Shares of software firm Tanla Platforms Ltd have turned multibagger, delivering over 985% returns in the last three years. The IT stock, which closed at Rs 120.65 on July 27, 2020 rose to a high of Rs 1264 on BSE in the current session. In the current session, the software stock rose 4.14% against the previous close of Rs 1213.65 on BSE. Tanla Platforms shares have gained 73% this year and risen 95% during the last one year.
Tanla Platforms shares are trading higher than the 10 day, 20 day, 50 day, 100 day and 200 day moving averages. In the current session, total 0.34 lakh shares of the firm changed hands amounting to a turnover of Rs 4.25 crore on BSE. The market cap of the firm rose to Rs 16,719 crore. The stock hit its 52-week high of Rs 1317.70 on July 24, 2023 and a 52-week low of Rs 506.10 on March 27, 2023.
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Tanla Platforms reported its earnings last week. India’s largest CPaaS provider logged a 35% year-on-year rise in profit to Rs 135.40 crore against Rs 100.4 crore in the Q1 of the previous fiscal. Revenue for the April–June quarter climbed 14% year-on-year to Rs 911.10 crore against Rs 804 crore in the June 2022 quarter.
The company reported a gross profit of Rs 241.30 crore in Q1. Its gross margin stood at 26.5%.
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Its EBITDA (earnings before interest, taxes, depreciation, and amortisation) for the June quarter stood at Rs 182.20 crore against Rs 130.7 crore in the June 2022 quarter.
Tanla Platforms said its earnings per share increased to Rs 10.1 year-on-year form Rs 7.4.
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Brokerage YES Securities has assigned a target price of Rs 1,539 for the Tanla Platform stock post Q1 earnings. “Tanla Platform reported inline financial performance for the quarter. The sequential revenue growth and EBITDA margin were as per expectation. It reported sequential revenue growth of 9.3 per cent QoQ, led by a 9.5 per cent QoQ increase in the revenue of Enterprise business and a 7.9 per cent QoQ increase in the revenue of Platform business. Trubloq processed 82 billion messages in the quarter with more than 60 per cent volume market share. There was a sequential increase in EBITDA margin (up 7 bps QoQ) led by improvement in the gross margin of Platform business,” YES Securities said.
HDFC Securities maintained its BUY rating and assigned a target price of Rs 1,450, based on 23x June-25E EPS.
“Tanla reported strong QoQ revenue growth of 9.3% (the best in the last seven quarters) in a seasonally weak quarter and the margin was stable at 20%. The growth in enterprise business was supported by a recovery in transactional volumes and ILD price hike. The platform revenue grew 7.9%QoQ, led by Wisely Network and OTT platform. The EBITDA margin , which was impacted in Q1FY23 has returned to a normal level in Q1FY24. The ValueFirst integration in Q2FY24E will impact margins by 150bps but cost synergies will lead to gradual margin expansion. We upgrade our EPS estimate by 8% for FY24/25E to factor in the NLD price hike. We maintain our BUY rating and assign a TP of INR 1,450, based on 23x June-25E EPS. The stock is trading at a P/E of 26/21x FY24/25E,” said the brokerage.
Tanla Platforms offers software products. The company offers application-to-person service (A2P) messaging platform globally. Its range of services includes product development and implementation in wireless telephony industry, aggregator services and offshore development services. Its segments include Mobile VAS & Software Development, and Property Development.