Why Subex Share Price is Rising

The share price of Subex has rallied more than 20% in the past five days.

The steep rise in this software penny stock has garnered a lot of attention. Investors are wondering whether there's still more headroom for its shares to grow.

Let's find out why Subex share price is rising and what lies ahead for this software products company.

#1 HNI Buying

Reportedly, there was strong buying from high net-worth individuals (HNIs) in the counter last week.

The names of the buyers and sellers could not be ascertained immediately.

Market experts suggest that there's a lot of accumulation happening from HNIs which has resulted in large volumes in Subex.

This explains the current positive momentum for Subex.

As a user pointed out on X (formerly Twitter), Subex's shareholding shows it currently has the highest DII and FII holdings in many years while the public holding is going down.

FIIs have added stake in the company in the past two quarters while mutual funds have also found a liking.

Check Subex's detailed shareholding pattern here.

#2 Quarterly Results

Volumes going up in recent sessions was the primary reason which caused a momentum in Subex shares.

Interestingly, the company is going to report its Q3 results today.

Do the HNIs know something that retail investors don't? We will get to know once the company reports numbers later in the day.

This usually happens as investors buy shares of the company in anticipation of good quarterly results.

In Subex's case, the company narrowed down its losses to Rs 110 million in the September 2023 quarter while revenues were also the highest in the past four quarters.

Investors are waiting with bated breath to see how the company performs in the December 2023 and they would sure love a turnaround performance, wouldn't they?!

In the previous quarter, Subex onboarded three new clients in different product areas.

What Next?

Given that Subex is doing a lot of things towards the artificial intelligence (AI) space, the company does have a lot of things going on right now.

The company's focus on GenAI for telecom companies looks quite exciting to be honest.

Along with focusing on AI, it's also leveraging 5G for product offerings.

Earlier, it had announced to launch a GenAI solution in collaboration with Google.

The company is looking for partnerships to enhance product range and target a larger market.

While most of its revenue come from the telecom segment, it's worth noting that Subex has repeatedly secured contracts from customers like British Telecom, Telstra International, and Optus Systems.

It remains to be seen what Subex achieves towards the GenAI space in the coming months.

How Subex Share Price has Performed Recently

In the past 5 days, Subex share price has rallied over 20%.

In the past year, shares are up over 40%.

Subex has a 52-week high of Rs 45.8 touched today and a 52-week low of Rs 25 touched on 28 March 2023.

Here's a table comparing Subex with its peers -

Comparative Analysis

Company	Subex	Infobeans Tech	Quick Heal	Saksoft
ROE (%)	-15.2	16.9	1.5	17.4
ROCE (%)	-16.3	23.3	1.8	21.7
Latest EPS (Rs)	-1.7	9.1	0.7	3.2
TTM PE (x)	0.0	46.4	714.6	96.4
TTM Price to book (x)	6.4	4.1	6.1	17.1
Dividend yield (%)	0.0	0.2	0.5	0.2
Industry PE	36.4
Industry PB	10.7

Data Source: Ace Equity

About Subex

Subex is a software product company which is focussed on privacy, security, risk mitigation, predictability and confidence in data mainly in the telecommunication space.

The company is investing heavily in newer areas like AI and machine learning, augmented analysis, and deep learning-based anomaly detection.

To know more, check out Subex financial factsheet and its latest quarterly results.

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