Affle 3i (AFFLE)
Fast GrowerFairStock Score: 62/100 — STEADY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,668.8 |
| Market Cap | ₹23,486.77 Cr |
| P/E Ratio | 49.26 |
| ROCE | 16.82% |
| ROE | 14.88% |
| Dividend Yield | 0% |
| Profit Growth | 37.51% |
| Debt/Equity | 0 |
| Sales Growth | 11.79% |
| Free Cash Flow | ₹334 Cr |
| Promoter Holding | 54.95% |
| 52-Week Range | ₹1,251.3 — ₹2,185.9 |
| Sector | IT - Services |
| Book Value | ₹260.06 |
Strengths
- Five-year revenue CAGR of 34.39% shows exceptional growth execution.
- Near-zero debt (D/E 0.01) and strong liquidity with Altman Z-Score of 5.27.
- High promoter holding of 54.95% aligns interests with minority shareholders.
- Piotroski F-Score of 8/9 indicates very good financial health.
Concerns
- Extremely high valuation: P/E of 44.22, P/B of 6.84, and negative margin of safety vs Graham Number and DCF value.
- No dividend yield, so shareholders depend entirely on price appreciation.
- Negative EV/EBITDA of -159.31 raises a red flag about earnings quality or EBITDA distortions.
- Recent stock price is near the upper half of the 52-week range despite falling from ₹2,185.90, leaving limited near-term upside cushion.
AI Analysis
When I look at Affle 3i, I see a business that has grown at a remarkable pace: a five-year revenue CAGR of 34.39%, with latest quarter sales of ₹717 Cr and net profit of ₹119 Cr. Sales and profit growth of roughly 19% last year are consistent, and the balance sheet is clean — debt-to-equity is just 0.01, return on equity is 14.88%, and return on capital employed is 16.82%. The Piotroski F-Score of 8/9 and Altman Z-Score of 5.27 tell me the company is financially sound. Promoter holding of 54.95% aligns interests with minority shareholders. So why don't I feel comfortable buying today? Price. At ₹1,431.75, the market capitalisation is ₹19,385 Cr, but the DCF intrinsic value is only ₹838.17 and the Graham Number is ₹388.28. That means my margin of safety is deeply negative — roughly minus 255%. The P/E of 44.22 and P/B of 6.84 are demanding prices for a company earning 14.88% ROE. Free cash flow of ₹334 Cr against a ₹19,385 Cr market cap gives a paltry free cash flow yield. There is also no dividend, so returns depend entirely on continued flawless execution. The negative EV/EBITDA is a warning I cannot ignore. This is a good growth business, but good business is not necessarily a good investment at any price. I would wait for Mr. Market to offer Affle at a far more reasonable valuation before deploying capital.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer