Sattrix Information Security Ltd – Hackers Hate Them, Investors Confuse Them
1. At a Glance
Sattrix Information Security Ltd (BSE-SME: 544189) listed in June 2024, already behaves like it’s the CISCO of Gujarat. Stock at ₹191, market cap ₹130 Cr, P/E ~32. Sales growing, profits exploding (320% jump last quarter), global JVs being announced faster than Netflix web series. The only problem? Debtor days at 177—clients love the service but pay like Indian relatives after a wedding.
2. Introduction
Founded in 2013, back when “cybersecurity” in India meant setting a strong password like 12345@, Sattrix has transformed into a boutique cyber warrior. It designs, sells, and manages cybersecurity solutions for enterprises across India, USA, UAE, and soon Spain and Malaysia.
In just over a decade, it’s gone from PowerPoint consulting to actual Splunk implementations for Airtel, NTT India, SBI Cards, and even global outsourcing giants like WNS and Concentrix. Their order book now includes contracts with US medical centers, Altisource, CSB Bank, and Indian state IT departments. Basically, if your firewall blinks, Sattrix will sell you a contract.
But let’s not forget: cybersecurity is an industry where trust is everything. And Sattrix’s auditors seem to rotate more than passwords—two resignations in two years. That’s like changing your antivirus software every quarter. Safe or shady? You tell me.
3. Business Model – WTF Do They Even Do?
Sattrix sells “peace of mind” in three expensive flavors:
Transformation Services: Fancy consulting where they tell CIOs to move to cloud and cut costs—aka, “Pay us to fire your IT team.”
Assessment Services: Vulnerability testing, penetration testing, audits. Think: they break into your systems (with permission) and then send you a bill.
Specialised Expertise: Compliance-as-a-Service, SIEM Consulting, MSS for brokers.
Revenue Mix: 69% from selling licenses (Splunk, Tenable etc.), 31% from services. So mostly “reselling” tech but packaged with Indian jugaad.
Question: If 70% revenue comes from licenses, are they a cybersecurity firm or just an expensive IT reseller?
4. Financials Overview
Source table
Metric
Latest Qtr (Mar 25)
YoY Qtr (Mar 24)
Prev Qtr (Sep 24)
YoY %
QoQ %
Revenue
₹22.4 Cr
₹15.2 Cr
₹22.2 Cr
47.3%
1.1%
EBITDA
₹5.6 Cr
₹0.66 Cr
₹1.29 Cr
748%
334%
PAT
₹3.65 Cr
₹0.87 Cr
₹0.40 Cr
320%
813%
EPS (₹)
5.37
1.74
0.59
208%
810%
Commentary: Revenue grew modestly, but PAT exploded thanks to margins doubling to 24.9%. Looks like cybersecurity paranoia is finally paying bills.
5. Valuation – Fair Value Range Only
P/E Method: EPS (TTM) = ₹5.96. Industry P/E ~32. Fair Value = ₹180 – ₹200.
EV/EBITDA Method: EV = ₹120 Cr. EBITDA (TTM) = ₹6.9 Cr. EV/EBITDA ~16. Peers at 14–15. Fair Value = ₹160 – ₹180.
