Shares of Tanla Platforms, the country's largest CPaaS provider, continued to gain for the second straight day on Friday, rallying 6.15% to ₹693 apiece, hitting a three-week high before finishing the day higher at ₹675.20, up by 3.43%.
In an exchange filing on Wednesday, the company said that it will launch Wisely ATP, an Anti-Phishing Technology Platform, at the Mobile World Congress (MWC) in Barcelona, Spain, on February 27, 2023.
Following the development, the stock climbed to ₹652.80 from ₹604.20 on Thursday, producing a return of 8.04%, marking its largest intraday gain since November last year.
Tanla Platforms stated that scams have become a major digital challenge, with over 120 million scams reported in India annually, leading to losses of approximately ₹1,30,000 crore. Increasing mobile penetration has led to SMS phishing scams becoming one of the most prominent forms of cybercrime in India.
Wisely ATP is a global, first-of-its-kind, proprietary anti-phishing platform to protect citizens, trusted brands, and the digital economy, it added.
Meanwhile, the stock saw an unprecedented fall in CY22. It started plummeting after reaching its all-time high of ₹2,096 apiece in January and in the following six months to July, the stock dropped to ₹584 levels, wiping out 72% of investors' wealth.
However, even at current levels, the stock has delivered a skyrocketing return of almost 12,600% in the last 10 years, growing from ₹5.30 apiece to the current position of ₹675.
Domestic brokerage firm YES Securities has maintained its "buy" rating on the stock with a target price of ₹1,046 apiece, implying an upside of 51% from the stock's current market price.
In Q3 FY23, the company posted a 26.33% fall in its consolidated net profit at ₹117 crore compared to ₹158 crore in the same quarter last year. Its revenue also fell nearly 2 percent YoY to ₹869 crore as against ₹885 crore in the year-ago period.
Consolidated EBITDA declined by 25 percent YoY to ₹151 crore in Q3 FY23 from ₹203 crore in Q3 FY22, while the EBITDA margin came in at 17.4 percent in Q3 FY23, a fall of 500 bps YoY.
However, Yes Securities said that Tanla reported in-line financial performance for the quarter. Both sequential revenue and EBITDA margin were in line with estimates.
The brokerage stated that the company is a credible player in the rising demand for CPaaS solutions across industries for achieving enhanced customer engagement. Also, an increase in smartphone penetration and a greater regulatory push towards mandatory SMS alerts would drive the CPaaS market, it added.
The adoption of CPaaS-based A2P messaging across industries continues to drive volume growth for both the enterprise and platform segments of Tanla, it says.
The rising share of the higher margin platform segment will drive the company's EBITDA margin, it said. The brokerage forecasts a revenue CAGR of 14 percent over FY22-24E, with an average EBIT margin of 18.2 percent.
02 analysts polled by MintGenie on average have a 'buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
