Affle India Experiences Revision in Its Score Following Strong Q2 FY24-25 Performance

Affle India, a prominent player in the telecommunication equipment sector, has recently experienced a revision in its score by MarketsMOJO. This adjustment comes on the heels of the company's impressive financial performance for the second quarter of FY24-25, where it reported a notable return on equity (ROE) of 18.94%, underscoring its management efficiency.
The company continues to showcase a solid financial foundation, highlighted by a remarkably low debt-to-equity ratio of 0.03 times, which reflects its strong balance sheet. Affle India has also demonstrated robust long-term growth, with net sales increasing at an annual rate of 47.72% and operating profit rising by 35.25%. The latest quarter saw net sales reach Rs 542.88 crore, accompanied by a PBDIT of Rs 113.33 crore, marking the third consecutive quarter of positive results.

In terms of operational efficiency, the debtors turnover ratio stands at 5.94 times, indicating effective management of receivables. Additionally, the company enjoys a healthy institutional holding of 31.14%, suggesting a strong level of confidence from larger investors.

Over the past year, Affle India has outperformed the broader market, achieving a return of 30.25%, significantly surpassing the BSE 500's return of 12.73%. However, despite its strong performance metrics, the stock is perceived to have a high valuation, with a price-to-book value of 8.6.

In light of these developments, Affle India has been added to MarketsMOJO's list, reflecting the ongoing interest and scrutiny from market analysts and investors alike.