Affle 3i Gets Anand Rathi's 'Buy' Upgrade On Attractive Valuation Post Recent Correction

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Anand Rathi Report

With Affle 3i Ltd.'s optimistic of ~18-20% YoY topline growth in near-term (20%+ YoY thereafter) and post-correction valuation comfort, Anand Rathi upgrades rating to Buy with an unrevised target price of Rs 2,000 (valuing at 45x Sep’27e earnings), implying an upside of 21% from the current market price of Rs 1648.

Near-term key trigger would be good inorganic acquisitions as the company has ~Rs 14.6 billion net cash on its books (H1 FY26).

Valuation

Ahead, the brokerage expects the full ~3% RMG impact (i.e., Rs 170-180 m/quarter) to playout in Q3 (and continue till H1 FY27), partially offset by festive season in India and revival in developed markets (from ~20.2% YoY in H1 FY26), as US marketing budgets ramp-up.

With company optimistic of ~18-20% YoY topline growth in near-term (20%+ YoY thereafter) and post-correction valuation comfort, the brokerage upgrade its rating to Buy.

Key Risks

• Adverse changes in data protection and data privacy policy.

• Lower marketing spends by customers.

• Inability to turn around the acquired companies.

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