Current Rating and Its Significance
The 'Hold' rating assigned to Quess Corp Ltd indicates a neutral stance on the stock, suggesting that investors should maintain their existing positions rather than aggressively buying or selling. This rating reflects a balance of factors including the company’s quality, valuation, financial trends, and technical outlook. It implies that while the stock shows some attractive features, there are also areas of caution that investors should consider before making significant portfolio changes.
Quality Assessment
As of 24 February 2026, Quess Corp Ltd holds an average quality grade. The company maintains a low debt-to-equity ratio of 0.09 times, which is a positive indicator of financial stability and prudent capital management. Additionally, the return on equity (ROE) stands at a robust 19.2%, signalling efficient utilisation of shareholder funds. However, the company’s long-term growth has been subdued, with operating profit declining at an annual rate of -6.66% over the past five years. This mixed quality profile suggests that while the company is financially sound, its growth prospects require close monitoring.
Valuation Perspective
Quess Corp Ltd’s valuation is currently very attractive. The stock trades at a price-to-book value of 2.7, which is reasonable compared to its historical peer valuations. Despite the stock delivering a negative return of -37.24% over the past year, the company’s profits have increased by 22.8% during the same period, resulting in a low PEG ratio of 0.1. This disparity between price performance and earnings growth indicates potential undervaluation. Furthermore, the stock offers a high dividend yield of 5.4%, providing income-oriented investors with an additional incentive to hold the stock.
Financial Trend Analysis
The financial trend for Quess Corp Ltd is positive as of today. The company reported its highest return on capital employed (ROCE) at 21.09% in the half-year ended December 2025, alongside a quarterly PBDIT peak of ₹79.64 crores and an operating profit to net sales ratio of 2.03%. These metrics demonstrate operational efficiency and improving profitability in recent quarters. However, the stock’s price performance has been lacklustre, with a six-month decline of -27.31% and a year-to-date drop of -3.62%. This divergence between financial improvement and stock price suggests market caution or external factors influencing investor sentiment.
Technical Outlook
Technically, the stock is mildly bearish. Recent price movements show a 1-day decline of -2.56% and a one-week drop of -4.57%, reflecting short-term selling pressure. Over the last three months, the stock has fallen by -6.16%, underperforming the broader BSE500 index in the same period. Institutional holdings remain relatively high at 21.6%, indicating that informed investors maintain confidence in the company’s fundamentals despite near-term volatility. This technical backdrop supports a cautious approach, consistent with the 'Hold' rating.
Stock Returns and Market Performance
As of 24 February 2026, Quess Corp Ltd has delivered mixed returns. The stock’s one-year return stands at -37.24%, reflecting significant underperformance relative to the broader market. Over the past six months, the decline has been -27.31%, while the one-month return is a modest +1.17%. Year-to-date, the stock has decreased by -3.62%. These figures highlight the challenges the company faces in regaining investor confidence despite improving financial results.
Investor Considerations
For investors, the 'Hold' rating suggests maintaining current positions while monitoring the company’s progress closely. The attractive valuation and improving financial metrics offer potential upside, but the subdued long-term growth and technical weakness warrant caution. The stock’s high dividend yield and strong institutional backing provide some support, yet the recent price underperformance indicates that risks remain. Investors should weigh these factors carefully in the context of their portfolio objectives and risk tolerance.
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Summary of Key Metrics
Quess Corp Ltd’s current Mojo Score is 51.0, reflecting a modest improvement from its previous score of 46. The company’s financial grade is positive, valuation grade very attractive, quality grade average, and technical grade mildly bearish. These combined factors underpin the 'Hold' rating, signalling a balanced outlook for the stock. Investors should note that while the company has demonstrated operational improvements and attractive valuation, the stock price has yet to reflect these gains fully.
Outlook and Final Thoughts
In conclusion, Quess Corp Ltd’s 'Hold' rating by MarketsMOJO as of 01 February 2026, supported by current data from 24 February 2026, suggests a cautious but optimistic stance. The company’s strong profitability metrics and attractive valuation contrast with its recent price weakness and modest growth trajectory. For investors, this rating advises maintaining existing holdings while observing how the company navigates its growth challenges and market conditions in the coming months. The balance of positive financial trends and technical caution makes this stock a candidate for careful monitoring rather than aggressive trading.
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