Check Before You Invest : Affle 3i Ltd

BSE: 542752 NSE: AFFLE ISIN: INE00WC01027

| Sector: IT & ITES | Industry: BPO/ITeS

Snapshot

Q.1 Which industry/sub-sector does Affle 3i Ltd belong to?

Affle 3i Ltd belongs to the IT & ITES sector, operating specifically within the BPO/ITeS segment.

Q.2 Is Affle 3i Ltd a good quality company?

Affle 3i Ltd is a good quality company, based on a consistently good 7-year financial track record.

Q.3 Is Affle 3i Ltd undervalued or overvalued?

Affle 3i Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Affle 3i Ltd a good buy now?

Affle 3i Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Affle 3i Ltd?

Affle 3i Ltd revenue growth is 23% for FY-2025, which is below its 5-year CAGR of 46.68%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Affle 3i Ltd?

Affle 3i Ltd Return on capital employed is 16.85% for FY-2025, which is below its 5-year historical median of 20.24%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Affle 3i Ltd?

Affle 3i Ltd Return on Asset is 10.9%, which is below its 5-year historical median of 12.7%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Affle 3i Ltd?

Affle 3i Ltd Return on equity is 14.11% for FY-2025, which is below its 5-year historical median of 18.67%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Affle 3i Ltd?

Affle 3i Ltd Cash conversion cycle is -31 days, below its 5-year historical median of -23 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.65	0.74
ROE	14.11	18.67
ROCE	16.85	20.24
Cash Conversion Cycle	-31 days	-23 days

Q.6 Gross Profit margin of Affle 3i Ltd?

Affle 3i Ltd Gross profit margin which is the profit after deduction of direct costs, is 24.9% for FY-2025, which is in line with its 5-year median of 24.9%, indicating stable margins.

Q.7 Operating Profit Margin of Affle 3i Ltd?

Affle 3i Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.26% for FY-2025, which is above its 5-year median of 20.14% indicating increasing margins.

Q.8 Net Profit Margin of Affle 3i Ltd?

Affle 3i Ltd Net Profit Margin is 16.85% for FY-2025, is in line with with its 5-year median of 17.12%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	24.9	24.9
Operating Profit Margin	21.26	20.14
Net Profit Margin	16.85	17.12

Q.9 Debt to Equity ratio of Affle 3i Ltd?

Affle 3i Ltd Debt-to-Equity ratio is 0.03, which is lower with the industry average of 0.17, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Affle 3i Ltd?

Affle 3i Ltd Debt to cash flow from operations is 0.18, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Affle 3i Ltd?

Promoters hold 54.92% of the Affle 3i Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Affle 3i Ltd vs industry peers?

Affle 3i Ltd revenue CAGR is 46.68%, compared to the industry median CAGR of 10.13%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	23	10.1
Gross Profit Growth	41.7	10.8
Operating Profit Growth	33.6	NAN
Net Profit Growth	28.6	8.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.65	0.72
ROE	14.11	10.43
ROCE	16.85	15.4
Cash Conversion Cycle (days)	-30.99	45

Valuation & price assessment

Q.1 Stock return of Affle 3i Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 5.11% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	5.1%	15%	-12.2%

Q.3 Valuation ratios of Affle 3i Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	45.77	64.37	30.41
Price to Book	5.95	8.58	2.76
Price to Sales	7.76	10.32	4.20
EV to EBITDA	28.91	40.99	15.56

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