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ROUTE: A Twofold (Report of 120% Markup)IID-03 ROUTE MOBILE LTD REGIME 🔍 Overview Quantitative analysis Qualitative analysis Final words Overview 📜 { Route Mobile Limited provides cloud-communication platform services (CXPaas) to enterprises, over-the-top players, and mobile network operators in Africa, Asia Pacific, Europe, the Middle East, and North America. RML is based on an Omni-channel Digital Communication Platform which offers messaging, voice, email, short messaging service (SMS) filtering, analytics, monetization, firewall, and instant virtual number solutions. It provides its cloud-communication services to clients in the social media, banking, and financial services, aviation, retail, e-commerce, logistics, healthcare, hospitality, media and entertainment, pharmaceuticals, and telecom sectors. Founded In 2004 by Rajdip Kumar Gupta RML in nutshell 🟢 RML is the Industry Leading Global CXPaaS Platform. They're serving 9 of the 20 most valuable Global tech brands with a presence across 16+ locations globally. Let's come to characterization. 1. Revenue Split Across Industries: 🟢 Digital Native (34%) FinServ (11%) Tier 1 CPaaS (9%) Telecom and allied services (7%) Retail (4%) Ecommerce (2%) Travel (1%) 2. Revenue Split Across Countries: 🟢 India (33%) Asia excl. India (24%) Africa (16%) Middle East (9%) Europe (5%) Americas (4%) 3. Service Area: 🟢 - Messaging: They have reached global audiences instantly through their customizable messaging platform. - Voice: - Conversational AI - Customer Data Platform & Marketing Automation - SMS Firewall - ECM (Campaign Manager) - Messaging Hub They provide Tools (7 packages), Identity Solutions (11 packages) with high customer engagement 4. Explicit Data: 2022 🟢 Route Mobile has made 5 acquisitions and 1 investment. The company has spent over $51M on the acquisitions. Route Mobile has invested in multiple sectors such as Customer Success Management, Customer Service Software, Chatbots, and more. Recent acquisitions [ 1. Masivian: Masivian is one of the leading cloud communication platform service providers to enterprises, over-the-top (OTT) platforms, and mobile network operators in the region. RML has closed a deal at $47.5m on 11 Nov 2021 2. Phonon: Route Mobile will acquire AI platform provider Phonon Communications Pvt Ltd in an all-cash deal for Rs 29 crore, to offer automation and contact center solutions at scale to enterprises globally. The deal has closed on April 2021 3. Call2Connect : Acquired in May 2017. Route Mobile global CEO Rajdip Gupta said his company is in a position to double Call2Connect’s revenue because of its existing client base. 4. 365Squared: a premier European headquartered SMS Monetisation Value Added Services brand. 365squared are industry experts of the Managed SMS firewall concept. The deal has closed in April 2017 ] 5. Takeovers 2022 🟢 New products (Q1 FY2022 In Sep 2021, one of their biggest operator (BSNL) has selected cloud communications platform service provider Route Mobile to deploy the company's SMS Firewall Platform across the Southern and Western Zones in India. Key takeaways 🟢 What they have planned for the next 3 years? 1. SendClean : Their Independent E-mail Marketing Business Unit has planned a model to make USD 30MN as Email Business Expected Gross margins 80% 2. CPaaS : Double-digit Market growth by 2025 as: Email: $7.5Bn (2020) to $17Bn (2025) CpaaS: $7Bn (2020) to 25$Bn (2025) } Quantitative analysis 💰 { Fundamentals 🟢 1. PE: 65 as compared to its peers Tanla Platforms and Coforge 46.70 and 49.68 respectively. 2. M.Cap: 10,000Cr (MidCap) 3. D/E Ratio: 0.02 (insignificant) 4. Book-Value: 14.2 (greater than 1) and Significantly higher than Industry 10 5. Sales: Increased by 46% QoQ (Q4) 6. OPM%: 35% QoQ 7. PAT: Surged by 23% QoQ 8. ROCE & ROE: 33% vs 28.9% Expected YOY 9. Reserves: Increased by 12.3% 10. Promoter Dilution: 9% YoY Key takeaways 🟢 1. MarketCap is 10,000Cr, Revenue is 1,506Cr, Earnings are 152Cr (⭐) 2. Dividend Yield: 0.12 vs peers above 0.55% (⭕) 3. P/E company vs market: 62.9xx vs 22.3x (⭕) 4. P/B company vs market: 13x vs 1.8x (⭕) 5. Future growth: 45.7% YoY (FY 2021-2022) expected (⭐) ROI Diversification 🟢 - Email : 59% - Google display ads : 21% - Social Media : 15% - Video Ads : 5% Stimulants 🟢 1. New Product Sales : Q1 FY2021 (49) vs Q1 FY2022 (113): +130% YoY Next-generation messaging channels, viz. enterprise voice solutions, IP based messaging, email and unified communication solutions continue to witness increasing adoption by enterprises 2. Recurring Revenue Growth FY2021 (91%) vs FY2022 (90%): -1.09% YoY Consistency due to deep customer engagement driving high recurring revenues 3. Expansion of their wholly-owned subsidiaries -Call2Connect: Inaugurated a 1,000 seater BPO center at Virar, Mumbai, on Oct 15, 2021, to support the growth of Call2Connect business operations Technicals 🟢 Behavior 1. Trend Identification: Uptrend 2. Consistent volume: (Yes) below 1m Weekly 3. Individual Resistance/Support: @920 (77m Heaviest) 4. Individual Support/Demand: No 5. Current Resistance/Supply: @2150. 6. Current Support/Demand: @1700, Closed below: @1450 6. Market Cycle: Primary Trend with Markdown (1W) 7. MA Support: Below 50MA broke and retracing back(Strong) 8. Fib retracement: 0.07 Negative. Momentum 1. Multi-frame: Monthly- Retest, Weekly-Downtrend 2. Wave analysis: In Markdown (Downtrend), 3. Higher Highs: No 4. Lower-Lows: Yes, Retracing back Pattern 1. Structure: Mulit-Head & Shoulder 2. Trendline: 14-month uptrend & 5 wicks support 3. Wick Identification: Bullish. 4. Beta: 1.01 (+ve) and Volatile Entry Weekly Closed (1700-1800): Buy ratings above (@1700) Weekly Closed (Below 1600): Buy ratings @1450 FCFM 🟢 What is FCFM? FCFM is a Fractal Core of Financial Markets developed by CENTURY. It's based on the empirical values taken through compounding markups or markdowns of particular Security. FCFM helps to evaluate the future valuation of security with the companionship of market participants and circumstances of consecutive +ve corporate earnings. Current Zones FCFM Demand/Support: @1610 FCFM Resistance/Supply: @2150 Future Zones FCFM Demand/Support: @2150 FCFM Resistance/Supply: @3050 FCFM has relevant levels considering the corporate earnings of RML has increased QoQ and YoY by 23% and 45.7% respectively. } Qualitative Analysis 💎 { Management 🟢 Route Mobile Ltd. leadership is very tech-driven and the co-founders have 2 decades of experience. The board members are independent of the company profile except for co-founders and Tonio Ellul CEO & Director of 365squared Ltd. - Mr. Sandipkumar Chandrakant Gupta is a Co-Founder of Route Mobile Limited and serves as its Non-Executive Director since May 15, 2004. Mr. Gupta serves as Non-Executive Non-Independent at Route Mobile Limited since November 19, 2020. He has worked for many organizations which include PriceWaterhouseCoopers - India, and Covansys (India) Pvt. Mr. Rajdip Kumar Chandrakant Gupta is a Co-Founder of Route Mobile Limited and serves as its Managing Director and its Director since May 15, 2004. He serves as Group Chief Executive Officer at Route Mobile Limited since May 2004. Mr. Gupta serves as Group Chief Executive Officer of Call 2 Connect India Private Limited. Mr. Gupta has industrial experience in the Software and Telecommunications domain. The Company announced the appointment of Mr. Bhaskar Pramanik as an Additional and Independent Director on the Board of the Company on Aug 10, 2021. Mr. Pramanik is a seasoned entrepreneur and a tech disruptor with a career spanning over 45 years. He has held key National and Global Leadership positions in leading Multinational Technology Companies, across India, Singapore, and the US. Mr. Pramanik was also on the Executive Committee of NASSCO M, the National Committee of CII and AMCHAM, and has been a former Board member of the State Bank of India, former Chairman of Microsoft India , and Managing Director at Oracle Corporation and Sun Microsystems in India Vision of RML Route Mobile’s founder and Group chief executive (CEO) Rajdip Kumar Gupta said Latin America will be its second-biggest market after Asia. The company has raised 867.49 crores in November 2021. The 60% of this capital will be used to acquire the business and grow organically. Key point : Company Capex would lead to acquiring innovative technologies result in high growth in ROI and their diversified portfolio of revenue will further attract wealthy investors Ownership 🟢 Promoters: 59.98 FIIs: 19.80 DIIs: 6.65 Government: 0% Public: 13.56% Top Shareholders 🟢 1. Sandipkumar Gupta (Co-founder) (30.02%) 2. Rajdip Kumar Gupta (Co-founder) (22.07%) 3. Goldman Sachs Asset Management, L.P. (5.23%) 4. Chandrakant Gupta (4.23%) 5. PineBridge Investments LLC (3.68%) 6. Nippon Life India Asset Management Limited (2.09%) 7. Abakkus Asset Management, LLP (2.83%) 8. ICICI Prudential Asset Management Company Limited (0.81%) SWOT Analysis 🟢 1. Strenght - Recognized as “Established Leader” by Industry Analysts - Leading CPaaS provider. - Product line expansion – Acquired business email technologies re-branded as SendClean Geographical expansion - Signed SPA to acquire Masivian (LatAm) and InterTeleco (Kuwait) - Subsidiaries across the nation (5 Subsidiaries) - The debt to equity ratio is about 0.02% - Impressive ROI 2. Weakness - Tier 1 CPaaS partners from revenue generated only 9% - Revenue to Cost of Revenue is likely above 90% can decimate Revenue growth if there'll be economic drawdowns or recession 3. Opportunity - Capex growth for new overtakes and plants - Acquisitions across the nation - Expansion of Geographical Footprint (Masiv’s differentiated cloud communication platform and Inter Teleco Platform) - Able to achieve the Product Portfolio Expansion. 4. Threat - NA. } Final Words 💊 { Route Mobile Ltd. has massive size wings compared to its size. From company management to their diversified business model put it to the top striving companies in future. The progression is likely to be twofold in the upcoming 3years. If we talk about the risks including Legislative, Inflationary, Model, and Obsolescence. The company's overall current position and performance are capable to overtake. They've already engaged themselves in the development of Next-Gen services like RBM and OTT messaging. Messaging and Voice handling are their main key products. The given targets for RML are relevant as FCFM validates and certifies the required parameters. FCFM ABP (Average buy price) / BV (Book Value): 1450rs FV (Future Value): 3050 Year 2023 } Report By: Rajveer Singh Scolia. NSE:ROUTE
NSE:ROUTELong
by rajveerscolia
4
bank nifty analysis for 16/11/21NSE:BANKNIFTY market will like to be volatile for tomorrow, if that is seen then make a strangle of important lvls and wait for the decay and take good profit both the side. make sure if gap up then wait for some price action don't get trapped. its gonna be easy if market opens flat so that we can see the next chart and decide our trade. those which i make marked are the important lvl for tomorrow a make sure to keep eye on them. all the best for tomorrow. thank you, ADITYA ANDHARIA NSE:BANKNIFTY
NSE:BANKNIFTYLong
by andhariaadi23
INDIANB: Ascending triangle,Upside 15%The INDIANB price action resembles the Bank-Nifty price, In simple, the correlation of INDIANB and Bank-Nifty has a O(1). So, In the last three sessions of Bank-nifty, there is a breakout (ascending triangle) which correlates with INDIANB and signifies the movement of the stock toward the same formation of A.T What does it make sense? BankNifty is going to make an advance of 22% and Stock has a beta of 1.42 which implies that for the index next move the stock will advance at least 33%. As a result of breakout with intensive expansion further 33%, cuz Index had made a breakout before the stock. Points to be Note (Technical + Fundamental) 1. Structure- Higher-Highs formation (Ascending Triangle) 2. 1D Critical Demand Zone replusion due to Index correlation signifies fake breakout or failure of 1Week closing. 3. Market Cycle: Primary Trend with sideway distribution (1D) 4. Support: Above 50MA & 100MA 5. Resistance: Major Supply Daily & Weekly 6. Retracement Levels: 0.5 Fib ( of A.T formation) 7. Relative strength: Postive at 4H & Moderate at 1D 8. Volume: Low volumes diminishing but strong buying. 9. Beta: 1.42 aggressive 10. Weekly closing: Positive 11. Monthly closing: Negative yet, but moderate (engulfing postive candle) 1. PE: 4.5 as compared to its peer SBI having 16 2. M.Cap: lower 3. D/E Ratio: 14 Reliable in the banking sector 4. Book-Value: 0.43 Impressive and trading thrice below the B.V 5. Sales: Increased by 90% 6. Sales to OP correlation: Negative as profit is backed by other Income 7. Sales to PAT correlation: Surged by 26% YOY 8. ROCE & ROE is 5.8% vs 10.1% 9. Reserves: Increased by 80% 10. Promoter holding: they pledged the 12% YOY 11. Contingent liabilities: Extreme level That's it! IID-01
NSE:INDIANBLong
by rajveerscolia
APOLLO TYRES: Bullish Peannant Upside 20%Stock is in an uptrend for the last 2 months moving with 0.3-0.5 fib retracement. Now pennant is been formed for the next bull run with 20% return in between next 2-3 months if broke the current higher high. Points to be Note (Technical + Fundamental) 1. Pennant Structure 2. In up-trend for last 2 months 3. Fib levels are 0.3-0.5 & Relative strength restest the positive level. For now, you have to just look at the breakout. 4. Above Critical demand zone 5. P/BV ratio is highly above 1 6. P/E is considerable to Industry standards (double) 7. Net profit is significantly increased 8. Reserves are increased by 15% 9. Promoters have diluted their shares 10. For sure Apollo will hit the 20% up. As their peer, the JK tires is in bull run form last 6 straight sessions 7. ROCE is affected but above YOY 2020 is 10% Let me know in the comments what's your views?
NSE:APOLLOTYRELong
by rajveerscolia
NCC: Breakout after Accumulation phase.Resistance has been broke on last session which also act as a Critical Resistance now turn into Support. If in next session volume rocks with continuation of higher-highs from @83.90 IT will for sure hit 12.40% - Points to be Note (Technical + Fundamental) 1. NCC is high beta stock (1.30B) 2. At Point 3 Circle NIFTY MIDCAP 50 accumulation phase start which result into fall as same to Index. 3. NCC profits & sales correlation will soars to 14% as to my Quantitative Analysis 4. Just after posting Q4 P&L Results NCC get order of 2.4Billion If they cut interest rate in advance will secure the one of the quarter of fiscal year 2022 profits or may be can work on debt. Let me know in comment section what's your views? NSE:NCC
NSE:NCCLong
by rajveerscolia
XRP on triangle formation.Bitcoin falling - Ethereum Falling. However the fall across the crypto board is not that visible on the XRP (and quite a few others). Is it the intrinsic fundamental of the use of XRP that's holding it? Is XRP trying to touch the previous fame of $3? Is XRP waiting for a fall or waiting to rocket up? The simple formation of the triangle (with both edges having similar slopes) is also creating a confusion nad the this state is narrowing, as seen on a day's chart. Ichimoku says: Price is above all lines and above the cloud (bullish nature), lagging span is just above price, just holded by Tenken Sen - around 1.5 (trying to break to move into bullish territory). However, there is a twist nearby, which can easily give the market the bearish sentiment. The breakout can be either side, but only if supported by heavy volume, which is decreasing as of now. A tight spread between 1.6 and 1.3 is what XRP is facing for now. But beyond this level, with confirmed outbreak (atleast a sharp breakout with high volume and closing above or below this level, rally is expected. Bullish is what it seems, or atleast what it is hoped! Happy trading!
KRAKEN:XRPUSD
by ABtrade1
This is not a BUY call but a GREAT learningLook at 10th August candle of DIVISLAB with a high wick on top with a high volume bar. What it signifies..?? Any guess? It shows buyers were in force and took a very high jump from 2784 to 3063 and they also were successful to take the price upto 3293. But then suddenly Sellers came in force and prices dropped to 3117. This simply signifies that big players with smart money were bearish on the stock and they booked their profit on high bought quantities, which resulted in price drop. BEWARE friends the breakout was with a very weak candle on high volumes, which will result in gap to be filled in a very short span of time AND the stock will retest it support at 2500-2600 range. Follow for more market learnings and hit a like if you liked the concept. -MOHIT RAJANI
NSE:DIVISLABShort
by MOHIT09
4