Shares of Route Mobile are trading 29% below 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 Jan 12, 2022. The stock gained over 5% on BSE in the current trading session. Route Mobile stock gained 5.37% to Rs 1,399 against previous close of Rs 1327.75 on BSE. The 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. Root Mobile stock has fallen 28.76% from its 52-week high. Shares of the enterprise messaging firm have declined 23.08 per cent in one year and 22.36 per cent in 2022. There has been a rally in Route Mobile’s stock since last two sessions. Route Mobile stock is trading above the 5-day, 20-day, 50-day and 100-day moving averages, but lower than the 200-day moving average.
A total of 9,347 shares of the firm saw a turnover of Rs 1.28 crore on BSE. The market cap of Route Mobile increased to Rs 8,645.84 crore.
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Nuwama Institutional Equities has a target price of Rs 1,769 on the stock. Nuwama said the company anticipates more than 60 percent revenue growth in existing segments, led by geographic, product and wallet-share expansion. The brokerage said the omni-channel capabilities and global footprint in CPaaS provide ample opportunities for cross selling and upselling. The company may look at bolt-on acquisitions to expand into new solutions.
“The need for enterprises to digitally connect with their customers is greater than ever and Route is a key beneficiary. We expect Route Mobile to grow 34.4/36.7 percent during FY22-FY25E on the back of strong execution Revenue/Earnings will achieve CAGR. ‘Buy’ with a target price of Rs 1,769,” said Nuwama.
Abhijeet of Tips2trade said, “Route Mobile share price has seen a decent recovery in the recent past on the back of stable earnings in Q2 FY2023 as well as a strong comeback in technology-based stocks. Investors should buy only if the daily close is above 1400 for a target of 1470-1515 in near term. Immediate support will be at Rs 1304.
Route Mobile reported strong figures for the quarter ending September 2022. The firm reported a 74.5 per cent increase in consolidated profit after tax (PAT) of Rs 73.6 crore in the second quarter as against profit after tax (PAT) of Rs 42.17 crore in the same period. one year ago. Revenue from operations increased by 94 per cent to Rs 845.84 crore from Rs 435.67 crore in the September 2021 quarter.
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