16,000% rally! This multibagger BSE500 stock turns Rs 10,000 to Rs 16 lakh in 10 years

Shares of Tanla Platforms have offered blockbuster returns to investors in the last 10 years. The stock has risen about 16,000% over the past decade or so. Accordingly, if an investor would have invested Rs 10,000 in the stock 10 years ago, it would have turned to Rs 16 lakh, according to an analysis by ET Markets.

In the last five years, the shares have surged 1,620% while they have zoomed 1,263% in the last three years.

Tanla Platforms develops and markets computer software. The company offers messaging, voice, internet of things, and other cloud communication solutions.

Over the years, the company has developed and delivered advanced technology and products that meet the needs of a diverse clientele, from enterprises to carriers across geographies.

According to the shareholding pattern available with the exchanges, the company is majority owned by the public, with their shareholding at 55.83%, while promoters own the rest at 44.17%.

Among the public shareholders, mutual funds have a meagre 0.06% stake, while foreign investors own 14.23%. The stock is a retail favourite with a nearly 34% stake in the company.

The BSE500 company has a market capitalisation of Rs 9,049 crore and an EPS of 12.93 on a trailing twelve-month (TTM) basis. The stock is currently trading at a PE of 52.69.

Tanla Platforms has seen its sales grow manifold from just Rs 117 in FY13 to Rs 3,206 crore in FY22. Meanwhile, profit after tax (PAT) has surged from Rs 2.59 crore in FY15 to nearly Rs 539 crore in FY22.

For the fourth quarter, Tanla Platforms' revenue dropped 2% year-on-year (YoY) to Rs 833 crore, while profit after tax (PAT) stood at Rs 120 crore. The profit slumped nearly 15% from Rs 141 crore reported in the year-ago period. The company's operating profit during the quarter stood at Rs 166 crore.

Technical outlook - What should investors do?
Technical analysts suggest Tanla Platforms' stock has strong bullish momentum and could continue to trend higher in the near term.

Currently, the stock is trading above its 50-day moving average, indicating a short-term bullish trend. Furthermore, the 50-day moving average is also above the 200-day moving average, suggesting a positive long-term trend for the stock.

"The stock has been trending after it received a big order from the government, which could be worth up to Rs 25,000 crore. On the charts, it is also showing strength after a long time, getting a reversal from 500 levels. It can touch 800 levels very soon. Keep a stop loss of 600," said Ravi Singhal, CEO, GCL.

"The stock's RSI is currently in the overbought zone and investors should continue to monitor other technical factors to gauge the stock's potential," said Manish Mishra, Virtual CFO.

Ratnesh Goyal of Arihant Capital suggested investors holding the stock to keep a stop loss of Rs 610. "The upside can see a 725 level in the near term," he said.

(Data inputs: Ritesh Presswala)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)