except Q1 ResultsThe board of the company will also consider and approve the proposal for buyback of shares on Thursday, July 21.
Due to this, the company’s shares have jumped 20 percent today.
A Word About Quick Heal Technologies
Quick Heal Technologies is one of the major players cyber security space,
As cyber attacks in India become massive and sophisticated, Quick Heal Technologies is ‘quick’ to strengthen its presence in the cyber security sector.
This 27-year-old, Pune-based company is a name that is synonymous with anti-virus software in India. It started as a bootstrapped start-up in 1995 and today has grown into a 360-degree cyber security solutions provider in India.
With flagship products such as Quick Heal and Secrete, the company has forayed into a space that caters to both retail and enterprise-level security solutions.
With its range of offerings on data encryption and data loss prevention, endpoint protection, network security, enterprise mobility management and server security, the company boasts of customers spanning retail, enterprise, SMBs and governments.
Quick Heal stock buyback history
This is not the first time Quick Heal has offered buy back shares,
In April 2019, the company came up with the buyback offer amount with its first buyback offer. 1.8 billion
At that time, the company held 9% of its total equity, or 6.4 million shares. bought at the cost of 275 per equity share.
Later in May 2021, Quick Heal launched the . announced its second buyback for an offer size of 1.6 billion
Here, the company bought back 6.3 m shares at an average price of 245 per equity share.
One of the primary reasons companies opt for buybacks is a lot of cash and low investments on its books. Typically, IT companies are sitting on huge amounts of cash and they reward shareholders by buybacks. The case is of Quick Heal.
Another reason to buyback is to improve valuation. When a company buys back shares, it results in a reduction in the number of outstanding shares. As a result, it improves earnings per share (EPS) and return on equity.
Companies also give strong signals through buybacks. Since the buyback price is above the current price of the stock, people believe that management has confidence in its growth prospects, which is why it has set the price so high above the current price.
The buyback price of Quick Heal will be released later this week on July 21.
How Quick Heal’s stock has performed recently
Quick Heal share price up 10% that day 185 against Friday’s closing 167.
As the session progressed, Quick Heal shares extended gains and rose 20%.
Quick Heal has a 52-week high price 320 had touched its 52-week low in August last year touched 144 in June 2022.
Despite today’s impressive gains in the past one year, the company’s shares have fallen by 35 per cent.
On a YTD basis, shares are down 19%.
at the current price of 199, the stock trades for a PE multiple of 13.7 times and a book multiple of 1.6 times.
Quick Heal is well positioned to leverage its strengths to take advantage of future opportunities with a growing product portfolio.
The company’s strong and experienced management and a debt-free balance sheet will help it further consolidate revenue and profits.
The promoter holding of Quick Heal is 72.8%.
Disclaimer: This article is for informational purposes only. This is not a stock recommendation and should not be treated as such.
This article is syndicated from equitymaster.com
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