Buy Tanla Platforms; target of Rs 848: Geojit

Buy

Geojit's research report on Tanla Platforms

Tanla Platforms Ltd. is the largest Communication Platform as a Service (CPaaS) player in India. Tanla has two major businesses: Enterprise and Platform, both using blockchain technology to reduce spam and fraud activities and make it easy to integrate with enterprise applications. As a seasonally weak quarter, Q4FY23 revenue declined by 2.0% YoY. EBITDA margin expanded by 253bps QoQ to 20% in Q4FY23 on stabilisation of prices along with operational efficiency. We expect improved revenue visibility in FY24 due to growth in UPI, e-commerce transactions, an increase in realisation of revenue from new & existing customers and price hikes. The increasing acceptance of the Wisely platform is expected to drive revenue and margin growth.

Outlook

Therefore, we value Tanla at a PE of 17x FY25E adj. EPS, and reiterate Buy rating with a revised target price of Rs. 848.

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Tanla Platforms - 09 -05 - 2023 - geo