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IIFL has a buy on Quess Corp, target price Rs 740

Updated: Dec 16, 2019, 08.48 AM IST
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IIFL has a buy rating on Quess Corp in the long term with a target price of Rs 740. The stock ended up 1.2% at Rs 479.05 on Friday while BSE Sensex closed 428.00 points up at 41,009.71.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 2650.25 crore, up 10.67 % from last quarter sales of Rs 2394.73 crore and up 26.70 % from last year same quarter sales of Rs 2091.71 crore. The company has reported net profit after tax of Rs 68.98 Crore in latest quarter.

The company’s top management includes Mr.Ajit Isaac, Mr.Chandran Ratnaswami, Mr.Krishna Suraj Moraje, Mr.Pratip Chaudhuri, Mr.Pravir Kumar Vohra, Mr.Sanjay Anandaram, Mr.Subrata Kumar Nag, Ms.Revathy Ashok. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-09-2019, the company has a total of 146,858,365 shares outstanding.

Investment Rationale

The brokerage considers the recent correction in Quess Corp’s shares —without any deterioration in earnings outlook — a buying opportunity. While the issuance of fresh shares to Thomas Cook shareholders may lead to near-term selling pressure, the brokerage expects steady improvement in financials to support the stock over time. Quess continues to outperform TeamLease on most key parameters, yet trades at a large valuation discount, said IIFL.
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