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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 532348 | NSE: SUBEXLTD

Fundamental Analysis of Subex Ltd

About the Company - Subex Ltd

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, Bengaluru Karnataka 560103investorrelations@subex.com
http://www.subex.com
Management
NamePosition Held
Mr. Anil SinghviChairman, Non Ind & Non Exe Director
Mr. Vinod Kumar PadmanabhanManaging Director & CEO
Mr. George ZachariasIndependent Director
Ms. Poornima PrabhuIndependent Director
Mr. Rupinder GoelIndependent Director
Ms. Archana MuthappaIndependent Director

Subex Ltd. Share Price Update

Share PriceValue
Today₹39.30
Previous Day₹38.73

Basic Stock Data of Subex Ltd

Market Cap 2,196 Cr.
Current Price 39.0
High / Low45.8/25.0
Stock P/E
Book Value 8.76
Dividend Yield0.00 %
ROCE9.35 %
ROE9.56 %
Face Value 5.00

Data Source: screener.in

Competitors of Subex Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
California Software Company Ltd 30.8 Cr. 20.023.2/11.31,542 7.650.00 %1.61 %1.69 % 10.0
7Seas Entertainment Ltd 74.7 Cr. 40.043.9/15.190.0 0.590.00 %17.1 %% 10.0
Melstar Information Technologies Ltd 7.28 Cr. 5.106.30/1.85 2.770.00 %177 %% 10.0
Mindpool Technologies Ltd 36.0 Cr. 85.0109/45.6 42.40.00 %3.25 %1.67 % 10.0
Nucleus Software Exports Ltd 3,527 Cr. 1,3171,830/53417.0 2570.77 %27.1 %20.3 % 10.0
Industry Average30.36 Cr30.2221.662.080.15%45.21%4.73%10

Subex Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales93.8896.1680.6086.3087.7478.8083.2674.5073.6647.2767.2976.8181.82
Expenses73.5373.0164.4076.4079.7177.7982.5574.1968.5784.0382.0381.3881.24
Operating Profit20.3523.1516.209.908.031.010.710.315.09-36.76-14.74-4.570.58
OPM %21.68%24.07%20.10%11.47%9.15%1.28%0.85%0.42%6.91%-77.77%-21.91%-5.95%0.71%
Other Income1.061.726.710.970.692.002.650.980.813.721.351.281.41
Interest0.380.450.410.330.880.320.280.820.760.720.700.660.63
Depreciation4.242.232.422.462.522.482.613.753.813.823.874.203.75
Profit before tax16.7922.1920.088.085.320.210.47-3.281.33-37.58-17.96-8.15-2.39
Tax %48.12%29.70%32.87%40.35%60.90%-190.48%-1,078.72%-49.39%451.88%-25.55%-7.35%-35.58%-104.60%
Net Profit8.7115.6013.484.822.080.615.54-4.90-4.68-47.18-19.28-11.05-4.89
EPS in Rs0.150.280.240.090.040.010.10-0.09-0.08-0.84-0.34-0.20-0.09

Subex Ltd Quarterly Chart

Subex Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales478307340360322357324348365372333279265
Expenses403311272275231268290297279273303325316
Operating Profit75-3688591893451869930-46-51
OPM %16%-1%20%24%28%25%11%15%24%27%9%-17%-19%
Other Income113-0-4-87-97133-30381087
Interest4351676162208264333
Depreciation842445551514101416
Profit before tax35-56-216-62-343447-2388928-56-62
Tax %10%-7%-416%36%-21%-29%40%46%-13%42%24%8%
Net Profit32-60-1210-74-432125-2695221-51-82
EPS in Rs4.59-3.60-0.700.56-1.48-0.850.370.45-4.790.920.37-0.91-1.46
Dividend Payout %0%0%0%0%0%0%0%0%0%82%0%0%

Subex Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-287.50%80.00%183.33%-840.00%41.89%148.84%19.05%-1176.00%119.33%-59.62%-342.86%
Change in YoY Net Profit Growth (%)0.00%367.50%103.33%-1023.33%881.89%106.95%-129.79%-1195.05%1295.33%-178.95%-283.24%

Subex Ltd Growth

Compounded Sales Growth
10 Years:-1%
5 Years:-3%
3 Years:-9%
TTM:-12%
Compounded Profit Growth
10 Years:0%
5 Years:%
3 Years:%
TTM:-2302%
Stock Price CAGR
10 Years:15%
5 Years:49%
3 Years:18%
1 Year:27%
Return on Equity
10 Years:3%
5 Years:4%
3 Years:1%
Last Year:-10%

Subex Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital69167167183503507562562562281281281281
Reserves7258726231177217232-47268283241213
Borrowings6027327637252281863204926153332
Other Liabilities35313115618880868196114151140140161
Total Liabilities1,0961,0881,0931,1211,042957892890678725719695687
Fixed Assets873861862865775668666664393375368385382
CWIP0000000000000
Investments0000000000121411
Other Assets223227230257267289226226286350339296294
Total Assets1,0961,0881,0931,1211,042957892890678725719695687

Subex Ltd Reserves and Borrowings Chart

Subex Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 53-176164665454556691-89
Cash from Investing Activity -2-23-2-117-11-7-11-2-6-34-36
Cash from Financing Activity -5384-60-47-36-55-91-34-13-32-15-7
Net Cash Flow-244-2637-12-4495153-58-33

Subex Ltd 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%

Subex Ltd Financial Efficiency Indicators Chart

Subex Ltd 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 Shareholders1,57,0612,74,4653,37,5903,37,3733,58,6343,63,0973,95,3633,80,8153,57,8623,44,4033,39,8063,36,665

Subex Ltd Shareholding Pattern Chart

No. of Subex Ltd Shareholders

Subex Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Motilal Oswal Nifty Microcap 250 Index Fund6205890.342.11

Subex Ltd ROCE Trend

Subex Ltd EPS Trend

Subex Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue5.005.005.0010.0010.00
Basic EPS (Rs.)-0.930.380.96-4.940.45
Diluted EPS (Rs.)-0.930.380.96-4.940.45
Cash EPS (Rs.)-0.660.541.17-4.520.53
Book Value[Excl.RevalReserv]/Share (Rs.)9.2910.039.769.1714.13
Book Value[Incl.RevalReserv]/Share (Rs.)9.2910.039.769.1714.13
Revenue From Operations / Share (Rs.)4.965.936.626.496.19
PBDIT / Share (Rs.)-0.400.801.841.790.96
PBIT / Share (Rs.)-0.640.631.591.520.87
PBT / Share (Rs.)-0.690.591.59-4.230.83
Net Profit / Share (Rs.)-0.910.370.92-4.790.44
NP After MI And SOA / Share (Rs.)-0.910.370.92-4.790.44
PBDIT Margin (%)-8.0613.6427.7527.5815.53
PBIT Margin (%)-13.0810.6824.0423.4514.14
PBT Margin (%)-14.0110.1024.02-65.1213.52
Net Profit Margin (%)-18.376.2913.90-73.747.24
NP After MI And SOA Margin (%)-18.376.2913.90-73.747.24
Return on Networth / Equity (%)-9.813.729.42-52.223.17
Return on Capital Employeed (%)-5.905.5314.2014.476.03
Return On Assets (%)-7.272.917.11-39.522.81
Total Debt / Equity (X)0.000.000.010.000.00
Asset Turnover Ratio (%)0.390.100.080.040.02
Current Ratio (X)3.053.903.222.712.24
Quick Ratio (X)3.053.903.222.712.24
Dividend Payout Ratio (NP) (%)0.0065.1253.090.000.00
Dividend Payout Ratio (CP) (%)0.0044.2841.920.000.00
Earning Retention Ratio (%)0.0034.8846.910.000.00
Cash Earning Retention Ratio (%)0.0055.7258.080.000.00
Interest Coverage Ratio (X)-8.7223.4634.8817.8525.03
Interest Coverage Ratio (Post Tax) (X)-18.8511.8217.509.6012.68
Enterprise Value (Cr.)1485.241695.351857.0281.43282.28
EV / Net Operating Revenue (X)5.335.084.990.220.81
EV / EBITDA (X)-66.0437.2517.990.805.22
MarketCap / Net Operating Revenue (X)5.725.415.370.470.93
Retention Ratios (%)0.0034.8746.900.000.00
Price / BV (X)3.063.203.640.330.40
Price / Net Operating Revenue (X)5.725.415.370.470.93
EarningsYield-0.030.010.02-1.560.07

Subex Ltd Profitability Ratios (%)

Subex Ltd Liquidity Ratios

Subex Ltd Liquidity Ratios (%)

Subex Ltd Interest Coverage Ratios (X)

Subex Ltd Valuation Ratios

Fair Value / Intrinsic Value of Subex Ltd

Fair Value: ₹12.81

The stock is overvalued by 67.15% compared to the current price ₹39

*Investments are subject to market risks

Strength and Weakness of Subex Ltd

StrengthWeakness
  1. The stock is trading at a low valuation with an average P/B ratio of 0.79 and average Dividend Yield of 11.85%.
  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 (263.31) compared to reserves (152.15), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (342.92) and profit (-20.38).

Should I Buy Subex Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Subex Ltd:
    1. Net Profit Margin: -18.37%
      • 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: -5.90% (Industry Average ROCE: 20.93%)
      • 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. Interest Coverage Ratio (Post Tax): -18.85
      • 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.
    4. Quick Ratio: 3.05
      • 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.
    5. ✓ Stock P/E of N/A (Industry average Stock P/E: 163.8)
      • 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.
    6. ✓ 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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