Tanla Platforms:
A lot of interesting developments have occurred in Tanla over the last few months. The company is now at the cusp of earnings acceleation which shall last a good few years.
The main driver of earning will be the platform biz which operates at GM level of >95%. This biz is currently 10% of the overall revenue and is growing at ~30-35% YoY. The overall earnings are expected to grow at a minimum of 20-25% YoY for the foreseeable future.
However, there is a high chance that the earnings growth actually exhibit a J-curve growing at much faster rate than a conservative estimate of 25%. But for that we shall monitor the traction of the platform business in the coming few quarters.
Stock trades at a reasonable valuation of 23x PE.
High growth rate will lead to PE expansion.
So, the stock offers two-pronged opportunity emanating from earnings acceleration + PE re-rating.
( It took me days to understand Tanla’s business. But the more I understood it , the more bullish I feel. Below items are some of the things which are leading to change in the biz profile and will be leading to earnings acceleration going ahead:
Wisely Platform deployment with its AI capabilities
ATP + Trubloq
ONDC onboarding solution for SME trhough Whatsapp
MaaP using Google RBM + Vodafone (early days but has the J-curve potential)
OTT channels explosive growth )
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