Kwick Forensic Limited (Subscribe)

Highlights

Kwick Forensic Limited (KFL) incorporated in 2005, provides end-to-end products, solutions, tools and technologies for forensic sciences, fingerprint science, cyber/digital forensics, social-media analytics and big-data analytics, with a focus on Total Evidence Management and Law-Enforcement solutions across India.

The Company supplies crime scene investigation products and solutions, conducts product demonstrations and awareness programmes on evidence-management best practices, and maintains a sales and marketing presence across major states in India, serves a mix of Government and private sector customers including police departments, forensic laboratories, fingerprint bureaus and training institutes and other customers nationwide.

The company operates their business through diversified business vertical such as (i) Forensic Science & Physical Evidence Solutions (ii) Cyber & Digital Forensics (iii) DNA Forensics (iv) Mobile Forensic Vans and (v) Services – Rental & AMC.

Out of the total proceeds of Rs. 510 mn, Rs. 314 mn would go towards funding working capital requirement. Rs. 76 mn would go towards funding general corporate purposes. Further Rs. 100 mn would go towards promoter selling shareholders of the company and Rs. 30 mn reserved for market maker.

Key Highlights

• India’s digital forensics market is projected to grow from USD 0.19 bn (Rs. 16.03 bn) in 2024 to USD 1.39 bn (Rs. 118.29 bn) by 2030 showing a CAGR of ~40 pct, driven by rising cybercrime, tighter regulatory requirements, and accelerating digital transformation across industries. Further regulatory tailwinds such a mandatory forensic investigation with imprisonment of seven years or more. Expansion of mobile forensic laboratories from none to 2000 (expected) provides healthy growth opportunities.

• KFL is a quality-focused company and maintain standards from procurement to delivery. For forensic products sourced from OEMs, the R&D team reviews client requirements, follows SOPs, and checks all materials received. In the case of Mobile CSI Vehicles (MCSIV), the operations team supervises fabrication and kit installation.
• The Company holds ISO 9001:2015 (Quality Management Systems), ISO 14001:2015 (Environmental Management Systems), ISO/IEC 20000-1:2018 (IT Service Management), and ISO/IEC 27001:2022 (Information Security Management Systems) certifications, and is registered with DSIR (Department of Scientific and Industrial Research). These accreditations play pivotal role and act as entry barrier for new players in the industry.
• Company follows a structured Order Execution Flow designed to ensure accuracy, timely fulfilment of client requirements. The entire process is designed to cater to the specific needs of law enforcement agencies, forensic laboratories, and government institutions, often under strict technical and compliance standards. Most of the orders received through tender based bidding and as per latest interaction with management KFL has ~70 pct conversion rate.
• Over the years, KFL has established strong standing long relationships with several leading OEMs including Sirchie (USA), Thermo Fisher Scientific, Invitrogen, Rapiscan Systems, Smallpond, MHC Hardware Software Trading LLC, Seratec and others. KFL typically engages with these suppliers on a deal-to-deal basis, ensuring flexibility and responsiveness to market opportunities. By aligning with reputable OEMs, KFL defense their position in the market, which elevates capacity to deliver excellent products with efficiency.
• KFL’s key growth strategies include (i) To scale forensic capabilities in line with government priorities (ii) Present in legal framework of digital evidence collection & preservation (iii) Develop evidence collection equipment in house (iv) Developing software to aligned with the requirements of BNSS 2024 and other laws. And (v) Reducing dependency on sales from 1 or 2 States and Expanding Market Presence.
• The sales of the company have grown by 87 pct CAGR over FY24-26 and EBITDA/profit has grown 88 pct CAGR/118 pct CAGR over the same period. In FY26, the company reported sales of Rs. 105.7 mn, rose 63 pct YoY. EBITDA of the company increased 56 pct YoY to Rs. 19 mn. In FY26, the company posted profit of Rs. 13.5 mn, up 58 pct YoY.

Key Risk

• KFL are significantly concentrated in the certain states, particularly Bihar and Gujarat. Any adverse developments in these regions may materially impact their business.
• KFL’s business is working capital intensive and Majority of their orders from government entities. Any delays in payments can add pressure on working capital requirement.

Financial Performance

Source: – RHP.

Valuation

Kwick Forensic Limited (KSL) Serves police departments, forensic laboratories, fingerprint bureaus and training institutes nationwide through GeM/e-procurement and direct channels. With two decades+ of forensic domain expertise and trusted relationships with government agencies, the company has creating significant barriers to entry. Business operates in a specialized segment where there are no competitors in the listed space with a similar end to-end offering. At the upper end of the price band of Rs. 90, the issue is priced at an PE of 14.3x its FY26 post issue capital. The issue appears to be fairly priced. Only high-risk investors may subscribe this issue from a longer-term perspective.

Kindly Note: – The company will list on BSE SME Platform.

Disclaimer: The views shared in blogs are based on personal opinions and do not reflect the company’s views. Investment involves risk, and it is advisable to consult a financial advisor before making any investment through the app. The decision to invest is solely that of the investor, and the company or its communication cannot be held responsible for it.