As of Mar 28, 2026, Quick Heal Technologies Ltd (IT - Software) has a deep value score of 38/100 (rated Weak). Earnings are accelerating. 1Y return vs Nifty 500: -53%.
Deep value thesis based on recent earnings • Updated Feb 22, 2026
Debt-free balance sheet and management overhaul provide foundation for turnaround, but core business remains unprofitable without non-operational income support.
Verdict
EARLY_INNINGS
Re-rating catalysts over the next 2-4 quarters • Updated Feb 22, 2026
Enterprise growth from recent product launches to stabilize revenue with potential 10-15% sequential improvement
Impact: +₹7.15 Cr revenue
“Q3 FY26 saw strong enterprise growth mentioned in TradingView report”
Evidence of new leadership team driving sustainable margin expansion beyond 5% OPM
“New senior management appointments in January 2026 board meeting”
Resolution of deteriorating debtors turnover ratio (1.57x in H1 FY26) to improve cash flow
“Debtors turnover ratio deteriorated to 1.57x in H1 FY26 per MarketsMojo analysis”
Potential FII re-entry after stake collapse from 2.02% to 0.45% in three quarters
“FII holding collapsed from 2.02% to 0.45% in three quarters per MarketsMojo”
Risks that could prevent re-rating or deepen the value trap
Reduction in other income sources
Impact: -500 bps margin impact
Management view: Company acknowledges need to improve core operations per management commentary in Q3 results
Monitor: Other income as % of PBT
Continued erratic quarterly performance
Impact: -300 bps margin impact
Management view: Management cites market challenges but lacks clear strategy for stabilization
Monitor: QoQ revenue growth consistency
Accelerated market shift to cloud-based security solutions
Impact: -1000 bps margin impact
Management view: New product launches indicate awareness but execution remains unproven
Monitor: Enterprise segment growth rate
Forward-looking targets from management for FY27
Key Milestones
• Sustainable OPM above 5%
• Consistent quarterly revenue growth
• Enterprise segment contribution >40% of total revenue
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +1% | -6% | Inflection Up |
| PAT (Net Profit) | +5909% | -50% | Inflection Up |
| OPM | 0.6% | +597 bps | Volatile |
The above analysis is AI-generated from publicly available financial data. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Quick Heal Technologies Ltd has a deep value score of 38/100 (rated Weak). This score is calculated from three components
Quick Heal Technologies Ltd's quarterly profit (PAT) growth trajectory
Quick Heal Technologies Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
Quick Heal Technologies Ltd's earnings momentum is Accelerating — profit growth is speeding up.
Quick Heal Technologies Ltd's valuation metrics
Quick Heal Technologies Ltd's revenue and margin trends
Quick Heal Technologies Ltd's trailing twelve month (TTM) performance
Quick Heal Technologies Ltd key facts
Quick Heal Technologies Ltd shows limited deep value signals currently — score is 38/100 (Weak). Monitor for improvement.
Other deep value stocks in IT - Software
IT - Software deep value sector overview
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
Quick Heal Technologies Ltd has 4 key growth catalysts identified from recent earnings analysis
Quick Heal Technologies Ltd has 3 key risks worth monitoring
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
