Key Insights

  1. Sustained growth momentum: The company clocked YoY growth of 27% in sales and 17% in EBITDA.
  2. Headcount addition of 60k in H1FY20 in general staffing hints at massive market share gains. It has overtaken TeamLease as market leader
  3. Earnings quality: Directional improvement withOCF/EBITDA at 55%, lower net debt, better collect & pay ratio, etc.
  4. Receipt of payments related to Trimax JV: Quess has starting receiving payments, which should assuage investor concerns.

View: The stock has corrected sharply over the past one year due to several concerns (M&A, balance sheet complexity, and JV-related potential write-offs). The correction more-than-adequately captures these issues.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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