Tanla Platforms shares in focus today, here's why

Shares of Tanla Platforms Ltd. have come under the spotlight as the company prepares for a board meeting on June 16 to deliberate on a proposal for its third equity share buyback in five years. Previous buybacks in 2020 and 2022 were executed at ₹1,200 per share, with amounts of ₹154 crore and ₹170 crore, respectively.

The stock closed 1.09% lower at Rs 622.25 on Wednesday. Market cap of the firm stood at Rs 8376 crore.Despite a 25.8% gain in stock value over the past month, the stock has seen a year-to-date decline of 17.09%.   

Currently, Tanla Platforms shares are trading 48% below the previous buyback price, signaling a major drop in market value since the last buyback. The company has also implemented a trading window closure for insiders involved in the buyback project until June 18, 2025, citing compliance with SEBI regulations. This move is crucial to ensure transparency and fairness in the trading process.

Recent financial performance of Tanla Platforms shows a 9.9% decline in net profit for the fourth quarter, amounting to ₹117.3 crore compared to ₹130.2 crore in the previous fiscal period. However, revenue increased by 1.9% to ₹1,024.4 crore, with EBITDA also rising by 1.9% to ₹163.4 crore. The EBITDA margin remained stable at 16%. Additionally, the company declared a second interim dividend of ₹6 per equity share for FY25. This mixed financial performance underscores the challenges facing the company.

Tanla Platforms' upcoming board meeting and potential buyback decision are critical, as the company looks to bolster investor confidence amidst fluctuating financial results and market performance. The buyback could influence the stock's trading trajectory and market perception, especially given its current trading status.

The decision comes at a time when the company is navigating through financial challenges and striving to optimise shareholder value. Investors will be keenly watching the outcomes of this meeting, as it could set the tone for the company's future strategies.