TANLA - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 4.2

📊 Fundamental & Valuation Analysis

Tanla Platforms Ltd shows strong fundamentals and decent valuation metrics

ROE (24.1%) & ROCE (29.2%): Excellent profitability metrics, indicating efficient capital usage.

Debt-to-Equity (0.03): Virtually debt-free, which is ideal for long-term stability.

Stock P/E (17.8) vs Industry P/E (50.9): Undervalued relative to peers.

PEG Ratio (-8.80): Negative PEG suggests earnings decline or unreliable growth estimates—this needs caution.

Dividend Yield (1.87%): Reasonable for a tech company, adds passive income potential.

Book Value (₹168) vs Current Price (₹643): P/B ratio ~3.8, which is fair for a high-growth tech stock.

📈 Technical & Price Trend Insights

Current Price: ₹643

DMA 50 / DMA 200: ₹626 / ₹644 — price is hovering near long-term average, indicating consolidation.

RSI (49.3): Neutral zone, no overbought/oversold signals.

MACD (4.94): Mild bullish crossover.

Volume: Slightly below weekly average, suggesting low momentum.

✅ Long-Term Investment Potential

Tanla has

Delivered 801% returns over 5 years

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Shown consistent revenue growth (~20.6%)

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Strong buyback history, indicating management confidence

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Ideal Entry Price Zone: ₹610–₹635 This range aligns with technical support levels and offers a good risk-reward ratio. Below ₹610, it becomes a strong value buy.

🧭 If You Already Hold the Stock

Exit Strategy / Holding Period

Hold for 3–5 years if your goal is long-term compounding.

Exit partially if price approaches ₹875 (current buyback price)

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or ₹1,000+ (previous highs), especially if valuations stretch.

Monitor PEG ratio and quarterly profit trends. If PEG remains negative and profits decline further, consider trimming exposure.

Upcoming Catalysts

Buyback window (₹875): July 29–Aug 4, 2025

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Retail investors may benefit from tendering shares.

If accepted, this offers a ~36% premium to current price.

📌 Summary

Metric Value Verdict

ROE / ROCE 24.1% / 29.2% Excellent

PEG Ratio -8.80 Caution (growth risk)

Debt-to-Equity 0.03 Very low risk

Dividend Yield 1.87% Decent

P/E vs Industry 17.8 vs 50.9 Undervalued

Entry Price Zone ₹610–₹635 Attractive

Exit Strategy ₹875 (buyback) or ₹1,000+ Partial exit zone

Would you like a comparison with similar mid-cap tech stocks or a forecast for 2026–2030?

1

stockpricearchive.com

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www.chittorgarh.com

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ipowatch.in

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