This innovative AI stock is primed for a bull market
Affle India's strong performance in FY25 may indicate potential for further growth in FY26. The digital advertising industry is expected to continue booming, which could contribute to another rally in the company's shares. Investors may want to closely monitor market trends and company developments to assess future performance. Consider seeking advice from financial experts before making any investment decisions based on this information.
At Nvidia’s conference last month, CEO Jensen Huang projected spending to top $1 trillion by 2028 as enterprises shift from traditional data centres to AI factories. This shows that beyond infrastructure, AI is stepping into the physical world - powering robotics and multimodal intelligence, including digital media.
Affle (India)
Affle (India) is one company from the AdTech space that uses its AI driven platform in real-time predictive algorithm to target and convert users. It stands out as a promising player in the digital advertising space. In the past one month, shares of Affle India have rallied 15%. This begs the question of whether the stock is poised for more gains, given the massive growth trajectory of the digital advertising space, or will it face a roadblock... Let’s take a closer look.
Move Over TV! Digital Media Revolution is Here...
In 2024, digital media overtook television for the first time, contributing 32% of the overall revenue of media & entertainment (M&E) industry. The Indian M&E sector is projected to grow by 7.2% in 2025 to reach 2.68 trillion. Video market is expected to boom in the coming years and decades, and Affle India has a big opportunity to capture the advertising segment which is expected to grow by 8% till 2027.
Where Affle India Fits In...
Affle has a proprietary consumer intelligence platform that transforms ads into recommendations, helping marketers effectively identify, engage, acquire, and drive transactions with their potential and existing users. Affle primarily earns its revenues on a cost per converted user (CPCU) basis. It provides end-to-end solutions for enterprises to enhance their engagement with mobile users.
Affle's unique approach involves using a return on investment (ROI) linked cost per converted user (CPCU) model, where earnings are based on conversions and positive ROI for advertisers. Affle derives 72.9% of its revenues from India and emerging markets and the balance 27.1% from developed markets.
A Close Look at Affle India’s Financial
Affle has been able to grow its revenue at a compounded annual growth rate of 41% over the last 5 years, leading to an EBITDA growth CAGR of 33%. Affle India’s management is targeting 20%+ revenue growth for FY25.
What Lies Ahead?
As part of its expansion plans, Affle India is entering global markets and targeting the premium segment. The company is focused on expanding its footprint into developed markets and expanding via acquisitions. However, investors should take note of potential threats such as major privacy regulations and economic slowdowns.
How Affle India Share Price has Performed in the Past 1 Year
In the past 1 year, Affle India share price is up 45%. In the past 5 days, Affle share price has fallen 2%. In a month, the stock is up 13%. Affle has a 52-week high of 1,883 and a 52-week low of 1,010.
Ultimately, careful evaluation of the company's performance, valuations, and corporate governance is essential before considering an investment.