Sunday, May 31, 2020

Quess Corp Ltd – Cost Cutting measures will boost Financials


Quess Corp Ltd   closes   at  221.55  with  a  Gain    of   +5.0 %   on    29-May- 2020   with formation of  a  Small Green  Candle    on Daily  Price Chart.
The company is has  post  Net Sales  of Rs.10991.50 Cr & Net Loss  of Rs.-431.87 Cr in FY2020 and  and  expected to Post Net Sales of Rs. 10828.30 Cr & Net Profit of Rs.336.80 Cr in FY2021 & Net Sales of Rs.13261.0  Cr & Net Profit of Rs.396.40 Cr in FY2022.
Why in Focus : Quess Corp is engaged in the business of providing services in technology solutions, people services, facility management, industrial and internet business. The company is  pursuing cost optimization to conserve cash. In April, it reduced its indirect cost by around 20 per cent and drew additional credit line of Rs 100 crore to meet liquidity related issues & decided not to take up any low margin new training programme with the government for now. They are to reduce exposure to low margin IT staffing and focus on the high margin segments.The cos has recently drawn Rs.100Cr addition line of credit to meet any liquidity crunch.
Source : Media Reports.
Valuations  : The Company is now Trading at X -0.45   of its Value. We have valued the company with its full  Financial  year 2020 earnings  ( PAT ), which is now almost ~150% Discount to its value & X0.52 of its FY2021 earning with a Discount of ~48%  and X 0.49 of its FY2022  earnings with a Discount of ~51%  .
Its Best Price at X1 EPV to Past Reference is Rs.227.90. 
Disclaimer : We are / may going to take exposure shortly.
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