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

<keyword keytype="COMPANY" smid="-1" usetype="2" botkeyword="false" keyurl="https://economictimes.indiatimes.com/iifl-finance-ltd/stocks/companyid-13033.cms" keywordseo="IIFL" actualkeyword="IIFL">IIFL</keyword> 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 <keyword keytype="DEFINITION" smid="-1" usetype="2" botkeyword="false" topickey="2365" keyurl="https://economictimes.indiatimes.com/indices/sensex_30_companies" keywordseo="Sensex" keynameseo="sensex" actualkeyword="sensex">Sensex</keyword> closed 428.00 points up at 41,009.71.<br /><br /><b>Company Financials</b> <br /> <br />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. <br /> <br /> 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 &amp; Sells LLP as its auditors. As on 30-09-2019, the company has a total of 146,858,365 shares outstanding. <br /><br /><b>Investment Rationale<br /></b><br />The brokerage &#xc;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.