Subscribe to Quick Heal Technologies IPO: Hem securities

Hem Securities report on Quick Heal TechnologiesQuick Heal is one of the leading providers of security software products and solutions in India with a market share of over 30 percent in the retail segment according to the Zinnov Industry Report. Company's end customers include home users, small offices and home offices (SOHO), SMBs, enterprises, educational institutions, as well as government agencies and departments. Company's proprietary antivirus technology, which is based on an innovative behaviour and threat detection system, works to detect security threats including virus and malware attacks in real time to protect including desktops, laptops, mobile/ smartphones and tablets, while aiming to ensure resource availability, business continuity and an uninterrupted digital experience.As of December 31, 2015, company had over 7.13 million active licenses spread across more than 80 countries.

Recognised Brand Name and Positive Reputation: Company's proven track record of execution over two decades has contributed to its reputation and leading market position in India for providing security software solutions. Company is one of the leading providers of security software products and solutions in India with a market share of over 30% in the retail segment according to the Zinnov Industry Report.

Strong and Diversified Channel Network: As of December 31, 2015, company have over 19,000 retail channel partners, 349 enterprise channel partners, 319 government partners and 944 mobile channel partners, who act as the distributors and resellers of its solutions, and company conduct its sales and marketing activities out of 64 offices and warehouses across 36 cities in India. As of December 31, 2015, co's sales & marketing team comprised 400 employees who work  closely with its channel partners.

Consistent Growth, Profitability and Cash Flow Generation: Company have grown consistently over the last few years and for the five fiscal years ended March 31, 2015, its total revenue, Gross Profit, EBITDA and restated profit for the year grew at a CAGR of 21.94%, 20.97%, 13.07% and 8.67%, respectively. Further, company achieved Gross Margins of 91.65%, 91.09%, 92.13% and 92.38%, EBITDA Margins of 29.69%, 32.09%, 42.98% and 51.30% and restated profit for the year (period) margins of 16.35%, 18.81%, 24.04% and 37.51% for the six months period ended September 30, 2015 and fiscal years 2015, 2014 and 2013, respectively.ValuationThe company is bringing the issue at price band of Rs 311-321 per share which will convert into p/e multiple of 45-46 per share on post issue annualized H1FY'16 eps of Rs 7 per share. Though company has seen declining trend in its EBIDTA & PAT since FY'13 on account of co's spend on R&D & other activities but looking after margins ,return ratios & positive cash flows from operations along with debt free status, financials infused optimism in company. Co's MDM ( Mobile Device management)product seems to have strong future potential. Also, company has an edge in case of margins over its global peers Symantec & Fortinet. Hence we recommend investors to subscribe the issue.For all IPO stories, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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