Route Mobile share price falls nearly 5% after Q4 results: What you need to know

Route Mobile share price: The share price of Route Mobile fell almost 5% today (May 7) after the company reported a 9% decline in Q4 profits to ₹95 crore. During the same period last year, the company recorded a net profit of ₹104.05 crore. On the BSE, Route Mobile share price opened at ₹1,486.55 apiece and touched an intraday low of ₹1,460.55 and an intraday high of ₹1,500.40.

Route Mobile share price: During the same period last year, the company recorded a net profit of ₹104.05 crore.

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What Nuvama Institutional Equities said on Route Mobile Q4 results

Nuvama Institutional Equities said that Route Mobile's performance in Q4FY24 was in line its assessment as migration of ILD volumes to OTT platforms could be the reason behind the muted increase. 

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The 12.5% EBITDA margin exceeded Nuvama Institutional Equities' projected 12.1%. Owing to volume migrated from SMS to OTT platform in FY24, Route Mobile faced difficulties in the ILD business, it said. 

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“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.

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