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. 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. Route Mobile stock has fallen 28.76% from its 52-week high mark. The shares of the enterprise messaging firm are down 23.08 percent in one year and fell 22.36 percent 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 the 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 percent–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.
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.”
Route Mobile reported a strong set of numbers for the quarter ended September 2022. The firm posted a 74.5 percent 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 percent to Rs 845.84 crore from Rs 435.67 crore in the September 2021 quarter.
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