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Last Updated on: 25 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532348 | NSE: SUBEXLTD

Fundamental Analysis of Subex Ltd

Basic Stock Data

Last Updated: July 24, 2024, 10:35 pm

Market Cap 1,871 Cr.
Current Price 33.2
High / Low45.8/22.4
Stock P/E
Book Value 5.92
Dividend Yield0.00 %
ROCE5.48 %
ROE12.2 %
Face Value 5.00
PEG Ratio0.00

Data Source: screener.in

Competitors of Subex Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Empower India Ltd 260 Cr. 2.233.86/0.5437.6 2.540.00 %2.38 %2.35 % 1.00
Elnet Technologies Ltd 142 Cr. 356399/2108.13 3480.56 %17.9 %13.4 % 10.0
Ekennis Software Service Ltd 14.7 Cr. 105169/80.0 35.80.00 %1.55 %0.00 % 10.0
eDynamics Solutions Ltd 8.23 Cr. 3.223.22/1.14 13.90.00 %0.06 %0.06 % 10.0
ECS Biztech Ltd 24.5 Cr. 11.914.2/5.928.73 1.040.00 %4.78 %% 10.0
Industry Average52,116.67 Cr751.3386.07117.240.63%21.03%20.83%6.82

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales96818688798374744767778284
Expenses73647680788374698482818181
Operating Profit23161081105-37-15-513
OPM %24%20%11%9%1%1%0%7%-78%-22%-6%1%4%
Other Income271123114111-145
Interest0001001111111
Depreciation2223234444444
Profit before tax22208500-31-38-18-8-2-147
Tax %30%33%40%61%-190%-1,079%-49%452%-26%-7%-36%-105%-7%
Net Profit16135216-5-5-47-19-11-5-157
EPS in Rs0.280.240.090.040.010.10-0.09-0.08-0.84-0.34-0.20-0.09-2.78

Last Updated: July 12, 2024, 7:49 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 25, 2024, 10:50 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales307340360322357324348365372333279310
Expenses311272275231268290297279273298309325
Operating Profit-3688591893451869936-30-16
OPM %-1%20%24%28%25%11%15%24%27%11%-11%-5%
Other Income3-0-4-87-97133-3038108-141
Interest51676162208264333
Depreciation42445551514101416
Profit before tax-56-216-62-343447-2388934-39-175
Tax %7%416%36%21%29%40%46%13%42%38%31%10%
Net Profit-60-1210-74-432125-2695221-51-192
EPS in Rs-3.60-0.700.56-1.48-0.850.370.45-4.790.920.37-0.91-3.40
Dividend Payout %-0%-0%-0%-0%-0%-0%-0%-0%82%-0%-0%-0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)80.00%183.33%-840.00%41.89%148.84%19.05%-1176.00%119.33%-59.62%-342.86%-276.47%
Change in YoY Net Profit Growth (%)0.00%103.33%-1023.33%881.89%106.95%-129.79%-1195.05%1295.33%-178.95%-283.24%66.39%

Growth

Compounded Sales Growth
10 Years:-1%
5 Years:-2%
3 Years:-6%
TTM:11%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:0%
Stock Price CAGR
10 Years:12%
5 Years:43%
3 Years:-20%
1 Year:-2%
Return on Equity
10 Years:2%
5 Years:1%
3 Years:-5%
Last Year:-12%

Last Updated: July 24, 2024, 5:05 pm

Balance Sheet

Last Updated: July 10, 2024, 10:12 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital167167183503507562562562281281281281
Reserves58726231177217232-4726828324153
Borrowings7327637252281863204926153328
Other Liabilities13115618880868196114151140140168
Total Liabilities1,0881,0931,1211,042957892890678725719695530
Fixed Assets861862865775668666664393375368385228
CWIP000000000000
Investments00000000012149
Other Assets227230257267289226226286350339296293
Total Assets1,0881,0931,1211,042957892890678725719695530

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -176164665454556691-89-8
Cash from Investing Activity -23-2-117-11-7-11-2-6-34-3633
Cash from Financing Activity 84-60-47-36-55-91-34-13-32-15-7-9
Net Cash Flow44-2637-12-4495153-58-3315

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-735.00-695.00-640.00-137.00-97.002.0051.0037.0073.0015.00-79.00-44.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days5687108110126121105909298106118
Inventory Days
Days Payable
Cash Conversion Cycle5687108110126121105909298106118
Working Capital Days-481175358-10-88760767911582
ROCE %10%0%7%9%7%10%4%6%13%16%5%-9%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
FIIs0.01%0.17%0.26%0.60%0.80%0.92%0.96%0.81%0.99%0.84%0.91%1.30%
DIIs0.03%0.04%0.03%0.01%0.01%0.02%0.01%0.01%0.01%0.01%0.09%0.12%
Public96.43%96.78%96.94%96.74%96.83%96.91%96.88%97.15%97.03%97.36%97.43%97.05%
Others3.54%3.01%2.77%2.64%2.36%2.16%2.14%2.03%1.98%1.79%1.56%1.53%
No. of Shareholders1,57,0612,74,4653,37,5903,37,3733,58,6343,63,0973,95,3633,80,8153,57,8623,44,4033,39,8063,36,664

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Nifty Microcap 250 Index Fund620,5890.342.11620,5892024-07-230%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.0010.00
Basic EPS (Rs.)-3.47-0.930.380.96-4.94
Diluted EPS (Rs.)-3.47-0.930.380.96-4.94
Cash EPS (Rs.)-3.13-0.660.541.17-4.52
Book Value[Excl.RevalReserv]/Share (Rs.)5.939.2910.039.769.17
Book Value[Incl.RevalReserv]/Share (Rs.)5.939.2910.039.769.17
Revenue From Operations / Share (Rs.)5.514.965.936.626.49
PBDIT / Share (Rs.)-0.15-0.400.801.841.79
PBIT / Share (Rs.)-0.43-0.640.631.591.52
PBT / Share (Rs.)-3.12-0.690.591.59-4.23
Net Profit / Share (Rs.)-3.41-0.910.370.92-4.79
NP After MI And SOA / Share (Rs.)-3.41-0.910.370.92-4.79
PBDIT Margin (%)-2.88-8.0613.6427.7527.58
PBIT Margin (%)-7.91-13.0810.6824.0423.45
PBT Margin (%)-56.53-14.0110.1024.02-65.12
Net Profit Margin (%)-61.90-18.376.2913.90-73.74
NP After MI And SOA Margin (%)-61.90-18.376.2913.90-73.74
Return on Networth / Equity (%)-57.48-9.813.729.42-52.22
Return on Capital Employeed (%)-5.77-5.905.5314.2014.47
Return On Assets (%)-36.19-7.272.917.11-39.52
Total Debt / Equity (X)0.000.000.000.010.00
Asset Turnover Ratio (%)0.500.390.100.080.04
Current Ratio (X)2.393.053.903.222.71
Quick Ratio (X)2.393.053.903.222.71
Dividend Payout Ratio (NP) (%)0.000.0065.1253.090.00
Dividend Payout Ratio (CP) (%)0.000.0044.2841.920.00
Earning Retention Ratio (%)0.000.0034.8846.910.00
Cash Earning Retention Ratio (%)0.000.0055.7258.080.00
Interest Coverage Ratio (X)-3.40-8.7223.4634.8817.85
Interest Coverage Ratio (Post Tax) (X)-15.65-18.8511.8217.509.60
Enterprise Value (Cr.)1588.901485.241695.351857.0281.43
EV / Net Operating Revenue (X)5.135.335.084.990.22
EV / EBITDA (X)-177.93-66.0437.2517.990.80
MarketCap / Net Operating Revenue (X)5.455.725.415.370.47
Retention Ratios (%)0.000.0034.8746.900.00
Price / BV (X)5.063.063.203.640.33
Price / Net Operating Revenue (X)5.455.725.415.370.47
EarningsYield-0.11-0.030.010.02-1.56

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 11.05

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Overvalued: 66.72% compared to the current price 33.2

Default values used*: Deafault value of 15 for Stock P/E is used

Intrinsic Value: 13.15

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 60.38% compared to the current price 33.2

Default values used*: Deafault value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: 19.04%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock is trading at a low valuation with an average P/B ratio of 0.53 and average Dividend Yield of 7.44%.
  2. The stock has a low average Working Capital Days of 10.67, which is a positive sign.
  1. The stock has a low average ROCE of 6.50%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 101.42, which may not be favorable.
  3. The company has higher borrowings (234.75) compared to reserves (145.50), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (334.75) and profit (-32.17).

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Subex Ltd:
    1. Net Profit Margin: -61.90%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: -5.77% (Industry Average ROCE: 21.03%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ✗ ROE%: -57.48% (Industry Average ROE: 20.83%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): -15.65
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.39
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✓ Stock P/E: (Industry average Stock P/E: 86.01)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✓ Total Debt / Equity: 0.00
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Subex Ltd. is a Public Limited Listed company incorporated on 06/12/1994 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L85110KA1994PLC016663 and registration number is 016663. Currently company belongs to the Industry of IT Consulting & Software. Company’s Total Operating Revenue is Rs. 68.36 Cr. and Equity Capital is Rs. 281.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwarePritech Park-SEZ, Block-9, 4th floor, B Wing, Survey No. 51-64/4, Bengaluru Karnataka 560103investorrelations@subex.com
http://www.subex.com
Management
NamePosition Held
Mr. Anil SinghviChairman, Non Ind & Non Exe Director
Ms. Nisha DuttManaging Director & CEO
Ms. Poornima PrabhuIndependent Director
Mrs. Archana MuthappaIndependent Director
Mr. Rupinder GoelIndependent Director
Mr. Murali KalyanaramanIndependent Director

FAQ

What is the latest fair value of Subex Ltd?

The latest fair value of Subex Ltd is ₹11.05.

What is the Market Cap of Subex Ltd?

The Market Cap of Subex Ltd is 1,871 Cr..

What is the current Stock Price of Subex Ltd as on 25 July 2024?

The current stock price of Subex Ltd as on 25 July 2024 is 33.2.

What is the High / Low of Subex Ltd stocks in FY 2024?

In FY 2024, the High / Low of Subex Ltd stocks is 45.8/22.4.

What is the Stock P/E of Subex Ltd?

The Stock P/E of Subex Ltd is .

What is the Book Value of Subex Ltd?

The Book Value of Subex Ltd is 5.92.

What is the Dividend Yield of Subex Ltd?

The Dividend Yield of Subex Ltd is 0.00 %.

What is the ROCE of Subex Ltd?

The ROCE of Subex Ltd is 5.48 %.

What is the ROE of Subex Ltd?

The ROE of Subex Ltd is 12.2 %.

What is the Face Value of Subex Ltd?

The Face Value of Subex Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Subex Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE