Buy Route Mobile, target price Rs 1395: HDFC Securities

HDFC Securities has buy call on Route Mobile with a target price of Rs 1395. The current market price of Route Mobile is Rs 1315.7. HDFC Securities recommended to keep stop loss at Rs 1295.

Route Mobile, incorporated in the year 2004, is a Small Cap company (having a market cap of Rs 8214.84 Crore) operating in Services sector.

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


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 993.47 Crore, up 17.14 % from last quarter Total Income of Rs 848.10 Crore and up 75.06 % from last year same quarter Total Income of Rs 567.50 Crore. Company has reported net profit after tax of Rs 85.36 Crore in latest quarter.

The company’s top management includes Mr.Sandipkumar Gupta, Mr.Rajdipkumar Gupta, Mr.Chandrakant Gupta, Mr.Bhaskar Pramanik, Mr.Nimesh Salot, Ms.Sudha Navandar, Mr.Arun Gupta. Company has Walker Chandiok & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 6 Crore shares outstanding.

Investment Rationale
The down trend seems to be over in the stock price. The daily RSI shows positive indication.

Promoter/FII Holdings
Promoters held 58.44 per cent stake in the company as of 31-Dec-2022, while FIIs owned 21.11 per cent, DIIs 7.21 per cent.