Quess Corp zooms 9%; Antique initiates coverage on stock with 'Buy' call

With rapid urbanisation in India and rampant growth of Global Capability Centers (GCCs) in the country, Quess is expected to experience strong momentum in the BFSI, manufacturing, and telecom sectors

Quess Corp shares advanced 9.2 per cent in Tuesday's trade and recorded an intraday high at Rs 732.65 per share on BSE on an improving outlook. On NSE, 2.43 million shares changed hands, while on BSE 0.064 million shares were traded.

 

Around 9:48 AM, Quess share price was up 9.01 per cent at Rs 730.85 per share on BSE. In comparison, the BSE Sensex was down 0.44 per cent at 81,386. The market capitalisation of the company stood at Rs 10,862.31 crore. The 52-week high of the stock was at Rs 875 per share and the 52-week low was at Rs 460 per share. 

 

 

Quess Corp specialises in workforce management, operating asset management, and global technology solutions. Founded in 2007 and headquartered in Bengaluru, India, Quess offers a comprehensive range of services, including staffing solutions, technology-enabled outsourcing, and digital platforms, to enhance client productivity across various industries.

 

Antique Broking has initiated coverage on Quess Corp with a 'Buy' call and a target price of Rs 1,000 per share. As per the brokerage, the company's revenue is expected to grow at a 12 per cent to 14 per cent compound annual growth rate (CAGR) over FY24-27.

 

With rapid urbanisation in India and rampant growth of Global Capability Centers (GCCs) in the country, the brokerage expects Quess to experience strong momentum in the Banking, Financial Services, and Insurance (BFSI), manufacturing, and telecom sectors. 

  As per the report stock has outperformed the broader index this year after significantly underperforming over the past few years as both the demand and margin outlook have started to improve. In the past one year, Quess Corp shares have gained 35.4 per cent against Sensex's rise of 14 per cent. 

 

Further, efficient capital allocation policies, operational efficiency, and consolidation of business along with the demerger are positive steps taken by the company to improve efficiency, as per brokerage.

 

In addition, Production Linked Incentive (PLI) schemes and the China plus one strategy will keep the growth momentum strong in the medium term. 

 

"Our valuation multiple is in line with its ten-year forward P/E average and at 15 per cent discount to our target multiple for Teamlease due to lower medium-term growth expectations," the report said.