Add Route Mobile, target price Rs 1520: ICICI Securities

ICICI Securities has add call on Route Mobile with a target price of Rs 1520. The current market price of Route Mobile is Rs 1391.35. Route Mobile Ltd., incorporated in the year 2004, is a Small Cap company (having a market cap of Rs 8729.96 Crore) operating in Services sector.

Route Mobile Ltd. key Products/Revenue Segments include Sale of services for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 743.80 Crore, up 17.23 % from last quarter Total Income of Rs 634.48 Crore and up 94.72 % from last year same quarter Total Income of Rs 381.99 Crore. Company reported net profit after tax of Rs 71.07 Crore in latest quarter.

Investment Rationale
The brokerage upgrades Route to ADD (earlier: Hold) given: 1) accelerated growth in FY23E, 2) earlier expected pricing pressure due to telcos in CPaaS market no longer likely, 3) potential market share gains, and 4) improving margin profile.

Promoter/FII Holdings
Promoters held 59.82 per cent stake in the company as of 30-Jun-2022, while FIIs owned 19.94 per cent, DIIs 7.03 per cent.