Quess Corp debut: Thomas Cook, TeamLease tank up to 6%

NEW DELHI: Shares of Thomas Cook fell over 6 per cent on profit taking after the company’s staffing arm Quess Corp saw stellar listing gains on Tuesday. Shares of TeamLease Services, a peer for debutant, fell 5 per cent for the day.

Quess Corp’s IPO ran between June 29 and July 1 and was a huge success. Shares of Thomas Cook slumped 5.81 per cent to close at Rs 207.55. TeamLease Services cracked 5.81 per cent to Rs 1,038.05.

Quess Corp settled at Rs 503, up 58.67 per cent from issue price on BSE.

Data suggests that the subscription to Quess Corp at 144.50 times was the highest since January 2008.
Many brokerages had recommended subscribe to the issue, given the capitalising of business-to-consumer (B2C) opportunities, robust earnings growth and sound financial ratios, healthy track record of growing via inorganic route and focus on margin improvement.

Monarch Networth Capital believes that Quess Corp, in comparison to TeamLease, has a superior business model owing to high margin IT business. That coupled with operational efficiencies in turn has resulted in excess of 25 per cent growth in return on equity (ROE) and return on capital employed (ROCE), it said.

TeamLease Services fell 2.62 per cent to hit a low of Rs 1,070 on the exchange.