By Admin 
Subex Share Jumps: Investing in stock market is always full of risk. The objective of investors is to earn more profits in less time. But the stock being talked about today had kept investors in loss for a long time. Now the shares of the same IT company Subex have gained momentum. During early trading on Friday (October 10), its shares saw a huge jump of about 10 percent. The main reason for this rise is the big deal with a telecom company of Netherlands.
Why is Subex stock flying?
Actually, IT company Subex has got a big deal for about 6 years from a reputed telecom operator of Netherlands. Under this agreement, Subex will have to provide an integrated platform for MVNO billing and wholesale partner settlement. The total value of this deal is about 6.62 million dollars (about Rs 54.95 crore).
After the announcement of the deal, there was a strong rise in the shares of the company. Subex shares had closed at Rs 11.95 on Thursday, while on Friday it rose 10% to Rs 13.17. Its shares had fallen by about 50 percent in the last one year, but in the last three months alone it has shown a rise of up to 20 percent.
What is your advice for investors?
From the financial point of view, the volume in the company’s shares has increased, which indicates the interest of investors. However, institutional investors are still not taking large stakes in this stock. The company’s operating profit CAGR has been 173 percent, but despite this it has given a negative return of 55 percent in one year.
According to the September-October report, Subex was trading at its 52-week low. But after this new deal with the Netherlands company, an increase of 20 percent has been seen in it. This surge of Subex is currently based on the news of the deal. Investors are advised to take investment decisions keeping in mind the long-term financial position, profit growth and fundamentals of the company.
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