Following the release of its Q4 financial results, Route Mobile experienced a decline in its share price on May 7th. The company reported a 9% decrease in profits, dropping from ₹ 104.05 crore in Q4 of the previous year to ₹ 95 crore in the most recent quarter. This news led to a nearly 5% fall in the share price.
On the Bombay Stock Exchange (BSE), Route Mobile’s share price commenced trading at ₹ 1,486.55. Throughout the trading session, it reached an intraday low of ₹ 1,460.55 and a high of ₹ 1,500.40.
Analysts at Nuvama Institutional Equities attributed the muted growth to the migration of International Long Distance (ILD) traffic to Over-the-Top (OTT) platforms. Despite this challenge in the ILD business, the company’s EBITDA margin of 12.5% exceeded Nuvama’s projection of 12.1%.
Due to the shift in traffic from SMS to OTT platforms in FY24, Route Mobile faced difficulties in the ILD business. The brokerage firm maintained a ‘BUY’ rating for the stock with a revised target price of ₹ 2,020, up from the previous target of ₹ 1,930. This valuation represents a multiple of 25x its projected earnings per share (EPS) for FY26.
