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Business News/ Markets / Stock Markets/  Route Mobile share price tanks nearly 5% post Q4 results. Should you buy, sell or hold?
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Route Mobile share price tanks nearly 5% post Q4 results. Should you buy, sell or hold?

Route Mobile share price fell by 5% after a 9% decline in Q4 profits. Revenue remained stable between quarters. FY24 net profit increased by 17%. Q4 performance met expectations, with challenges in ILD business. Brokerage suggests 'BUY' with target price of ₹2,020.

Route Mobile share price today opened at ₹1,486.55 apiece on BSE, the stock touched an intraday low of ₹1,460.55 and an intraday high of ₹1,500.40.Premium
Route Mobile share price today opened at 1,486.55 apiece on BSE, the stock touched an intraday low of 1,460.55 and an intraday high of 1,500.40.

Route Mobile share price plummeted by about 5% on Tuesday's session, following a 9% decline in Q4 profits to 95 crore. In the same time last year, the business recorded a net profit of 104.05 crore, according a BSE filing. Route Mobile share price today opened at 1,486.55 apiece on BSE, the stock touched an intraday low of 1,460.55 and an intraday high of 1,500.40.

According to Ruchit Jain of 5paisa, the stock has been consolidating in a range for the last couple months and has now breached the support end. Thus, we could see some underperformance in the near term. The next support for the stock is placed around the 1,400 mark.

Comparing the March 2023 quarter's revenue from operations to the previous one, which was 1,017.03 crore, there was almost no change.

After reaching 333.11 crore in FY23, net profit climbed by around 17% to 388.84 crore in FY24. Revenue on an annual basis grew from 3,569.23 crore to 4,023.29 crore.

Also Read: Marico share price jumps over 8% after Q4 results; Should you buy, sell or hold the stock?

The second and third quarters saw Route Mobile's greatest quarterly sales, while the first half saw strong growth, according to Group CEO and Managing Director Rajdip Gupta. They are still gaining some significant clients and providing innovative solutions to a variety of sectors.

Route Mobile's performance in Q4FY24 was in line with Brokerage Nuvama Institutional Equities' assessment. Migration of ILD volumes to OTT platforms is the cause of the muted increase observed. The 12.5% EBITDA margin exceeded their projected 12.1%. Since volume migrated from SMS to OTT platform in FY24, Route had difficulties in the ILD business. It will, however, probably profit from the volume from the Vodafone Idea agreement as well as revenue synergies with Telesign.

Also Read: Godrej Consumer share price rallies 8% to hit 52-week high as Q4 results beat estimates; Should you buy?

“We are not building in contribution from synergy given limited visibility on timelines. We are increasing FY25E/26E earnings by 10.2%/11.3% due to higher growth. Retain ‘BUY’ with a target price 2,020 (earlier 1,930), valuing the stock at 25x FY26E EPS," the brokerage said. 

Also Read: Multibagger Lupin share price declines 4% post Q4 performance

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 07 May 2024, 10:41 AM IST
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