Tanla Solutions Ltd
Tanla Solutions Ltd. - Event Update 270608.pdf Tanla Solutions Ltd. =96 Event Update
(Rs 238, FY09E- EPS Rs 21.2, P/E 11.2x, BUY with a target price of Rs 450)
TSL is currently operating in the most sophisticated mobile VAS markets (UK and Ireland) that are better than other markets in terms of per user spending on VAS, technology penetration and the wide array of technology platforms available. TSL has identified 6 countries in America (US, Canada, Brazil, Mexico, Argentina, Chile), 14 countries in Europe (Russia, Germany, Italy, France, Poland, Netherlands, Portugal, Belgium, Sweden, Switzerland, Denmark, Finland, Spain and Norway), 14 countries in Asia (China, Indonesia, Turkey, Philippines, Thailand, Saudi Arabia, Malaysia, Taiwan, Sri Lanka, Hong Kong, UAE, Singapore, Kuwait and Bahrain), 2 countries in Africa (Egypt, South Africa) and Australia for expansion of services. Total number of countries having TSL’s presence will be 40 by the end of FY09 (vs 5 in FY08) - 28 countries will have direct connectivity to operators for aggregation services by the end of FY09 while the balance 12 will have indirect connectivity.
At current market price of Rs 238, TSL trades at a PE multiple of 11.2x on FY09E earnings of Rs 21.2. We maintain “BUY” on the stock with a target price of Rs 450. At our target price, the stock will be valued at 21.2x FY09E earnings.
