NSEI:TANLA

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.

Snowflake

Fundamentals

Excellent balance sheet and overvalued.

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: TANLA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.6%

TANLA

-0.4%

IN Software

-1.2%

IN Market


1 Year Return

52.8%

TANLA

-24.0%

IN Software

4.0%

IN Market

Return vs Industry: TANLA exceeded the Indian Software industry which returned -24% over the past year.

Return vs Market: TANLA exceeded the Indian Market which returned 4% over the past year.


Shareholder returns

TANLAIndustryMarket
7 Day6.6%-0.4%-1.2%
30 Day2.5%-1.2%4.8%
90 Day-1.5%-0.04%7.5%
1 Year53.8%52.8%-20.5%-24.0%6.1%4.0%
3 Year34.8%31.8%-2.5%-10.3%34.2%27.3%
5 Year218.4%209.6%6.5%-8.7%37.4%24.5%

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

Valuation

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

0.92x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: TANLA (₹48.3) is trading above our estimate of fair value (₹10.18)

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


Price To Earnings Ratio

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

PE vs Market: TANLA 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 TANLA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TANLA is good value based on its PB Ratio (0.9x) compared to the IN Software industry average (1x).


Next Steps

Future Growth

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

47.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TANLA is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: TANLA is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: TANLA is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if TANLA's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if TANLA's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TANLA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Tanla Solutions performed over the past 5 years?

-16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TANLA has high quality earnings.

Growing Profit Margin: TANLA's current net profit margins (-7%) are lower than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: TANLA is unprofitable, and losses have increased over the past 5 years at a rate of -16.9% per year.

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

Earnings vs Industry: TANLA is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (-2.8%).


Return on Equity

High ROE: TANLA has a negative Return on Equity (-13.58%), 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: TANLA's short term assets (₹7.3B) exceeds its short term liabilities (₹4.6B)

Long Term Liabilities: TANLA's short term assets (7.3B) exceeds its long term liabilities (502.3M)


Debt to Equity History and Analysis

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

Reducing Debt: Insufficient data to determine if TANLA's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: TANLA'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 TANLA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TANLA is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -62.8% per year.


Next Steps

Dividend

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

0.72%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%0.6%markettop25%2.4%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: TANLA's dividend (0.72%) is higher than the bottom 25% of dividend payers in the Indian market (0.57%).

High Dividend: TANLA's dividend (0.72%) is low compared to the top 25% of dividend payers in the Indian market (2.4%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: TANLA 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

What is the CEO of Tanla Solutions's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Dasari Uday Reddy (52yo)

20.8yrs

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 ($USD345.91K) is above average for companies of similar size in the Indian market ($USD33.44K).

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


Management Age and Tenure

5.3yrs

Average Tenure

49yo

Average Age

Experienced Management: TANLA's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

0.3yrs

Average Tenure

57yo

Average Age

Experienced Board: TANLA's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

Buy₹521,47404 Oct 19
Sanjay Kapoor
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares10,000
Max Price₹52.15
Buy₹1,008,94917 Sep 19
Sanjay Kapoor
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares17,000
Max Price₹59.35
Buy₹1,204,17912 Sep 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares20,000
Max Price₹60.21
Buy₹14,831,27024 Aug 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares275,879
Max Price₹55.57
Buy₹20,019,96122 Aug 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares390,000
Max Price₹52.98
Buy₹11,925,25712 Aug 19
Sidhant Sachdev
EntityIndividual
Shares50,500
Max Price₹542.11
Buy₹5,038,16408 Aug 19
Deepak Goyal
EntityIndividual
Shares100,000
Max Price₹50.38
Buy₹37,810,48924 Jun 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares570,000
Max Price₹67.81
Buy₹13,279,03018 Jun 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares232,500
Max Price₹58.76
Buy₹306,52014 Jun 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares100,000
Max Price₹61.30
Buy₹10,184,04213 Jun 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares155,000
Max Price₹65.72
Buy₹6,841,35512 Jun 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares105,668
Max Price₹64.75
Buy₹44,221,01611 Jun 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares728,110
Max Price₹62.05
Buy₹45,401,47407 Jun 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares730,675
Max Price₹64.23
Buy₹63,473,82404 Jun 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares1,179,223
Max Price₹55.77
Buy₹1,621,67031 May 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares35,000
Max Price₹46.63
Sell₹379,52031 May 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares2,000
Max Price₹189.76
Buy₹10,282,37927 May 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares223,592
Max Price₹46.27
Buy₹4,002,30623 May 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares86,801
Max Price₹46.24
Buy₹1,579,22521 May 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares33,816
Max Price₹46.70
Buy₹13,710,39820 May 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares292,225
Max Price₹46.93
Buy₹38,553,73117 May 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares810,862
Max Price₹47.88
Buy₹18,622,94216 May 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares410,000
Max Price₹45.43
Buy₹12,507,25214 May 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares290,641
Max Price₹43.09
Buy₹4,102,35113 May 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares100,486
Max Price₹41.35
Buy₹66,599,93806 May 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares1,665,000
Max Price₹40.00
Buy₹22,647,19030 Jan 19
Dasari Uday Reddy
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares636,947
Max Price₹36.86

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.8%.


Management Team

  • Dasari Uday Reddy (52yo)

    Chairman & MD

    • Tenure: 20.8yrs
    • Compensation: ₹24.82m
  • Seshanuradha Chava (47yo)

    Company Secretary

    • Tenure: 0yrs
    • Compensation: ₹6.31m
  • K. RamaKrishna (49yo)

    Vice President of Human Resource

    • Tenure: 0yrs
    • Compensation: ₹1.24m
  • Srinivas Kamoji (57yo)

    Chief Financial Officer

    • Tenure: 8.2yrs
    • Compensation: ₹8.57m
  • Kedarnath Gupte

    Senior Vice President - International Markets

    • Tenure: 2.5yrs
  • Kiran Sikhakolli (40yo)

    General Manager of Operations

    • Tenure: 0yrs
  • Chandra Konetisetti (40yo)

    Vice President of Product Planning

    • Tenure: 0yrs
  • Sriram Vinjamuri (49yo)

    Chief Operating Officer

    • Tenure: 1.1yrs

Board Members

  • Sanjay Kapoor (57yo)

    Non-Executive Director

    • Tenure: 0.3yrs
  • Amrita Gangotra (54yo)

    Independent & Non-Executive Director

    • Tenure: 0.3yrs
  • Dasari Uday Reddy (52yo)

    Chairman & MD

    • Tenure: 20.8yrs
    • Compensation: ₹24.82m
  • Sanjay Baweja (59yo)

    Additional Non-Executive Independent Director

    • Tenure: 0.3yrs
  • Anantapur Guggilla Reddy (62yo)

    Non-Executive Director

    • Tenure: 0.08yrs
    • Compensation: ₹245.00k
  • Rohit Bhasin

    Additional Non-Executive Independent Director

    • Tenure: 0.3yrs

Company Information

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


Key Information

  • Name: Tanla Solutions Limited
  • Ticker: TANLA
  • Exchange: NSEI
  • Founded: 1995
  • Industry: Application Software
  • Sector: Software
  • Market Cap: ₹6.740b
  • Shares outstanding: 145.88m
  • 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,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 12:45
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
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.