Lumpsum of 1 lakh invested in this IT penny stock is worth more than 10 lakh in just 12 months!

Subex is one of the penny stocks of 2020 that has seen a turnaround along with becoming one of the best multibaggers in the past one year.

Subex is one of the penny stocks of 2020 that has seen a turnaround along with becoming one of the best multibaggers in the past one year. The stock price has jumped from Rs 7 per share to more than Rs 64 per share in May.  

What led to this turnaround, which pushed the stock prices higher multiple times?  

The improvement in the RoCE, led by a heavy reduction in debts, is the answer. Subex has reduced its debt over the years and substantially improved its financial performance. Going forward, the outlook for the company remains strong while the company is expected to clock CAGR growth of 18-20 per cent in the coming years. 

Subex has a sticky business model along with 60 per cent of its revenues as annuity revenues. Bright capital allocation policy and improving financial performance have led to rerating of the company prospects. 

The stock is up by 102.25 per cent on a YTD basis while in one month, it is up by ~ 10 per cent. On Wednesday the stock is trading at Rs 58.30 per share up by 0.60 per cent on intraday basis