This small-cap IT stock is trading at upper circuit on August 5

The company has partnership with Jio

On August 5, market is trading in green. At 11:50 am, S&P BSE Sensex is trading at 58514. One of the top gainers which is trading at upper circuit is Subex Ltd.

The shares of Subex are up 9.89% from its previous close and trading at Rs 43.9 at 11:50 am. The stock is in strong uptrend as it has appreciated tremendously from its opening price of Rs 26.95 on August 2 to today’s level of Rs 43.9.

In this week the stock has hit upper circuit for third consecutive times on August 3, 4, and 5. This has helped the stock to deliver 62.89% in matter of just 4 trading days.

Subex Ltd is a software company incorporated in 1996 which is engaged in the business of Digital trust, making products for communications service providers (CSPs) around the world, with an emphasis on privacy, security, risk management, predictability, and trust in data.

The company belongs to BSE group ‘A’ and is a part of S&P BSE small-cap index.

The company has poor both 10-year revenue and net profit growth at -4% CAGR. As per March period ending, the company has a ROE and ROCE of 3.74% and 6.12%, respectively.

About Q4 FY22 result, -18.05% YOY decline was observed in the Q1 revenue figure. The net profit also dropped drastically by 96.09% from Rs 15.6 crore in Q4 FY21 to Rs 0.61 in Q4 FY22. 53% of the revenue came from EMEA, 29% from APAC, 16% from America, and 3% is contributed by domestic market.

Jio Platforms have collaborated with Subex HyperSense AI, an end-to-end augmented analytics platform of Subex Ltd to augment its 5G product line.

The company has a market capitalization of Rs 2475 crore and is trading at a PE multiple of 118x.

The stock has a 52-week high and low of Rs 62 and Rs 18.6, respectively.