Multibagger stocks are those which have the potential to increase your investment manifold. However, these are difficult to identify. Multibagger stocks are often small companies that are not much talked about in the market, so investors are often unaware about them. Today we are going to tell you about one such multibagger stock which has made its investors rich by giving good returns. We are talking about AI stock Affle 3i.
Shares of Affle 3i jumped more than 4% amid a huge fall in the market on Friday. The stock has been on investors’ radar after its stellar performance in Q3FY26. The 11th consecutive quarterly increase in EBITDA and the seventh consecutive quarterly increase in EBITDA margin in Q3 also weighed on its stock.
December quarter earnings
Announcing its quarterly results in February, Affle 3i reported revenue of ₹718 crore for the October-December quarter, up 19.2 per cent over the same quarter last year and 10.9 per cent over the previous quarter. EBITDA during this period was ₹ 163 crore, which was 24.1 percent more than last year and 11.6 percent more than the September quarter.
The company’s profit after tax (PAT) reached ₹119 crore in the third quarter, showing an improvement of 19.1% year-on-year. According to exchange filings, CPU revenue was ₹714 crore, showing a growth of 19.6 per cent year-on-year and 12.9 per cent quarter-on-quarter.
Challenges facing the company
Despite strong quarterly results, the company faces several challenges. The company said that real money gaming regulation in India has adversely affected its revenue performance. Additionally, increased inventory and data costs also put pressure on gross margins. According to the filing, the company also said there was a short-term impact on its operating cash flow and profit after tax ratio due to increase in collection days from agencies, which impacted short-term cash conversion. The company is also facing risks from geopolitical uncertainties.
Apple said it is actively investing in data capabilities and advertising inventory to drive growth in international markets. While these investments are expected to enhance its long-term growth potential, they may impact short-term profitability and margins.