
Shares of Route Mobile are trading 29% lower to their 52-week high and are expected to recover lost ground amid the ongoing market rally. The mid cap stock hit a 52-week high of Rs 1935 on January 12, 2022. In the current trading session, the stock rose over 5% on BSE. Route Mobile stock gained 5.37% to Rs 1,399 against the previous close of Rs 1327.75 on BSE. Market cap of the firm stood at Rs 8,645 crore.
The stock hit a 52-week low of Rs 1052.60 on June 23, 2022. Route Mobile stock has fallen 28.76% from its 52-week high mark. The shares of the enterprise messaging firm are down 23.08 per cent in one year and fallen 22.36 per cent in 2022. Route Mobile stock has been gaining for the last two sessions. The Route Mobile stock is trading higher than the 5-day, 20-day, 50-day and 100-day moving averages but lower than 200-day moving averages.
A total of 9,347 shares of the firm changed hands, amounting to a turnover of Rs 1.28 crore on the BSE. Market cap of Route Mobile rose to Rs 8,645.84 crore.
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Nuvama Institutional Equities has assigned a target of Rs 1,769 for the stock. Nuvama said the company has pegged revenue growth at above 60 per cent–led by geographic, product and wallet-share expansions in existing areas. The brokerage said omni-channel capabilities in CPaaS and global footprint provide a plethora of cross selling and upselling opportunities. The company may consider bolt-on acquisitions to expand into new solutions.
"The need for enterprises to digitally engage with their customers is greater than ever before and Route is a key beneficiary. We expect Route Mobile to clock 34.4/36.7 per cent revenue/earnings CAGR over FY22-FY25E on the back of strong execution. Retain ‘BUY’ with a target price of Rs 1,769," Nuvama said.
Jitendra Upadhyay, senior Equity Research Analyst at Bonanza Portfolio Management said, "In the last few sessions, the stock has recovered 6.5% after the announcement that Route Mobile has obtained the "CITC License" from Saudi Arabia's Communications Information Technology Commission which will help them to operate in the Information and Technology Sector in KSA. Along with the announcement of opening a local office in Riyadh and operating as Route Mobile Arabia Telecom, which leads to strengthening its presence in the UAE & Kuwait markets. If we talk about the industry expectation for FY21-24E the global CPaaS industry is expected to grow at a 27.5% CAGR over FY21-24E on account of growth in enterprises messaging volumes, the addition of clients on a regular basis, and with an increasing number of partnerships like Route Mobile recently did in Saudi Arabia and UAE, etc. which will help Route Mobile to grow more from current levels."
Abhijeet from Tips2trade said, “A steady Q2FY23 earnings with a strong pullback in technology-based stocks recently has led to a smart recovery in Route Mobile stock price. Investors should buy only if daily close is above 1400 for targets of 1470-1515 in the near term. Immediate support will be at Rs 1304."
Manoj Dalmia, founder and director, Proficient Equities said, "Route Mobile had made a high of Rs 2,400 and now is available at almost half price at Rs 1366. Investors can buy at current levels with Rs 1600 on the upside with a stop loss of Rs 1260. Heavy buying should be avoided."
Ravi Singh, Vice President and head of research, Share India said, "Route Mobile revenue growth has been estimated at more than 60 per cent. CPaaS has cross selling and upselling opportunities with omni-channel capability and global footprint. The company may make new acquisitions to expand into new solutions. With its omni channel capabilities, Route Mobile is poised to capitalise on the vast opportunities. The company is building local sales teams in different regions and is continuously investing in product development. On technical setup, the stock may continue its bull run to touch the levels of Rs 1400 in the near term."
Ravi Singhal, CEO, GCL said, "Nifty IT has given strong break out today. Buy near Rs 1370 with a stop loss of Rs 1320. One can buy with a target of Rs 1555."
Route Mobile reported a strong set of numbers for the quarter ended September 2022. The firm posted a 74.5 per cent rise in consolidated profit after tax at Rs 73.6 crore in Q2 against a profit after tax (PAT) of Rs 42.17 crore in the corresponding period a year ago. Revenue from operations zoomed 94 per cent to Rs 845.84 crore from Rs 435.67 crore in the September 2021 quarter.
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