Route Mobile Ltd. share price target

Route Mobile posted a strong operating performance in Q2. Revenue grew 6.5% QoQ to Rs11.2bn, above our estimate, primarily led by international business, ILDO business’ expansion, and domestic volume growth (offset partially by lower realizations), combined with routing synergies.

Route Mobile posted a mixed operating performance in Q1 – revenue missed expectations, while margin came ahead of estimates. Revenue declined 10.6%/4.8% QoQ/YoY, below our estimates.

We upgrade Route Mobile to BUY from Add, given favorable risk reward following the 21%/26% correction over 3M/6M and healthy OCF yield (7% annualized for FY25).

We believe Route Mobile (Route) share price is likely to rise in absolute terms over the next 45 days and, therefore, we reiterate our long call on the stock.

Route Mobile (Route) has reported strong revenue growth of 16% QoQ and 94.1% YoY
to Rs8,458mn led by strong organic revenue growth of 20.6% QoQ, 40% YoY and
contribution from acquisitions.

We recently interacted with Route Mobile Limited (Route) senior management for an update on key business developments.

Route Mobile Ltd (Route), incorporated in 2004, is a Mumbai headquartered leading Cloudcommunication platform provider, catering to enterprises, over-the-top (OTT) players and Mobile network operators. Their product portfolio includes smart solutions in Messaging, Voice, Email and SMS filtering, Analytics and Monetization. Route is one of the most prominent and largest CPaaS (cloud communication platform as a service) players in the world, especially in Asia, Africa & the Middle East. Route has ~300+employees and has...

A prominent player in digital communication space Route Mobile Ltd (RML), incorporated in 2004, is a Mumbai headquartered leading Cloudcommunication platform provider, catering to enterprises, over-the-top (OTT) players and Mobile network operators. Their product portfolio includes smart solutions in Messaging, Voice, Email and SMS filtering, Analytics and Monetization. RML is one of the most prominent and largest CPaaS (cloud communication platform as a service) players in the world, especially in Asia, Africa & the Middle...

Route Mobile Ltd - IPO Note Issue Open: Sept 09 Sept 11, 2020 Price Band: Rs. 345 350 *Issue Size: 17,142,857 eq shares (Fresh issue 6,857,143 + Offer for sale of 10,285,714 eq sh) Issue Size: Rs. 591.42 - 600.00 cr

Route Mobile Ltd (RML) provides cloud-communication platform as a service (CPaaS) to enterprises, over-the-top (OTT) players and mobile network operators (MNOs). The company's enterprise solution comprises two primary components front-end that provides an interface for enterprises to integrate with and a back-end that is directly integrated with over 240 MNOs and provides access to over 800 MNOs globally, enabling it to leverage their SMS and voice channels for digital communication (Super Network). The company's total income & EBITDA has grown at a CAGR of...

Rs. 10 each, (Comprising of fresh issue of 6,857,143 Total Public Equity Shares* (Rs. 240 cr.) and Offer for Sale of 10,285,714 Equity Shares* (Rs. 360 cr.) by Selling...

IPO NOTE

There are no listed peers for the Company in India. Management has till now infused only RS.6 lakhs capital in the Company, and it will command a market cap of Rs.1990 crores at the higher price band. This shows that it is a scalable business model, which can grow without capital infusion. Unlike many other