Route Mobile - Growth Revival: HDFC Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities .Route Mobile Ltd. is set to witness a growth uptick after the completion of the strategic acquisition by Proximus Opal. The growth recovery (~20% in FY25E versus 13% in FY24) is underpinned by a recovery in messaging volume (international long distance and national long distance), a net new firewall deal, WhatsApp/RCS opportunities, and expansion in mature markets. Proximus Opal acquired an 83.1% stake in Route Mobile, which positions Route+Telesign as the third largest global CPaaS player in terms of volumes. Route is expected to unlock synergies with TeleSign (owned by Proximus), enhance product offerings, and expand reach in mature markets like the US and Europe. The announcement of a five-year strategic partnership between Proximus and Microsoft showcases the potential for revenue synergies. Route management has guided for revenue growth of 18-22% YoY, Ebitda margin of ~13% and improvement in cash flows. We estimate a 20% YoY growth in FY25E which assumes ~10% from the firewall deal and ~10% from the base business, which is in line with the global CPaaS industry growth. Route Mobile has invested ~Rs 3.8 billion in the firewall deal, which has impacted its cash flows in FY24; we expect cash generation to improve gradually. We maintain our positive view on Route, underpinned by- strong growth guidance;revival in messaging volumes;international expansion; andgrowth and cost synergies post Proximus/Telesign takeover. We keep estimates unchanged and assume a revenue/EPS CAGR of 20/21% over FY24-27E. We maintain our Buy rating with a target price of 2,100, based on 23x Sep-26E EPS. The stock is trading at a P/E of 24/19 times FY25/26E, generating a return on equity of 18%..Click on the attachment to read the full report:.Navin Fluorine - Building Margin Recovery; CDMO Visibility Encouraging: Nirmal Bang.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Route Mobile - Growth Revival: HDFC Securities

The company has partnered exclusively with Vodafone Idea to implement its A2P monetisation solutions across the Vodafone Idea network, which will boost growth, says the brokerage.

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Route Mobile - Growth Revival: HDFC Securities

The company has partnered exclusively with Vodafone Idea to implement its A2P monetisation solutions across the Vodafone Idea network, which will boost growth, says the brokerage.

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