Centrum Wealth Management is not very upbeat on the new listing Quess Corp and does not recommend buying it at around Rs 500 on back of stretched valuations, Analyst Siddhartha Khemka told CNBC-TV18.
The staffing company made a debut listing at Rs 500 per share, up by a whopping 58 percent on NSE from its issue price of Rs 317 per share.
According to him, it is difficult to predict the growth and earnings per share (EPS) expectations for business models that are acquisition-led. However, one can see steady state growth of 20-25 percent barring new acquisitions. Some more acquisitions could lead to higher growth.
The company so far has made many acquisitions of which some have done well and others have to yet to turnaround.Some of its earlier acquisitions have been Avon, Magna Infotech, which have done well but others like Brainhunter, MFX, Styracorp, IME Consultancy haven’t turned into black yet.
He is also concerned that the stock price of Quess Crop could also go the Team Lease way which post listing went up to levels of Rs 1200 and then corrected back to listing levels.
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