No 1 player in the anti virus software market

Quick Heal Technologies is the Number 1 player in the anti virus market, with a dominant market share of 30 per cent.

With internet access increasing and scope for tremendous expansion on mobile, the company is likely to see huge demand for anti virus software. This may drive growth at the company.

Huge demand potential

The number of cyber attacks have grown from 22,060,000 in 2012 to 130,388,000 in 2015 leaving huge potential for players like Quick Heal Technologies.

India also has the second largest internet user base in the world, which is likely to see huge demand for anti virus software. 

Cash rich zero debt company

Quick Heal is also a cash rich zero debt company. Quick Heal Technologies also has decent cash flows.

This is set to improve margins in the coming years, which should remain robust.

Solid network

The company's dominance in the business will remain given its solid network. Quick Heal Technologies has a retail network of 19,872 retailers with 64 offices and warehouse across 678 cities. 

This should ensure that the company maintains its dominant position in the market. 

Drivers for long term growth

The company is looking at expanding rapidly in Tier I and Tier II cities. The special focus on Tier II and Tier III towns would remain.

It is also aggressively targeting SMB and enterprise users and to develop and promote software-as-a-service model. The company has already spent huge amounts from the IPO proceeds in advertising and marketing. 

Attractively valued

The company came out with a public issue at a price of Rs 321. As against this you are getting the stock at just Rs 236, which is a good discount.

The company can report an EPS of Rs 35 by 2017-18, which means the stock has the potential to reach at least 500, which means doubling money from current levels.

Disclaimer

This article is for information purposes. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author do not accept culpability for losses and/or damages arising based on information in this article. Please seek advise before investing. This article is not a solicitation to buy the share mentioned.