Hyderabad-based cloud computing firm Tanla Platforms has generated massive wealth for its long-term investors. The penny stock has skyrocketed from around ₹4 in March 2014 to currently trade at around ₹1,440, giving its investors enormous returns of 33,445 percent in the last 8 years.
An investment of ₹10,000, 8 years ago in this stock would have turned to ₹33.5 lakh currently.
In the last 1 year, the stock has risen 75 percent but has given negative returns in 2022 YTD. In March till now, it has lost 6 percent.
Tanla Platforms Ltd, (Tanla) formerly, Tanla Solutions Limited is an India-based cloud communications provider company. The Company enables businesses to communicate with their customers, stakeholders and intended recipients. It offers products, including Messaging, Voice and the Internet of things. The cloud-based platforms provide connectivity to enterprises and aggregators with a plug-and-play approach that shrinks delivery times of their end-user communications and continues to provide services in the cloud communication segment of the telecom business.
Going ahead, experts believe that the firm will continue to deliver a good return on the back of strong earnings growth and robust fundamentals. Also, clients additions and continued growth in messaging volumes are some other key positives for the company.
On February 28, the firm announced an exclusive partnership with Truecaller. “Truecaller Business Messaging will be exclusively powered by Tanla’s Wisely CPaaS platform,” the company said in a release. Wisely is one of the world’s largest blockchain-enabled CPaaS platforms, secured by e2e cryptographic encryption.
Truecaller has 300 million monthly active users, of which 220 million are in India. IIFL Securities is bullish on Tanla Platforms and has a target price of ₹2,123, indicating an upside of around 50 percent from the current market price.
“We expect Tanla to post 18 percent EPS CAGR over FY22-24, after witnessing around 53 percent EPS growth in FY22,” the brokerage noted.
For the financial year FY21, the company posted a net profit of ₹356.14 crore against a net loss of ₹209.48 crore in FY20. In Q3, the firm posted a net profit of ₹158 crore as against ₹93 crore in the quarter last year, up 69 percent YoY. Its revenue rose 35 percent YoY to ₹885 crore from ₹654 crore in the year-ago period.
“Tanla has delivered year-on-year growth for 22 quarters in a row with a very strong performance in the quarter across all metrics, and we are confident this momentum will continue”, Uday Reddy, Founder-Chairman and Chief Executive Officer of Tanla Platforms said post the earnings.
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