Shares of Tanla Platforms rose over 4% today after Geojit Financial initiated coverage on the firm with a buy call. The brokerage has assigned a target price of Rs 920, 34% higher to the previous close of Rs 685.95.
Tanla Platforms shares opened 2.63% higher at Rs 704. Later, they rose 4.12% to hit an intraday high of Rs 714.2. Tanla Platforms shares are trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
In a year, the stock is down 61per cent and lost 62.63 per cent in 2022. Total 0.12 lakh shares of the firm changed hands amounting to a turnover of Rs 87.80 lakh on BSE. The market cap of the firm rose to Rs 9,531 crore.
The stock hit its 52-week high of Rs 2094.40 on January 17, 2022 and a 52-week low of Rs 584.80 on July 27, 2022.
Expressing its stance on prospects of the stock , Geojit said, “The drop in revenue witnessed in H1FY23 is likely to normalise in the coming quarters on the improvement in volumes from new clients on rising transactions from ‘Wisely’ along with an increase in realisation from existing customers and measures to improve margins by minimising currency volatility.”
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“Due to product price disruption, the stock appears reasonable and currently trades at a PE of 17x on FY25E, which is less than its 5-year average (5 Yr Avg is equal to 27 times). We expect earnings to grow at a 21% CAGR during FY23–25E. Hence, we value Tanla at 19 times FY25E with a target price of Rs 920 per share and recommend a Buy rating.”
Tanla Platforms earnings were tepid in the last quarter. Net profit declined 18.89% to Rs 110.45 crore in Q2 against Rs 136.17 crore during the quarter ended September 2021. Sales climbed 1.12% to Rs 851.04 crore in Q2 against Rs 841.62 crore during the quarter ended September 2021.
In the first half of the current fiscal, Tanla Platforms net profit plunged 12.38% to Rs 210.86 crore against Rs 240.66 crore profit in the corresponding period of the previous fiscal.
However, sales rose 12.48% to Rs 1651.19 crore in the first half of the current fiscal against Rs 1,468 crore in the corresponding period of the previous fiscal.
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.
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