 "Stock market, markets, shares")
Stock market, markets, shares
Shares of Affle India soared up to 3.81 per cent at Rs 1463.95 per share on the BSE after the mobile marketing platform received a patent in the US titled ‘Method and System’ for enabling an interaction between a user and the podcast.
The patent is related to the field of optimising user engagements by enabling an interaction between a user and a podcast using a podcast interaction system based on machine learning, the company said in an exchange filing on Thursday.
“This grant fortifies our AI-driven contextual recommendations and the consumer platform optimisations spanning the entire consumers’ digital journey, including within live streams such as podcasts,” the company stated in a statement.
This is Affle’s 10th patent grant out of a total intellectual property (IP) portfolio of 36 Patents filed by the company.
The global brokerage firm initiated coverage on thel technology company, with a ‘Buy’ rating, and a target price of Rs 1,600.
Analysts at Citi believe Affle is well positioned to benefit from recovery in mobile-ad budgets for user acquisitions across digital-first and omnichannel businesses in India/emerging markets (EM) and its return on equity (RoE)-focused Mergers and Acquisition (M&A) strategy, including recent acquisition of YouAppi, should see business turnaround in large developed markets (DM) markets like the US.
“Our target price is based on 48x FY26E P/E – multiple at an approximately 50 per cent premium to global ad-tech peers (35 per cent/10 per cent discount to LargeCap/MidCap India internet). While scale is important in Adtech (Affle is one of the smaller players versus higher PE competitors), exposure to growth market/sub-segments and higher than average expected growth justifies its premium multiple, in our view,” Vijit Jain and Raghav Behani, research analysts at Citi Research said in a note.
Affle is a global technology company with a proprietary consumer intelligence platform that delivers consumer recommendations and conversions through relevant Mobile Advertising. The platform aims to enhance returns on marketing investment through contextual mobile ads and also by reducing digital ad fraud.
Affle Holdings is the Singapore based promoter for Affle (India), and its investors include Microsoft, Bennett Coleman & Company (BCCL) amongst others.
At 10:41 AM; the stock of the company pared some of its gains and was trading 1.77 per cent higher at Rs 1435.05 per share on the BSE. In comparison the BSE Sensex rose 0.13 per cent to 79,998 levels.
First Published: Jul 12 2024 | 10:53 AM IST
