Mehabe score: 5 G Factor: 5 Piotski Score: 4 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 4.
Description
Quess Corp is engaged in the business of providing services in Workforce management, Operating asset management and Tech services.(Source : 202003-01 Annual Report Page No:113)Site:QUESSMain Symbol:QUESS
Stock trades at 939.0, above its 50dma 868.19. It also trades above its 200dma 725.89. The stock remains bullish on techicals
The 52 week high is at 990.00 and the 52week low is at 364.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– Stock is trading at 5.92 times its book value
-Promoter holding has decreased over last quarter: -3.42%
– has a low return on equity of -1.91% for last 3 years.
Competition
– The industry trades at a mean P/E of 78.3x. Quess Corp trades at the industry’s max P/E of 210.31x. QUESS trades at a P/E of 210.0x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 7.0. QUESS has a G-Factor of 5 and Piotski scoreof 4.
– Average 1 month return for industry is -0.9%. The max 1- month return was given by 3M India: a return of 2.7 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 2987.0 cr compared to Rs 2409.0 cr for period ended Jun 2020, a rise of 24.0%
Operating Profits reported at Rs 147.0 cr for period ended Jun 2021 vis-vis 119.0 for period ended Jun 2020 .
Operating Margins contracted -1.8 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 3.13 compared to Rs -4.29 for previous quarter ended Mar 2021 and Rs 2.29 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 11414.0 cr for period ended TTM vis-vis sales of Rs 10837.0 cr for the period ended Mar 2021, a growth of 5.1%. The 3 year sales cagr stood at 10.2%.
Net Profit reported at Rs 70.0 cr for period ended TTM vis-vis sales of Rs 58.0 cr for the period ended Mar 2021, rising 17.1%.
Company reported a poor Net Profit CAGR of -35.2% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 715.0 cr for period ended Mar 2021 vis-vis Rs 361.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 2.0% compared to -2.0% over the last 3 Years. – The stock has given a return of 132% on a 1 Year basis vis-vis a return of 8% over the last 3 Years. – The compounded sales growth on a TTM bassis is 4% vis-vis a compounded sales growth of 21% over the last 3 Years. – The compounded profit growth on a TTM basis is 114% vis-vis a compounded profit growth of -47% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has risen for the period ended Sep 2021. The Sep 2021 fii holding stood at 22.14% vis-vis 17.32% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 12.29% vis-vis 13.0% for Jun 2021
Conclusion
– has reduced debt. – Stock is trading at 5.92 times its book value
-Promoter holding has decreased over last quarter: -3.42%
– has a low return on equity of -1.91% for last 3 years.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 868.19 and is trading at 939.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
