Motilal Oswal's research report on Quess Corp
Quess Corp (QUESS) delivered 7% QoQ/14% YoY growth in revenue in 3QFY25, in line with our estimate. The headcount addition was muted at ~7.5k net. EBITDA margin stood at 3.6% (down 20bp QoQ) vs our estimate of 3.8%. Adj. PAT increased 22% YoY to INR1,026m, in-line with our estimate of INR1,026m. For 9MFY25, revenue/EBITDA/PAT grew 10.6%/15.5%/50.7% YoY. We expect revenue/EBITDA/PAT to grow by 8.5%/3.4%/10.5% YoY in 4QFY25. We reiterate our Neutral rating with a TP of INR670, implying 18x Dec’26E P/E.
Outlook
Though QUESS should benefit from medium-term tailwinds of formalization and labor reforms, the growth has already been factored into the valuations. We reiterate our Neutral rating with a TP of INR670, implying 18x Dec’26E P/E.
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