Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Union Budget
Budget 2011-2012 Home
Industry Expectations - Budget 2011-2012
Industry Reactions - Budget 2011-2012
Budget 2010-2011
Budget 2010-2011 Home
Industry Expectations - Budget 2010-2011
Industry Reactions - Budget 2010-2011
Contributor's Corner
Bonanza Portfolio
Hemant K Gupta
Krish Bhatt
Trinity Investments
Exchange Information
BSE 2009 Holidays
NSE 2009 Holidays
Investor Guide
Depository & Dematerialisation
Grievance Redressal
Investor Guide
Trading of Securities
Transfer of Securities
Your Rights
Budget 2009-2010
Budget 2009-2010 Home
Industry Expectations - Budget 2009-2010
Industry Reactions - Budget 2009-2010
Interim Budget 2009-2010 Home
Industry Expectations - Interim Budget 2009
Budget 2008-2009
Railway Budget 2008-2009
Industry Expectations - Budget 2008
Union Budget 2008-2009
Highlights of Budget 2008-2009
Summary of Budget 2008-2009
Industry Reactions - Budget 2008
Current IPOs
Past IPOs
IPO Subscription
Mutual Funds
Gold Exchange Traded Fund
MF Unique Holding
Forthcoming Dividends
ELSS Schemes Comparison
Tax Plans
New Fund Offers
Market Whispers
Tax Planning
Equity Linked Savings Scheme
Post Office MIS
9% GOI Senior Citizens Savings Scheme
8% Savings (Taxable) Bonds
Kisan Vikas Patra
National Savings Certificate
Public Provident Fund
IPO News

| More

Quick Heal Technologies - IPO Note - Angel Broking

Posted On: 2016-02-08 20:12:07

Quick Heal Technologies (QHTL) is a dominant player in the growing Retail IT Security software market in India with a market share of 30% and an active license user base of 7.13mn. ~87% of its customers are retail clients while the balance is made up of enterprises and government institutions. The company has laid the foundation in terms of product development, creating infrastructure for distribution and built a brand to further grow its overall business.

Leadership position in growing Retail IT Security market: The Indian IT Security software market is estimated to be at Rs. 1,500-1,800cr in 2015, of which, the retail market accounts for ~Rs. 600-800cr. The retail market has grown from ~Rs. 400-600cr in 2013 and is expected to post a CAGR of 20-25% over 2015-17E on the back of growing number of internet users. QHTL is best placed to benefit from the growing industry on the back of its brand visibility along with its wide distribution reach.

Strong distribution network with good brand equity: Despite facing competition from international as well as domestic players in India, QHTL has been able to successfully grow its business and establish a strong position across India on the back of its 19,000 retail channel partners. QHTL has also built support systems that include mobile, enterprise and government channel partners. The company has historically spent ~10% of its top-line on advertisement and is expected to allocate ~Rs. 111cr from the IPO proceeds (over three years) to further improve its visibility, which in turn, will aid growth.

Debt free with healthy Cash Flow generation for future R&D needs: QHTL has a debtfree balance sheet and cash balance of ~Rs. 107cr as of 1HFY2016. Over the past five years, QHTL is generating strong operating cash flows which have grown from ~Rs. 49cr in FY2012 to ~Rs. 77 in FY2015. We believe that the company generates sufficient cash flows to cover for R&D and technology up-gradation related expenses.

Outlook Valuation: QHTL has shown significant growth over FY2012-15, posting a revenue CAGR of 16.9% while its profitability has declined from Rs. 68cr in FY2012 to Rs. 54cr in FY2015 as the company was in an investment phase. Investments were incurred towards new product development for its Enterprise business and brand building.

On the valuation front, at the upper end of the price band, the pre-issue P/E works out to 41.2x its 1HFY2016 annualized earnings which we consider decent taking into account the company's brand image. Further, the company is confident of it being able to sustain its growth trajectory owing to its strong distribution network. Additionally, there is a two-year lead-lag on product development for the Enterprise business of which the company will reap benefits in future. Thus, we recommend a Subscribe on the issue from a longer term perspective.

Source: Equity Bulls

Click here to send ur comments or to

Other Headlines:

HDFC updates on proposed IPO of HDFC Standard Life Insurance Company Ltd
Srei Equipment Finance plans to dilute upto 25% of its capital
Cochin Shipyard Ltd - IPO Note - Angel Broking
Security and Intelligence Services (India) Ltd - IPO Note - Angel Broking
M&M to sell part of its stake in Mahindra Logistics Ltd in IPO
Salasar Techno Engineering Ltd - IPO Note - Hem Securities Ltd
ICICI Lombard General Insurance Company Limited files DRHP for IPO
20 Microns Nano Minerals Ltd to come with SME IPO
AU Small Finance Bank Ltd - IPO Note - CSEC Research
AU Small Finance Bank - IPO Note - Sushil Finance
IPO: AU Small Finance Bank - Subscribe - IIFL
CDSL IPO evokes huge demand from investors
Ashok Leyland Ltd's subsidiary Hinduja Leyland Finance withdraws IPO
CDSL IPO subscribed 170.11 times
GTPL Hathway Ltd - IPO Note - Angel Broking
Central Depository Services Ltd - IPO Note - Angel Broking
Bharat Road Network Ltd receives observation letter from SEBI for the DRHP
PSP Projects Limited - IPO Note - Angel Broking
India Grid Trust - IPO Note - Angel Broking
Hudco Ltd - Focus on Housing and Urban Infrastructure Finance in India: Angel Broking
S Chand and Company Limited IPO garners subscription of 59.49 times
S.Chand & Company Ltd - Providing the syllabus for growth: Angel Broking
S. Chand and Company Limited - IPO Note - Sushil Finance
Shankara Building Products Limited IPO to close for subscription today
CL Educate Limited receives subscription of 1.90 times
Escorp Asset Management IPO to open for subscription on Mar 31, 2017
Avenue Supermarts Limited to list today
Chemcrux Enterprises Ltd SME IPO gets huge over subscription
Shankara Building Products Limited - Thrust on retail to boost potential - Angel Broking
CL Educate Limited - Preparing for the big Test: Angel Broking
Optimus Finance Ltd announces IPO of wholly owned subsidiary
Gitanjali Brands Limited files DRHP with SEBI, BSE and NSE
Jagran Prakashan Limited announces fixing of IPO price by Music Broadcast Ltd at Rs. 333
Avenue Supermarts Limited - A retailer with a growth appetite - Angel Broking
Avenue Supermarts Limited - IPO Note - Sushil Finance
Music Broadcast Limited - IPO Note - Sushil Finance
Avenue Supermarts Limited - A retailer with a growth appetite: Angel Broking
Music Broadcast Limited fixes IPO price band as Rs. 325 to Rs. 333
Music Broadcast Limited IPO to open on Mar 6, 2017
India Finsec Ltd arm IFL Enterprises Limited gets approval fo Public Issue of equity shares on SME Platform of BSE Limited
SREI Infrastructure Finance Ltd's arm Bharat Road Network Limited Files DRHP with SEBI for IPO
GlobalSpace Technologies Limited plans SME IPO, files papers with BSE
Nakshatra World Limited, wholly owned subsidiary of Gitanjali Gems Ltd to raise funds through IPO
Jagran Prakashan Ltd arm Music Broadcast Ltd files DRHP with SEBI for IPO
Majestic Research Services and Solutions Ltd receives approval from ROC for RHP filed for Further Public Issue
GNA Axles Limited - IPO Note Attractive on Valuations: Subscribe - Angel Broking
L&T Technology Services Limited - Issue competitively priced - Subscribe - Angel Broking
IRB Infrastructure Developers Ltd arm files for IPO of units
RBL Bank - IPO Note - SUBSCRIBE - Long-term Play on Strong Growth Potential - Reliance Securities
RBL Bank - IPO Note - Strong Management at the helm of affairs - Angel Broking

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2017