The stock is trading near key support levels ahead of its Q1 results. The analyst believes its consolidation phase signals underlying strength.
All eyes will be on Route Mobile as it gears up to declare first-quarter earnings on July 18. Its shares have declined 5% in the last one month.
SEBI-registered analyst Deepak Pal believes that the stock is currently trading within a zone defined by its 50-day Exponential Moving Average (EMA) and 50-day simple moving average (SMA), reflecting consolidation with underlying strength.
In the short term, the stock is facing minor resistance near ₹1,025, which acts as a hurdle. However, Tuesday’s price action suggests that ₹975 (previous day’s low) could serve as a strong support zone.
Pal noted that if Route Mobile holds above this level, it offers a good buy-on-dip opportunity. With sustained momentum, it has the potential to move toward ₹1,050–₹1,100 levels in the near term.
The company has a strong international presence across Asia, Africa, Europe, and the Americas. Route Mobile’s revenue in FY24 exceeded ₹3,200 crore, growth was fueled by increasing digital adoption and enterprise communication needs. Margins remained healthy (13–15%) despite global macro-economic challenges.
Additionally, the company’s balance sheet is debt-free, backed by strong cash flows and promoter holding of over 60%.
With ongoing digital transformation, rising demand for omnichannel communication, and increasing global contracts, Route Mobile is well-positioned for scalable growth. The recent merger news with Proximus’ CPaaS business (TeleSign) also opens global opportunities.
Fundamentally, Pal considers Route Mobile to be a solid mid-cap digital play in the communications tech space.
Route Mobile shares have fallen 28% year-to-date (YTD).
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