MountainWolf

Very Good Consolidation Breakout . Long QuickHeal

Long
NSE:QUICKHEAL   QUICK HEAL TECHNOL
Increasing Volume & 21 weeks of consolidation breakout suggests a positive trend.
With the confirmation of RSI , We can have a high probability of a positive trend.
Till the price stays above 20EMA on a weekly timeframe one can stay and ride the trend.

Small Info :
Quick Heal Technologies is engaged in the business of providing security software products. The Company caters to both domestic and international market.

Large National Footprint - Quick Heal derives more than 95% of its revenue from India. It operates through a large distribution network penetrating the Tier II and Tier III towns where the internet penetration is now increasing. The company also has a growing international presence, with offices in over 40 countries. To date, the company has installed more than 24 million products and has an active license user base of 9 million and 30,000 enterprise customers. Quick Heal has four international subsidiaries - QHT Japan, MENA , Africa, and America - all 100% held.

Growing government and enterprise business - Quick Heal operates through Retail (which accounts for more than 80% of total revenues) and Enterprise & government solutions (20% of total revenues). The company’s spend on R&D has increased to 18%-19% of revenues from just 8% over the last six years.

High Market share in a growing market - Quick Heal enjoys a 34% market share in the retail segment. Indian Cybersecurity market is poised to become a $3 billion market by 2022. Quick Heal should also gain from the Indian government’s Make in India policy where it mandates the government departments to give preferential treatment to cybersecurity products and solutions made in India. #

Increase in Share Capital and employee costs - Quick Heal’s share capital has increased by almost 8x in the last eight years. #Sequoia Capital had invested Rs 60 crore in the company way back in FY2011 (~10.25% stake) but has totally exited. The FII holding is currently just 0.03%. Total employee costs have also increased from more than 11% (of sales) in 2012 to 35% currently. R&D employees formed the largest part, being at ~35% of the overall numbers, followed by Sales & Marketing (~30%), and Technical Support (~20%).
Trade closed manually: poor results