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Last Updated on: 25 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Tanla Platforms Ltd

Basic Stock Data

Last Updated: June 12, 2024, 11:19 am

Market Cap 13,096 Cr.
Current Price 974
High / Low1,318/782
Stock P/E23.9
Book Value 144
Dividend Yield1.00 %
ROCE38.1 %
ROE31.7 %
Face Value 1.00
PEG Ratio0.19

Competitors of Tanla Platforms Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Spacenet Enterprises India Ltd 1,855 Cr. 33.839.4/15.4258 1.840.00 %10.6 %10.4 % 1.00
B2B Software Technologies Ltd 32.2 Cr. 27.845.5/24.917.4 17.30.00 %12.6 %9.69 % 10.0
CE Info Systems Ltd 13,054 Cr. 2,4142,748/1,16495.0 1210.12 %%23.1 % 2.00
63 Moons Technologies Ltd 1,707 Cr. 370691/1678.14 7260.54 %6.70 %6.49 % 2.00
Blue Cloud Softech Solutions Ltd 4,054 Cr. 186186/46.1706 3.030.00 %20.2 %14.6 % 2.00
Industry Average37,785.82 Cr722.0166.29124.600.71%20.09%19.68%6.86

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales6496268428858538008518708339111,0091,0031,006
Expenses515492663682669669712718667729812810845
Operating Profit134135179203184131140151166182197193160
OPM %21%21%21%23%22%16%16%17%20%20%20%19%16%
Other Income243454116556526
Interest0010000001222
Depreciation99101110910121516232323
Profit before tax126130171196178126140145156170179173162
Tax %19%19%20%19%21%20%21%20%23%20%20%19%20%
Net Profit103104136158141100110117120135143140130
EPS in Rs7.547.6810.0611.6410.367.408.148.588.9510.0710.6010.429.69

Last Updated: June 9, 2024, 4:17 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: June 25, 2024, 12:24 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1171052424325797921,0041,9432,3413,2063,3553,928
Expenses106691663625237269071,7581,9072,5042,7643,196
Operating Profit11367770566697184435702590732
OPM %10%34%32%16%10%8%10%9%19%22%18%19%
Other Income11225-22511-3622162643
Interest100100072346
Depreciation16984765320577337840414685
Profit before tax-148-26514391333-237415674567683
Tax %0%25%53%47%-5%-51%11%11%14%20%21%20%
Net Profit-147-2037411930-211356539448548
EPS in Rs-14.53-1.950.260.713.811.702.58-14.4726.1839.7333.3140.78
Dividend Payout %0%0%0%28%7%18%14%0%8%5%30%15%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)86.39%115.00%133.33%485.71%-53.66%57.89%-803.33%268.72%51.40%-16.88%22.32%
Change in YoY Net Profit Growth (%)0.00%28.61%18.33%352.38%-539.37%111.55%-861.23%1072.05%-217.32%-68.29%39.20%

Growth

Compounded Sales Growth
10 Years:40%
5 Years:33%
3 Years:20%
TTM:11%
Compounded Profit Growth
10 Years:18%
5 Years:93%
3 Years:67%
TTM:15%
Stock Price CAGR
10 Years:70%
5 Years:87%
3 Years:1%
1 Year:58%
Return on Equity
10 Years:16%
5 Years:25%
3 Years:40%
Last Year:31%

Last Updated: April 11, 2024, 4:22 pm

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital10101010101111121514141313
Reserves6816055926116456466767086818801,3401,5041,734
Borrowings00000006054548379
Other Liabilities12112161981352463284887159748121,056
Total Liabilities7036276226837537919341,1071,1891,6132,3822,4132,884
Fixed Assets3982381579551466452350257257305484779
CWIP552113613654992406136546410
Investments028504007500000
Other Assets250150992231993004826769181,3492,0231,8652,095
Total Assets7036276226837537919341,1071,1891,6132,3822,4132,884

Reserves and Borrowings Chart

Tanla Platforms Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 140433951937232-30239561486247
Cash from Investing Activity -214-155-44-40-73-5-5-54-126-10-111-70
Cash from Financing Activity 5866-00615574-67-168-97-328
Net Cash Flow-17-47-511268232-1046384278-151

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow11.0036.0077.0070.0056.0066.0037.00179.00431.00648.00507.00657.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days2601232187072951126158646278
Inventory Days
Days Payable
Cash Conversion Cycle2601232187072951126158646278
Working Capital Days345176175225215920-462335
ROCE %-22%-3%1%3%6%2%4%-25%52%59%38%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters42.29%42.51%43.74%43.74%43.74%43.73%43.73%44.18%44.18%44.17%44.16%44.16%
FIIs12.96%13.41%13.47%13.46%13.46%12.73%14.02%14.23%14.56%15.15%15.46%15.13%
DIIs1.56%1.57%0.05%3.03%2.77%0.09%0.07%0.07%0.38%0.74%0.90%0.66%
Public43.20%42.51%42.74%39.77%40.03%43.43%42.16%41.50%40.89%39.94%39.46%40.04%
No. of Shareholders71,57877,23190,8951,30,0401,53,7852,44,9972,63,5622,23,2561,96,3252,00,7952,19,6882,40,882

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Aditya Birla Sun Life Digital India Fund448,6871.0749.1230,0522024-06-201393.04%
Aditya Birla Sun Life Small Cap Fund416,0520.8745.5430,0522024-06-201284.44%
Franklin India Technology Fund75,6890.78.2930,0522024-06-20151.86%
Nippon India Nifty Smallcap 250 Index Fund48,4420.555.330,0522024-06-2061.19%
Motilal Oswal Nifty Smallcap 250 Index Fund30,2730.553.3130,0522024-06-200.74%
Axis Nifty Smallcap 50 Index Fund30,0521.643.2930,0522024-06-200%
SBI Nifty Smallcap 250 Index Fund23,7630.552.630,0522024-06-20-20.93%
Aditya Birla Sun Life Nifty Smallcap 50 Index Fund20,3201.652.2230,0522024-06-20-32.38%
ICICI Prudential Nifty Smallcap 250 Index Fund11,3100.551.2430,0522024-06-20-62.37%
HDFC NIFTY Smallcap 250 ETF6,5650.550.7230,0522024-06-20-78.15%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)40.7933.0539.7725.27-14.77
Diluted EPS (Rs.)40.7133.0439.7725.27-14.77
Cash EPS (Rs.)47.1236.7442.7429.0911.53
Book Value[Excl.RevalReserv]/Share (Rs.)144.41112.9199.7565.6548.07
Book Value[Incl.RevalReserv]/Share (Rs.)144.41112.9199.7565.6548.07
Revenue From Operations / Share (Rs.)292.12249.59236.17172.12133.10
PBDIT / Share (Rs.)57.6345.6952.7733.4813.52
PBIT / Share (Rs.)51.2942.2649.7630.57-12.36
PBT / Share (Rs.)50.8342.1649.6630.49-16.14
Net Profit / Share (Rs.)40.7833.3139.7326.18-14.35
NP After MI And SOA / Share (Rs.)40.7833.3139.7326.18-14.47
PBDIT Margin (%)19.7218.3022.3419.4410.15
PBIT Margin (%)17.5516.9321.0617.75-9.28
PBT Margin (%)17.3916.8921.0217.71-12.12
Net Profit Margin (%)13.9513.3416.8215.21-10.78
NP After MI And SOA Margin (%)13.9513.3416.8215.21-10.86
Return on Networth / Equity (%)28.2329.4939.8239.87-30.09
Return on Capital Employeed (%)34.4235.6348.0145.93-25.15
Return On Assets (%)18.2218.5522.5222.08-17.60
Asset Turnover Ratio (%)1.450.690.910.811.06
Current Ratio (X)2.032.121.901.791.61
Quick Ratio (X)2.032.121.901.791.61
Dividend Payout Ratio (NP) (%)0.0024.252.503.81-2.38
Dividend Payout Ratio (CP) (%)0.0021.992.333.433.01
Earning Retention Ratio (%)0.0075.7597.5096.19102.38
Cash Earning Retention Ratio (%)0.0078.0197.6796.5796.99
Interest Coverage Ratio (X)124.94449.55541.91423.7030.76
Interest Coverage Ratio (Post Tax) (X)89.41328.68408.99332.35-24.05
Enterprise Value (Cr.)10345.186316.2119868.1810524.56507.39
EV / Net Operating Revenue (X)2.631.886.204.490.26
EV / EBITDA (X)13.3510.2827.7423.112.57
MarketCap / Net Operating Revenue (X)2.802.096.474.740.36
Retention Ratios (%)0.0075.7497.4996.18102.38
Price / BV (X)5.674.6315.3112.441.01
Price / Net Operating Revenue (X)2.802.096.474.740.36
EarningsYield0.040.060.020.03-0.29

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 1,101.90

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 13.13% compared to the current price 974

Intrinsic Value: 2,466.98

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 153.28% compared to the current price ₹974

Last 5 Year EPS CAGR: 123.88%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (901.33 cr) compared to borrowings (23.42 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (190.00 cr) and profit (169.33 cr) over the years.
  1. The stock has a low average ROCE of 9.58%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 73.58, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 106.08, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Tanla Platforms Ltd:
    1. Net Profit Margin: 13.95%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 34.42% (Industry Average ROCE: %)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 28.23% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 89.41
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.03
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 23.9 (Industry average Stock P/E: )
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✗ Total Debt / Equity: N/A
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Tanla Platforms Ltd. is a Public Limited Listed company incorporated on 28/07/1995 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L72200TG1995PLC021262 and registration number is 021262. Currently Company is involved in the business activities of Other information & communication service activities. Company’s Total Operating Revenue is Rs. 1246.87 Cr. and Equity Capital is Rs. 13.57 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareTanla Technology Centre, Hi-Tech City Road, Hyderabad Telangana 500081investorhelp@tanla.com
http://www.tanla.com
Management
NamePosition Held
Mr. D Uday Kumar ReddyChairman & CEO
Mr. Deepak Satyaprakash GoyalExecutive Director
Mr. Sanjay KapoorNon Executive Director
Mr. Rahul KhannaIndependent Director
Ms. Amrita GangotraIndependent Director
Mr. Rohit BhasinLead Independent Director

FAQ

What is the latest fair value of Tanla Platforms Ltd?

The latest fair value of Tanla Platforms Ltd is ₹1101.90.

What is the Market Cap of Tanla Platforms Ltd?

The Market Cap of Tanla Platforms Ltd is 13,096 Cr..

What is the current Stock Price of Tanla Platforms Ltd as on 25 June 2024?

The current stock price of Tanla Platforms Ltd as on 25 June 2024 is ₹974.

What is the High / Low of Tanla Platforms Ltd stocks in FY 2024?

In FY 2024, the High / Low of Tanla Platforms Ltd stocks is 1,318/782.

What is the Stock P/E of Tanla Platforms Ltd?

The Stock P/E of Tanla Platforms Ltd is 23.9.

What is the Book Value of Tanla Platforms Ltd?

The Book Value of Tanla Platforms Ltd is 144.

What is the Dividend Yield of Tanla Platforms Ltd?

The Dividend Yield of Tanla Platforms Ltd is 1.00 %.

What is the ROCE of Tanla Platforms Ltd?

The ROCE of Tanla Platforms Ltd is 38.1 %.

What is the ROE of Tanla Platforms Ltd?

The ROE of Tanla Platforms Ltd is 31.7 %.

What is the Face Value of Tanla Platforms Ltd?

The Face Value of Tanla Platforms Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Tanla Platforms Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE