Buy Tanla Platforms, target price Rs 1867: Yes Securities

Yes Securities has buy call on Tanla Platforms Ltd. with a target price of Rs 1867.0. The current market price of Tanla Platforms Ltd. is Rs 1457.50.

Tanla Platforms Ltd., incorporated in the year 1995, is a Small Cap company (having a market cap of Rs 19417.04 Crore) operating in IT Software sector.

Tanla Platforms Ltd. key Products/Revenue Segments include Software Services for the year ending 31-Mar-2021.

Financials
For the quarter ended 31-03-2022, the company has reported a Consolidated Total Income of Rs 857.64 Crore, down -3.53 % from last quarter Total Income of Rs 889.01 Crore and up 31.93 % from last year same quarter Total Income of Rs 650.10 Crore. Company has reported net profit after tax of Rs 140.62 Crore in latest quarter.

Investment Rationale
Overall, inline performance on both revenue and margin front. The fourth quartergenerally has weak seasonality compared to third quarter on account of severalpromotional campaigns in December quarter, driving up A2P messaging. The Wiselyplatform coming live is a positive development and would drive revenue growth forPlatform segment in FY23. It remains a leader in CPaaS space in India, growing fasterthan the industry.

The adoption of CPaaS based A2P messaging across industriescontinues to drive volume growth for both enterprise and platform segments. Weexpect EBITDA margin to improve going ahead led by Platform segment(higher grossmargin) growing faster than enterprise segment. We estimate revenue CAGR of 26.0%over FY22‐FY24E with average EBIT margin of 21.4%.


Promoter/FII Holdings
Promoters held 43.74 per cent stake in the company as of 31-Mar-2022, while FIIs owned 14.96 per cent, DIIs 1.54 per cent.