Quick Heal Technologies (QHTL) is a dominant player in the growing Retail IT Security software market in India with a market share of 30% and an active license user base of 7.13 million.

Angel Broking has recommended 'Subscribe' to IPO of Quick Heal Technologies. Commenting on the investment rationale, the stock broker said, ''QHTL has shown significant growth over FY2012-15, posting a revenue CAGR of 16.9% while its profitability has declined from Rs 680 million in FY2012 to Rs 540 million in FY2015 as the company was in an investment phase. Investments were incurred towards new product development for its Enterprise business and brand building."

''On the valuation front, at the upper end of the price band, the pre-issue P/E works out to 41.2x its 1HFY2016 annualized earnings which we consider decent taking into account the company’s brand image. Further, the company is confident of it being able to sustain its growth trajectory owing to its strong distribution network. Additionally, there is a two-year lead-lag on product development for the enterprise business of which the company will reap benefits in future. Thus, we recommend a 'Subscribe' on the issue from a longer term perspective,'' it added.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.