Affle 3i Ltd (AFFLE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Intellect Design

Sagility

Inventurus Knowl

Netweb Technol.

KPIT Technologi.

Affle 3i

Newgen Software

Zensar Tech.

Tata Technolog.

Cyient

Tata Elxsi

Why is Affle 3i Ltd ?

High Management Efficiency with a high ROE of 15.44%

Company has a low Debt to Equity ratio (avg) at 0 times

Healthy long term growth as Net Sales has grown by an annual rate of 44.00% and Operating profit at 38.38%

The company has declared Positive results for the last 7 consecutive quarters

OPERATING CF(Y) Highest at Rs 425.99 Cr
NET SALES(Q) Highest at Rs 646.72 cr
PBDIT(Q) Highest at Rs 146.12 cr.

With ROE of 12.9, it has a Very Expensive valuation with a 7.1 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -7.68%, its profits have risen by 22.3% ; the PEG ratio of the company is 2.5

High Institutional Holdings at 33.69%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 1.46% over the previous quarter.

Below par performance in long term as well as near term

Along with generating -7.68% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Affle 3i should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Affle 3i for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Affle 3i

-8.0%

-0.23

33.78%

Sensex

4.53%

0.45

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

44.00%

EBIT Growth (5y)

38.38%

EBIT to Interest (avg)

27.78

Debt to EBITDA (avg)

0.53

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

0.81

Tax Ratio

18.12%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

33.69%

ROCE (avg)

22.39%

ROE (avg)

15.44%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.09

EV to EBIT

50.02

EV to EBITDA

40.03

EV to Capital Employed

9.87

EV to Sales

8.93

PEG Ratio

2.51

Dividend Yield

ROCE (Latest)

19.74%

ROE (Latest)

12.88%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

17What is working for the Company

OPERATING CF(Y)

Highest at Rs 425.99 Cr

NET SALES(Q)

Highest at Rs 646.72 cr

PBDIT(Q)

Highest at Rs 146.12 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 22.59%

PBT LESS OI(Q)

Highest at Rs 113.05 cr.

PAT(Q)

Highest at Rs 110.51 cr.

EPS(Q)

Highest at Rs 7.87

-2What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.70 times

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Here's what is working for Affle 3i

Operating Cash Flow - Annually

Highest at Rs 425.99 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Net Sales - Quarterly

Highest at Rs 646.72 cr and Grown