Subex Ltd - 532348

Name of Company	Subex Ltd
BSE Code	532348
NSE Code
ICICI Code
Established	1992
My Take	Dislike
Headquarters	Bangalore
Promoters
Story	Subex provides fraud management and revenue assurance solutions to global telecom players. It was one of the worst hit companies due to a slump in the telecom sector in the last eight quarters globally. The company struggled to remain afloat as its clients from the telecom sector postponed investments in new projects. It's client list includes Bell, Comcast, T Mobile, Telefonica, Verizon, BT, Zain, Vodafone, BSNL, Reliance Communications, and Telstra among others. Now, the worst seems to be over for the sector. Telcos are showing signs of revival, which means that the investments could get back in the sector. This augurs well for Subex.
Sector	IT
Sub-sector	Focuses on OSS for communication service providers.
Website	http://www.subexworld.com/
Positives	The company is also aggressively expanding its services portfolio, which would generate recurring revenue. With the restructuring of its FCCBs and other debts, its interest costs will fall. This will support its net margin in the future quarters. At present price of 60 its quoting at less than 6 times its 1 year forward earnings. That's quite cheap considering the valuation enjoyed by its peers. Subex is the same scrip which even couple of years back commanded a price of over 800 in the bourses. With things looking rosy coupled with promoters taking warrants at 80,things can only get better for the counter.
Negatives	Subex's '07 acquisition of services fulfillment player Syndesis went awry as global telcos cut new capex post subprime crisis. Subex took a big hit because of this since it was betting on selling the next generation deliverables of Syndesis. The promoters have no confidence in the company and that is why they have reduced their stake and have pledged their shares as well.
Peers	Rolta