I just gone through the Q1FY25 Concall of Route Mobile.
- New promoters have came in.
- Expecting revenue growth of 18-22% growth in FY25
- Expecting margin expansion in coming years
- Aiming to achieve 8300cr sales in next 2-3 years (tha’ts 26% CAGR growth)
My simple take(no complex calculations) –
CMP – 1530
Current Sales 4000cr roughly
PAT – 390cr, Net Margins at 9.8%
We can expect 8300cr Sales by FY27 with Margin Expansion of 3%
then FY27 PAT will be of 1080cr
ATH is at 2223 with P/E of 91
Current P/E – 27.7
If management do walk the talk then we can see P/E expansion + Margin Expansion + PAT growth
We can see these levels in 3 years –
- 4765 at current P/E
- 6025 at 35 P/E
- 6880 at 40 P/E
In last 5 year, sales is almost 5x and PAT is 7x.
Note – I have read 3 concalls of mid cap IT companies but Route looks cheapest. Another 2 co has also given guidance for sales growth of 20% but they are already trading of 40 times of earnings.
I may be wrong in my analysis.
Disc- Invested with proper allocation and risk management.
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