TANLA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | TANLA | Market Cap | 6,134 Cr. | Current Price | 463 ₹ | High / Low | 766 ₹ |
| Stock P/E | 23.6 | Book Value | 38.2 ₹ | Dividend Yield | 2.59 % | ROCE | 41.0 % |
| ROE | 47.6 % | Face Value | 1.00 ₹ | DMA 50 | 553 ₹ | DMA 200 | 612 ₹ |
| Chg in FII Hold | 1.75 % | Chg in DII Hold | -0.18 % | PAT Qtr | 3.14 Cr. | PAT Prev Qtr | 52.3 Cr. |
| RSI | 24.6 | MACD | -20.7 | Volume | 11,07,482 | Avg Vol 1Wk | 5,62,778 |
| Low price | 409 ₹ | High price | 766 ₹ | PEG Ratio | 0.62 | Debt to equity | 0.26 |
| 52w Index | 15.0 % | Qtr Profit Var | -96.6 % | EPS | 19.3 ₹ | Industry PE | 43.1 |
📊 Core Financials:
- PAT dropped sharply (-96.6%) from 52.3 Cr. to 3.14 Cr., showing severe earnings pressure.
- ROCE at 41.0% and ROE at 47.6% highlight strong historical capital efficiency, but recent profit collapse raises concerns.
- Debt-to-equity ratio at 0.26 is moderate and manageable.
- Cash flows may be strained due to weak profitability despite healthy balance sheet structure.
💹 Valuation Indicators:
- Current P/E: 23.6 vs Industry P/E: 43.1 → undervalued relative to peers.
- P/B ratio: ~12.1 (463 ÷ 38.2), reflecting premium valuation compared to book value.
- PEG ratio: 0.62 → indicates attractive valuation relative to growth, but earnings volatility undermines reliability.
- Intrinsic value appears lower than current price, suggesting limited margin of safety.
🏢 Business Model & Competitive Advantage:
- Tanla Platforms operates in cloud communications, providing CPaaS (Communication Platform as a Service) solutions.
- Competitive advantage lies in strong technology platforms, enterprise partnerships, and leadership in messaging services.
- However, earnings volatility and competitive industry dynamics reduce near-term attractiveness.
🎯 Entry Zone Recommendation:
- Current price: 463 ₹, near support zone (409 ₹).
- Entry advisable closer to 420–450 ₹ for accumulation.
- Long-term investors may hold cautiously, awaiting earnings recovery before aggressive buying.
Positive
- 📈 Strong historical ROCE (41.0%) and ROE (47.6%).
- 💰 Moderate debt-to-equity ratio (0.26) ensures financial stability.
- 📊 Attractive dividend yield of 2.59%.
- 🌐 Leadership in CPaaS with enterprise partnerships.
Limitation
- ⚠️ Severe quarterly profit decline (-96.6%).
- 📉 Trading below DMA 50 (553 ₹) and DMA 200 (612 ₹), showing weak momentum.
- 📊 High P/B ratio (~12.1) signals stretched valuation relative to book value.
Company Negative News
- 📉 PAT dropped drastically from 52.3 Cr. to 3.14 Cr.
- 📊 DII holding reduced by -0.18%, showing cautious domestic sentiment.
Company Positive News
- 📈 FII holding increased by 1.75%, reflecting foreign investor confidence.
- 💹 Strong dividend yield supports shareholder returns.
Industry
- 📡 Cloud communications and CPaaS industry is growing rapidly with digital adoption.
- 📊 Industry P/E at 43.1 suggests Tanla trades at a discount compared to peers.
Conclusion
✅ Tanla Platforms has strong historical return ratios, moderate debt, and leadership in CPaaS.
❌ However, severe profit decline and weak momentum raise caution in the near term.
🎯 Entry near 420–450 ₹ is preferable for long-term investors, with accumulation only after signs of earnings recovery.
Overall, Tanla remains a promising CPaaS player, but cautious investment is advised given earnings volatility.
Would you like me to also prepare a trend analysis snapshot (earnings trajectory vs valuation vs institutional holdings) to visualize Tanla’s recovery potential?