Here are some reasons why cybersecurity stocks should be part of your investment portfolio
Businesses around the globe are adapting to the new norm of maintaining business continuity in the face of a pandemic.
This means that their data is increasingly vulnerable to hackers. India Inc. faces a high-risk environment in its pursuit of rapid digital transformation.
New operating models have led to multiple endpoints in the data chain, giving attackers easy access to company data. In the first half of 2021, approximately 6.07 million cybersecurity incidents were observed by the Indian Computer Emergency Response Team (CERT-In). This includes 12,000 cases involving government agencies.
In the wake of several high-profile cyberattacks, governments and businesses around the globe are increasing their efforts to improve cyber resilience.
The demand for next-generation cybersecurity technology (both hardware and software) has been high. This has resulted in favorable financial outcomes for cybersecurity companies in 2021. In 2021, cybersecurity was 16.8% ahead of the S&P 500 or Nasdaq.
In the past 10 years, the market has grown by 592% to reach US$425.8 million in 2021. India’s situation is very similar to that in the United States.
India’s investment in enterprise security and risk management is expected to grow 9.5% between 2020 and US$2.08 trillion in 2021. There are many reasons why cybersecurity goods may continue to be in demand. This will result in a rise in stock prices for companies that offer such products.
As remote work arrangements increase in popularity, organizations are more vulnerable to cyber threats than ever.
Remote work arrangements are becoming more common as employees rely on their devices and home networks. They don’t offer the same security level as corporate settings. They can be a weakness in the security of a business network.
Tech-savvy customers are becoming more aware of data risk. This is especially true as our lives are increasingly connected electronically, using everything from sensors to 5G. Digital businesses and criminals can probe into the personal lives of consumers, which is why they are cautious.
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Ransomware and other sophisticated attacks are causing serious damage to organizations. Ransomware attacks have caused havoc in India. Research shows that India was the country with the highest number of weekly attacks per organization (213) in the first months of 2021.
Quick Heal, one of the top cyber security product and solution providers, offers a spectrum of cloud-based security and machine-learning-based solutions to keep threats and harmful traffic at bay.
It currently has a 30% market share in retail and plans to increase its penetration into tier I and tier-II cities. 18% of company sales are generated by the enterprise division. The company had a strong quarter in FY2021, with sales increasing 63.9% to Rs 105 crore year-on-year.
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SecureKloud, a cloud-native business, provides enterprise security solutions, platforms, and services. The company offers an identity and access management system which, among other things can help enterprises with security, access control, and governance.
Cloud Authmultifactor authentication, the company’s software, secures a variety of business applications by confirming unique identities in just seconds. The company’s stock prices have increased more than 100% YTD since October 21st, 2021.
Enterprises can use the company’s risk management products. These include strategies for predicting and minimizing harm.
Companies can access real-time reporting on incidents, asset danger visualization, and detailed analysis of global changes that could affect their operations or staff. The company’s Q1 2021 net profit grew by 382.7%, to Rs 2.80 Crore, an impressive increase over the Rs 0.58crore in Q1 2020.
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RS Software’s e-payment system is used by the world’s most powerful corporations. One of the main services offered by the company is to prevent fraudulent digital payments transactions. It can create predictive fraud models using client data.
This will result in a common fraud detection method. The organization also provides consulting services for worldwide regulatory compliance in payments mechanisms. The stock market values it at Rs 85.74 million. In the third quarter of 2021, it earned Rs 375.98 Crore in total revenue and Rs 3533.8 Crore in gross sales.
India is at an important juncture in its recovery. Cyber resilience will be crucial as India continues to move forward with rapid digital transformation to build resilience against pandemic-like disasters. This industry could offer significant investment opportunities.
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