Ramesh Damani is one of the most astute investors on the stock market. His USP is the ability to think ahead of others and spot opportunities before others do.
In his latest interview to CNBC TV18, Ramesh Damani has revealed that the hot theme for the future are technology product companies that focus on Indian consumers with a more diversified revenue stream. He pointed out that there are Indian companies that are focusing on technology related to banking, insurance, antivirus software etc which will be hot favourites in the future.
These are “India focussed product companies that are addressing a critical need and have a particular amount of USP” Ramesh said.
On Udayan’s prompting, Ramesh Damani referred to Quick Heal Technologies as an example of what he is adverting to. Though Damani did not name the Company, he referred to as “a company that recently listed that deals in antivirus security software”.
Ramesh Damani explained that in the present environment of mobile computing, cloud computing, internet of things, regular laptop use, etc, desperate countries like Iran, China etc are launching malware and virus based software attacks on institutions, corporate, stealing IDs etc. So any company that helps you in protecting your database, protecting your confidentiality will tend to well Ramesh said.
He emphasized that all devices such as laptops, PCs, mobile phones, internet of things and industries etc need protections and so companies addressing this need will make for good investment opportunities.
It may be recalled that Quick Heal had issued shares in the IPO of February 2016 at Rs.321 each. The issue size was Rs.451.3 crore and it was oversubscribed 10x. However, thereafter, an ugly spat between the Company and Manohar Malani, a shareholder regarding alleged fraudulent transfers of shares, spoiled the sentiment and has sent the stock price tumbling to the CMP of Rs. 228.
This means that the poor subscribers to Quick Heals’ IPO are poorer by 29% for no fault of theirs. Hopefully, with the backing and blessings of Ramesh Damani, the beleaguered shareholders of Quick Heal have a chance of getting their money back!
what about the number of this company ? how apt is the company priced today any research reports available or any investor presentation to know more about their numbers?
The stock went down after the results because of the increase in receivables. Almost all the cash generated by the company has gone there. I wanted to buy the theme but it was difficult to trust a company where you don’t get any cash flow.
Should Subex also be considered under this category.
Subex, in my view, is a turnaround story that will happen.
Guys Its time to fully load up quick heal… company came up with very good results this qtr…
debt free, 24x, avl at 30% disc IPO price..
If Damani has entered the stock…then it will see re-rating in the valuation…Only company in listed space of anti-virus…niche segment…
In 2014 all Anit-virus company got re-rated when a malware attacked all banks sites…So SKY is the limit for this counter…wait n watch…
hopefully it will QUICK HEAL itself As name suggests..
#Niveza #Review::
Mr. Ramesh Damani has rightly mentioned about Internet and technology space. With India’s increased tech- oriented population. Number of increasing smartphone and PC users are day by day increasing. The space is becoming more attractive. With more number of malware and attacks by viruses, importance of data safety with Antiviruses is increasing day by day. The Quickheal IPO came to the market with around 330 rs price but due to some legal issues it went down to 200 levels and now it is around 230-40 range. Now since the other issues are resolved, the future of the company and its products looks very bight for long term. Hence one can buy such stock with a long term horizon and it can certainly become multi bagger.
Stock Market Tips
What about the numbers giving story without talking ground reality is like a bird flying without wings
I buy your story but what next how do you justify the pricing
How this small company will compete with big daddies like Symantec, McAfee ?
Majority of listed product tech companies in India are fraud.
I am working in Software product domain and there is not even one listed company that comes to favorite of Indian software developers.
Even Infoedge is considered avg in Software Dev community.
Only IndianFlipkart(and to some extent Paym,snapdeal,zomato) is considered highly in Software Dev community.
Please don’t confuse my comment wrt Software service companies like Infosys or product offshore dev companies like Persistent. They are good.
I am talking about Software Product companies like InfoEdge, Google, Microsoft, Symantec etc
@Sameer
Ramcosys is a robust product company.
how much talent from amazon msft flipkart inmobi ola zomato etc have joined ramco sys ?
Check how the big daddies like Symantec, McAfee are doing. Also look at FireEye and the smaller players. This market is very tough. Also, there are no entry barriers. So you would easily choose Symantec over say QuickHeal if you found it to be better. Remember here scale is very important. The more the endpoints, the greater are your chances of producing software that blocks viruses because you collect more data through the endpoints.
If you are buying a washing machine, you might need to buy what is available in the local market. However, when it comes to software, you can buy from across the world and there is no stickiness factor. So you can switch to anybody else without any heartbreak. 🙂
Discl. I work for a big daddy in the anti-virus space. 🙂
As said before. Quickheal-Newly listed company cant’t heal anyone. Revenue drops reports a loss in q1!
thanks dhaval for update