This IT stock closed in the upper circuit despite a weak market

The company announced a Rs 1200 per share buyback offer.

Tanla Platforms Ltd shares have increased by 5 per cent and closed at its upper circuit of Rs 761.55. Tanla Platforms Ltd is a provider of cloud communications services that help businesses communicate with their clients and target audiences. It is a global provider of A2P messaging platforms (application to person). 

The stock was in news recently. On September 8, the company announced a Rs 1200 per share buyback offer. The offer will be worth Rs 170 crore. The company, however, has not yet disclosed the record date for the buyback. 

The company reported revenue of Rs 800 crore and EBITDA of Rs 130.7 crore for the most recent June quarter. The net profit for Q1FY23 was Rs 100.4 crore, with a net profit margin of 13 per cent. 

The company's balance sheet is solid. It has no debt and holds Rs 987 crore as cash and cash equivalent. As of the end of the June FY22 period, the ROCE is 32 per cent. 

About the shareholding pattern, 43.74 per cent of the stake is owned by the promoters, 13.46 per cent by FIIs, 2.77 per cent by DIIs, and the rest 40.03 per cent by the non-institutional investors.  

Tanla Platforms Ltd is currently trading at a PE multiple of 19.3x and has a market capitalization of Rs 10338 crore. The stock's high and low for the past 52-week have been Rs. 2094.4 and Rs. 584.8, respectively. 

The stock has decreased by more than 40 per cent over the past six months.