Affle 3i (AFFLE)

FairStock Score: 62/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer