BSE:539978

Stock Analysis Report

Executive Summary

Quess Corp Limited operates as a business services provider in India, South East Asia, and North America.

Rewards

Earnings are forecast to grow 31.57% per year

Earnings have grown 27.9% per year over the past 5 years

Risk Analysis

No risks detected for 539978 from our risk checks.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Quess's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 539978 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.6%

539978

1.6%

IN Professional Services

-0.6%

IN Market


1 Year Return

-19.8%

539978

10.2%

IN Professional Services

11.1%

IN Market

Return vs Industry: 539978 underperformed the Indian Professional Services industry which returned 10.2% over the past year.

Return vs Market: 539978 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

539978IndustryMarket
7 Day-7.6%1.6%-0.6%
30 Day-4.6%0.9%-0.5%
90 Day3.0%10.9%3.0%
1 Year-19.8%-19.8%11.7%10.2%13.1%11.1%
3 Year-15.3%-15.3%57.7%55.4%24.5%18.0%
5 Yearn/a-52.3%-52.6%37.8%25.7%

Price Volatility Vs. Market

How volatile is Quess's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Quess undervalued compared to its fair value and its price relative to the market?

30.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 539978 (₹544.85) is trading above our estimate of fair value (₹299.09)

Significantly Below Fair Value: 539978 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 539978 is poor value based on its PE Ratio (30.3x) compared to the Professional Services industry average (11.2x).

PE vs Market: 539978 is poor value based on its PE Ratio (30.3x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: 539978 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 539978 is overvalued based on its PB Ratio (2.8x) compared to the IN Professional Services industry average (0.8x).


Next Steps

Future Growth

How is Quess forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

31.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 539978's forecast earnings growth (31.6% per year) is above the savings rate (6.5%).

Earnings vs Market: 539978's earnings (31.6% per year) are forecast to grow faster than the Indian market (21.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 539978's revenue (16.9% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 539978's revenue (16.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 539978's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

How has Quess performed over the past 5 years?

27.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 539978 has high quality earnings.

Growing Profit Margin: 539978's current net profit margins (2.6%) are lower than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: 539978's earnings have grown significantly by 27.9% per year over the past 5 years.

Accelerating Growth: 539978's earnings growth over the past year (2.6%) is below its 5-year average (27.9% per year).

Earnings vs Industry: 539978 earnings growth over the past year (2.6%) underperformed the Professional Services industry 6.1%.


Return on Equity

High ROE: 539978's Return on Equity (9.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Quess's financial position?


Financial Position Analysis

Short Term Liabilities: 539978's short term assets (₹26.0B) exceed its short term liabilities (₹20.1B).

Long Term Liabilities: 539978's short term assets (₹26.0B) exceed its long term liabilities (₹8.5B).


Debt to Equity History and Analysis

Debt Level: 539978's debt to equity ratio (30.2%) is considered satisfactory.

Reducing Debt: 539978's debt to equity ratio has reduced from 84.1% to 30.2% over the past 5 years.

Debt Coverage: 539978's debt is well covered by operating cash flow (34.4%).

Interest Coverage: 539978's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet

Inventory Level: 539978 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 539978's debt is covered by short term assets (assets are 2.9x debt).


Next Steps

Dividend

What is Quess's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 539978's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 539978's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 539978's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 539978's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 539978's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Subrata Nag (56yo)

2.1yrs

Tenure

₹13,804,000

Compensation

Mr. Subrata Kumar Nag has been Group Chief Executive Officer & Executive Director of Quess Corp Limited since January 24, 2018 and served as its Acting Compliance Officer from January 2019 until April 17,  ...


CEO Compensation Analysis

Compensation vs Market: Subrata's total compensation ($USD192.90K) is below average for companies of similar size in the Indian market ($USD386.20K).

Compensation vs Earnings: Subrata's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ajit Isaac
Chairman & MD6.8yrs₹21.53m12.02% 9.9b
Subrata Nag
Group CEO & Executive Director2.1yrs₹13.80m0.069% 56.4m
Manoj Jain
Business Head0.7yrs₹8.00mno data
Subramanian Ramakrishnan
Chief Financial Officer0.7yrsno datano data
Vijay Rajagopal
Director of M&A and Investor Relations0yrsno datano data
Kundan Lal
VP of Legal0.8yrsno datano data
Vinay Rao
Head of Marketing & Communication0yrsno datano data
Srinivasan Guruprasad
Chief Operating Officer – India Region0yrsno data0.036% 29.7m
Vijay Sivaram
APAC Head0yrsno data0.035% 29.0m
Dhananjay Bansod
Managing Partner of Executive Search Business5.6yrsno datano data

1.5yrs

Average Tenure

52yo

Average Age

Experienced Management: 539978's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ajit Isaac
Chairman & MD6.8yrs₹21.53m12.02% 9.9b
Subrata Nag
Group CEO & Executive Director2.1yrs₹13.80m0.069% 56.4m
Krishna Moraje
Executive Director0.3yrsno datano data
Sanjay Anandaram
Non-Executive Independent Director4.2yrs₹755.00kno data
Revathy Ashok
Non-Executive Independent Director4.6yrs₹930.00k0.00010% 82.2k
Pravir Vohra
Non-Executive Independent Director4.6yrs₹1.03m0.0034% 2.8m
Pratip Chaudhuri
Non-Executive Independent Director4.6yrs₹1.01mno data
Chandran Ratnaswami
Non Executive Director4.1yrsno datano data

4.6yrs

Average Tenure

60yo

Average Age

Experienced Board: 539978's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 539978 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Quess Corp Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Quess Corp Limited
  • Ticker: 539978
  • Exchange: BSE
  • Founded: 2007
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: ₹82.156b
  • Shares outstanding: 147.51m
  • Website: https://www.quesscorp.com

Number of Employees


Location

  • Quess Corp Limited
  • Quess House
  • 3/3/2 Bellandur Gate
  • Bengaluru
  • Karnataka
  • 560103
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539978BSE (Mumbai Stock Exchange)Equity SharesININRNo data
539978BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2016
QUESSNSEI (National Stock Exchange of India)YesEquity SharesININRJul 2016

Biography

Quess Corp Limited operates as a business services provider in India, South East Asia, and North America. It operates through People Services, Technology Solutions, Facility Management, Industrials, and Internet Business segments. The People Services segment offers staffing services and solutions, including general staffing, recruitment and executive search, and recruitment process outsourcing services, as well as payroll, compliance, and background verification services under the IKYA and CoAchieve brands; and training and skill development services under the Excelus brand. The Technology Solutions segment provides IT staffing, and technology solutions and products under the Magna Infotech, Brainhunter, Mindwire, and MFX brands. The Facility Management segment provides facility management services comprising janitorial, electro-mechanical, and pest control, as well as food and hospitality services to corporates, airports, and other organizations under the Avon and Aravon brands. The Industrials segment engages in industrial operations and maintenance, and related asset record maintenance under the Hofincons brand across the power, energy, oil and gas, chemical, and ferrous and non-ferrous metal industries. This segment also provides technology and consultation services to industrial clients; and tower maintenance and network deployment services for telecom companies under the Maxeed brand. The Internet Business offers recruitment solutions, such as resume database access, job postings, distribution of access rights of third party. The company was formerly known as Ikya Human Capital Solutions Limited and changed its name to Quess Corp Limited in January 2015. Quess Corp Limited was founded in 2007 and is headquartered in Bengaluru, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 13:20
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.