Bonjour, new guests from small-town India
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
Motilal Oswal
Quess Corp (Neutral)
CMP: ₹497.5
Target: ₹560
Key takeaways: a) Management indicated that propensity of clients to outsource increases during downturns. In good times, the flexi staffing business model benefits from outsourcing of non-core activities by clients to support their growth.
b) The company indicated that key focus going forward will be on RoE (return on equity) improvement at contract/individual business unit level.
c) CEOs of different segments will have RoE targets. The focus will be on these rather than the EBITDA margin/gross margins targets.
d) Over time, the company intends to divest businesses that do not meet the RoE threshold, which we understand is 20 per cent.
e) In general staffing, Quess remains focussed on volume growth through new client additions.
f) Driving greater share of value-added services (VAS) and efficiency improvements through digitisation are other strategic priorities.
Valuation and view:
a) Through Comtel, Quess Corp has exposure to geographies such as Singapore which were severely impacted by Covid-19.
b) Increasing spread of Covid-19 in core geographies such as India will pose a key risk to business continuity of Quess. This will be a double whammy given the already weak economy and demand for business services.
c) We downgrade our FY21-22 PAT estimate and target price by 6 per cent. Maintain ‘Neutral’.
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
Citroen’s first vehicle sports a novel design and European interiors. It is also meant to be as comfortable as ...
The pandemic is only the tip of the iceberg that the country’s cash-poor airlines — both regional and national ...
The government is yet to specify the framework of its recently announced old vehicle scrappage policy
Here is a checklist that equips you to discern the market nuances
Sensex, Nifty 50 have witnessed sharp decline
The fund has consistently outperformed S&P BSE 100 TRI over one, three and five years
Returns are superior to immediate annuity plans, but SCSS can secure better rates for new investors sooner if ...
With the public looking beyond mainstream media for reports from the ground, independent digital platforms are ...
A book on Badri Narayan is a tribute — albeit a belated one — to an artist who did not enjoy the recognition ...
The country hasn’t had a quiet moment since the military seized power on February 1
The Tatmadaw sees itself as an embodiment of the nationalist soul of Myanmar. But their brand of nationalism ...
Its name is the starting point of a brand’s journey and can make a big difference in the success sweepstakes
Sober spirits are the in thing
A peek into where ad spends went last year and where they are headed tomorrow
Can Swiggy Instamart disrupt the ecommerce groceries space, currently ruled by the Amazons and Big Baskets? ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...
Please Email the Editor