ROUTE - Investment Analysis

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

Investment Rating: 3.9

📊 Fundamental & Valuation Analysis

Route Mobile Ltd (ROUTE) is a cloud communications platform provider with a global footprint. Despite recent leadership changes and profit volatility, its core financials remain solid, making it a moderately attractive long-term investment.

🔍 Key Metrics Breakdown

Metric Value Interpretation

Market Cap ₹5,731 Cr Mid-cap, niche tech

Current Price ₹910 Near 52-week low

Book Value ₹386 P/B ~2.36 → Reasonable

Stock P/E 18.7 Undervalued vs Industry PE (28.7)

ROE 14.5% Strong return on equity

ROCE 17.7% Efficient capital usage

Dividend Yield 0.99% Decent for tech stock

Debt-to-Equity 0.19 Low leverage, healthy balance sheet

PEG Ratio 0.72 Attractive growth valuation

PAT Qtr ₹53.2 Cr Down from ₹73.5 Cr, but still profitable

📉 Intrinsic Value Estimate: ₹1,441.79 → Undervalued by ~37%

1

📉 Technical & Trend Analysis

RSI (30.5): Oversold zone, potential bounce

MACD (-22.6): Bearish momentum

DMA 50 & 200: Price below both → short-term weakness

Price Trend: Down ~47% YoY, but long-term CAGR remains positive

✅ Long-Term Investment Outlook

Route Mobile is a quality tech compounder with

Strong ROE/ROCE

Global CPaaS business model

Strategic partnerships (e.g., Nokia, Jakarta Metro)

Low debt and consistent dividend payout

Despite recent CEO exit and profit dip, analysts maintain a Hold-to-Buy stance with 1-year targets around ₹1,359

2

.

🎯 Ideal Entry Price Zone

Based on valuation and technical support

Buy Zone: ₹860–₹900

Near 52-week low and oversold RSI

Offers strong upside toward intrinsic value (~₹1,440)

🧭 Exit Strategy (If You Already Hold)

If you're holding ROUTE

🔄 Short-Term Traders

Exit near ₹1,050–₹1,100, which is a resistance zone

Use trailing stop-loss below ₹880

🕰️ Long-Term Investors

Hold for 2–4 years to benefit from CPaaS growth and global expansion

Reassess only if ROE drops below 10% or profit declines persist

Consider partial profit booking above ₹1,350

⏳ Suggested Holding Period

Minimum 2–3 years for compounding returns

5+ years for full value realization and dividend growth

Would you like a peer comparison with Tanla Platforms or Info Edge to explore similar tech plays?

1

www.alphaspread.com

2

dailybulls.in

Edit in a page