Tanla Platforms: Multibagger stock yields nearly 15,000% return in 10 years, hits upper circuit; brokerage see 39% upside—Here ‘s why

Tanla Platforms share target price: Shares of multibagger Tanla Platforms were locked in five per cent upper circuit in BSE intraday trade on Friday. The counter of software products maker has hit third consecutive 52-week high this week and gained over 15% in as many sessions on the BSE. On Friday, the stock surged by Rs 41.55 or 4.98% to 875.90 per share amid spurt in volume.  

Tanla Platforms multibbager stock

Multibagger stock in true sense, Tanla Platforms share price has risen by 14,796% in the past 10 years as on September 9. The stock yielded a five-year return of over 2200% and clocked more than 230% return in the past two years. Though the stock has a negative return of 5% in the last one year, the stock has shown a good upmove this week, gaining by 15.6% in the last few sessions.  

Tanla Platforms share target price

Earlier, on September 5, brokerage firm Yes Securities recommended a buy stance on the internet solution provider stock.  

The bullishness of the brokerage was largely due to smartphone penetration in the country.  

It feels Tanla Platforms is a credible play on the rising demand for CPaaS solutions across industries for achieving enhanced customer engagement.  “The increase in smartphone penetration and greater regulatory push towards mandatory SMS alerts would drive CPaaS market,” said the brokerage.  

Piyush Pandey, Lead analyst at Yes Securities, also highlighted certain risk factors regarding technological obsolescence such as risk from other communication channels like Whatsapp gaining prominence over SMS based A2P.  “Tanla’s business profile has changed significantly over the last decade as the industry remains dynamic. There is constant need to innovate to ride the growth in CPaaS industry,” he underlined.  

The brokerage house foresees a target price of Rs 1218 per share for Tanla Platforms, which is an upside of 39% on today’s upper circuit price of Rs 875.90 per share.  

Tanla Platforms buy back details 

The spike in the counter was largely driven by buyback offer. Tanla Platforms has announced to buyback 14,16,666 equity shares of the company from investors at a price of Rs 1,200 per share. A share buyback is a process wherein a company buys its own outstanding shares from the market to reduce the number of shares available in the open market.