TANLA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.0

📊 Core Financials Overview

Profitability

ROE of 47.6% and ROCE of 41.0% are exceptional, indicating highly efficient capital deployment.

EPS of ₹26.0 and a P/E of 26.9 suggest the stock is attractively priced relative to earnings, especially compared to the industry average of 34.0.

PAT dropped significantly from ₹199 Cr to ₹52.3 Cr QoQ, but the 207% YoY profit variation shows strong recovery from a low base.

Balance Sheet Health

Debt-to-equity ratio of 0.18 — low and well-managed.

Book Value of ₹53.9 vs Current Price ₹700 → P/B ratio ~13.0, reflecting premium pricing.

Dividend Yield of 1.72% adds income appeal for long-term holders.

Cash Flow & Stability

PEG ratio of 0.70 indicates undervaluation relative to growth.

RSI at 67.7 and MACD positive suggest bullish momentum, though nearing overbought territory.

📉 Valuation Metrics

Metric Value Insight

P/E Ratio 26.9 Undervalued vs industry PE of 34.0

P/B Ratio ~13.0 Premium pricing

PEG Ratio 0.70 Attractive valuation

Intrinsic Value ~₹837.45 Estimated ~20% above current price

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Tanla Platforms Ltd is currently undervalued by ~17% based on intrinsic valuation models

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🌐 Business Model & Competitive Edge

Sector: Tanla is a leading CPaaS (Communication Platform as a Service) provider, enabling secure, scalable, and real-time communication for enterprises.

Strengths

Market leader in India with 35% CPaaS share and 45% NLD (SMS) market share

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Proprietary platforms like TRUBLOQ (blockchain-based spam prevention) and Wisely (AI/ML-driven smishing protection)

Serves 2000+ enterprises including 9/10 banks, 8/10 financial firms, and major telcos

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Challenges

Recent decline in FII holding (−3.08%) may reflect caution

Volatile quarterly earnings and high P/B ratio

Tanla’s tech-driven moat and enterprise relationships position it well for long-term growth in India and emerging markets.

📌 Entry Zone Recommendation

Suggested Entry Range: ₹640–₹680

Near 50 DMA (₹647) and 200 DMA (₹645)

RSI suggests waiting for a slight pullback before entry

🧭 Long-Term Holding Guidance

Hold if Already Invested: Strong fundamentals and undervaluation support long-term compounding.

Accumulate on Dips: Especially near ₹650 for better margin of safety.

Watchlist Triggers

EPS consistency and margin expansion

Institutional accumulation

Platform monetization and global expansion

Tanla Platforms is a high-quality tech play with strong profitability and sector leadership. You can explore more on AlphaSpread’s valuation dashboard

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or Trade Brains’ business analysis

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www.alphaspread.com

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tradebrains.in

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