Subex shares zoom 20% on tie up with Google Cloud; here's what tech charts hint

Shares of Subex Ltd rose sharply in Friday's trade after the company announced availability of its fraud management solution on Google Cloud. The stock jumped 20 per cent to settle at Rs 33.94 against a previous close of Rs 28.29. At this price, the scrip has gained 35.76 per cent from its one-year low price of Rs 25, hit on March 28, 2023. That said, it has slipped 29.66 per cent from its 52-week high of Rs 48.25, a level seen on August 8 last year.

"This collaboration combines Subex's extensive fraud management expertise with the unparalleled scalability, reliability, security, advanced analytics, and robust partner ecosystem offered by Google Cloud. This joint venture will improve fraud prevention in the telecommunications industry," the company stated in an exchange filing.

Telecom companies seeking a comprehensive and advanced cloud platform can now leverage Subex Fraud Management on Google Cloud to significantly enhance their fraud detection and prevention capabilities, it added.

"With Google Cloud's scalability, fraud management systems can handle ever-increasing volumes of data and transactions, adapt to dynamic fraud patterns, and seamlessly scale resources as needed. Moreover, the robust security features provided by Google Cloud, including encryption and identity management, ensure the protection of sensitive customer data and the integrity of the fraud management system. Telcos can trust in the secure environment offered by Google Cloud to safeguard their operations and protect customers from fraudulent activities," it mentioned.

Subex said Google Cloud's advanced analytics capabilities, such as BigQuery and PubSub, empower fraud management systems to efficiently analyse vast amounts of data in the near real-time.

"This enables accurate pattern detection and identification of potential fraudulent activities. By leveraging these capabilities, fraud management systems enhance their efficiency in detecting and preventing fraud, ensuring the security of businesses and customers. Businesses can also unlock significant total cost of ownership benefits by utilising Google Kubernetes Engine (GKE) on Google Cloud," it further stated.

On technical setup, the counter's 14-day relative strength index (RSI) came at 44. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-earnings (P/E) ratio of 23.12. It has a price-to-book (P/B) value of 3.75. The scrip has a one-year beta of 1.09, indicating high volatility.

Ravi Singh, Vice-President and Head of Research at Share India, said, "Subex may hold strong and continue its upward move to touch the levels of Rs 35 in the near term. Investors may book profit at higher levels and wait for lower levels to re-enter."

AR Ramachandran from Tips2trades said, "Subex looks bullish on the daily charts with strong support at Rs 28.25. It may hit Rs 34.50 in the near term."

Meanwhile, Indian equity benchmarks settled at fresh record closing highs today, led by strong buying interest across all sectors. The 30-share BSE Sensex pack jumped 502 points or 0.77 per cent to settle at 66,061, while the broader NSE Nifty index moved 151 points or 0.78 per cent higher to end the session at 19,565.

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