Route Mobile Ltd.
ISIN: INE450U01017 • Market Cap: ₹3,160 Cr
The 5-Pillar Quality Audit for Route Mobile Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (11.6%), Return on Capital Employed (17.5%), and equity compounding (8.6%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (3.9%) and 3Y PAT CAGR (-10.7%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 12.72 vs PEG of — and Dividend Yield of 2.2%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 74.8%, backed by 5.9% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Attractive Valuation Margin (P/E: 12.72)
Trading at a P/E multiple of 12.72, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Topline Stagnation (3Y Sales CAGR: 3.9%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Sectoral & Macro Headwinds (Telecommunication)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Telecommunication space.
Quantitative Strategy Eligibility
Checking ROUTE against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 64/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Telecommunication Sector Peer Comparison
Compare ROUTE directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Route Mobile Ltd. (ROUTE)Current | 64/100 | ₹3,160 Cr | 12.72 | 17.5% | 0.00 | — |
| Vodafone Idea Ltd. (IDEA) | 65/100 | ₹1.52 Lakh Cr | 4.07 | -1.7% | -4.18 | View |
| Indus Towers Ltd. (INDUSTOWER) | 76/100 | ₹97,876 Cr | 13.68 | 18.4% | 0.02 | View |
| Bharti Hexacom Ltd. (BHARTIHEXA) | 79/100 | ₹79,950 Cr | 43.83 | 23.9% | 0.38 | View |
| Tata Communications Ltd. (TATACOMM) | 59/100 | ₹47,330 Cr | 50.04 | 17.0% | 3.14 | View |
| HFCL Ltd. (HFCL) | 62/100 | ₹34,668 Cr | 60.55 | 8.6% | 0.37 | View |
Frequently Asked Questions: Route Mobile Ltd.
Q:What is the 5-Pillar Fundamental Score for Route Mobile Ltd. (ROUTE)?
Route Mobile Ltd. has a RupeeTools Fundamental Score of 64/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (57/100), Financial Health (83/100), Growth (28/100), Valuation (85/100), and Ownership Quality (72/100).
Q:Is ROUTE fundamentally strong for long-term investment?
ROUTE currently holds a moderate quality rating of 64/100. While it operates in the Telecommunication sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does ROUTE pass the Coffee Can Investing filter?
Yes! ROUTE satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does ROUTE compare against other Telecommunication peers?
Within India's Telecommunication sector, ROUTE trades at a P/E of 12.72 and generates an ROCE of 17.5%. Compare its 5-Pillar score of 64/100 against top sector peers like Vodafone Idea Ltd. (65/100), Indus Towers Ltd. (76/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.