Understanding the Current Rating
The Strong Sell rating assigned to Quick Heal Technologies Ltd indicates a cautious stance for investors, signalling significant concerns across multiple evaluation parameters. This rating is derived from a comprehensive assessment of four key factors: Quality, Valuation, Financial Trend, and Technicals. Each of these dimensions contributes to the overall investment recommendation, helping investors understand the risks and challenges facing the stock in the current market environment.
Quality Assessment
As of 28 February 2026, Quick Heal Technologies Ltd’s quality grade is considered average. This reflects a middling performance in operational efficiency and business fundamentals. Over the past five years, the company has experienced poor long-term growth, with net sales declining at an annualised rate of -1.02%. More notably, operating profit has deteriorated sharply, shrinking by -178.20% over the same period. These figures suggest that the company has struggled to maintain profitability and expand its core business, which weighs heavily on its quality score.
Valuation Perspective
The valuation grade for Quick Heal Technologies Ltd is classified as risky. The stock currently trades at levels that are unfavourable compared to its historical averages, reflecting investor concerns about future earnings potential. Negative EBITDA and a significant drop in profits—down by -74.2% over the past year—underscore the elevated risk profile. Despite the stock’s small-cap status, these valuation challenges indicate that the market is pricing in considerable uncertainty, which is a critical factor for investors to consider when evaluating potential entry points.
Financial Trend Analysis
The company’s financial trend is described as flat, signalling stagnation rather than growth or decline in recent quarters. The latest half-year data reveals some worrying signs: the debtors turnover ratio is at a low 1.57 times, indicating slower collection cycles, while cash and cash equivalents stand at a modest ₹6.84 crores. Additionally, non-operating income accounts for 155.65% of profit before tax, suggesting that core business operations are underperforming and the company is relying heavily on non-recurring income sources. These factors collectively point to a lack of robust financial momentum.
Technical Outlook
From a technical standpoint, Quick Heal Technologies Ltd is rated bearish. The stock’s recent price action confirms this negative trend, with returns showing consistent declines across multiple timeframes. As of 28 February 2026, the stock has delivered a 1-day gain of just +0.45%, but this is overshadowed by losses of -7.02% over one week, -12.52% over one month, and a steep -44.92% over three months. The year-to-date return stands at -37.47%, while the one-year return is a significant -47.40%. This sustained downward momentum reflects weak investor sentiment and technical pressure, reinforcing the cautious rating.
Performance Relative to Benchmarks
Quick Heal Technologies Ltd’s performance has lagged behind broader market indices such as the BSE500 over the last three years, one year, and three months. This underperformance highlights the company’s challenges in delivering shareholder value relative to its peers and the wider market. Investors should be mindful that the stock’s negative returns and deteriorating fundamentals may continue to weigh on its price performance in the near term.
Summary for Investors
In summary, the Strong Sell rating reflects a confluence of factors that suggest caution. The company’s average quality, risky valuation, flat financial trend, and bearish technical outlook collectively indicate that Quick Heal Technologies Ltd faces significant headwinds. For investors, this rating serves as a warning to carefully evaluate the risks before considering exposure to this stock. The current data as of 28 February 2026 underscores the importance of monitoring ongoing developments and reassessing the stock’s prospects as new information emerges.
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Looking Ahead
Investors should continue to monitor Quick Heal Technologies Ltd’s quarterly results and market developments closely. The company’s flat financial trend and reliance on non-operating income highlight the need for a turnaround in core operations to improve its outlook. Additionally, any shifts in valuation or technical momentum could influence the stock’s trajectory and potentially alter its rating in the future.
Conclusion
Quick Heal Technologies Ltd’s current Strong Sell rating by MarketsMOJO, last updated on 02 December 2025, is supported by a thorough analysis of its present-day fundamentals and market performance as of 28 February 2026. The combination of average quality, risky valuation, flat financial trends, and bearish technical signals suggests that investors should exercise caution. This rating serves as a guide to help investors make informed decisions based on the company’s current risk profile and market position.
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