Tanla Platforms shares have been under consolidation phase after ushering into new year 2022. In year-to-date time, this IT stock has dipped from around ₹1840 to ₹1464 apiece levels, logging around 20 per cent loss in 2022. However, HDFC Securities believes that the stock may give sharp upside and may go up to ₹1900 per share levels in long term.
Expecting strong growth in platform business, HDFC Securities research report says, “The platform business (currently Trubloq) will continue to deliver strong growth, with the launch of Wisely platform. The two notable deals on the Wisely platform (Vodafone Idea and Truecaller business messaging partnership) provide revenue visibility.”
Expecting improvement in gross margin profile of the company despite weak Q4 results, the brokerage report says, “Tanla reported a muted quarter, with both revenue and margin coming slightly below our estimate. Revenue was down 3.6% QoQ due to softness in the enterprise business (-4.2 per cent QoQ), offset by better platform performance (+4.4/48.7 per cent QoQ/YoY). The gross margin profile of the company will improve, with increasing contribution from the higher margin product business. The enterprise business, which was hit by seasonality and softness in top accounts, will recover, led by addition of new customers.”
On its suggestion to positional investors in regard to Tanla Platforms shares, HDFC Securities says, “We expect the enterprise business to clock 15 per cent volume growth and the GM will be in the 20-21 per cent range, led by higher investments and increasing competition. The platform business will clock 35% revenue CAGR with 90 per cent GM. We maintain our EPS estimate and assign a BUY rating with a TP (Target Price) of ₹1,900 levels, based on 35x FY24E EPS, supported by growth (around 20 per cent) and RoE of more than 45 per cent.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.