Tanla Platforms Limited is a mid-cap company in the IT software industry with a market value of Rs. 8,643.60 crore. With over 800 billion transactions per year, the firm is one of the largest providers of cloud communications solutions in the world. The share price of Tanla Platforms has increased from 35.05 on Aug 4, 2017 634.50 at present, represents a multibagger return of 1,710.27 per cent and an estimated CAGR of 78.49 per cent over a period of five years. However, the stock has fallen 65.50 percent YTD so far in 2022 and 31.60 percent in the last year.
On NSE, the stock had touched a 52-week high 52-week low of 2,096.75 on Jan 17-22 584.50 at 27-Jul-22 which indicates that at current price level 634.50 stock is trading at a discount of 69.73% from its 52-week high and above 8.55% from its 52-week low, but the most attractive thing for the stock is that Tanla Platforms Ltd. is currently taking a loan. -Free is position according to price research. The total trading of the stock on NSE today was 70,02,722 shares with a trading value of 43,003.02 lakhs. tonal platform Ltd. Today closed with a gain of 8.42 percent 634.50, trailing the S&P BSE IT Sector Index’s rise of 2.51 per cent.
Brokerage firm HDFC Securities, in a note, said that “Tanla reported a weak quarter, with seasonality declining revenues and margin decline due to client-specific issues and higher competition. A large client, currency impact and higher Enterprise business gross margin declined 640bps to 16.4% (versus our estimate of a 100bps decline) due to pricing cuts in technology investments. Revenue was down 6.2% QoQ due to softness (-4.2% QoQ) in the enterprise business, while the platform segment was stable (-1.0 / +22.7% QoQ / YoY). With the ramp-up of Vizly (VI and Truecaller), the platform business will continue to deliver strong growth.”
“We expect the enterprise business to grow by ~15% in volume and that GM will be in the 18-19% range (versus 20-21%) due to increased competition. With ~90% GM, the platform business will achieve 35% revenue CAGR. Management is confident about increasing EBITDA margin to ~19-20% over the next two quarters. We are building in margin recovery but expect it to be below historical levels. We cut our EPS estimate by 10.6/9.1% for FY23/24E led by ~200bps margin reset. We have a BUY rating with a TP of INR 1,040 on a 22x FY24E EPS (previously 26x) basis, backed by a ~20% revenue CAGR and a RoE of >40%. The stock is trading at 18.6/15.4x FY23/24E EPS (~40% lower than 5Y average), said research analysts at HDFC Securities.
On the other hand, Yes Securities has said to buy the shares of Tanla Platforms at a target price of 1,218. The brokerage firm said in a note that “we maintain BUY rating on the stock with revised target price”. 1,218 per share based on FY24E EPS 22x. We have reduced the target PE multiplier from 30x to 22x, keeping in view the low margin assumption and high cost of capital (WACC) in this environment of high macroeconomic uncertainty. FY24E trades at a PE of 13.2x on EPS.”
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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