Tanla Platforms stock rises as company mulls buyback

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26 Aug, 2025 12:21

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Shares of Tanla Platforms spiked nearly 4 percent on September 2 after the company said its board of directors would meet next week to consider a share buyback proposal.

“This is to inform you that the Board of Directors of the Company will consider a proposal for buyback of Equity Shares of the Company including matters related/incidental thereto, at its meeting which is scheduled to be held on Thursday, September 08, 2022,” the Hyderabad-based company said in a regulatory filing.

Buyback usually leads to a rise in demand for a stock as companies typically buy shares at a premium to the prevailing prices to reward shareholders. Short-term traders start buying shares to make a quick buck.

The share price of the cloud communications firm has suffered recently amid a rout in technology stocks across the globe. The stock has lost 60 percent in this calendar year so far. On September 2, it was trading at Rs 754, up about 4 percent.

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In the last quarter, the company’s revenue also took a hit due to seasonality and margin dropped due to client-specific issues and higher competition. Analysts though maintain their optimism on the counter.

HDFC Securities said it expects the enterprise business of Tanla Platforms to clock 15 percent volume growth and the gross margins (GM) to be in the 18-19 percent range (vs 20-21 percent earlier) due to increasing competition.

“The platform business will clock 35 percent revenue CAGR, with 90 percent GM. The management is confident about expanding the EBITDA margin to ~19-20 percent in the next two quarters. We are building in margin recovery but expect it to be lower than the historical level,” the broker said.

It has a "buy" rating with the target at Rs 1,040.

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