Brokerage house Emkay Global has given an investment advice in the share of Route Mobile with a target of Rs 2330. The brokerage says that the company’s revenue has been better than expected.
Route Mobile Stock: The stock of cloud communication services provider Route Mobile has proved to be a multibagger for investors. The stock has gained about 380 per cent from its issue price. The listing of the stock took place in the year 2020 on 21st September i.e. about 16 months ago. Despite giving excellent returns in a short span of time, the brokerage house is still looking strong in this stock. Brokerage house Emkay Global has given investment advice in the stock with a target of Rs 2330. The brokerage says that the revenue coming from the new product of the company has been better than expected. The target that the company had set for the revenue coming from the new product is very close to it.
How much return can I get
Brokerage house Emkay Global has given a target of Rs 2330 in the stock. Whereas the current price of the share is Rs 1496. In this sense, a growth of Rs 834 per share or about 56 per cent can be achieved. The brokerage house says that the company’s new product revenue grew 156 percent year-on-year and 67 percent quarter-on-quarter to Rs 27.7 crore at the end of December quarter. This is about 4.9 percent of the total revenue. The target that Route Mobile had set for the revenue coming from new products for the fiscal year 2022 can be achieved.
Overall revenue better than expected
The brokerage says that the overall revenue of the company has also been better than expected. There has been a growth of 46.2 percent in revenue on a yearly basis and 29.2 percent on a quarterly basis. However, margins have been slightly weaker than expected. EBITDA margin declined by 160bps to 10.8 percent. Biblable transactions stood at 1630 crores in the December quarter, which is the highest in any quarter. The organic volume of the company has grown by 13% on a yearly basis.
380% stronger than the issue price
Route Mobile was listed on the stock market on 21 September 2020. The issue price for the IPO was kept at Rs 350, while the shares were listed at Rs 708. On the day of listing, it closed at Rs 651 with an increase of 86 per cent over the issue price. Now the share price has become Rs 1680. That is, about 380 percent more than the issue price. That is, the investors who had invested in the issue, their money increased almost 5 times in 16 months.
Know about the company
The company was started in the year 2004. The company primarily provides omnichannel cloud communication service for OTT and mobile network operators (MNOs). The company has a large customer base of the world’s largest social media companies, banking and financial services, aviation, retail, e-commerce, logistics, health, hospitality and telecom sectors, among others.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
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