Trending Cybersecurity Stocks in India in 2024

Cybersecurity stocks refer to shares of companies focused on safeguarding data, networks, and systems from cyber threats and online attacks.
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Trending Cybersecurity Stocks in India in 2024
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3 min
28-October -2024

As the digital world expands, so does the threat of cyberattacks. To combat this growing threat, cybersecurity has become increasingly important. In 2024, several Indian cybersecurity stocks have emerged as promising investments. Let's explore some of the top cybersecurity stocks in India and the overall outlook for the cybersecurity industry.

Cybersecurity Stocks in India 2024

Here are some of our picks for cybersecurity stocks of 2024-

Name

Market Cap

Expleo Solutions Ltd

1,994.00

Quick Heal Technologies Ltd

3,918.00

Sasken Technologies Ltd

2,578.00

R S Software (India) Ltd

693

Securekloud Technologies Ltd

141


Disclaimer: The market capitalisation values mentioned above were fetched on 4th October 2024. These values are subject to change based on various factors such as market conditions, company performance, and economic trends. Please refer to the SEBI or stock exchanges' websites to obtain the most current market capitalisation for any particular stock.

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What Are Cybersecurity Stocks?

Cybersecurity stocks are those of companies that provide security solutions to protect computer systems and data. As the world becomes increasingly digital, the demand for these solutions is growing rapidly. Investing in cybersecurity stocks can be a strategic move, as these companies are well-positioned to benefit from the rising threat of cyberattacks. Now, let us understand this burgeoning sector in detail and explore the trending cyber security stocks in India.

Trending cybersecurity stocks in India in 2024

The Indian cybersecurity market grew 40 per cent annually to $9.85 billion in 2021, and industry sources project industry revenues to reach $35 billion by 2025. This growth is driven by the country's rapidly expanding digital economy, which is projected to reach $1 trillion in the near future. Let’s have a look at some trending cybersecurity stocks in India:

1. Expleo Solutions Ltd. (EXPLEOSOL)

  • Market capitalisation: Rs. 2,017 crore
  • 5-year CAGR: 26.44%
  • Expleo Solutions Ltd. is a global technology company specialising in:
    • Cybersecurity solutions
    • Software development
    • Quality assurance, and
    • Digital transformation services.
  • The company offers innovative cybersecurity solutions to businesses worldwide and helps them optimise their security posture.
  • Recently, it entered the cybersecurity testing market and has formed a partnership with “TETHRIS”

2. Quick Heal Technologies Ltd.

  • Market capitalisation: Rs. 2,657 crore
  • 5-year CAGR: 9.96%
  • Quick Heal Technologies Ltd. is a leading cybersecurity company based in India.
  • It offers a comprehensive range of security solutions for individuals, businesses, and government organisations.
  • The company's cybersecurity portfolio includes:
    • Antivirus software
    • Endpoint security solutions
    • Mobile device security, and
    • Network security solutions.
  • Quick Heal follows a proactive approach to cybersecurity and has developed advanced threat detection technologies.

3. Sasken Technologies

  • Market capitalisation: Rs. 2,485 crore
  • 5-year CAGR: 15.92%
  • Sasken Technologies is a global technology company specialising in:
    • Cybersecurity
    • Product engineering, and
    • Digital transformation services
  • The company offers several cybersecurity services, which primarily include:
    • Software development
    • System integration, and
    • Cybersecurity testing
  • Sasken’s expertise in cutting-edge technologies such as 5G, IoT, and AI helps it enjoy a competitive advantage
  • They aim to fix over 6,000 known issues and weaknesses across more than 90 types of gadgets and business gear.

4. RS Software (India) Ltd.

  • Market capitalisation: Rs. 680 crore
  • 5-year CAGR: 12.93%
  • RS Software (India) Ltd. specialises in software development and digital payment solutions.
  • It offers cybersecurity solutions to:
    • Financial institutions
    • Payment processors, and
    • Digital commerce platforms
  • Some popular services of RS Software include:
    • Secure payment gateways
    • Fraud detection systems, and
    • Compliance solutions

5. SecureKloud Technologies

  • Market capitalisation: Rs. 151 crore
  • 5-year CAGR: 23.64%
  • SecureKloud Technologies is a small-cap stock offering a comprehensive suite of cybersecurity services, which commonly include:
    • Cloud security assessment
    • Threat detection and response, and
    • Compliance management
  • Owing to its strong partnerships, the company serves 250 clients from various sectors.
  • It has also successfully prevented over 10,000 cyber threats using advanced technologies and best practices.

Factors To Consider When Investing In Cybersecurity Stocks In India

When investing in cybersecurity stocks in India, consider these key factors:

  1. Market Demand: Assess the demand for cybersecurity solutions driven by increasing cyber threats and regulatory requirements.
  2. Financial Performance: Evaluate a company's financial health, including revenue growth, profitability, and debt levels.
  3. Technological Innovation: Prioritize companies that invest in research and development to stay ahead of evolving threats.
  4. Strategic Partnerships: Consider companies with strong partnerships, as these can enhance their market reach and product offerings.
  5. Regulatory Compliance: Ensure the company adheres to industry regulations to mitigate legal risks and maintain customer trust.

Why invest in cybersecurity stocks in 2024

Cybersecurity stocks offer a compelling investment opportunity for various investor profiles:

  • Tech-Savvy Investors: For those with a keen understanding of technology and cybersecurity trends, these stocks can provide significant returns.
  • Long-Term Investors: The cybersecurity industry's long-term growth potential makes it an attractive option for long-term investors.
  • Risk-Averse Investors: Cybersecurity stocks can offer stability and resilience in volatile markets.
  • Institutional Investors: These stocks can diversify portfolios and provide exposure to a high-growth sector.
  • Ethical Investors: Investing in cybersecurity aligns with ethical principles, as it contributes to a safer digital world.

Conclusion

The cybersecurity sector in India is experiencing rapid growth. Thanks to increasing digitisation, rising cyber threats, and government initiatives to strengthen cybersecurity infrastructure, the industry is expected to grow at a CAGR of 30.4%.

Additionally, with projections indicating that the Indian cybersecurity market will account for five per cent of the global market by 2028, investors are presented with a promising investment opportunity. Some trending cybersecurity stocks in India include Quick Heal Technologies, Sasken Technologies, and SecureKloud Technologies.

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Frequently asked questions

What are the top 3 cyber security stocks?
You can consider investing in Palo Alto Networks, Inc. (PANW), CrowdStrike Holdings, Inc. (CRWD), and CyberArk Software Ltd. (CYBR). However, do your research and analysis before committing any corpus.
How is the future of the cybersecurity sector in India?

The Indian cybersecurity market is thriving, with a projected growth from USD 4.70 billion in 2024 to USD 10.90 billion by 2029. This surge is fueled by increased digitalization, heightened cyber threats, and stringent government regulations. As businesses and individuals become increasingly reliant on technology, the demand for robust cybersecurity solutions will continue to grow, making this sector a promising avenue for investment and innovation.

How can I reduce risks associated with investing in cybersecurity stocks?
You can diversify your portfolio across multiple cybersecurity companies. To do so, conduct thorough research on each company's financial performance and growth prospects. Also, monitor the broader market conditions and adjust your investment strategy accordingly.
Should we invest in cybersecurity?

Yes, investing in cybersecurity is crucial for businesses of all sizes.

In today's digital age, cyber threats are becoming increasingly sophisticated and frequent. By investing in robust cybersecurity measures, businesses can protect their sensitive data, maintain customer trust, and mitigate potential financial losses.

Key reasons to invest in cybersecurity:

  • Protecting Sensitive Data: Safeguarding confidential information is essential to prevent data breaches and reputational damage.

  • Compliance with Regulations: Adhering to data privacy regulations like GDPR and CCPA is crucial to avoid hefty fines and legal penalties.

  • Maintaining Business Continuity: A well-implemented cybersecurity strategy can minimize downtime and disruption caused by cyberattacks.

  • Building Customer Trust: Strong cybersecurity practices can enhance customer trust and loyalty.

By investing in cybersecurity, businesses can not only protect their assets but also gain a competitive advantage in the marketplace.

Why cybersecurity stocks are booming?

The increasing reliance on technology has made cybersecurity a critical concern for businesses and individuals alike. This growing demand for robust security solutions has fueled the growth of the cybersecurity industry.

Here are some key factors driving the boom in cybersecurity stocks:

  • Rising Cyber Threats: The frequency and sophistication of cyberattacks are increasing, making cybersecurity a top priority for organizations.

  • Data Privacy Regulations: Stricter data privacy regulations, such as GDPR and CCPA, are driving the need for robust security measures.

  • Digital Transformation: As businesses increasingly adopt digital technologies, their attack surface expands, necessitating stronger security solutions.

  • Remote Work and Cloud Adoption: The shift towards remote work and cloud-based services has created new vulnerabilities that require innovative cybersecurity solutions.

These factors have made cybersecurity a lucrative sector, attracting significant investments and driving the growth of cybersecurity stocks.

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