Tanla Platforms Ltd (TANLA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Oracle Fin.Serv.

Tanla Platforms

Fractal Analyt.

Unicommerce

Blue Cloud Soft.

C.E. Info System

Moschip Tech.

Ramco Systems

Nucleus Soft.

Technvision Ven.

Quick Heal Tech

Why is Tanla Platforms Ltd ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 12.88% and Operating profit at 6.79% over the last 5 years

The company has declared Positive results for the last 3 consecutive quarters

NET SALES(Q) Highest at Rs 1,226.39 cr
PBDIT(Q) Highest at Rs 201.15 cr.
PBT LESS OI(Q) Highest at Rs 167.18 cr.

With ROE of 20.5, it has a Fair valuation with a 3.3 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -4.36%, its profits have risen by 10% ; the PEG ratio of the company is 1.3

Despite the size of the company, domestic mutual funds hold only 0.71% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.36% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tanla Platforms should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Tanla Platforms for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Tanla Platforms

-4.36%

-0.09

45.91%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.88%

EBIT Growth (5y)

6.79%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

2.02

Tax Ratio

20.25%

Dividend Payout Ratio

31.84%

Pledged Shares

Institutional Holding

8.02%

ROCE (avg)

76.38%

ROE (avg)

28.08%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.27

EV to EBIT

11.23

EV to EBITDA

9.34

EV to Capital Employed

4.90

EV to Sales

1.54

PEG Ratio

1.31

Dividend Yield

1.95%

ROCE (Latest)

41.44%

ROE (Latest)

20.46%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

NET SALES(Q)

Highest at Rs 1,226.39 cr

PBDIT(Q)

Highest at Rs 201.15 cr.

PBT LESS OI(Q)

Highest at Rs 167.18 cr.

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 1,063.63 cr

PAT(Q)

At Rs 142.17 cr has Grown at 20.1%

EPS(Q)

Highest at Rs 10.72

-2What is not working for the Company

ROCE(HY)

Lowest at 25.14%

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Here's what is working for Tanla Platforms

Net Sales - Quarterly

Highest at Rs 1,226.39 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 201.15 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 167.18 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 142.17 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 167.18 cr has Grown at 23.44%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 142.17 cr has Grown at 20.1%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 10.72

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 1,063.63 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Tanla Platforms

Non Operating Income - Quarterly

Highest at Rs 14.10 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income