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Check Before You Invest : Tanla Platforms Ltd

BSE: 532790 NSE: TANLA ISIN: INE483C01032
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Tanla Platforms Ltd belong to?
Tanla Platforms Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Tanla Platforms Ltd a good quality company?
Tanla Platforms Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Tanla Platforms Ltd undervalued or overvalued?
Tanla Platforms Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 14.72 22.01
Price to Book 3.01 5.97
Price to Sales 1.7 2.87
EV to EBITDA 8.45 13.23
Q.4 Is Tanla Platforms Ltd a good buy now?
Tanla Platforms Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Tanla Platforms Ltd?
Tanla Platforms Ltd revenue growth is 2.5% for FY-2025, which is below its 5-year CAGR of 15.7%, indicating slower growth.

Q.2 Gross Profit margin of Tanla Platforms Ltd?
Tanla Platforms Ltd Gross profit margin which is the profit after deduction of direct costs, is 18% for FY-2025, which is below its 5-year median of 19.4%, indicating decreasing margins.

Q.3 Operating Profit Margin of Tanla Platforms Ltd?
Tanla Platforms Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.23% for FY-2025, which is below its 5-year median of 18.58% indicating decreasing margins.

Q.4 Net Profit Margin of Tanla Platforms Ltd?
Tanla Platforms Ltd Net Profit Margin is 12.59% for FY-2025, is below its 5-year median of 13.96%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 18 19.4
Operating Profit Margin (%) 17.23 18.58
Net Profit Margin (%) 12.59 13.96

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Tanla Platforms Ltd?
Tanla Platforms Ltd Return on Asset is 16.21%, which is below its 5-year historical median of 20.51%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Tanla Platforms Ltd?
Tanla Platforms Ltd Return on capital employed is 30.16% for FY-2025, which is below its 5-year historical median of 40.02%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Tanla Platforms Ltd?
Tanla Platforms Ltd Return on equity is 24.35% for FY-2025, which is below its 5-year historical median of 32.2%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Tanla Platforms Ltd?
Tanla Platforms Ltd Cash conversion cycle is -607 days, above its 5-year historical median of -1034 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.29 1.47
ROE (%) 24.35 32.2
ROCE (%) 30.16 40.02
Cash Conversion Cycle -607 days -1034 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Tanla Platforms Ltd?
Tanla Platforms Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.01, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Tanla Platforms Ltd?
Tanla Platforms Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Tanla Platforms Ltd?

Q.1 Promoter shareholding and pledge status of Tanla Platforms Ltd?
Promoters hold 46.17% of the Tanla Platforms Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Tanla Platforms Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Tanla Platforms Ltd vs industry peers?
Tanla Platforms Ltd revenue CAGR is 15.70%, compared to the industry median CAGR of 3.17%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 2.5 3.2
Gross Profit Growth (%) -5.7 18.4
Operating Profit Growth (%) -5.9 18.8
Net Profit Growth (%) -7.5 21.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.29 0.46
ROE (%) 24.35 4.22
ROCE (%) 30.16 6.49
Cash Conversion Cycle (days) -607.17 36

Valuation & price assessment

Q.1 Stock return of Tanla Platforms Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 30.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
30.8% -8.3% -6.1% 20.2%
Q.2 Valuation ratios of Tanla Platforms Ltd vs historical?
The current P/E ratio of 14.72 is lower than its historical median of 22.01, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 14.72 22.01 47.38
Price to Book 3.01 5.97 2.64
Price to Sales 1.7 2.87 4.79
EV to EBITDA 8.45 13.23 16.75

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