Quick Heal Tech (QUICKHEAL)

FairStock Score: 16/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Promoter holding of 71.54% provides strong owner alignment and long-term commitment.
• Piotroski F-Score of 6/9 indicates the company is not in acute financial distress.
• Latest quarter is profitable with ₹72 Cr sales and ₹7 Cr net profit, showing positive net margin.
• Sales growth, though modest at 1.32%, is still positive, and reported profit growth of 1000% points to an earnings recovery from a low base.

Concerns

• P/E of 156.59 implies trailing net profit of only ~₹5.8 Cr, making the earnings base extremely thin and unstable.
• ROE of 1.56% and ROCE of -0.24% show very poor returns on capital, yet the stock trades at 2.16 times book value.
• Sales growth of just 1.32% and quarterly sales of ₹72 Cr do not support a ₹902 Cr market cap.
• Zero dividend yield and a FairStock Score of 18/100 make this a risky proposition for conservative investors.

AI Analysis

Looking at Quick Heal, I see a business that has clearly stumbled. At ₹168.56, the market values the company at ₹902 Cr. The reported P/E is 156.59, which means the trailing net profit is only around ₹5.8 Cr. Yes, the latest quarter shows ₹7 Cr net profit, but that is more than the entire trailing twelve-month profit, so this '1000% profit growth' is just a low-base phenomenon. Sales growth is only 1.32%, and quarterly sales are ₹72 Cr. That is a stagnant top line, not the kind of momentum I want. More important, this is a poor capital allocator right now: ROE is 1.56% and ROCE is -0.24%. With book value of ₹78.17 per share, the company is earning almost nothing on shareholder equity. At 2.16 times book, I am paying a large premium for very little return. There is no dividend to hold my hand, and FairStock Score at 18/100 is rightly labelled risky. The 52-week range of ₹125 to ₹371.40 shows how much the market has repriced this business; at today's price, it is a falling knife unless fundamentals actually improve. Positives: promoter holding of 71.54% keeps owners engaged, Piotroski F-Score of 6/9 suggests no acute financial distress, and the latest quarter is profitable. So perhaps this is an early turnaround. But in Graham's terms, investment requires a margin of safety. A PEG of 0.21 looks tempting, but it is built on a 1000% profit growth figure from a tiny, erratic base; I discard it. I will wait for several quarters of rising sales, higher ROE, and positive ROCE before calling this a value investment. Right now, it is a speculation, not an investment.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer