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Wednesday, October 27, 2021

Small Midcap Mantra: This cloud communication stock has seen a rise of 500% in 1 year, what do you have

Cloud Communication Platform Provider Company Route Mobile Shares of K has proved to be a strong wealth creator for investors investing in IPOs. Even on the day of listing, it had earned a lot of money. In the subsequent 1 year also, it has shown a strong growth of about 500 percent. This company has played a big role in the Corona epidemic period, which has also benefited it.

The stock closed at 2,051.40 on BSE on October 4, which is almost 6 times higher than its issue price of Rs 350. At the same time, this is more than three times the closing day of listing of 21 September 2020 at Rs 651. So far this calendar year, the stock has rallied 87 per cent. At the same time, the Sensex has seen a rise of 24 percent in this period. Currently, the market cap of Route Mobile is Rs 11,878 crore.

Companies like Route Mobile have benefited from the increasing focus of companies on digitization during the Corona epidemic. Apart from this, the acquisitions made by the company and its expansion plans have also boosted investor confidence.

Trade Spotlight: So far these stocks have made huge money, know whether there is still power left in them

Let us tell you that Route Mobile is a Mumbai based company which was established in 2004. It is a cloud communications platform service provider that provides services to multiple companies, streaming service providers and mobile network operators. The company has business in Asia Pacific, Middle-East countries, Africa, Europe and North America.

Gaurav Garg of CapitalVia Global Research It is said that unlike other industries, some companies like Route Mobile have benefited during the Corona period. Companies like Root Mobile have benefited from the increasing focus on digitization of companies. He further said that Route Mobile will also benefit from the recent crackdown by Internet companies in China.

Atish Matlawala of SSJ Finance It also says that 35-40 percent growth is expected in the cloud communication platform business. Route Mobile has the full potential and capability to take advantage of this growth opportunity.

Some analysts say that this stock has run out a lot so far and now it seems to be expensive. He also believes that due to the recovery in the economy and increasing focus on digitization, this stock can see levels above Rs 2,500 in the next 6 months.

Gaurav Garg says that after a strong rally, some short term correction can be seen in this stock. But going forward this stock will see more upside. In the next 6 months, this stock can see a level above Rs 2,500. At the same time, it may take 3-5 years for it to double. Atish Matlawala also says that this stock is looking expensive at the current level.

In such a situation, Gaurav Garg’s advice is that those who have these shares from the IPO till now, they can recover profits in half the shares. Hold the remaining half with a long angle. At the same time, Atish Matlawala does not have any selling advice in this. He says that investors who have missed its rally should buy it in the fall. In the next 5-6 years, this stock will give big earnings.

SSJ Finance & Securities sparring It is said that this stock is trading in a circle forming a flag pattern. Once this pattern breaks, we can see a level of Rs 2,350-2,550 in this stock in the short term. Support is visible at the level of 1,750-1,630. For short and medium term, do some buying in this stock only at current levels. At the same time, make some purchases around Rs 2,095. The target for this would be Rs 2,350-2,550-2,800. For this buy put a stop loss at Rs 1,750.

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Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
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