SUBEX 💻

CMP:30

Technically given breakout at 19 only. I am posting this note after I got my own conviction.

Dont buy at one go, buy on DIP’s

-Positive points to be considered

SUBEX plans to foray into emerging verticals like Fintech&E-commerce by expanding digital trust business beyond its core area of Telecom sector

SUBEX is literally Zero /negligible debt company,hence it can focus on growth in new verticals
SUBEX main advantage is 75% of telecom companies are their clients

SUBEX now focusing on internet of things (IOT) , security and analytics and management expecting 140n to 200 crores additional revenue from new verticals
1/5 th of the global teleco’s tariff goes through company,counts British Telecom,Airtel,JIO,VI,T-Mobile,AT & T,Orannge and Swisscom and etc.

SUBEX has increased its employees by 15%

Key possitive factor for SUBEX is new and promising Management
SUBEX has massive leverage with the existing teleco customers thhey can take major advantage out of it to enhance their business in new areas such as IOT security,FinTech,Digital Trust, Cyber security & 5G.
SUBEX has entered strategic partnership with Tech Mahindra to develop black chain based solutions for telecos

SUBEX has launched 3 Horizon strategy under Subex 3.0 with an objective to pioneer in digital trus across multiple platforms

SUBEX closed its dispute with old promoter
.

SUBEX also effected share capital reduction scheme – With their huge and new reservse they can invest in new verticals

SUBEX new vertical includes AI, 5G is the major factor to boost AI sector. SUBEX is has its advantage in Telecom and Old Clientele
After Sep 2018,FIIS have bought the shares and present holding is 0.33%

Other major factor to be considered to invest in this company are anticipating future development, Management and it's turn around story
🎯Now lets talk about negatives

SUBEX fundamentals are not good

There is no Top line growth since many years and from past 3 year we can notice the growth.

Less promoters holding – Yes they are holding indirectly but very minimal
Cash flows are not consistent over the years and Negative in many years
➡️General Understanding for layman

Q:Why company is unable to take opportunities when whole world changed from 2G to 3G.
Ans: Old Management was bad and company had invested good amt of money on acquisitions hence unable to invest in infrastructure
Q:If company was not able take opportunities in 3G Phase,how could it catch opportunities in 5G Phase
Ans: New management and delivering what they promised in recent past. Low debt and good reserves
Q:Why I said HERO or ZERO Call
Ans: It May become Next Tanla or Rcom. So be prepared and invest as per your risk appetite

And finally It May change your fortune or your investment may become negative.

🤠RISK HAI TOH ISHQ HAI🤠
@Sai_trader4life ,@SForStiletto and @AmitMis93532571

Your view are welcome and please add any corrections or points to be noted 🙏🙏🙏

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