Quess Corp Downgraded to 'Hold' by MarketsMOJO, Despite Strong Debt Servicing and Positive Results

Quess Corp, a midcap company in the miscellaneous industry, has recently been downgraded to a 'Hold' by MarketsMOJO on October 3rd, 2024. This decision was based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 0.54 times.
In addition, Quess Corp has declared positive results for the last 3 consecutive quarters, with a PAT(Q) of Rs 87.67 crore, growing at an impressive rate of 83.4%. Its NET SALES(Q) also reached a high of Rs 5,003.11 crore, while PBT LESS OI(Q) grew by 57.16%.

Technically, the stock is in a mildly bullish range, with both its MACD and KST technical factors showing bullish signals. Furthermore, with a ROE of 10.9 and a price to book value of 4, the stock is currently trading at a very attractive valuation. It is also trading at a discount compared to its average historical valuations.

Over the past year, Quess Corp has outperformed the market (BSE 500) with a return of 78.09%. Its profits have also risen by 104.9%, resulting in a low PEG ratio of 0.3.

The company also has high institutional holdings at 26.89%, indicating that these investors have better capability and resources to analyze the fundamentals of companies compared to retail investors. In fact, their stake in Quess Corp has increased by 0.81% over the previous quarter.

However, one area of concern is the poor long-term growth of the company, with an annual rate of only 3.75% for operating profit over the last 5 years. This may have contributed to the downgrade by MarketsMOJO.

Overall, while Quess Corp may have some positive aspects, it is currently recommended to hold the stock due to its mixed performance and potential for long-term growth. Investors should carefully consider all factors before making any investment decisions.