Current Rating and Its Significance
MarketsMOJO’s 'Hold' rating for Quess Corp Ltd indicates a neutral stance on the stock, suggesting that investors should neither aggressively buy nor sell at this juncture. This rating reflects a balanced view where the company demonstrates certain strengths but also faces challenges that temper enthusiasm. The rating was revised from 'Sell' to 'Hold' on 01 February 2026, with the Mojo Score improving from 46 to 51, signalling a modest enhancement in the company’s overall profile.
Here’s How Quess Corp Ltd Looks Today
As of 13 February 2026, Quess Corp Ltd is classified as a smallcap company operating within the Diversified Commercial Services sector. The stock has experienced a downward trend in recent months, with a one-day decline of 2.52%, a one-month drop of 5.68%, and a one-year return of -35.50%. Despite this, the company’s financial metrics and valuation present a more nuanced picture.
Quality Assessment
The company’s quality grade is assessed as average. Quess Corp Ltd maintains a low debt-to-equity ratio of 0.09 times, which is favourable and indicates prudent financial leverage. However, the company’s long-term growth has been disappointing, with operating profit shrinking at an annualised rate of -6.66% over the past five years. This contraction in core profitability weighs on the quality assessment, signalling challenges in sustaining growth momentum.
Valuation Perspective
Valuation metrics for Quess Corp Ltd are very attractive as of today. The stock trades at a price-to-book value of 2.8, which is considered fair relative to its peers’ historical valuations. The company boasts a return on equity (ROE) of 19.2%, reflecting efficient capital utilisation. Additionally, the stock offers a high dividend yield of 5.3%, which may appeal to income-focused investors. The price-to-earnings-to-growth (PEG) ratio stands at a low 0.1, suggesting that the stock is undervalued relative to its earnings growth potential, despite recent share price weakness.
Financial Trend Analysis
Financially, Quess Corp Ltd shows positive signs. The latest quarterly results for December 2025 highlight record operating profit to net sales ratio of 2.03%, quarterly PBDIT reaching Rs 79.64 crores, and a half-year return on capital employed (ROCE) peaking at 21.09%. These figures indicate operational efficiency and improving profitability in the near term. However, the company’s overall financial trend is tempered by its underperformance in stock returns, which have lagged the BSE500 index over the past three years, one year, and three months.
Technical Outlook
From a technical standpoint, the stock is mildly bearish. Recent price movements show consistent declines, with the stock down 6.42% over three months and nearly 25% over six months. This technical weakness suggests caution for short-term traders, although the valuation and financial improvements may provide a foundation for stabilisation or recovery in the medium term.
Institutional Interest and Market Position
Institutional investors hold a significant 21.6% stake in Quess Corp Ltd. This level of institutional ownership often reflects confidence in the company’s fundamentals and governance, as these investors typically conduct thorough due diligence. Their presence may provide some support to the stock price and indicates that the company remains on the radar of sophisticated market participants.
Summary for Investors
In summary, Quess Corp Ltd’s 'Hold' rating by MarketsMOJO reflects a balanced investment proposition. The company’s very attractive valuation and improving financial metrics are offset by average quality and a mildly bearish technical outlook. Investors should consider this rating as a signal to maintain existing positions rather than initiate new ones aggressively. The stock’s high dividend yield and low PEG ratio offer some appeal, but the long-term growth challenges and recent price underperformance warrant caution.
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Investment Considerations
Investors should weigh the company’s strong operational metrics against its subdued stock performance. The positive financial trend, highlighted by record quarterly profits and robust ROCE, suggests that the company is improving its core business efficiency. Meanwhile, the very attractive valuation metrics and high dividend yield provide a cushion for investors seeking income and value opportunities.
However, the average quality grade and negative long-term growth in operating profit caution against overly optimistic expectations. The mildly bearish technical signals also imply that the stock may face resistance before any sustained upward movement. Given these factors, the 'Hold' rating is appropriate, signalling that investors should monitor developments closely and consider incremental exposure only if the company demonstrates sustained improvement in growth and technical momentum.
Outlook Within Sector Context
Operating in the Diversified Commercial Services sector, Quess Corp Ltd faces competitive pressures and cyclical challenges. Its current valuation compares favourably with peers, but the sector’s overall performance and macroeconomic factors will influence the stock’s trajectory. Investors should remain attentive to sector trends and company-specific catalysts that could alter the investment case.
Conclusion
MarketsMOJO’s 'Hold' rating for Quess Corp Ltd, last updated on 01 February 2026, reflects a cautious but balanced view. As of 13 February 2026, the company exhibits a mix of positive financial trends and attractive valuation alongside average quality and technical headwinds. This rating advises investors to maintain their positions and await clearer signs of sustained growth or technical recovery before committing additional capital.
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