Multibagger stock: Over 15,000% return in 10 years! Brokerages see up to 56% upside in this IT stock

Long-term investing can be a powerful tool for building wealth over time, but it requires patience, discipline, and a long-term perspective. Shares of Tanla Platforms have delivered over 15,445 per cent to their long-term investors in the last 10 years. The multibagger stock has delivered over 1,700 per cent return in the last five years.

However, the stock is down over 55 per cent from its 52-week high of Rs 1,509.05, hit on April 28, 2022. Brokerages continue to maintain their bullish stance on this multibagger stock after the March quarter results as they believe that the margin recovery in the enterprise segment came as a positive surprise.

According to HDFC Securities, the enterprise business growth will be volume led and the proposed NLD rate hike will act as a booster. The platform segment growth will be powered by Wisely platforms. "Wisely ATP (anti-phishing product) is a promising product, which has received Sandbox approval from TRAI and is under POC with large banks. Wisely Network and OTT (WhatsApp) have started yielding results, while Wisely Communicate (encrypted OTP) and Wisely Engage (performance marketing) are future drivers," it added.

The brokerage firm has a 'Buy' rating on the IT stock with a target price of Rs 1,050, suggesting an upside potential of more than 56 per cent.

Yes Securities believes that Tanla is a credible play on the rising demand for CPaaS solutions across industries for achieving enhanced customer engagement. Also, an increase in smartphone penetration and a greater regulatory push towards mandatory SMS alerts would drive the CPaaS market.

"As per industry estimates, the Global CPaaS market is expected to grow at a CAGR of 20% plus from CY20 to CY25E, led by faster adoption of multichannel communication. The adoption of CPaaS-based A2P messaging across industries continues to drive volume growth for both the enterprise and platform segments of Tanla. The rising share of higher margin platform segment would drive EBITDA margin of the company," it said while sharing a target price of Rs 1,004 per share.

About the company

Founded in 1999, it was the first company to develop and deploy A2P SMSC in India. Today, as one of the world’s largest CPaaS players, it processes more than 800 billion interactions annually and about 63% of India’s A2P SMS traffic is processed through Trubloq, making it the world’s largest Blockchain use case.

Tanla Platforms Limited is headquartered in Hyderabad. Its segments include Mobile VAS & Software Development, and Property Development. The company is listed on two national exchanges, the NSE and BSE.

Tanla's net profit came in at Rs 120.30 crore during the quarter ended March 2023, down by 14.43 per cent on a year-on-year basis from Rs 140.60 crore during the same quarter last year.

Uday Reddy, Founder Chairman & CEO, Tanla Platforms Limited said, “Our innovation engine is firing with Platform business gross profits growing over 20% YoY for 11 quarters in a row. Our Enterprise business is back to 20% gross margins and we are well positioned to grow in the coming year.”

Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position.  

Also read: Adani Green Energy, NTDV: 2 Adani group companies to share Q4 results amid Hindenburg saga