Amit Mishra Profile picture
Nov 3, 2020 23 tweets 27 min read Read on X
Thought of developing a bit more on comparisons being made between Route and Tanla

Both are in an undeniably hot sector and therefore attracting lot of attention

One needs to b careful while making any loose comparisons of Tanla & Route

#TanlaPlatform #Tanla #RouteMobile
When one dispassionately looks at both scrips, it can be easily seen that they are miles apart on financials,business operations, promoters, clients, regulatory front

Will list some of the reasons here below for everyone's consideration.

#TanlaPlatform #Tanla #RouteMobile
While reading this, please take your eyes off the share prices and price action because that doesn't represent value - price largely just represent sentiments.

(1) Route is a recently listed company post IPO in September 2020...(contd..)

#TanlaPlatform #Tanla #RouteMobile
(...contd)..with less than 2 months of trading under greater regulatory scrutiny - lot of stuff is not known about the company.

(2) Route's earlier application in January 2018 for IPO was rejected by SEBI-see embedded tweet for 2018 DHRP

#TanlaPlatform #Tanla #RouteMobile
(3) Various promoters stories for siphoning off benefits from subsidiary companies - there is a whole thread on it - see embedded tweet and weblink here below:…

#TanlaPlatform #Tanla #RouteMobile
(4) Route is a bulk sms / low-cost (i.e. less margins) company which derives concentrated revenues from top 10 clients (59% as per Slide9 of presentation-link below) with low presence in the enterprise segment.…

#TanlaPlatform #Tanla #RouteMobile Image
(5) Given its low margin business, market is very generous giving high valuations - it is currently trading at PE of ~44 & EV/EBITDA of ~34 on FY21 est

See embedded tweet from Deepak for brilliant comparison on #H1FY21 #Q1FY21 numbers

#TanlaPlatform #Tanla #RouteMobile Image
But lets be real Route is *NOT* a high tech company to command such premium valuation for long time/with low margins

Affle for ex is a high tech products cpy & has high margins (~40%) to show for & therefore able to keep high valuations

#TanlaPlatform #Tanla #RouteMobile Image
At some point market will align itself to fundamentals & give what Route really deserves and personally it is not more than 20 PE stock

And one can only hope that there are no bigger impropriety issues alluded in GSN thread here or more

#TanlaPlatform #Tanla #RouteMobile
In striking comparison to Route (which is low level peer for Tanla as clear from pic appended below), Tanla is still trading at PE of 13.xx and EV/EBITDA of 12.xx with much better financials (Half yearly #H1FY21 basis)

#TanlaPlatforms #Tanla #RouteMobile Image
Tanla with its
-superior financials,
-being a product/platform high tech company
-serving mainly enterprises
-zero debt & no legacy issue
can easily command 2x valuations it is currently trading at as soon as FY21 results are announced.

#TanlaPlatform #Tanla #RouteMobile
Please remember if someone points negative PAT in FY20, Tanla had to charge one off non cash items (acc depreciation & impair goodwill) as per telecom regulation which resulted in -ve PAT

Cash statement/Balance sheet shud be the focus

#TanlaPlatform #Tanla #RouteMobile
Those who are interested to read further on all recent developments at Tanla since July 2020, should read this embedded thread - very good for chronological record with some technical guidance on top.

#TanlaPlatforms #Tanla #RouteMobile
Link for Tanla’s Q2FY21 results and presentation is here:

#TanlaPlatform #Tanla #RouteMobile
Hope the above is helpful.

Disclosure: Am an investor in Tanla and therefore my views may be biased, please do your own due diligence before taking any position or take professional help.

#TanlaPlatform #Tanla #RouteMobile
Guess #Tanla will continue to see valuation re-rating as we progress to #Q3FY21 #Q4FY21 results,both will b much better thn Q1/Q2

personally, #TanlaPlatform being leader in #CPaaS sector & better in every matrix,will cross #RouteMobile valuations in 2021

Plugging below tweet (based upon beautiful comparative analysis frm @SForStiletto ) here also as it is more relevant to above thread on comparisons btwn #TanlaPlatforms / #RouteMobile

#TanlaPlatforms ,a product/platform company serving majorly enterprises, rerating may continue given its PE range 26-33(based on FY21EPS est ranges)


#RouteMobile a low margin bulk sms business which trades at 50+PE

As usual, plz do ur own due diligence

good observation @SForStiletto 👍🏼

btw, if we keep #Karix & #Gamooga in view which were acquired recently by #TanlaPlatforms , then in some ways we can say that #Tanla now is equivalent to #AffleIndia plus #RouteMobile
@EdelweissFin starts coverage of #RouteMobile TP1280
CMP valued at
33 & 22 w/FY23 est⚡️
48 & 36 w/FY21 est⚡️

#CPaaS #CloudCommunication sector is major theme 4this decade,& market will continue 2rerate *sector leader* #TanlaPlatforms

#Blockchain #Platforms ImageImageImageImage
Updates from Deepak on comparative analysis for #TanlaPlatforms vs #RouteMobile

While RM is much lesser player in comparison to standalone #Karix & far from #Tanla,this table is prepared to demonstrate that Tanla is due for massive rerating given massive earning growth potential Image
Thanks 4info Vincent

#RouteMobile mgmt is selling as it is clearly overpriced
totally unsustainable given low margin bulk business it has-details👆🏼in thread

#TanlaPlatforms,superior in all matrices & undervalued,is a no brainer-details in pinned thread #Tanla Image

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More from @AmitMis93532571

Jul 5, 2021
CPaaS & general Cloud Communication Sector will surprise everyone on the upside in India - expect it to exceed global CAGR avg.

Big theme for this decade - direct correlation with Digital theme.

Indian retail investors shouldn’t miss this opportunity.… ImageImageImage
Since timing the market is near impossible, interested investors should SIP in related stocks of their liking after due diligence.
Potential: look at Twilio’s valuations-revolutionized communications in US(a matured digital economy)in 13yrs of its existence

India will have digital maturity by~2025

No rocket science-successful Indian player will repeat Twilio/Sinch

Some useful articles in embedded tweets👇🏼
Read 5 tweets
Nov 3, 2020
#Subex is setting the market abuzz with many brokers talking of relisting above 20 Rs - which is across a major 8 year breakout level of around 18.50

#CrunchMetrics #IDCentral #DigitalTrust #IoT #IoTSecurity
Will be see a dream run in #Subex post relisting given fundamentals are fast improving for both business operations and balance sheet

See embedded thread for brief history of its turnaround.

#CrunchMetrics #IDCentral #DigitalTrust #IoT #IoTSecurity #CyberSecurity
Typo-plz read “Will be” as “Will we”

I think we will 😊-next 2yrs at #Subex should be similar or better to what #TanlaPlatforms achieved in same time since #Karix acquisition in Aug2018

Cash books are ringing at Subex with good visibility

So watch this space for M&A/BuyBack!!
Read 59 tweets
Oct 29, 2020
H1 results will b a revelation 4 lazy P&L st analysts making YoY compare bt discounting cash flow/EPS

& H2 is seasonally better

Market will do some math for sure- #TanlaPlatforms isn’t 13PE stock (FY21 est) with much high revenues/margins than #RouteMobile which now is at 40PE
And the proof is here:

#TanlaPlatforms #Tanla announced stellar results for #Q2FY21 :



PressRelease:… ImageImageImageImage
Read 17 tweets
Oct 24, 2020
@LltTomar Lalit,thanks for doing this poll.

Have voted YES of course as #Subex is in fact a resounding case of turnaround, which it achieved last year after 3 yrs of efforts from diligent mgmt with a clear vision.

Below tweets briefly captures few key events during this journey.
@LltTomar Turnaround of #Subex started in 2016 when all FCCBs were converted into equity, therefore wiping of the debt from the books.

Management’s intent further became clear and the turnaround efforts got boost when management launched Subex 3.0 in May 2017 (Subex’s 25 yrs anniversary).
@LltTomar Subex3.0…

In same year,Aug2017, #Subex did a major restructuring of business

Revenue Maximization Solutions & related businesses transferred to Subex Assurance LLP

Subex Secure & Analytics Solutions, related businesses transferred to unit Subex Digital
Read 14 tweets

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