Stock Of The Day: Quess Corp Completes First Leg Of Antique's Record Target
Antique Stock Broking initiated a 'Buy' coverage with the highest-ever target for the stock at Rs 1,000 apiece.
Shares of Quess Corp Ltd. reversed their seven-day decline to surge nearly 10% on Tuesday after an analyst set a record target price for the stock on strong growth momentum and improving business outlook.
Antique Stock Broking Ltd. initiated a 'Buy' coverage with the highest-ever target for the stock at Rs 1,000 apiece, an upside of 50% from the previous close.
The stock trades at the highest level since Nov. 7 and currently tests the immediate resistance at Rs 730 level, which is also the 2-standard deviation above the 14-day moving average.
Once this level is taken, the stock could find the next resistance at Rs 740 mark. The scrip recently saw is 14-day simple moving average cross over the 21-day exponential moving average, indicating bullish momentum.
Quess Corp's stock rose as much as 9.42% during the day to Rs 733.2 apiece on the NSE. It was trading 8.8% higher at Rs 729.5 apiece, compared to a 0.90% decline in the benchmark Nifty 50 as of 10:23 a.m.
It has risen 42% during the last 12 months and has advanced by 39% on a year-to-date basis. The total traded volume so far in the day stood at one time its 30-day average. The relative strength index was at 60.
Eight out of the nine analysts tracking the company have a 'buy' rating on the stock, and one suggests a 'hold', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 20%.
Rising Growth Momentum
Quess Corp is a "clear beneficiary" of strong hiring trends across various segments in India, Antique Stock Broking said in a note on Dec. 17.
Increased formalisation of the economy, rise in the gig economy, capex push through PLI schemes and low staffing penetration are the key growth drivers, the brokerage firm said. A higher thrust on manufacturing driven by the China + 1 strategy and opportunities in Tier II cities are also key positives.
The company has witnessed robust headcount growth in workforce management the last fiscal, with a 17% increase and a five-year CAGR of 20%, it said. "We expect this strong hiring trend to continue in the medium term."
Antique Stock Broking believes that the company should continue to grow 200-300 basis points above the flexi staffing companies in the medium to long term.
