Buy Tanla Platforms, target price Rs 920: Geojit Financial Services

Geojit Financial Services has buy call on Tanla Platforms with a target price of Rs 920. The current market price of Tanla Platforms is Rs 729.05. The time period suggested for the given stock recommendation is 12 months.

Tanla Platforms, incorporated in the year 1995, is a Small Cap company (having a market cap of Rs 9890.42 Crore) operating in IT Software sector.

Tanla Platforms key Products/Revenue Segments include Software Services for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 862.12 Crore, up 7.14 % from last quarter Total Income of Rs 804.64 Crore and up 2.05 % from last year same quarter Total Income of Rs 844.76 Crore. Company has reported net profit after tax of Rs 110.45 Crore in latest quarter.

The company’s top management includes Mr.D Uday Kumar Reddy, Mr.Deepak Satyaprakash Goyal, Dr.A G Ravindranath Reddy, Mr.Sanjay Kapoor, Ms.Amrita Gangotra, Mr.Rohit Bhasin, Mr.Sanjay Baweja, Mr.Rahul Khanna. Company has MSKA & Associates as its auditors. As on 30-09-2022, the company has a total of 14 Crore shares outstanding.

Investment Rational
Due to product price disruption, stock appears reasonable and currently trades at a PE of 17x on FY25E, which is less than its 5-year average. The brokerage expects earnings to grow at a 21% CAGR during FY23–25E. Hence, Geojit values Tanla at 19x FY25E with a target price of Rs. 920 per share and recommend a Buy rating.

Promoter/FII Holdings
Promoters held 43.74 per cent stake in the company as of 30-Sep-2022, while FIIs owned 14.83 per cent, DIIs 0.09 per cent.