AI stock with 18% profit growth guidance & 23% EBITDA margin target to keep on your radar

The internet advertising market in India is expected to grow at a compound annual growth rate (CAGR) of 12.3 percent, with total revenue projected to reach USD 7.9 billion by 2027. This growth presents numerous opportunities for advertisers to promote their products and services through the region’s expanding media platforms. 

Additionally, India’s economic growth has enhanced the purchasing power of a significant portion of the population, leading to a more affluent and brand-conscious consumer base.

Price Action 

The shares of Affle India, with a total market capitalization of Rs 20,098 Crore on Thursday, closed at Rs 1430.5 per share, which was 1.1 percent lower than the previous closing price of Rs 1,446.9. The shares of Affle India have generated an impressive five-year return of 385 percent. 

Patents

Affle India Ltd. has a robust patent portfolio focusing on advanced technologies, particularly in artificial intelligence (AI), mobile advertising, and consumer intelligence. It has a total of 36 Patents, with 12 granted and the rest filed & pending across jurisdictions.

Management Guidance

The management of the company is expecting an EBITDA margin of 23 percent in the medium-term with a PAT margin of 17 to 18 percent. The company is confident in achieving over 20 percent growth in FY25 and sustaining this trajectory. Its long-term goal of 10x growth remains intact, with a focus on maintaining operational efficiencies and profitability. 

The company’s focus on innovation and investment in next-gen technologies, including AI, continues to strengthen its competitive moat. The company emphasized Return On Advertising Spend, also known as RoAS, and ROI, which are more critical than ever for customers, positioning them at the forefront of delivering scalable and profitable outcomes for customers globally.

Financials

The company’s Revenue grew by 20.6 percent YoY from Rs 498.7 Crore in Q3FY24 to Rs 601.7 Crore in Q3FY25. Their PAT grew by 30.5 percent YoY from Rs 76.8 Crore to Rs 100.2 Crore, and the EBITDA rose by 35.9 percent from Rs 96.7 Crore to Rs 131.4 Crore over the same period. 

73.6 percent of the company’s revenue comes from India and Emerging Markets, and the remaining 26.4 percent comes from Developed markets. 

About Affle India

Affle India Ltd. is a global technology company specializing in mobile advertising and consumer intelligence. It offers platforms like Appnext, RevX, and Vizury to enhance consumer engagement through personalized recommendations. Affle’s solutions help marketers optimize their digital marketing strategies across various channels.

Written By Adhvaitha Nayani

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post AI stock with 18% profit growth guidance & 23% EBITDA margin target to keep on your radar appeared first on Trade Brains.