Route Mobile shares jump 15% to hit fresh one-year high levels; here's why

Shares of Route Mobile Ltd soared 15.15 per cent in Thursday's trade to scale a new 52-week high of Rs 1,894.35. The stock was last seen trading 13.74 per cent up at Rs 1,870.50. At this price, it has gained 30.79 per cent in the past one month.

Today's sharp upward move came after the company announced that Microsoft and Proximus Group signed a new strategic partnership for collaboration on digital communications and cloud. Belgian telecom Proximus Group has acquired a controlling stake in Route Mobile via its subsidiary Proximus Opal.

"The newly formed strategic partnership between Microsoft and Proximus will allow both parties to leverage their respective expertise and product leadership, accelerated by the power and potential of AI applications and solutions," a joint release stated.

The collaboration between Microsoft and Proximus underscores their shared commitment to drive technological advancement and deliver unparalleled value to customers across Belgium and abroad, it further stated.

"This new strategic partnership with Microsoft, which will open up new frontiers in communication services, shows how Proximus Group is on track to further redefine customer experiences in Belgium and abroad thanks to the combined efforts of our international affiliates BICS, Telesign and Route Mobile," said Guillaume Boutin, CEO of Proximus.

Separately, it was reported that Proximus Opal (Route Mobile owner) is eyeing a Nasdaq listing. Proximus will look to list on Nasdaq over the next 24-36 months, Route Mobile CEO Rajdip Gupta told LiveMint. Although, BT couldn't independently verify this information at the time of writing this story.

On technical setup, the counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 49.04. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 81.73 against a price-to-book (P/B) value of 8.69. Earnings per share (EPS) stood at 20.12 with a return on equity of 10.63.

The scrip saw heavy trading volume on BSE as around 43,000 shares were last seen changing hands. The figure was higher than the two-week average volume of 14,000 shares.

Turnover on the counter came at Rs 7.58 crore, commanding a market capitalisation (m-cap) of Rs 11,624.35 crore.