Alpha | Route Mobile Ltd. – Equity Research Desk

Route Mobile Ltd. – CPaaS Player

Route Mobile Ltd (Route), incorporated in 2004, is a Mumbai headquartered leading Cloud–communication platform provider, catering to enterprises, over-the-top (OTT) players and Mobile network operators. Route is one of the most prominent and largest CPaaS (cloud communication platform as a service) players in the world, especially in Asia, Africa & the Middle East. Route has ~700+employees and has served more than 30,000 clients, since inception. They have access to 900+ networks across the globe, 265+ direct connections to Telecom operators and 2500+ active monthly billable clients. Route Mobile is headquartered in Mumbai, India with a global presence in the Asia Pacific, Middle East, Africa, Europe, and the Americas.

Valuation

Route Mobile’s experienced promoters and management team, long track record of operation, established market position in Application to Person (A2P) messaging segment and tie up with telecom players operating in India provides strong earning visibility going forward. Company’s strong capital structure with robust debt coverage indicators and strong liquidity position brings positive view on the stock. Hence, we recommend an ACCUMULATE rating in the stock with the target price (TP) of Rs.1595, 45x FY24E EPS.

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