BSE:532348

Stock Analysis Report

Executive Summary

Subex Limited provides operations and business support systems to communication service providers (CSPs) worldwide.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Subex's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532348 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-13.6%

532348

-4.0%

IN Software

-3.9%

IN Market


1 Year Return

5.4%

532348

-21.1%

IN Software

4.5%

IN Market

Return vs Industry: 532348 exceeded the Indian Software industry which returned -20.6% over the past year.

Return vs Market: 532348 exceeded the Indian Market which returned 5.2% over the past year.


Shareholder returns

532348IndustryMarket
7 Day-13.6%-4.0%-3.9%
30 Day-4.7%-7.3%-3.9%
90 Day3.4%-3.4%-2.1%
1 Year5.4%5.4%-20.3%-21.1%6.4%4.5%
3 Year-44.2%-44.2%-17.9%-24.5%19.4%12.8%
5 Year-41.1%-41.1%-8.8%-21.8%28.2%16.6%

Price Volatility Vs. Market

How volatile is Subex's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Subex undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 532348 (₹6.17) is trading below our estimate of fair value (₹16.33)

Significantly Below Fair Value: 532348 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 532348 is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: 532348 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532348's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532348 is good value based on its PB Ratio (0.4x) compared to the IN Software industry average (0.8x).


Next Steps

Future Growth

How is Subex forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.5%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Subex has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Subex performed over the past 5 years?

-30.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532348 is currently unprofitable.

Growing Profit Margin: 532348 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 532348 is unprofitable, and losses have increased over the past 5 years at a rate of -30% per year.

Accelerating Growth: Unable to compare 532348's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 532348 is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (-5.4%).


Return on Equity

High ROE: 532348 has a negative Return on Equity (-36.31%), as it is currently unprofitable.


Next Steps

Financial Health

How is Subex's financial position?


Financial Position Analysis

Short Term Liabilities: 532348's short term assets (₹2.0B) exceed its short term liabilities (₹911.1M).

Long Term Liabilities: 532348's short term assets (₹2.0B) exceed its long term liabilities (₹711.2M).


Debt to Equity History and Analysis

Debt Level: 532348 is debt free.

Reducing Debt: 532348 has no debt compared to 5 years ago when its debt to equity ratio was 497.8%.


Balance Sheet

Inventory Level: 532348 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 532348's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 532348 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 532348 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 1.1% per year.


Next Steps

Dividend

What is Subex's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 532348's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 532348's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 532348's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 532348's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532348's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Vinod Padmanabhan (49yo)

1.8yrs

Tenure

₹5,697,000

Compensation

Mr. Vinod Kumar Padmanabhan, B.Tech, has been Managing Director and Chief Executive Officer of Subex Ltd. since April 1, 2018. Mr. Padmanabhan served as the Chief Operating Officer at Subex Limited until A ...


CEO Compensation Analysis

Compensation vs Market: Vinod's total compensation ($USD79.59K) is above average for companies of similar size in the Indian market ($USD50.10K).

Compensation vs Earnings: Vinod's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Vinod Padmanabhan
MD, CEO & Director1.8yrs₹5.70m0.0035% 117.9k
G. Venkatraman
Chief Financial Officer1.3yrs₹9.08mno data
G. Krishnakanth
Company Secretary & Compliance Officer0yrs₹3.24mno data
Roddam Naga Shankar
COO & Whole-Time Director0yrs₹10.46mno data
Bhavna Singh
General Counsel0.7yrsno datano data
Mohan Sitharam
Chief Human Resources Officer0yrsno data0.000020% 679.7
Suraj Balachandran
Head of Sales for EMEA & APAC2.1yrsno datano data
Kiran Zachariah
Head of IoT Security2.1yrsno datano data
Anshuman Saha
VP & Global Head - Managed Services3.5yrsno datano data
Renji George
Head of Global Support4.8yrsno data0.089% 3.0m

2.0yrs

Average Tenure

Experienced Management: 532348's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Vinod Padmanabhan
MD, CEO & Director1.8yrs₹5.70m0.0035% 117.9k
Roddam Naga Shankar
COO & Whole-Time Director0yrs₹10.46mno data
George Zacharias
Independent Director0.8yrsno datano data
Anil Singhvi
Independent Chairman of the Board2.8yrs₹2.40m0.011% 370.1k
Nisha Dutt
Independent Director4.9yrs₹1.40mno data
Poornima Prabhu
Independent Director2.9yrs₹1.80mno data

2.8yrs

Average Tenure

60yo

Average Age

Experienced Board: 532348's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.5%.


Top Shareholders

Company Information

Subex Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Subex Limited
  • Ticker: 532348
  • Exchange: BSE
  • Founded: 1992
  • Industry: Application Software
  • Sector: Software
  • Market Cap: ₹3.398b
  • Shares outstanding: 550.80m
  • Website: https://www.subex.com

Number of Employees


Location

  • Subex Limited
  • RMZ Ecoworld
  • Devarabisanahalli
  • Bengaluru
  • Karnataka
  • 560103
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532348BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2002
SUBEXNSEI (National Stock Exchange of India)YesEquity SharesININRNov 2002
SUBXLSE (London Stock Exchange)GDR EACH REPR 1 SHS 'REG S'GBUSDMay 2006

Biography

Subex Limited provides operations and business support systems to communication service providers (CSPs) worldwide. It offers revenue management solutions, including ROC Revenue Assurance, a solution used for the needs of mobile and fixed line CSPs, analog data networks, digital data service providers, and triple/quad play enterprises; and ROC Fraud Management solution that detects fraudulent activities on the network, and ensures the system gets integrated with the ecosystem. The company also provides network management solutions, which comprise ROC Network Asset Management solution that offers a framework to audit network assets, evaluate inventory, and makes a business case for network upgradation, as well as a view of network assets and inventory to optimize opex and capex; and ROC Capacity Management, a solution, which gleans insights from network capacity trends, correlates capacity issues, simulates congestion points due to external events, and forecasts lead time for capacity exhaustion scenarios. In addition, it provides partner management solutions consisting of ROC Partner Management, a solution that facilitates in swift partner onboarding, partner self-care, revenue visibility, and communication between the company and its partners; ROC Route Optimization solution, which processes from dial code/destination operator rate imports to switch updates, and offers visibility and control of critical processes; and ROC Partner Settlement, a solution that provides a view of interconnect agreements in managing revenue and margins across the partner ecosystem. Further, Subex Limited provides Internet of Things security, a solution for security coverage from real-time discovery and monitoring to response and recovery; and managed, and consulting and advisory services. The company was formerly known as Subex Azure Limited and changed its name to Subex Limited in December 2007. Subex Limited was founded in 1992 and is headquartered in Bengaluru, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 12:35
End of Day Share Price2020/02/28 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.