Route Mobile rose over five percent on January 12, 2023 as investors cheered the company signing a deal with a leading mobile network operator (MNO) in Sri Lanka.
“As a larger part of the exclusive engagement, Route Mobile will leverage its reach with large global enterprises to drive international A2P SMS traffic termination on the Sri Lankan MNO's network,” the company informed through an official filing on Wednesday.During Thursday’s trade, Route Mobile opened at a price of ₹1,215 per share against the previous close of Rs. 1,188.15 per share.
It was trading at ₹1,224.50, up by three per cent at 12:20 p.m. on the National Stock Exchange.
The stock touched a 52-week-high of ₹1,935.60 on January 12 last year and a 52-week-low of ₹1,052 on June 23, 2022. At the current level, the stock is trading over 16 per cent above its 52-week low and 36.7 per cent below its 52-week high.
The stock lost over five per cent in the last month. Moreover, it has yielded a negative return of nearly four per cent in the past six months. However, the stock has returned almost 30 per cent in the last five years to its shareholders.
Under the terms of the agreement, Route Mobile will serve as the MNO's exclusive partner for two years, as the company looks to strengthen its market position and increase its presence in Sri Lanka.
“While optimizing revenues for the MNO, this engagement also creates incremental revenue potential of approximately ₹130 crores, as per our internal estimates, for Route Mobile, over the contract’s tenure of two years. The engagement is slated to go live in around 10 weeks from now,” said Rajdipkumar Gupta, MD and group CEO of the company.
According to a Mintgenie poll, an average of six analysts have a ‘STRONG BUY’ call on the stock.