Route Mobile share has become a multibagger during last 1.5 months. The stock of cloud communications service provider has tripled since September 21, its market debut date. Share of Route Mobile which stood at Rs 350 on September 21 has risen to Rs 1150 till date, delivering 228% returns to investors.
The small cap stock has gained 40.02% in last six days. It opened with a gain of 5% at Rs 1,150, hitting a fresh all-time high today.
Route Mobile share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. In one month, the share has gained 42.59% and risen 34.69% during a week.
The stock has gained 26% in the last four sessions after the firm reported its Q2 profit on October 29. The share rose from Rs 912.75 on October 29 to Rs 1150 today, gaining Rs 238 during the period.
Route Mobile reported a 152% rise in net profit for the quarter ended September. Route Mobile reported net profit of Rs 32.7 crore in Q2 against Rs 13 crore profit in corresponding quarter of previous fiscal.
Revenue rose 76% to Rs 354.5 crore in Q2 against Rs 201.4 crore revenue in corrspsonding period of previous fiscal.
The firm also reported 128% rise in profit after tax at Rs 59.7 crore in first half of the current fiscal against Rs 26.2 crore profit during the corresponding period of previous fiscal.
Apart from strong Q2 earnings, share of Route Mobile was lapped up by US-based investment bank Goldman Sachs which also increased its demand in the stock market.
Goldman Sachs which was already an anchor investor in the IPO of Route Mobile bought an additional 24.09 lakh equity shares or 4.23 percent stake in the firm via open market transactions on September 22.
Kuwait Investment Authority, also an anchor investor in the IPO, bought another 5,78,504 shares in Route Mobile (representing 1.01 percent of the total paid-up equity) at Rs 697.25 per share, a 99.2 percent premium over its issue price.
This lifted the stock by 7% intra day to Rs 695 on BSE.
Earlier on September 21, the share made a stellar debut on BSE and NSE delivering over 100% gains to its investors.
Stock of Route Mobile listed at a premium of 102.28% above its IPO issue price of Rs 350 on BSE. Route Mobile share opened at Rs 708, gaining Rs 358 compared to its issue price.
The share further rose to an intra day high of Rs 735, a gain of Rs 385 or 110% above its issue price. On NSE, the share opened at Rs 717, gaining 104.85% to its issue price of Rs 350. Route Mobile stock rose 110% above its issue price to Rs 735 on an intra day basis.