scorecardresearchTanla Platforms up 100% in less than 3 months after 14 straight months

Tanla Platforms up 100% in less than 3 months after 14 straight months of poor show; here's why

Updated: 20 Jun 2023, 01:56 PM IST
TL;DR.

Tanla Platforms is one of the world’s largest CPaaS players. It processes more than 800 billion interactions annually and about 63% of India’s A2P SMS traffic is processed through Trubloq, making it the world’s largest Blockchain use case.

On June 8, the company announced that it will acquire ValueFirst, one of India’s largest CPaaS players, from Twilio for  <span class='webrupee'>₹</span>346 crore in an all-cash deal. The acquisition is expected to close in July 2023.

On June 8, the company announced that it will acquire ValueFirst, one of India’s largest CPaaS players, from Twilio for 346 crore in an all-cash deal. The acquisition is expected to close in July 2023.

Tanla Platforms, India's largest CPaaS (Communications Platform as a Service) provider, has experienced a remarkable resurgence, with its shares witnessing a massive surge in a relatively short period. The stock, which was trading at 523 apiece on March 28, has soared by an impressive 100.57% to reach the current level of 1,049 per share, coming within a whisker of the 52-week high of 1,090.

The journey for Tanla Platforms, however, has been a tale of contrasting fortunes. In CY22, the stock faced an unprecedented downturn, experiencing a sharp decline after reaching its all-time high of 2,096 per share in January 2022. Over the following 14 months, from January 2022 to March 2023, the stock plummeted to levels as low as 523, eroding nearly 75% of investors' wealth.

Despite the challenging period, Tanla Platforms managed to stage a remarkable turnaround. Investors responded positively to the company's Q4FY23 earnings, triggering a significant shift in share price movement.

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Stock Price chart of Tanla Platforms.

Even though the company reported a drop in both revenues and net profit for the March quarter, brokerages continued their ‘buy’ ratings, citing the margin recovery in the enterprise segment and the potential growth in the company's Wisely platforms.

During Q4, the company launched Wisely ATP, the world’s first AI-ML-based Anti-Phishing Technology Platform.

In addition to that, on June 8, the company said that it will acquire ValueFirst, one of India’s largest CPaaS players, from Twilio for 346 crore in an all-cash deal. The acquisition is expected to close in July 2023.

The company also said it will acquire ValueFirst Middle East FZC for a cumulative consideration of 20 crore, with the acquisition expected to close by September 2023.

Investors welcomed this announcement, resulting in a 25% surge in Tanla Platforms' share price within just five trading sessions, from June 13 to June 19.

VF Digital India is a leading Indian CPaaS provider that offers enterprises the ability to connect with their customers globally across multiple communication channels. VF Digital India enables enterprises to connect with their customers over telecom (SMS & voice) and internet (chatbot, Email, and OTT) channels.

The acquisition of ValueFirst will bring synergies to the Tanla CPaaS business, a highly complementary customer footprint, and access to valuable solutions such as Surbo, (a NLP-driven chatbot platform for messaging channels). This strategic move will drive targeted cross-selling initiatives in sectors such as e-commerce, BFSI, and telecom, the company said in an exchange filing.

Tanla Platforms highlighted that the acquisition will also provide access to the markets and customers served by VF FZC and its subsidiaries, further strengthening its presence in the industry.

VF FZC is engaged in the business of providing CPaaS services across multiple channels to enterprises.

Tanla Platforms is one of the world’s largest CPaaS players. It processes more than 800 billion interactions annually and about 63% of India’s A2P SMS traffic is processed through Trubloq, making it the world’s largest Blockchain use case.

Wisely, the company's patented enterprise grade platform offers private, secure, and trusted experiences for enterprises and mobile carriers, its website shows.

01 analyst polled by MintGenie has 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.

 

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First Published: 20 Jun 2023, 01:56 PM IST