Motilal Oswal Maintains Neutral Rating on Quess Corp with ₹600 Target Amid Demerger Plans

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Posted by pallavi on 2024-11-29 17:35:23 |

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Motilal Oswal has maintained a Neutral rating on Quess Corp (QUESS), with a target price of ₹600, following the company's investor meet. During the meeting, Quess Corp provided more details about its plan to unlock value by splitting the company into three independent entities: Remain Co (Quess Corp, including the Workforce Management segment), Resulting Co 1 (Digitide, covering BPM and Customer Experience), and Resulting Co 2 (Bluspring, encompassing FMS, Industrial Services, and Investments). The management also outlined targets for these divisions, such as improving return on equity (RoE), expanding international presence, and aiming for market leadership in each segment. While the demerger process, expected to be completed in 12-15 months, offers clear benefits and should allow each division to focus on its strengths, Motilal Oswal remains cautious in the near term due to industry headwinds, full valuations, and taxation concerns. The target price of ₹600 is based on a 13x FY26E P/E multiple.

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