FIIs Stake Up 21.76% In Q2: BSE 500 Stock Declares 2nd Interim Dividend; Buy?

A mid-cap company in the telecommunications industry is Route Mobile Ltd. Globally, Route Mobile provides an innovative broad spectrum of cloud solutions for different organisations. Among the top providers of Cloud Communications Platform services, Route Mobile was founded in 2004 and is a publicly-traded company that offers Communication Platform as a Service (CPaaS) solutions.

With locations throughout the Asia Pacific, the Middle East, Africa, Europe, and the Americas, Route Mobile has its headquarters in Mumbai, India. The firm provides solutions in messaging, voice, email, SMS filtering, analytics, and monetization. It also caters to mobile network operators (MNO), over-the-top (OTT) companies, and corporations.

Route Mobile Dividend

The Board of Directors of the company have declared the second interim dividend of Rs. 3/- per equity share of Rs. 10/- each for the F.Y. 2023-24. The company has fixed November 4, 2023 as the record date for the purpose of ascertaining the eligibility of the shareholders for payment of second interim dividend.

Route Mobile has announced an equity dividend of 110.00% at a face value of Rs 10 for the financial year ended in March 2023, or Rs 11 per share. With the share price of Rs. 1573 currently, this translates into a 0.7% dividend yield. According to Trendlyne statistics, Route Mobile Ltd. has issued eight dividends since July 15, 2021.

Route Mobile Q2 Results

During the quarter ended September 2023, the company recorded a standalone net income of Rs 187.64 Cr compared to Rs 152.03 Cr in the same quarter of the previous fiscal. Its net expenses stood at Rs 145.32 Cr in Q2FY24 which was Rs 141.66 Cr in Q2FY23. Route Mobile said its EBIT was Rs 42.78 Cr during the quarter under review compared to Rs 10.89 Cr in the year-ago quarter. The standalone net profit of the company reached Rs 35.04 Cr up by 358.96% YoY from Rs 7.70 Cr in Q2FY23.

"During the quarter ended 30 September 2023, Proximus Opal S.A ("Acquirer") has entered into a share purchase agreement dated 17 July 2023 with all the promoters and members of the promoter group ("Sellers") of the Company, pursuant to which the acquirer will purchase 3,64,14,286 equity shares of the Company from the Sellers," said Route Mobile in a statement.

Route Mobile Share Price Target

Deven Mehata-Equity Research Analyst at Choice Broking said, "The technical analysis of ROUTE's stock presents a positive outlook for investors. Currently trading at 1578 levels, it recently exhibited resilience by bouncing off its initial support at 1545, which aligns closely with its 50-day Exponential Moving Average (EMA). This implies that the stock has found a level of price support and could continue its upward trajectory."

"What's even more encouraging is that ROUTE's price is positioned above its 20, 50, and 200-day EMAs, which is considered a bullish sign in technical analysis. This suggests a strong and sustained trend in the stock's price movement. Furthermore, the Relative Strength Index (RSI) is trading around 54, indicating strength in the stock without being overbought.This RSI level implies there is room for further upward momentum," he further added.

"Considering these technical indicators, it is the professional opinion that ROUTE offers a favourable outlook, not only for investors who have been holding the stock from lower levels but also for those looking to enter the market. The stock can be considered for purchase at the current market price (CMP). To manage risk, it is advisable to set a strict stop loss at 1540, which is just below the strong support level of 1545 on a closing basis," stated Deven Mehata.

Route Mobile Shareholding Pattern

During Q2FY24, Route Mobile reported promoters' shareholding of 58.15% vs 58.32% in Q1FY23, FIIs stake of 21.76% vs 21.34% in Q1FY23, DIIs stake of 5.50% vs 6.81% in Q1FY23 and public stake of 14.56% vs 13.53% in Q1FY23.

Disclaimer

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