ROUTE - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Rating: 3.6

📊 Financial Fundamentals & Profitability

Earnings & Margins

EPS: ₹46.6 — robust on face value; supports a reasonable valuation.

PAT Dip: ₹73.5 Cr → ₹53.2 Cr — –32.2% QoQ drop; may reflect seasonal softness or cost inflation.

Returns on Capital

ROE: 14.5%, ROCE: 17.7% — strong efficiency for a tech enabler; suggests solid return on investment.

Balance Sheet Quality

Debt-to-Equity: 0.19 — very low leverage; financial agility preserved.

Dividend Yield: 0.99% — modest, with scope for future expansion.

💰 Valuation Metrics & Market Sentiment

Indicator Value Interpretation

P/E Ratio 18.7 Undervalued vs industry PE of 28.7

P/B Ratio ~2.36 Fair premium on book; growth priced in

PEG Ratio 0.72 Reasonable — aligns valuation with earnings growth

RSI 30.5 Near oversold — technical support likely forming

MACD –22.6 Bearish trend in motion; entry best near reversal

DMA Position Price ₹910 vs DMA50 ₹982 / DMA200 ₹1,137 Price trading below key averages — short-term weakness

52-Week Index Position: 5.37% — trading close to lows; contrarian interest may rise.

Volume: Slightly below weekly average — suggests cautious sentiment or gradual accumulation.

FII/DII Trends

FII stake decreased (–0.85%)

DII stake also decreased (–0.26%) — institutions likely waiting on earnings inflection.

🌐 Business Model & Moat

Core Offering: Enterprise cloud communication — handling SMS, voice, email, and multi-channel API delivery.

Moat & Strengths

Strong client retention across BFSI, logistics, e-commerce — mission-critical integrations.

Asset-light model enhances scalability.

Positioned to benefit from India’s digitization wave & enterprise messaging boom.

Risks

Regulatory shifts in telecom & digital infra may impact margins.

Seasonality and platform price competition could pressure earnings.

Revenue trajectory needs consistency — recent PAT volatility is a red flag.

📍 Investment Strategy

Entry Zone: ₹875–₹900 — just below RSI support and near year-to-date lows.

Long-Term View

Suited for growth-focused portfolios with exposure to B2B digital infra.

Potential compounder if profit stability resumes; PEG offers valuation comfort.

Monitor quarterly earnings, client wins, and margin trend before aggressive buying.

Curious how ROUTE compares with Tanla Platforms or global player Infobip on scalability, margins, and sector leadership? I can pull up a head-to-head matrix to show who’s routing toward dominance.

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