Effel India shares hit upper circuit on second day after stock split

After the process of share sharing, the company’s shares remained closed in the upper circuit of 5 per cent for the second consecutive day on the BSE on Friday. The shares of Afle India are divided in the ratio of 1:5, i.e. one (1) equity share ₹10 The face value is sub-divided into five equity shares of ₹2 face value each. The company said the stock split is aimed at facilitating a larger shareholder base and aiding liquidity.

Affle (India) is a technology platform, which enables advertisers to do targeted advertising. It helps advertisers measure the effectiveness of advertising as it charges fees only when a user downloads the app or completes a transaction. Its share price has increased nearly 4.5 times ₹225 (price adjusted for stock split) in May 2020 to ₹1,154 in October 2021.

“We continue to like Effle India as it is a major beneficiary of shifting advertising budgets to the digital medium. However, at higher valuations, we are now giving a hold recommendation on the stock, we will revisit our numbers, target price and rating post Q2 results,” ICICI Securities said in a note.

The brokerage is shifting advertising budgets to the digital medium, increasing smart phone penetration and increasing online shoppers (from 120 million to 450 million, CAGR of 24% over the next five years) as key triggers for revenues. can promote growth. The company’s future stock price performance.

Sumeet Bagdia, Executive Director, Choice Broking suggests that one can “initiate momentum buying in this stock for short-term target on CMP”. ₹from 1275 ₹maintain stop loss at 1300 ₹1140.”

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.