BSE:532790

Stock Analysis Report

Executive Summary

Tanla Solutions Limited, together with its subsidiaries, provides cloud communication services for mobile operators and enterprises in India and internationally.

Risk Analysis

Earnings have declined by -38.86% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet with weak fundamentals.

Share Price & News

How has Tanla Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532790's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.0%

532790

-2.5%

IN Software

-0.6%

IN Market


1 Year Return

123.0%

532790

-16.6%

IN Software

11.1%

IN Market

Return vs Industry: 532790 exceeded the Indian Software industry which returned -16.6% over the past year.

Return vs Market: 532790 exceeded the Indian Market which returned 11.1% over the past year.


Shareholder returns

532790IndustryMarket
7 Day-9.0%-2.5%-0.6%
30 Day10.6%-3.0%-0.5%
90 Day26.5%0.1%3.0%
1 Year124.4%123.0%-15.9%-16.6%13.1%11.1%
3 Year44.9%41.6%-14.7%-21.6%24.5%18.0%
5 Year362.6%349.9%-0.4%-14.8%37.8%25.7%

Price Volatility Vs. Market

How volatile is Tanla Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 year ago | Simply Wall St

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Valuation

Is Tanla Solutions undervalued compared to its fair value and its price relative to the market?

1.45x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 532790 (₹76.7) is trading above our estimate of fair value (₹25.97)

Significantly Below Fair Value: 532790 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532790 is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: 532790 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532790's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532790 is overvalued based on its PB Ratio (1.5x) compared to the IN Software industry average (0.9x).


Next Steps

Future Growth

How is Tanla Solutions forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.8%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Tanla Solutions has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Tanla Solutions performed over the past 5 years?

-38.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532790 is currently unprofitable.

Growing Profit Margin: 532790 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 532790 is unprofitable, and losses have increased over the past 5 years at a rate of -38.9% per year.

Accelerating Growth: Unable to compare 532790's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 532790 is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (-5.4%).


Return on Equity

High ROE: 532790 has a negative Return on Equity (-14.81%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tanla Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: 532790's short term assets (₹7.3B) exceed its short term liabilities (₹4.6B).

Long Term Liabilities: 532790's short term assets (₹7.3B) exceed its long term liabilities (₹502.3M).


Debt to Equity History and Analysis

Debt Level: 532790's debt to equity ratio (7.4%) is considered satisfactory.

Reducing Debt: 532790's debt to equity ratio has increased from 0% to 7.4% over the past 5 years.


Balance Sheet

Inventory Level: 532790 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 532790's debt is covered by short term assets (assets are 13x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 532790 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 532790 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 14.3% per year.


Next Steps

Dividend

What is Tanla Solutions's current dividend yield, its reliability and sustainability?

0.46%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%0.6%markettop25%2.6%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 532790's dividend (0.46%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 532790's dividend (0.46%) is low compared to the top 25% of dividend payers in the Indian market (2.55%).


Stability and Growth of Payments

Stable Dividend: 532790's dividend payments have been volatile in the past 10 years.

Growing Dividend: 532790's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: 532790 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Dasari Uday Reddy (52yo)

21.1yrs

Tenure

₹24,823,014

Compensation

Mr. Dasari Uday Kumar Reddy is the Founder of Tanla Solutions Limited and has been its Managing Director and Chairman since 1999. Mr. Reddy serves as a Non-Independent & Executive Director of Tanla Solutio ...


CEO Compensation Analysis

Compensation vs Market: Dasari Uday's total compensation ($USD346.89K) is about average for companies of similar size in the Indian market ($USD302.86K).

Compensation vs Earnings: Dasari Uday's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Dasari Uday Reddy
Chairman & MD21.1yrs₹24.82m29.39% 3.3b
Srinivas Kamoji
Chief Financial Officer8.4yrs₹8.57m0.044% 4.9m
Sriram Vinjamuri
Chief Operating Officer1.3yrsno datano data
Seshanuradha Chava
Company Secretary0yrs₹6.31m0.058% 6.5m
Chandra Konetisetti
Vice President of Product Planning0yrsno datano data
K. RamaKrishna
Vice President of Human Resource0yrs₹1.24mno data
Kedarnath Gupte
Senior Vice President - International Markets2.8yrsno datano data
Kiran Sikhakolli
General Manager of Operations0yrsno datano data

5.6yrs

Average Tenure

49yo

Average Age

Experienced Management: 532790's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dasari Uday Reddy
Chairman & MD21.1yrs₹24.82m29.39% 3.3b
Sanjay Kapoor
Non-Executive Director0.5yrsno data0.018% 2.1m
Amrita Gangotra
Independent & Non-Executive Director0.6yrsno datano data
Sanjay Baweja
Additional Non-Executive Independent Director0.5yrsno data0.086% 9.5m
Anantapur Guggilla Reddy
Non-Executive Director0.3yrs₹245.00k0.0021% 229.4k
Rohit Bhasin
Additional Non-Executive Independent Director0.5yrsno datano data

0.5yrs

Average Tenure

57yo

Average Age

Experienced Board: 532790's board of directors are not considered experienced ( 0.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 532790 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.9%.


Top Shareholders

Company Information

Tanla Solutions Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tanla Solutions Limited
  • Ticker: 532790
  • Exchange: BSE
  • Founded: 1995
  • Industry: Application Software
  • Sector: Software
  • Market Cap: ₹11.138b
  • Shares outstanding: 145.97m
  • Website: https://www.tanla.com

Number of Employees


Location

  • Tanla Solutions Limited
  • Tanla Technology Centre
  • Hi-Tech City Road
  • Hyderabad
  • Andhra Pradesh
  • 500081
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532790BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2007
TANLANSEI (National Stock Exchange of India)YesEquity SharesININRJan 2007

Biography

Tanla Solutions Limited, together with its subsidiaries, provides cloud communication services for mobile operators and enterprises in India and internationally. It offers messaging products and services, such as Application to Peer short message services (SMS) on business-as-a-service basis; SMS Firewall, a telco grade platform that plugs loop holes in the telecom network for fraud and revenue leakage using various filtering capabilities; SMS Hub, a solution that simplifies SMS interoperability, manages number portability, and introduces real-time online monitoring to manage large volumes of SMS; unstructured supplementary service data (USSD) Center for service providers, MVNO’s, and wireless operators to offer USSD-based applications and services to enterprises; and Push Notifications to create and manage multiple push notification campaigns through a single user interface. The company also provides cloud voice services, including Hosted IVR solution that enables enterprises to design, build, and update custom IVR applications using a Web interface; Voice Broadcast technology that enables enterprises to initiate and deploy personalized interactive voice broadcasts; Free Ring, a solution for interactive communications with customers and prospects; and Source Trace, which enables enterprises and agencies to track inbound calls back to the marketing source. In addition, it offers IoT platform, which enables businesses to connect people, machines, and processes, as well as provides products and services development, and aggregator and offshore development services. The company was incorporated in 1995 and is headquartered in Hyderabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 12:49
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.