600% Payout: IT Stock Okays Rs 6/Share Interim Dividend For FY24; Buy?

Mid-cap information technology company Tanla Platforms Ltd. closed on Wednesday with a market valuation of Rs 14,111.56 Cr. on the BSE. Tanla Platforms Limited, formerly known as Tanla Solutions Ltd, is a Hyderabad-based international Indian cloud communications firm. Following the announcement of the company's Q3 results for the current fiscal year and its proposed interim dividend, market observers have turned their attention to the IT stock.

Tanla Platforms Dividend

The Board of Directors "Approved interim dividend of 600% i.e., Rs. 6.00 (Rupees Six only) per equity share of Re.1/- each on the equity share capital of the Company and fixed February 05, 2024 as Record Date for the purpose of determining the entitlement of the shareholders for the payment of Interim Dividend," said Tanla Platforms in a stock exchange filing.

Tanla Platforms Financials

In the October-December quarter of 2023, the software services company recorded a 20.3 per cent year-on-year increase in net profit, coming in at Rs 140.1 crore as opposed to Rs 116.5 crore in the same period the previous fiscal year. In comparison to the December quarter of the previous fiscal year, when revenue from operations was Rs 875.7 crore, it climbed 15.3 percent YoY to Rs 1,002.6 crore in Q3FY24. EPS climbed to Rs 10.4 in the quarter under review from Rs 8.6 in the 2022 December quarter.

Uday Reddy, Founder Chairman & CEO, Tanla Platforms Limited said, "We've had a good start to the year - signing the first commercial agreement with Wisely ATP. We have strengthened our ESG efforts and secured S&P Global ESG Score of 68, being placed in the top 99 percentile of all companies in the software industry segment."

Tanla Platforms Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said TANLA is presently trading at 1050, and there seems to be profit-booking from the higher side. After reaching its peak, the stock corrected by 16%, finding support near the 200 EMA at 984.79 on the daily chart. This level is acting as a crucial support zone.

On the daily chart, TANLA has formed a double top pattern, indicating bearishness in the short run. A robust support zone is identified in the range of 980 to 950. The Relative Strength Index (RSI) for TANLA is at 40, suggesting a bearish outlook. Moreover, the Stochastic RSI exhibits a negative crossover, further confirming the bearish sentiment. Notably, the stock is trading below both the 20 and 50 EMA, highlighting its overall bearish trend.

Considering these technical indicators and the prevailing market conditions, it appears to be an opportune moment to contemplate buying on dips in TANLA near the 985 to 950 level. A reasonable target for this trade could be set at 1250, with a recommended stop-loss at 900 to manage potential risks.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.