Affle India share falls over 4% as board to consider stock split on August 26

Affle India stock fell over 4% today after the firm said it would consider consider and approve split of equity shares on August 26.The stock touched an intraday low of Rs 3,840, down 4.3% on BSE.

Later, the stock ended 3.70% lower at Rs 3,864 against previous close of Rs 4,012.45 on BSE.

Affle India stock has fallen 7.8% in the last 5 days. Affle India share stands lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

In one year, the share has fallen 66.79% and risen 2.12% since the beginning of this year.

Total 0.18 lakh shares of the firm changed hands amounting to turnover of Rs 7.22 crore on BSE.

A stock split leads to increase in liquidity of the stock. The stock also gets more affordable for retail investors since the company divides the existing shares into new shares.  However, market cap of the firm remains the same.

Shares of Affle India got listed in 2019 on BSE and NSE.  The shares have surged sharply from issue price of  Rs 745.

On March 5 this year, the stock hit 52-week high of Rs 6,287 and 52 week low of Rs 2,086 on August 21, 2020.

Since March’s high, the share has fallen 38.55% till date.

In Q1 of the current fiscal, net profit rose 90% to Rs 35.73 crore against Rs 18.77 crore in the corresponding quarter of previous fiscal.

Net sales rose 69.85% to Rs 152.47 crore  in June quarter against Rs 89.77 crore profit in the corresponding quarter of previous fiscal.

Post Q1 earnings,  brokerage Sharekhan  said in a note,” Increasing direct customers’ revenue contribution and partnerships with OEMs would help Affle to maintain its market position given higher access to first-party data; expect revenue/earnings to post a CAGR of 45%/32% over FY2021-FY2024E.”

“We maintain a Buy on Affle (India) Limited with a revised price target of Rs 6,000, given greater adoption of its platforms, a unique CPCU business model and expansion into new geographies, the brokerage added.

Affle India is a global technology company with proprietary consumer intelligence platform that delivers consumer acquisitions, engagements and transactions through relevant mobile advertising.

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