Shares of Tanla Platforms rose 3 per cent in Wednesday’s trade, extending their winning run for the third straight session, defying weakness in technology index. The stock climbed 2.85 per cent to hit a day high of Rs 717.10 over its previous close of Rs 697.25. The scrip has gained 9.24 per cent in three days against a close of Rs 656.45 on December 23.
A total of 20,000 shares changed hands today. The turnover on the counter stood at Rs 1.40 crore on BSE. The company commanded a market capitalisation (m-cap) of Rs 9,692.62 crore.
On BSE, there were 16,764 sell orders against buy orders of 11,090 shares. On NSE, 1.37 lakh shares changed hands with a turnover of Rs 9.71 crore.
At today’s high price of Rs 717.10, Tanla has gained 22.62 per cent compared to its 52-week low of Rs 584.80, hit in July this year. Yet, the stock has slipped 1.51 per cent in the previous five sessions. On a year-to-date (YTD) basis, it has lost 61.21 per cent.
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Geojit Financial Services has given a ‘buy’ call on the stock. The brokerage has assigned a target price of Rs 920 over a one-year period.
Due to operational headwinds, EBITDA margins are expected to improve during coming quarters by measures to minimise currency volatility in the earnings, Geojit stated in its report.
A R Ramachandran from Tips2trades, said that a daily close above Rs 715 levels could see an uptick toward the Rs 759-815 zone in the near term. Support on the counter is seen at Rs 658, while resistance comes at Rs 715, followed by Rs 759 and Rs 815 levels, Ramachandran added.
The stock is seen higher than the 5-day, 20-day and 200-day moving averages but lower than the 50-day and 100-day moving averages.
It traded at a 14-day relative strength index (RSI) value of 43.54. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 48.82.
Tanla is in the buyback process of 14,16,666 equity shares at an offer price of Rs 1,200 per equity share. The cloud-based communication provider is undertaking the buyback through a tender offer that began on December 20, 2022, and is scheduled to conclude on January 2, 2023.
Tanla Platforms’ earnings were tepid in the last quarter. The company’s net profit declined 18.89 per cent to Rs 110.45 crore in Q2 against Rs 136.17 crore during the quarter that ended September 2021. Sales climbed 1.12 per cent to Rs 851.04 crore in Q2 against Rs 841.62 crore recorded in the same period last year.
Though, the debt-free company had a healthy balance sheet with cash and cash equivalent of over Rs 800 crore as of March 31, 2022.
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The company offers application-to-person service (A2P) messaging platform globally. Its range of services includes product development and implementation in the wireless telephony industry, aggregator services and offshore development services. Its segments include Mobile VAS & Software Development, and Property Development.
Meanwhile, Indian equity benchmarks were almost flat in afternoon deals today. Sub-index Nifty IT was down 0.21 per cent.
