Buy Quess Corp, target price Rs 820: IIFL Securities

IIFL Securities has a buy rating on Quess Corp in the long term with a target price of Rs 820. Shares of Quess Corp ended down 10% at Rs 247.20 on Friday while the BSE Sensex closed 1627.73 points up (+5.75%) at 29,915.96.

Investment Rationale

The recent sell-off in the shares of Quess Corp, said IIFL. With FY20 net debt-to-Ebitda at only 1 time, and the presence of a strong promoter group, balance sheet risk is negligible, said IIFL. The company continues to generate cash and could potentially opt for a share buyback, said IIFL.


Financials

Quess Corp Ltd's key products/revenue segments include Other Services which contributed Rs 4410.81 crore to sales value (100 per cent of total sales) for the year ending March 31, 2019.

For the quarter ended December 31, 2019, the company reported consolidated sales of Rs 2950.02 crore, up 11.31 per cent from last quarter sales of Rs 2650.25 crore and up 35.81 per cent from last year same quarter sales of Rs 2172.15 crore. The company reported net profit after tax of Rs 75.86 crore in the latest quarter.