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Tuesday, 11 July 2017

My Portfolio: Stock 11: Bought TANLA on Techno-Funda Basis

Hi, Bought TANLA: Tanla Solutions Limited 135 shares @ 37 on Techno-Funda basis , So total value approx 5000 rupees or 5K.

 TANLA 135 Shares @ 37 with SL 32 for Target 45+ (Short-Medium Term, SL can be adjusted)

Risk Reward ratio : 1:2 and more

Techno-Funda calls are more of Technical and supported by Fundamentals.






So first see the Technical Outlook:

Technical:


Reasons for Trade: (Refer the below Charts)


1. Bounce from Support line.
2. Close above last 5-8 sessions
3. Close above RSI 30 from below, a bullish sign
4. Bullish bar with Huge Volume
 

Lets have a Closer Look:

1. Break out of Short trend line
2. Close above 21 EMA
3. Crossing RSI30 from the Downside
4. Consolidating neat the trend line before breakout
5. Stop Loss would be Lowest of the Trend Line supports
6. Engulfing bullish Bar above past 16 sessions


Fundamentals: 

Brief About Company:

Tanla Solutions (TANLA), founded in 1999, is engaged in providing integrated telecom infrastructure solutions and products.The company offers telecom products like SMSC, optimal routing solution, SS7 voice mail server, welcome roamer, high density media servers, multiple MSISDN, CRBT, missed call alert, SMS direct broadcast, and prepaid roaming gateway; automatic vehicle location, which provides instantaneous location information of a vehicle; and the Power AMR 101, an automated power reading device which provides instantaneous data of customer usage. The company provides offshore services including project management, application development and integration, technical support and technical consulting. The software development center is located in Hyderabad, Andhra Pradesh. The company has acquired a software development company in New Delhi. 

Products and services
The company provides two kinds of products such as VAS and Telco Products. Under VAS company provides various products and services such as campaign management, broadcast manager, content management system, interactive TV and WAP builder.
Under Telco, it provides various products and services such as SMSC, caller ringback tones, USSD, video dialers, voice portals, voicemails services, call management services and missed call alert

 Now lets review the Fundamentals,

Positive:

  1. Stock P/E 10 compared to industry above 18
  2. Debt Zero so D/e also 0
  3. Book value 64.14 thus P/b = 0.66 and book value highest of last 5 years
  4. Net Profit Margin (NPM%) improving
  5. Operating Profit Margin (OPM%) stable and above 15
  6. Sales increasing YoY and QoQ
  7. Capital Work in Progress (CWIP) increased YoY, so may attract revenue in future if Utilised for expansions
  8. Cash from Operating Activity (CFO) is Positive, raising and above Yearly profit
  9. Cash from Investing Activity (CFI) is negative and raising, that means company is investing which is good because its not using any debt
  10. Net cash Flow is positive 
  11. As debt is zero, Interest is also Zero
  12. Some blogs considered Tanla as Multi Bagger
Negative:
  1. Very low ROE 3% and ROCE 3%
  2. Not paying dividend regularly
  3. IT industry in Turmoil.
  4. Low promoter Holding 33%
Risks:
  1. Industry Risks (IT)
  2. Change in Technology
So on final note:

 TANLA 135 Shares @ 37 with SL 32 for Target 45+ (Short-Medium Term)

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