This Undervalued Stock could be a Multibagger | Route Mobile Share Price Target 2022


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Recently, Axis Securities gave a buy call on this tech stock. They expect this stock to give a 13% return in a few days. The name of the company is Route Mobile. In this post, we have discussed whether this is the right time to invest in Route Mobile share. Read the article up to the last to know everything in detail.



About Route Mobile Company

Route Mobile is an Indian Cloud Communication Platform provider. The company was incorporated in 2004 and was listed on the Stock market in September 2020. Route Mobile is headquartered in Mumbai. The company was the fastest growing companies in Technology & Telecom sector and overall 2nd fastest growing Indian companies in the UK’s top in the UK 2020” in the 7th edition of the Grant Thornton India meets Britain Tracker, developed in collaboration with the Confederation of Indian Industry (CII).


Business Profile of Route Mobile

Route Mobile provides its services to enterprises, over-the-top (OTT) players, and mobile network operators (MNO). Their product portfolio includes smart solutions in Messaging, Voice, Email, SMS Filtering, Analytics & Monetization.

Route Mobile Business Segments

  • For Enterprises: – It provides cloud-based communication platform to enterprises to enable digital communication through multiple channels including RCS, A2P / P2A messaging, 2Way Messaging, etc.
  • Mobile Operator: – In this segment, they provide services of SMS analytics, firewall, filtering, monetization, and CPaaS and hubbing solutions.
  • Business Process Outsourcing: – They also provide client support, technical support, booking, and collection services.


Acquisitions made by Route Mobile

  • Recently, in August 2022 Route Mobile incorporated a wholly-owned subsidiary named Masiv Chile SpA. The company was incorporated with the objective to carry on the business of interalia, software, and communication solution including CPaaS solutions to enterprises. It will help to improve Company’s organic growth strategy in South America. Masiv Chile belongs to the Omni-channel communication services industry.
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  • In May 2017, Route Mobile acquired Call 2 Connect, an ITES Provider based out of India.
  • In the same year, Route Mobile acquired 365squared, an SMS Firewall company based out of Malta.



Fundamental Analysis of Route Mobile

Market Capitalization of Route Mobile

The current Market Capitalization of Route Mobile is 9324 crore. This is the second highest (after Tata Elxsi) among its peers.

Sales Growth of Route Mobile

Route Mobile has a presence in more than 15 locations across Asia-Pacific, Middle East, Africa, Europe, and North America & it is consistently increasing its sales. For the last 3 years, the company’s sales growth rate is 33.3%, while for the last 5 years, the sales growth is 34.3%. This looks very promising. In March 2022, Route Mobile posted a year-on-year sales growth of 42.38%. Further, in the quarter ended on 30th June 2022, the company posted a sales growth of 16.45% in comparison to the previous quarter.


Profit of Route Mobile

Recently, Route Mobile posted a net profit of Rs. 69 crore, which was almost 50 percent higher in comparison to the March 2022 quarter. Further, year-on-year (YoY) net profit increased by 102.94 percent during the April-June quarter in the financial year 2022-23. Route Mobile has delivered a good profit growth of 25.9% CAGR over the last 5 years.


Return on Equity (ROE) of Route Mobile

The ROE of Route Mobile is 14.30. This means, for every 100 rupees you put in the company, it earns 14.30 Rs. This figure is not very promising though for a company which is increasing its sales & profits continuously.


Route Mobile P.E. Ratio

The current PE ratio of Route Mobile is 30.20, which is pretty higher than its 5 years historical PE of 17.20. Hence, P.E. wise the stock seems to be costly. Though almost all good tech companies are generally traded at a higher level of P.E.


Promoter Holdings of Route Mobile

Almost 44% of the company’s share is to the promoters of the company. The promoters have over 2 decades of experience in the software and the communications sector. In the last three quarters, FIIs consistently increased their stake in Route Mobile. Currently, FIIs jointly hold 15.17% of the company whereas DIIs have a 4.21% share in Route Mobile.


Debt to Equity Ratio of Route Mobile

Route Mobile is an almost debt-free company. The Debt-to-Equity Ratio is concerning which is at 0.09.

Cash Flow of Route Mobile

Company is maintaining a good Cash Flow of Rs. 51 crores.


Technical Analysis of Route Mobile

On the Daily chart, the stock has made a resistance level around 1485. It has a support level of around 1450. Currently, the stock is trading at the said resistance level. Hence, if it goes down below, wait for the support level of 1450.


Should I Buy Route Mobile Share

Almost all the fundamental indicators of Route Mobile are very promising. Apart from that, according to a news published in, “the global cloud computing market size is projected to hit around US$ 1,614.10 billion by 2030 and witness strong growth at a CAGR of 17.43% from 2022 to 2030.”


As the company is making profits consistently and increasing sales quarter by quarter, it may be a good bet for the future.

Route Mobile Share Price Target 2022

As of 19th August, the last trading price of Route Mobile was Rs. 1485. Recently, Reputed brokerage firm Axis Securities gave a Buy call on Route Mobile with a target price of Rs 1750 per share, implying an upside of over 13 percent. On the other hand, Arihant Capital in its research report dated August 01, 2022, has recommended accumulating the stock with a target price of Rs 1631.



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Disclaimer: – The name of the stock mentioned in this article is purely for Educational purposes. It should not be considered as Buying/Selling recommendations. The owner/author of this blog will not be held responsible for any kind of loss made after reading this article.

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