Tanla Platforms, a Hyderabad-based company, is a cloud communications provider that enables businesses to communicate with their customers and intended recipients. It is a global A2P(application to person) messaging platform provider and it was the first company to develop and deploy A2P SMSC in India.
The company 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.
Brokerage firm HDFC Securities has a buy call on the shares of Tanla Platforms with a target price of ₹ 1050.00 which translates to an upside of 54.57% as compared to its share price of ₹ 679.30 apiece at 12:19 PM on the National Stock Exchange (NSE) on Thursday.
According to the report, Tanla Platforms reported a decline in revenue, but the margin recovery in the enterprise segment came as a positive surprise. Its enterprise revenue declined 5% QoQ, owing to seasonal and soft promotional volume but the platform revenue grew 4.1% QoQ led by Wisely Network and OTT platform.
The brokerage added that the enterprise business growth will be volume led and the proposed NLD rate hike will act as a booster. The growth in the platform segment will be propelled by Wisely platforms. The company has developed Wisely ATP an anti-phishing product which has received Sandbox approval from TRAI and is under POC with large banks
“Wisely Network and OTT (WhatsApp) have started yielding results, while Wisely Communicate (encrypted OTP) and Wisely Engage (performance marketing) are future drivers,” HDFC Securities added.
Tanla Platforms is a small-cap stock with a market capitalization of ₹ 9,111 crores. The company has a high return on equity of 31.18% and an ideal debt-to-equity ratio of 0.05. Its shares were trading at a price-to-earnings ratio (P/E) of 20.76, which is significantly lower than the industry P/E of 69.80, indicating that it is undervalued as compared to its peers.
Written by Simran Bafna
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