Accumulate Route Mobile; target of Rs 1695: Arihant Capital

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26 Aug, 2025 12:21

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Arihant Capital's research report on Route Mobile

The route has reported consolidated revenue of INR 5,628 Mn, +46.3% YoY/29.2% QoQ in Q2FY22 against our estimate of INR 5079 Mn. Consolidated EBITDA stood at INR 608 Mn, up by 36.4% YoY/8.4% QoQ against our estimate of INR 651 Mn. On the margins front, EBITDA margin contracted by 78bps YoY/ 207bps QoQ to 10.8% against our estimate of 12.8%, decline despite high gross due to increase in sales & marketing cost and hiring of developers. The gross Profit margin of 21.1%, 21.2%, and 18.0% in Q3 FY21-22, Q2 FY21-22, and Q3 FY20-21 respectively. Adjusted for the non ESOP charges. Consolidated PAT stood at INR 483 Mn, up by 79.5% YoY/14.7% QoQ against our estimate of INR 489 Mn. Adjusted for ESOP benefit expenses (net of tax) and non-cash amortization associated with the intangible assets added as a result of purchase price allocation for acquisitions. Interim dividend of INR 3 per share.

Outlook

We value the stock at a P/E multiple of 30 (x) to its FY24 EPS of INR 56.5 to arrive at a target price of INR 1,695 and maintain an Accumulate rating on the stock.

More Info

At 16:00 hrs Route Mobile Ltd was quoting at Rs 1,837.00, up Rs 12.65, or 0.69 percent.

It has touched an intraday high of Rs 1,872.50 and an intraday low of Rs 1,821.30.

It was trading with volumes of 14,278 shares, compared to its thirty day average of 24,383 shares, a decrease of -41.44 percent.

In the previous trading session, the share closed up 1.57 percent or Rs 28.25 at Rs 1,824.35.

The share touched its 52-week high Rs 2,388.10 and 52-week low Rs 1,090.05 on 12 October, 2021 and 01 February, 2021, respectively.

Currently, it is trading 23.08 percent below its 52-week high and 68.52 percent above its 52-week low.

Market capitalisation stands at Rs 11,549.75 crore.

 For all recommendations report, click here

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