2023.
If the company continues to perform well and capture a significant share of the digital advertising market, the share price could reach INR 1650 to INR 1800 in 2024.
With the digital advertising industry expected to continue growing at a rapid pace, Affle India’s share price could reach INR 2990 to INR 3150 in 2025.
Looking further into the future, the company’s share price could reach INR 4550 to INR 4850 in 2030, depending on the company’s ability to maintain its growth and market share.
It is not appropriate for me to provide investment advice, as stock prices are influenced by a variety of factors and it is not possible to accurately predict how these factors will change in the future. It is important for investors to do their own research and consult with a financial advisor before making any investment decisions.