What I believe is the major reason for fall in stock price is not just a weak quarter but change in perception of business , Tanla lost a chunk of revenue from a banking client which is a top 5 contributor of revenue to the competition, Majority of Tanla’s revenue comes from banks there is a fear that the competition might try to poach other large clients from tanla which can lead to severe distress , There is also a fear that there will be increasing competition in platform business .
However I believe the stock has already corrected alot , the company has good cash reserves and once the three deals on wisely start to materialize the dependence on enterprise business will be further reduced , This poaching came as a surprise for the company I believe they will now be prepared for other such events and even they lose a little margin in enterprise business it can be well compensated by platforms in the long term
Please let me know your opinion on this
Disc – Invested
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