Dear Dhruva, It might be a known story, but I feel, it may also be prudent to review the situation periodically
Let me re-iterate their business model, otherwise I cannot do justice to my answer to your first question. 8k is not a cloud hosting service provider, unlike Amazon, Azure or Google. Instead, they help businesses to migrate to cloud (one-time business) and there upon provide the necessary on-going support (managed service offerings), which can be multi-year repeat business. In other words, 8k is just an implementation partner for product companies like Amazon. 8k also develops customized software for the customers on certain technologies (mainly recent hot technologies).Also, with Cornerstone acquisition, they are strengthening their Consulting service offerings even further.
Cloud market size is a large one, expected to be more than $200 Billion by 2020, and as I said earlier, for businesses around the world, moving to Cloud seems to be the only viable option. Even if product vendors like Amazon & Microsoft start offering implementation services tomorrow (Amazon has already started in a small way, I think), they cannot service the needs of the entire global market. Local players like 8k would always be important. Additionally, 8k can even be more experienced and effective in some of the areas (for example, pharma, healthcare verticals), as compared to those global biggies.
Why do you feel that, 8k's skills and experience are not sufficient for them to compete with global players and be successful? Haven't Indian IT services companies effectively competed with global giants and succeeded in the past? Indian companies have again and again proven to be leaders in IT services and we have seen the likes of Infosys grow from a capital of US$ 250 to US$ 10.4 billion revenue.
What is 8K's MOAT? I would say, their experience on Cloud, skill, early-mover advantage to Cloud and tools/IP's are primarily their MOAT. If you ask what was Usain Bolt's MOAT to become 8-time Olympic Champion, I don't think anyone can clearly explain that. There must be something similar here also, as is evident from their exceptional consistent growth rates YoY.
Among Indian providers, they are one of the early movers and specialists in Cloud offerings (whereas for other service providers, Cloud is just one among thier portfolio of service offerings) and they have marquee names in their list of customers, like Intel, BlueCross BlueShield, Cisco, Merck, Alfresco, ExonMobil, WB, Xerox etc. With their deep expertise, skills and automation tools/techniques, they are able to provide quicker quality services with efficiency and consistency, and the results are evident from their CAGR of more than 100% (revenue) for the past 5 years (Rs. 21 crore to 534 crore).
Coming to valuation, it trades at a P/E of 15.54 currently. It has increased its net profit from 3 crores in Mar'12 to 104 crores in Mar'17. Considering its past performance and the future prospects of cloud business, I feel that, it is perfectly reasonable to expect at least 60% growth in profit over each of the next couple of years. Even if no P/E expansion happens (but, isn't a P/E of at least 30 reasonable?), I would be happy with that kind of returns.