Shares of Tanla Platforms have been in a consolidation phase since the start of the new year 2022. Year-over-year, this IT stock has fallen below approx. from 1840 At the level of 1464, a loss of about 20 percent was recorded in 2022. However, HDFC Securities believes the stock may give a sharp bounce and go up 1900 per share level over the long term.
Strong growth expected in platform business, HDFC Securities “The platform business (currently TrueBlock) will continue to deliver strong growth with the launch of the Vizly platform. Two notable deals on the Vizly platform (Vodafone Idea and Truecaller Business Messaging Partnership) provide revenue visibility,” the research report said.
Expecting improvement in the company’s gross margin profile despite weak Q4 results, the brokerage report says, “Tanla reported a muted quarter, with both revenue and margins slightly below our estimates. Due to moderation in enterprise business Revenue was down 3.6% QoQ. (-4.2 percent QoQ), offset by improved platform performance (+4.4/48.7 percent QoQ/YoY). The company’s gross margin profile will improve with increasing contribution from the higher margin products business. Enterprise business , which was impacted by seasonality and moderation in top accounts, will recover led by new customer additions.”
On its suggestion to positional investors with regards to shares of Tanla Platforms, HDFC Securities says, “We expect the venture business to grow by 15 per cent and GM in the range of 20-21 per cent led by higher investments and growth. Competitiveness. The platform business will see 35% revenue CAGR with 90% GM. We maintain our EPS estimate and assign a buy rating with a TP (Target Price) The 1,900 level, based on 35x FY24E EPS, is supported by growth (around 20 per cent) and a RoE of over 45 per cent.”
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