Subex Ltd (SUBEXLTD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Artificial Elect

Ramco Systems

Unicommerce

Intense Tech.

ABM Knowledge

Ace Soft. Exp.

Blue Cloud Soft.

Nucleus Soft.

IRIS Business

Quick Heal Tech

Subex

Why is Subex Ltd ?

Weak Long Term Fundamental Strength with a -167.83% CAGR growth in Operating Profits over the last 5 years

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.38
The company has been able to generate a Return on Equity (avg) of 1.65% signifying low profitability per unit of shareholders funds

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -51.38%, its profits have risen by 79.2%

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -51.38% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Subex for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Subex

-51.26%

-1.08

47.61%

Sensex

3.75%

0.32

11.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.13%

EBIT Growth (5y)

-167.83%

EBIT to Interest (avg)

0.38

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

0.68

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.79%

ROCE (avg)

-2.44%

ROE (avg)

1.65%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.09

EV to EBIT

-41.68

EV to EBITDA

-576.08

EV to Capital Employed

2.55

EV to Sales

2.07

PEG Ratio

Dividend Yield

ROCE (Latest)

-6.12%

ROE (Latest)

-1.61%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

16What is working for the Company

PBT LESS OI(Q)

At Rs 2.70 cr has Grown at 149.5% (vs previous 4Q average

PAT(Q)

At Rs 2.86 cr has Grown at 237.9% (vs previous 4Q average

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 124.66 cr

PBDIT(Q)

Highest at Rs 6.28 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 9.11%

-2What is not working for the Company

NON-OPERATING INCOME(Q)

is 36.02 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Subex

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2.70 cr has Grown at 149.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -5.45 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 2.86 cr has Grown at 237.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -2.07 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 6.28 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 9.11%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 2.70 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 124.66 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Subex

Non Operating Income - Quarterly

is 36.02 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT