Stock of this software products company has zoomed over 200% in 7 months

Shares of Quick Heal Technologies hit a record high of Rs 600, as they surged 11% on the BSE in Tuesday's intra-day trade

Shares of Quick Heal Technologies, a global cybersecurity solutions provider, hit a record high of Rs 600 as they surged 11 per cent on the BSE in Tuesday's intraday trade in an otherwise weak broader market. The stock of the software products company surpassed its previous high of Rs 585.65 touched on March 2.

At 02:07 PM, Quick Heal was quoting 8 per cent higher at Rs 581.55 as compared to 0.5 per cent rise in the S&P BSE Sensex. However, the S&P BSE Midcap and S&P BSE Smallcap index were down 1.02 per cent and 1.9 per cent, respectively.

Quick Heal is engaged in providing IT security solutions to consumers, small businesses, and Government establishments and Corporate houses. The company's portfolio includes solutions under the widely recognised brand names 'Quick Heal' and 'SEQRITE'. Backed by AI and patented technologies, the range of award-winning solutions caters to endpoints, network, data, mobility, and cloud.

Quick Heal has established itself as the undisputed leader in the cybersecurity enterprise solutions space in India, capturing over 30 per cent market share. This leadership extends across both the retail segment and the enterprise solutions division, enabling Quick Heal to effectively serve and secure nations, cities, and businesses.

In the past seven months, the stock price of Quick Heal has skyrocketed 216 per cent. Since September 28, it has zoomed 155 per cent after Sequoia Capital sold its entire stake of 1.78 million equity shares or 3.36 per cent in the company via open market. The foreign company had sold 1.36 million shares in BSE and 425,000 shares on the NSE at an average price of Rs 240, the exchanges data shows.

On the other hand, Jatinder Agarwal purchased 0.75 million shares, or 1.41 per cent stake, in Quick Heal during the December quarter, shareholding pattern data shows.

In the October-December quarter (Q3FY24), Quick Heal had reported profit after tax of Rs 10.1 crore, as against net loss of Rs 9.3 crore in the year-ago quarter. Revenue increased 23 per cent year-on-year to Rs 81.9 crore from Rs 66.8 crore in Q3FY23. Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin improved to 14.2 per cent.

Digital innovation, digital aspirations of country as well as businesses will need a very strong and robust cyber security foundation. The management said the company is the only full-stack cyber security alternative for India. It also has a very strong Make in India story. "We are extremely bullish and optimistic about the company's prospects in the future, where the company not only serves the enterprises, but it will also serve some of the government requirements and aspirations," the management said.

The demand for cybersecurity solutions in India is driven by the country's thriving digital economy, which is a priority under the nation's Digital India initiative. In Union Budget 2023- 24, The Ministry of Electronics and Information Technology (MeitY) allocated a sum of Rs 625 crore to improve the country’s cybersecurity infrastructure.