Tanla Platforms - 80% Fall and Recovery

"Buy when everyone is selling and sell when everyone is buying." - Warren Buffett

Once the darling of investors, Tanla Platforms' stock price has fallen 80% from its peak of ₹2094 in January 2022. While the fall is severe and dents investors' confidence, the current price offers a low-risk, high-reward entry point for Tanla. Fibonacci analysis suggests that even a 38% recovery can result in good gains.

Key Points Supporting Price Recovery:

1. Sales and profit have been rising for the last 5 years.
   
2. Healthy promoter stake of 44.11%.
   
3. Healthy FII stake of 10.39%.
   
4. Negligible debt of ₹64 crore.
   
5. Low price-to-earnings ratio of 15, while the industry P/E is 30.
   
6. Healthy book value of ₹168.
   

Tanla Platforms Strength:

• Leading CPaaS Player: Tanla Platforms is a significant player in the Communications Platform as a Service (CPaaS) market in India and globally.
  
• Innovative Platforms: The company has developed key platforms like Trubloq (blockchain-based anti-spam) and Wisely (AI-powered CPaaS), showcasing technological advancement.
  
• Strong Market Position: Tanla processes a large portion of India's A2P SMS traffic and is expanding its presence in the OTT messaging space.
  
• Growth Potential: The CPaaS market is projected for significant growth in the coming years, offering a large addressable market for Tanla.
  

Disclaimer: This post is for study purposes for those interested in turnaround stocks. Any investment decisions made are purely your own.