Analyst Calls: Affle India, ICICI Securities

ICICI Securities has maintained a buy rating on Affle India with a target price of ₹1,530.

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Motilal Oswal has initiated coverage on ICICI Securities with buy rating and set target price of Rs 460 citing the market share shifts toward large, institution-backed players during the ongoing challenges in the industry.
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The domestic stock market on Thursday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 8.75 points lower this morning, signalling a tepid start for Dalal Street.

ICICI Securities has maintained a buy rating on Affle India with a target price of Rs 1,530. Affle has an asset-light business model. Its marketing efforts and more precisely targeted & personalised advertisements have bought in higher revenues while cost have remained relatively unchanged. This network effect has led the Ebit margins to improve from 1.9% in FY17 to 24.1 per cent in FY19, according to the brokerage. Going forward, we expect the network effect to continue to impact revenues and profitability over a sustained period leading to an RoIC of more than 60% over a long period, it added.The stock gained 5 per cent to Rs 1,395.95 on Wednesday.


Motilal Oswal has initiated coverage on ICICI Securities with buy rating and set target price of Rs 460 citing the market share shifts toward large, institution-backed players during the ongoing challenges in the industry. Its distribution business is expanding with a wider coverage of financial products. While the macro environment is yet to turn around, cost cutting efforts should help maintain profitability, according to Motilal Oswal. The stock gained 2 per cent to close at Rs 371 on Wednesday.
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