I searched for threads on this company over Valuepickr Forum, but I could not find one. So I thought of initiating the same. Following are some interesting facts about this company.
- Company is in the business of Cyber security. I can say huge tailwind is there in the business. Thanks to recent global ransomware attack like wannacry, lauki etc.
- Promoter has around 73% stake in company. So it fits the “Skin in the game” test.
- Promoter has build this business from nowhere, they come from very humble background and still appears to be very grounded during interviews.
- Company is available at market cap of mere 1600 crore.
- Company is debt free and holds around 300 crores of cash. Although a large portion of this cash is earmarked for R&D activities. A large spending on R&D is good for this type of companies.
- Company is focused on brand building, they were co sponsor for Pune IPL team.
- Veteran investor Mr. Ramesh Damani has many times showed his inclination towards cyber security business. I assume that he holds a significant stake in the company, though it does not appear in exchange submitted shareholding data. Remember he was amongst the first few investors who identified the potential of Infosys way back in 1992.
- Company has not shown meaningful revenue growth since it’s listing. But it may be fair to assume that we may see high traction going forward as company is focusing on providing services to SME sectors. Typically SME sector can’t afford dedicated team for cyber security.
- To vouch for its popularity over its peers, I would urge you to visit this link from google trends https://trends.google.co.uk/trends/explore?geo=IN&q=quick%20heal,symantec,escan,kaspersky,Mcafee. Although its the only listed player in this segment so we may tweak its trendline a little (a small thanks to stock market to increase its popularity )
Disclosure : Invested, but still testing the execution. Kindly provide your views.