Multibagger stock : ₹3.90 to ₹524 This Penny Stock Turns ₹1 Lakh into ₹1.34 Crore in 11 Years—Do You Own It?
Identifying a multibagger stock is no easy task. Market experts believe that strong earnings growth, a promising industry, solid financials, and reasonable valuation play a crucial role in a stock’s long-term performance. However, even with these factors in place, there is no guarantee of exponential returns.
One company that has defied the odds and delivered astronomical gains to its investors is Tanla Platforms, a Hyderabad-based Communications Platform as a Service (CPaaS) provider. The stock, once a penny stock, has skyrocketed from just ₹3.90 in 2014 to ₹524.15 in 2024—translating into a 13,340% gain over 11 years.
Tanla Platforms’ Share Price Growth: A Stunning Rally
Tanla Platforms has demonstrated phenomenal growth over the past decade, generating massive wealth for its long-term investors. Here’s a closer look at its price trajectory:
- In 2014, Tanla Platforms was trading at just ₹3.90.
- As of 2024, the stock is priced at ₹524.15.
- Over the last five years, it has gained nearly 550%.
- However, in the last three years, it has declined by 64%.
- In the past one year, the stock has fallen 46%.
The stock touched its 52-week high of ₹1,086.05 on July 15, 2023, before slipping to a 52-week low of ₹515.90 on February 12, 2024.
₹1 Lakh Turns into ₹1.34 Crore
A 13,340% return over 11 years means that an investment of ₹1 lakh in Tanla Platforms in 2014 would have grown to an astounding ₹1.34 crore today.
However, the shorter the investment horizon, the lower the returns. For example:
- A ₹1 lakh investment five years ago (2019) would now be worth ₹6.5 lakh.
- Investors who stayed invested for 11 years have reaped the maximum rewards.
This underlines the power of long-term investing, proving that patience is key when it comes to wealth creation in the stock market.
Financial Performance and Key Ratios
To understand the company’s potential, let’s look at some key financial indicators:
| Financial Metric | Value |
|---|---|
| Market Cap | ₹7,000+ crore |
| Revenue (FY23) | ₹3,200 crore |
| Net Profit (FY23) | ₹470 crore |
| EPS (Earnings Per Share) | ₹32.5 |
| P/E Ratio | 16.1 |
| ROE (Return on Equity) | 23.8% |
| ROCE (Return on Capital Employed) | 28.2% |
| Debt-to-Equity Ratio | 0.01 (Almost Debt-Free) |
The company has strong financials, a healthy profit margin, and low debt, making it an attractive long-term bet.
Reasons Behind Tanla Platforms’ Massive Rally
1. CPaaS Industry Growth
Tanla Platforms operates in the booming CPaaS industry, which provides cloud-based communication solutions. The demand for secure, efficient, and scalable messaging services has skyrocketed due to digital transformation across industries.
2. Consistent Revenue and Profit Growth
Tanla Platforms has shown consistent growth in revenue and profitability, thanks to its ability to adapt to changing technology trends and expand globally.
3. Strong Market Position
The company is one of the leading players in the CPaaS industry, with major clients including telecom giants, banks, and tech companies.
4. Debt-Free Business Model
Tanla Platforms has minimal debt, ensuring financial stability and reducing risks during economic downturns.
5. Attractive Valuation
With a P/E ratio of 16.1, Tanla Platforms is reasonably valued compared to its industry peers, making it an appealing investment.
Should You Invest in Tanla Platforms?
While Tanla Platforms has already delivered multibagger returns, the stock’s recent decline raises concerns. Investors should evaluate the company’s future growth potential before making a decision.
Here are some key factors to consider:
- Growth Outlook: The CPaaS market is expected to grow, benefiting Tanla Platforms.
- Market Risks: The stock has been volatile in recent years.
- Valuation: The company is trading at a fair valuation.
Final Verdict: If you are a long-term investor with a high-risk appetite, Tanla Platforms could still be a solid addition to your portfolio.
Conclusion
Tanla Platforms has proven to be a wealth-creating machine, turning ₹1 lakh into ₹1.34 crore in just 11 years. While the stock has seen some correction in recent years, its strong financials and growth potential make it a company worth keeping an eye on.
Investors should do their own research and consult with a financial advisor before making investment decisions.
For more market insights, follow our news.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.