Buy Quess Corp, target price Rs 684: IIFL Securities

IIFL Securities recommends buying Quess Corp shares at the current market price of Rs 618.95, with a target price of Rs 684. The upside potential in this recommendation is approximately 10.5%. The company is expected to benefit from the increasing demand for staffing solutions in the post-pandemic business environment. The recommendation is based on the company's strong financial performance, diversified revenue streams, and a positive outlook for the staffing industry.

About Quess Corp:

Quess Corp, formerly known as IKYA Human Capital Solutions, is an Indian multinational business services provider headquartered in Bengaluru, Karnataka, India. It is a conglomerate with operations in various sectors, including staffing, facilities management, technology, and industrial staffing. Quess Corp provides a range of services such as recruitment, outsourcing, technology solutions, and facility management services to its clients. The company has a presence in 10 countries across Asia and the Middle East. It is one of the largest employment services companies in India with a workforce of over 400,000 employees.

52 Week Price Trend:

Quess Corp (NSE: QUESS) is currently trading at Rs 618.95, reflecting a significant appreciation from its 52-week low of Rs 337.45. The stock has outperformed its previous high of Rs 582, indicating positive investor sentiment. This strong rally can be attributed to the company's robust financial performance, expansion plans, and favorable industry outlook. Quess Corp's diversified services portfolio and focus on digital transformation have positioned it well to capitalize on the growing demand for outsourced services and technology adoption in the post-pandemic era.

Stratzy's MOST Analysis:

QUESS has earned a BB- rating from Stratzy's MOST framework, indicating medium fundamental risks. This assessment considers four pillars: Management, Outlook, Safety, and Trend. Each pillar is scored and combined to provide an overall rating. QUESS's BB- rating suggests that while it faces some challenges, it has strengths and opportunities to mitigate these risks. Investors should exercise caution but also acknowledge the potential upside in investing in QUESS.

Company's Fundamentals:

Quess Corp (NSE: QUESS) is a leading business services provider in India. Its stock performance indicators provide insights into its valuation and earnings potential. The Stock PE (Price-to-Earnings) ratio of 34.04 indicates that investors are willing to pay 34 times the company's annual earnings per share for its stock. The PB Ratio (Price-to-Book) ratio of 2.93 shows that the market value of Quess Corp is approximately 2.93 times its book value, suggesting that the stock is trading at a premium to its net assets. The Dividend Yield of 1.5% indicates that investors can expect a dividend payout of 1.5% based on the current market price, providing a modest source of passive income.

Fundamental and Technical information provided in this blog were last updated on 12 Apr, 2024

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