Shares of this cyber security company locked a 10 percent upper circuit in Thursday’s trading session after announcing a partnership with Microsoft and Meta’s App Defense Alliance.
With a market capitalization of Rs. 555 crores, the shares of TAC Infosec Ltd started Thursday’s trading session on a higher note at Rs. 518 compared to its previous close of Rs. 481.90. Within a few minutes of the opening bell, the shares clocked 10 percent upper circuit at Rs. 530.05 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they were appointed as a key Cyber Security Assessor for the App Defense Alliance (ADA).
App Defense Alliance was originally launched by Google in 2019 to combat malicious Android apps, the ADA is now transitioning to the Joint Development Foundation (JDF) under the Linux Foundation.
On this occasion, Trishneet Arora, Founder and CEO, of TAC Security said, “We are proud to partner with Microsoft and Meta’s App Defense Alliance to enhance app security globally. Through our expertise and collaborative efforts within the ADA framework, we are committed to creating a safer digital environment for users worldwide.”
Furthermore, the company mentioned that, as it takes on its role as a Cyber Security Assessor within the ADA, the alliance aims to bolster resilience against emerging cyber threats, ushering in a new era of collaborative cybersecurity efforts. Additionally, this partnership opens an ecosystem of more than 10,000 potential customers for the company.
Looking at the company’s financial statements, the revenue zoomed by 96 percent from Rs. 5.11 crores in FY21-22 to Rs. 10 crores in FY22-23. On the other hand, the net profits magnified by 731 percent from Rs. 61 lakhs to Rs. 5.07 crores during the same period.
TAC Security debuted on NSE Emerge on April 5, 2024, with a 174 percent premium over the offer price. Backed by stock market expert Vijay Kedia, the company raised 29.99 crores through its IPO and received bids exceeding 1 billion dollars, resulting in an oversubscription of 422 times.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 23.29 percent during FY 21-22 to 66.04 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 31.81 percent to 65.78 percent during the same timeframe.
Furthermore, the net profit margin increased from 11.88 percent during FY21-22 to 50.72 percent during FY22-23.
Founded in 2016, TAC Infosec specializes in providing cybersecurity solutions through a Software as a Service (SaaS) model. They focus on risk-based vulnerability management, cybersecurity quantification, and penetration testing for clients across various industries and sizes both domestically and internationally.
Written By Vaibhav Patil
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