This IT stock is trending on September 28

The shares surged 5% on the day.

On September 28, the market is trading flat. At 12:23 pm, the S&P BSE Sensex is trading at 57151.27, up 0.08% on the day, while NIFTY50 is down 0.05% and trading at 16996. About Sectoral performance, Telecom is the top gainer, while Metal and Financials are among the top losers. Regarding stock-specific action, Tanla Platforms Ltd is one of the top gainers.

The shares of Tanla Platforms Ltd surged 5% and are trading at Rs 761.55. The stock opened at Rs 725 and since has made an intraday high and low of Rs 761.55 and Rs 721.85, respectively.

Tanla Platforms Ltd is a cloud communications service provider which enables companies to communicate with their clients and target audiences. It is a global provider of A2P (application to person) messaging platforms.

On September 8, the company announced its plans for a buyback offer at Rs 1200 per share. The size of the offer will be Rs 170 crore. However, the company has not yet disclosed the record date for the buyback.

For the latest June quarter, the company reported a revenue of Rs 800 crore and an EBITDA of Rs 130.7 crore. The Q1FY23 net profit stood at Rs 100.4 crore while maintaining a net profit margin of 13%.

The company has a strong balance sheet. It has zero debt and its cash and cash equivalent stand at Rs 987 crore. The ROCE stands at 32%, as per June FY22 period ending.

About the shareholding pattern, 43.74% of the stake is owned by the promoters, 13.46% by FIIs, 2.77% by DIIs, and the rest 40.03% by the non-institutional investors.

The company has a market capitalization of Rs 10338 crore and is currently trading at a PE multiple of 19.3x. The stock has a 52-week high and low of Rs 2094.4 and Rs 584.8, respectively. 

In the last six months, the stock is down more than 40%.