Route Mobile Ltd., incorporated in the year 2004, is a Large Cap company (having a market cap of Rs 8811.71 Crore) operating in Services sector. Route Mobile Ltd. key Products/Revenue Segments include Sale of services for the year ending 31-Mar-2019.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 361.83 Crore, down -8.05 % from last quarter Total Income of Rs 393.52 Crore and up 36.12 % from last year same quarter Total Income of Rs 265.82 Crore. Company reported net profit after tax of Rs 35.47 Crore in latest quarter.
Investment Rationale
The brokerage believes as the enterprise increasingly adopts UCaaS based, SMS based volumes (co indicated a growth of 10-15%), on an organic basis, it will continue to face pressure. By taking measures such as 1) upselling OTT/RCS based volumes, 2) pruning of lower margin accounts and 3) strengthening investments in SAAS-based offerings by acquiring companies such as TeleDNA and Phonon, management’s focus is on incrementally getting a stable revenue profile with higher margins. Execution of the same remains the key. It maintains ADD with a target price of Rs1,775.
Key risks to our rating include: 1) Stagnation in top-10 client spend, 2) lower than expected margin improvement and 3) slower than expected uptake from next-gen business.
Promoter/FII Holdings
Promoters held 65.4 per cent stake in the company as of March 31, 2021, while FIIs held 19.7 per cent, DIIs 2 per cent and public and others 12.9 per cent.
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)
