Quess Corp Share Price Soars Over 15% to Reach 52-Week High After Demerger Plan Approval

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Posted by pallavi on 2024-11-29 17:42:48 |

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Quess Corp's share price surged more than 15% on Monday, reaching its 52-week high, following the company's announcement of a plan to split into three separate businesses aimed at unlocking shareholder value. The demerger plan was approved during the company's board meeting on Friday. The stock opened at an intraday high of ₹580 on the BSE.

Rajesh Bhosale, Technical Analyst at Angel One, noted the strong gap-up opening and a subsequent 11% rise, supported by high trading volumes and a breakout from a recent price range. He remains optimistic but suggests a buy-on-dip strategy, with support at ₹545 and resistance around ₹600.

Ruchit Jain, Lead Research Analyst at 5paisa, highlighted that the stock has broken out of a consolidation phase, and the momentum could drive it toward ₹600 in the near term.

As part of the demerger, Quess Corp, Digitide Solutions, and Bluspring Enterprises will become independent, listed entities. Quess will focus on workforce management, while Digitide will cover business process management, HR outsourcing, and Insurtech. Bluspring will handle facility management, industrial services, and investments. Shareholders will receive one share in each of the new companies for every share they hold in Quess. The demerger is expected to take 12 to 15 months to complete.

In a filing, Quess stated that the reorganization will strengthen its value proposition, unlock long-term value for shareholders, and provide flexibility for investors and strategic partners. Ajit Isaac, Chairman of Quess Corp, called this a transformative decision to create three distinct entities, allowing management to focus on each business and improve capital allocation.

In response to the announcement, Nuvama Institutional Equities raised its target price for Quess by 8.6%, noting that the stock offers a compelling risk-reward opportunity. The brokerage retained its 'buy' rating and increased the target price to ₹630 from ₹580, based on the value unlocking potential.

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