Tanla Platforms (TANLA)
Slow GrowerFairStock Score: 56/100 — STEADY
Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 1/1
Key Financials
| Current Price | ₹582.05 |
| Market Cap | ₹7,719.96 Cr |
| P/E Ratio | 14.49 |
| ROCE | 29.19% |
| ROE | 55.74% |
| Dividend Yield | 2.06% |
| Profit Growth | 22.2% |
| Debt/Equity | 0.02 |
| Sales Growth | 17.8% |
| Free Cash Flow | ₹7,98,74,150.4 Cr |
| Promoter Holding | 46.17% |
| 52-Week Range | ₹365.9 — ₹656.7 |
| Sector | IT - Software |
| Book Value | ₹187.61 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
At first glance, Tanla Platforms looks like the kind of business Graham would admire and Buffett would buy — if the price and durability line up. The numbers: ₹500.45 share price, ₹6,034 Cr market cap, earnings yield of roughly 8.2% (1/12.26). You are buying a software products company with an astonishing 55.74% ROE and 29.19% ROCE, and almost no leverage at 0.02 debt-to-equity. That combination is rare. A business earning these returns on a low equity base has some genuine pricing power or asset-light advantage; otherwise competition would have compressed those returns. Sales grew 12.06% and profit grew 10.85% — consistent, not manic. The latest quarter, ₹1,121 Cr sales and ₹131 Cr net profit, shows the model still works. At a PEG of 1.07, growth is almost fairly priced. The 2.64% dividend is a small but real payment for patience, and 46.17% promoter holding aligns owners with managers. Still, I must be disciplined. A price-to-book of 11.12 means I am paying heavily for intangibles and past return generation rather than assets. If ROE decays, the high book multiple will hurt. Profit growth lagging sales growth by a bit suggests margins are not expanding. And the stock sits at ₹500, much closer to the ₹366 52-week low than the ₹766 high — Mr. Market is cautious. The FairStock Score of 51/100 also screams 'mixed,' not 'screaming bargain.' This is a stalwart, not a fast grower. I'd want to see the ROE maintained, FCF continue to support that dividend, and growth not dip below low double-digits. Then the current P/E of 12.26 would look comfortable. Without that, book value of ₹45 gives no cushion. It's a fine business, but I'd wait for a wider margin of safety.
The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer