6 February 2024
Quess Corp
3QFY24 Results Update | Sector: Staffing
Quess Corp
Neutral
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
CMP: INR503
TP: INR560 (+11%)
Good margin performance on muted revenue growth
Maintain Neutral rating as we await recovery in WFM
QUESS IN
148
74.7 / 0.9
539 / 337
-1/7/15
193
Financials & Valuations (INR b)
Y/E Mar
2024E 2025E 2026E
Sales
192.3 222.7 262.8
EBITA Margin (%)
3.6
4.4
4.7
Adj. PAT
3.1
5.0
6.9
Adj. EPS (INR)
20.6
33.6
46.4
EPS Gr. (%)
79.4
63.5
38.0
BV/Sh. (INR)
234.1 260.3 302.3
Ratios
RoE (%)
11.8
17.9
21.7
RoCE (%)
13.3
18.5
21.9
Payout (%)
77.8
47.6
34.5
Dividend Yield (%)
3.2
3.2
3.2
Valuations
P/E (x)
24.5
15.0
10.8
P/BV (x)
2.1
1.9
1.7
EV/EBITDA (x)
11.0
7.7
5.8
EV/Sales (x)
0.4
0.3
0.3
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
51.9
8.1
21.8
18.3
Dec-23 Sep-23 Dec-22
56.7
56.7
10.7
10.2
16.3
16.9
16.4
18.9
FII Includes depository receipts
QUESS delivered revenue growth of 8.4% YoY in 3QFY24, below our estimate
of 12.7% YoY. The headcount addition was strong at ~10k net, but lower
than ~22k net additions in 2Q. EBITDA margin at 3.7% (+40bp YoY) was
above our estimate, aided by a strong margin expansion in the GTM (+180bp
YoY) and PLB (+1040bp) businesses.
Revenue growth in 3Q was modest, due to weaker end demand and account
rationalization. Moreover, while its general staffing business continued to
add headcount (+13k QoQ), the tough 3QFY23 base resulted in slow YoY
growth in low teens. We expect growth to improve from FY25 onward as
GTS and OAM growth start normalizing after bottoming out in FY24E. We
estimate a revenue CAGR of 17.0% over FY24-26.
More importantly, QUESS delivered good EBITDA margin improvement, up
40bp YoY, aided by strong margin improvement in GTM and PLB. The
company delivered strong margin improvement despite persistent pressure
on the WFM vertical, which is facing margin headwind across the industry.
For the PLB and American operations, the management has reiterated its
guidance of achieving the EBITDA breakeven by 4QFY24.
We expect these investments to aid margins in FY25; hence, we raise our
margin estimates to account for better profitability. Accordingly, we expect a
PAT CAGR of 50% over FY24-26, on a low FY24 base (driven by 100bp PAT
margin improvement from 1.6% in FY24).
Though QUESS should benefit from medium-term tailwinds of formalization
and labor reforms, the growth has already been factored into the valuations.
We reiterate our Neutral
rating due to full valuations, taxation concerns,
and weak macro. Our TP of INR560 implies P/E of 12x FY26E EPS.
Revenue grew 8.4% YoY, below our expectation of 12.7% YoY growth.
Workforce management grew 11.8% YoY. Operating asset management
grew 0.8% YoY and GTS grew by 4.9% YoY. The product-led business was
weak, down 12.7% YoY.
EBITDA margin was up 40bp YoY at 3.7%, 10bp above our estimate of 3.6%.
GTS EBITTDA margin expanded 220bp YoY, while WFM margin was down
20bp YoY.
Adj. PAT increased by 142.7% YoY to INR838m vs. our estimate of INR863m,
largely due to lower other income (net).
Reported PAT at INR639m was down 27.4% YoY due to a one-off expense of
INR199m, attributed to impairment related to goodwill and other assets.
QUESS overall added strong 10k in headcount and added 14k workforce to
its workforce management business.
The board has approved an interim dividend of INR4 per share.
Miss on revenues, strong execution on margins
Mukul Garg – Research analyst
(Mukul.Garg@MotilalOswal.com)
Pritesh Thakkar – Research analyst
(Pritesh.Thakkar@MotilalOswal.com)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
 Motilal Oswal Financial Services
Quess Corp
Key highlights from the management commentary
The environment was positive in industrial, BFSI, retail, and telecom, whereas e-
commerce and FMCG saw a net headcount decline that was attributed to the
festival season concluded in 3Q.
General Staffing Business added 13k headcount in 3Q, led by the manufacturing,
telecom and BFSI sectors. The vertical focus strategy has continued to
incentivize excellent growth; manufacturing and BFSI grew 8% each QoQ.
The Indian IT staffing and collection business remains impacted by global
headwinds. Focus continues to be on niche profiles, GPC, BFSI, and digital, and
on maximizing the market penetration in strategic focus areas.
The improvement in EBITDA margin was driven by three elements: (1) Spending
reduction in marketing product development; (2) Growth in profitability in TTS
vertical and improved margins due to Business mix in OEM vertical; (3) Volume
growth and rigorous cost-control measures.
Valuation and View: reiterate NEUTRAL
Though QUESS should benefit from medium-term tailwinds of formalization and
labor reforms, the growth has already been factored into the valuations.
We expect a gradual recovery in margins over FY25 and FY26, which should
support earnings.
We reiterate our Neutral rating on the stock due to full valuations, taxation
concerns, and weak macro. Our TP of INR560 implies P/E of 12x FY26E EPS.
(INR m)
Consolidated quarterly performance
Y/E March
1Q
Net Sales
YoY Change (%)
Total Expenditure
EBITDA
Margin (%)
Depreciation
EBIT
Margin (%)
Interest
Other Income
PBT before EO expense
Recurring Tax
Rate (%)
MI and P/L of Asso. Cos.
Adjusted PAT
Extraordinary items
Reported PAT
YoY Change (%)
Margin (%)
FY23
2Q
3Q
4Q
1Q
FY24
2Q
3Q
4QE
FY23
1,71,584
25.3
1,65,726
5,858
3.4
2,746
3,112
1.8
1,066
263
2,309
615
26.6
-16
1,710
-535
2,245
-6.9
1.3
FY24E
FY24
Var.
3QE (%/bp)
39,793 42,733 44,656 44,402 46,002 47,483 48,418 50,391
33.2
32.4
21.2
17.1
15.6
11.1
8.4
13.5
38,259 41,386 43,200 42,882 44,463 45,848 46,608 48,400
1,534 1,347 1,456 1,520 1,539 1,635 1,810 1,990
3.9
3.2
3.3
3.4
3.3
3.4
3.7
3.9
610
676
695
765
686
697
718
688
924
671
761
756
853
939 1,092 1,303
2.3
1.6
1.7
1.7
1.9
2.0
2.3
2.6
204
263
290
309
272
281
354
342
72
88
67
36
41
151
52
236
792
496
538
483
621
809
790 1,197
115
100
217
183
140
83
-45
180
14.6
20.1
40.3
37.9
22.6
10.3
-5.7
15.0
64
-24
-24
-31
3
-10
-2
0
613
421
345
331
478
735
838 1,017
0
0
-535
0
0
16
199
0
613
421
880
331
478
719
639 1,017
32.7
12.0
5.0
-55.0
-22.0
71.0
-27.4 207.1
1.5
1.0
2.0
0.7
1.0
1.5
1.3
2.0
1,92,295
50,316
-3.8
12.1
12.7
-425
1,85,320
48,505
-3.9
6,975
1,811
-0.1
3.6
3.6
13.9
2,788
682
5.2
4,186
1,129
-3.3
2.2
2.2
1
1,250
263
34.7
481
149
3,417
1,015
-22.2
358
152 -129.7
10.5
15.0
-9
0
3,068
863
-2.9
215
0
2,854
863
-25.9
27.1
-1.9 -2,545
1.5
1.7
-40
Source: Company, MOFSL
6 February 2024
2
 Motilal Oswal Financial Services
Quess Corp
Key performance indicators
Y/E March
Headcount (k)
Segment Revenue (INR m)
Workforce Management
Operating Asset Management
Global Technology Solutions
Product-led business
EBITDA Margin (%)
Workforce Management
Operating Asset Management
Global Technology Solutions
Product Led business
1Q
470
27,579
5,967
5,074
1,174
3.4
5.1
16.3
(20.4)
FY23
2Q
504
29,428
6,515
5,287
1,502
2.7
4.3
16.0
(15.9)
3Q
505
30,683
6,891
5,607
1,474
2.8
4.5
16.1
(18.2)
4Q
511
30,618
6,843
5,710
1,231
2.8
4.4
16.7
(16.4)
1Q
525
32,206
6,899
5,633
1,264
2.6
4.5
17.8
(20.3)
FY24
2Q
547
33,153
7,055
5,843
1,433
2.6
5.0
17.8
(14.1)
3Q
557
34,302
6,950
5,880
1,287
2.6
5.2
18.3
(7.8)
4QE
511
35,823 1,18,309 1,35,484
7,151
26,216
28,055
6,053
21,678
23,408
1,364
5,381
5,348
2.7
5.3
18.3
(0.8)
2.9
2.6
4.6
5.0
16.3
18.1
(17.6)
(10.6)
Source: Company
FY23
FY24E
Key highlights from the management commentary
3QFY24 performance
Margin
The environment was positive in industrial, BFSI, retail, and telecom, whereas e-
commerce and FMCG saw a net headcount decline that was attributed to the
festival season concluded in 3Q.
General Staffing Business added 13k headcount in 3Q, led by the manufacturing,
telecom and BFSI sectors. The vertical focus strategy has continued to
incentivize excellent growth; manufacturing and BFSI grew 8% each on QoQ
basis. The momentum is expected to continue for the BFSI and manufacturing
segments. The management indicated that the pipeline remains healthy, which
will drive the headcount in the coming quarters.
The Indian IT staffing and collection business remains impacted by global
headwinds. Focus continues to be on niche profiles, GPC, BFSI and digital, and
on maximize the market penetration in strategic focus areas.
The platform business has demonstrated economic sustainability and positive
momentum toward higher value-added earnings. The business closed an order
book of over INR1,100mn EBITDA in 3Q, implying sustained revenue growth in
the coming quarters. BFSI accounted for 35% of total annual contract value
added. The company also saw encouraging green shoots in the auto, retail and
consumer goods sectors.
In the International CSM business, growth momentum is expected to continue in
4Q as well, leveraging further revenue realization from leading North American
customers. Additionally, the company is witnessing green shoots in healthcare,
manufacturing and infrastructure and will continue to focus on sales sector.
The improvement in EBITDA margin was driven by three elements: (1) Spending
reduction in marketing product development; (2) Growth in profitability in TTS
vertical and improved margins due to business mix in OEM vertical; (3) Volume
growth and rigorous cost-control measures.
The improvement in gross margin was attributed to improving operational
efficiencies and the mobilization of contracts won during H1FY24.
Cash management and debt repayment continued in 3Q. Gross debt declined by
INR530mn in 3Q to INR4,190mn, the lowest in the last 10 quarters.
6 February 2024
3
 Motilal Oswal Financial Services
Quess Corp
Valuation and View: reiterate NEUTRAL
Though QUESS should benefit from medium-term tailwinds of formalization and
labor reforms, the growth has already been factored into the valuations.
We expect a gradual recovery in margins over FY25 and FY26, which should
support earnings.
We reiterate our Neutral rating on the stock due to full valuations, taxation
concerns, and weak macro. Our TP of INR560 implies P/E of 12x FY26E EPS.
Earlier estimates
FY24E
FY25E
1,96,217
2,29,213
14.4
16.8
7,030
9,856
3.6
4.3
2.2
3.0
21.0
35.2
Change (%/bp)
FY24E
FY25E
FY26E
-2.0%
-2.8%
-2.8%
-229bp
-99bp
10bp
-0.8%
-0.6%
1.6%
4bp
10bp
20bp
-1bp
0bp
20bp
-2.4%
-4.5%
4.0%
Source: Company, MOFSL
Exhibit 1: Revisions to our estimates
Revenue (INR m)
Revenue growth (%)
EBITDA (INR m)
EBITDA margin (%)
EBIT margin (%)
EPS (INR)
Revised estimates
FY24E
FY25E
FY26E
1,92,295
2,22,720
2,62,791
12.1
15.8
18.0
6,975
9,800
12,351
3.6
4.4
4.7
2.2
3.0
3.4
20.5
33.6
46.4
FY26E
2,70,224
17.9
12,160
4.5
3.2
44.6
6 February 2024
4
 Motilal Oswal Financial Services
Quess Corp
Financials and valuation
Consolidated Income Statement
Y/E March
Total Income from Operations
Change (%)
Cost of services
Employees Cost
Other Expenses
Total Expenditure
As a percentage of Sales
EBITDAs
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest
Adjusted PAT
Change (%)
Margin (%)
Consolidated Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
Capital WIP
Total Investments
Curr. Assets, Loans, and Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability and Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
FY19
85,270
38.3
2,624
67,132
10,868
80,624
94.6
4,646
5.4
1,232
3,414
1,144
712
2,983
0
2,983
329
11.0
88
2,565
-17.2
3.0
FY19
1,461
25,795
27,256
31
7,502
-5,046
29,742
8,152
3,357
4,795
11,769
147
820
27,540
221
9,132
5,855
12,333
15,328
1,729
12,351
1,248
12,212
29,742
FY20
1,09,896
28.9
2,671
90,632
10,027
1,03,329
94.0
6,567
6.0
2,486
4,081
1,668
511
2,924
6,641
-3,717
483
-13.0
138
2,609
1.7
2.4
FY20
1,475
21,284
22,759
769
9,976
-6,166
27,339
9,295
5,843
3,451
8,358
46
725
34,439
284
9,982
7,587
16,586
19,681
1,633
16,494
1,554
14,759
27,339
FY21
1,08,370
-1.4
2,007
92,968
7,617
1,02,593
94.7
5,777
5.3
2,285
3,491
1,113
451
2,829
1,388
1,442
590
40.9
114
2,125
-18.5
2.0
FY21
1,477
21,954
23,431
939
4,514
-4,061
24,823
10,857
8,129
2,728
9,890
309
41
30,173
290
8,945
5,646
15,292
18,317
1,212
14,983
2,122
11,856
24,823
FY22
1,36,918
26.3
2,787
1,16,870
10,743
1,30,400
95.2
6,518
4.8
2,120
4,397
792
198
3,803
0
3,803
1,066
28.0
98
2,640
24.2
1.9
FY22
1,480
22,898
24,378
1,310
5,877
-3,983
27,582
13,806
10,249
3,557
10,096
153
17
35,904
275
23,323
4,105
8,201
22,145
1,154
18,258
2,733
13,759
27,582
FY23
1,71,584
25.3
4,794
1,46,595
14,336
1,65,726
96.6
5,858
3.4
2,746
3,112
1,066
263
2,309
-535
2,844
615
21.6
-16
1,710
-35.2
1.0
FY23
1,482
24,205
25,688
1,621
5,311
-5,275
27,343
16,160
12,995
3,165
10,427
181
17
41,429
282
26,886
4,376
9,886
27,876
1,249
23,546
3,080
13,554
27,343
FY24E
1,92,295
12.1
5,373
1,64,290
15,657
1,85,320
96.4
6,975
3.6
2,788
4,186
1,250
481
3,417
0
3,417
358
10.5
-9
3,068
79.4
1.6
FY24E
1,482
25,050
26,532
1,611
5,301
-5,275
28,169
18,360
15,687
2,673
10,427
200
17
48,911
282
34,244
3,815
10,571
34,059
4,570
25,930
3,559
14,853
28,169
FY25E
2,22,720
15.8
6,223
1,90,284
16,413
2,12,920
95.6
9,800
4.4
3,118
6,682
1,336
557
5,902
0
5,902
885
15.0
0
5,017
63.5
2.3
FY25E
1,482
28,023
29,505
1,611
5,293
-5,275
31,134
21,560
18,583
2,977
10,427
220
17
56,150
282
39,662
4,989
11,217
38,658
5,250
29,289
4,119
17,492
31,134
(INR m)
FY26E
2,62,791
18.0
7,343
2,24,520
18,577
2,50,440
95.3
12,351
4.7
3,416
8,935
1,445
657
8,147
0
8,147
1,222
15.0
0
6,925
38.0
2.6
(INR m)
FY26E
1,482
32,779
34,261
1,611
5,285
-5,275
35,882
24,760
21,999
2,761
10,427
240
17
67,325
282
46,798
8,177
12,068
44,888
6,175
33,855
4,858
22,437
35,882
6 February 2024
5
 Motilal Oswal Financial Services
Quess Corp
Financials and valuation
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Asset Turnover (x)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Net Debt/Equity ratio
FY19
17.5
25.9
240.5
0.0
0.0
28.7
19.4
2.1
0.9
16.2
0.0
7.2
9.9
10.6
12.9
2.9
39
7
0.0
FY20
18.3
35.7
200.8
0.0
0.0
27.6
14.1
2.5
0.7
11.3
0.0
21.3
10.4
15.4
22.0
4.0
33
5
0.1
FY21
14.9
30.8
206.7
7.0
135.7
33.8
16.3
2.4
0.7
12.3
1.4
45.7
9.2
7.7
10.9
4.4
30
4
-0.1
FY22
17.7
31.9
215.1
8.0
45.2
28.4
15.8
2.3
0.6
11.8
1.6
31.6
11.0
11.4
15.0
5.0
62
3
0.1
FY23
11.5
29.9
226.7
8.0
53.2
43.9
16.8
2.2
0.4
13.0
1.6
24.6
6.8
8.6
10.6
6.3
57
3
0.0
FY24E
20.6
39.2
234.1
16.0
77.8
24.5
12.8
2.1
0.4
11.0
3.2
16.0
11.8
13.3
16.0
6.8
65
9
0.1
FY25E
33.6
54.5
260.3
16.0
47.6
15.0
9.2
1.9
0.3
7.7
3.2
27.3
17.9
18.5
22.7
7.2
65
9
0.0
FY26E
46.4
69.3
302.3
16.0
34.5
10.8
7.3
1.7
0.3
5.8
3.2
40.2
21.7
21.9
28.5
7.3
65
9
-0.1
Consolidated Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest and Finance Charges
Direct Taxes Paid
(Inc.)/Dec. in WC
CF from Operations
Others
CF from Operations incl. EO
(Inc.)/Dec. in FA
Free Cash Flow
(Pur.)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc./(Dec.) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc./Dec. in Cash
Closing Balance
FY19
2,566
3
1,144
-1,750
-1,248
714
1,302
2,016
-957
1,058
-117
2,898
1,823
5
-74
-865
0
-2,706
-3,640
199
5,860
FY20
-4,319
2,486
1,668
-1,449
-1,933
-3,547
7,157
3,611
-570
3,041
732
-1,865
-1,703
478
2,197
-1,158
-144
-1,244
129
2,037
7,589
FY21
737
2,285
1,113
1,648
-464
5,319
1,835
7,154
-613
6,540
-144
-295
-1,052
2
-6,312
-737
0
-997
-8,045
-1,943
5,646
FY22
2,510
2,120
550
-869
-307
4,004
1,538
5,542
-833
4,709
-390
-653
-1,876
628
720
-553
-1,868
-3,842
-4,916
-1,250
4,105
FY23
2,229
2,746
1,066
-1,994
-231
3,816
846
4,663
-987
3,676
485
543
41
352
-567
-640
-1,855
-2,530
-5,239
-536
4,376
FY24E
3,741
2,692
848
-358
-1,859
5,064
-456
4,608
-2,220
2,388
0
0
-2,220
-9
-9
-848
-2,388
-501
-3,756
-1,368
3,815
FY25E
6,397
2,895
794
-885
-1,466
7,735
-436
7,299
-3,220
4,079
0
0
-3,220
0
-9
-794
-2,388
-521
-3,712
367
4,989
(INR m)
FY26E
8,516
3,416
793
-1,222
-1,757
9,746
-524
9,222
-3,220
6,002
0
0
-3,220
0
-8
-793
-2,388
-433
-3,622
2,381
8,177
Investment in securities market are subject to market risks. Read all the related documents carefully before investing
6 February 2024
6
 Motilal Oswal Financial Services
Quess Corp
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall be
within following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Depository participant services & distribution of various financial products. MOFSL is a listed public
company, the details in respect of which are available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities &
Exchange Board of India (SEBI) and is a registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi
Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with
Central Depository Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India
(AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate
entities of Motilal Oswal Financial Services Limited are available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report
should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific
merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the
website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated
from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability
or use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong
Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg. No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers
Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any
brokerage and investment services provided by MOFSL, including the products and services described herein are not available to or intended for U.S. persons. This report is
intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as
"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which
this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration
provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange
Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-
dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co. Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore. Persons in Singapore should contact MOCMSPL in respect of any matter arising from, or in connection with this
report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of which some of whom may consist of "accredited" institutional
investors as defined in section 4A(1) of the Securities and Futures Act of Singapore .Accordingly, if a Singapore person is not, or ceases to be, such an investor, they must
immediately discontinue any use of this Report and inform MOCMSPL .
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
6 February 2024
7
 Motilal Oswal Financial Services
Quess Corp
*******************************************************************************************************************************
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company at the end of the month immediately preceding the date of publication of the Research Report or
date of the public appearance.
- received compensation/other benefits from the subject company in the past 12 months
- any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on
the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL
even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
- Served subject company as its clients during twelve months preceding the date of distribution of the research report.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent
of MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in
nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,
representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or
distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for
informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing
in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.
The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this
document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this
document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views
expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade
securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of
the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make
modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to
perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of
information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or
may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,
directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or
entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law,
regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in
all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.
Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost
revenue or lost profits that may arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its
affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such
misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the person
accessing this information due to any errors and delays.
This report is meant for the clients of Motilal Oswal only.
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 - 71934200 / 71934263;
www.motilaloswal.com. Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 71881000.
Details of Compliance Officer: Neeraj Agarwal, Email Id: na@motilaloswal.com, Contact No.:022-40548085.
Grievance Redressal Cell:
Contact Person
Contact No.
Email ID
Ms. Hemangi Date
022 40548000 / 022 67490600
query@motilaloswal.com
Ms. Kumud Upadhyay
022 40548082
servicehead@motilaloswal.com
Mr. Ajay Menon
022 40548083
am@motilaloswal.com
Registration details of group entities.: Motilal Oswal Financial Services Ltd. (MOFSL): INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research
Analyst: INH000000412 . AMFI: ARN .: 146822. IRDA Corporate Agent – CA0579. Motilal Oswal Financial Services Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit,
Insurance, Bond, NCDs and IPO products.
Customer having any query/feedback/ clarification may write to query@motilaloswal.com. In case of grievances for any of the services rendered by Motilal Oswal Financial Services
Limited (MOFSL) write to grievances@motilaloswal.com, for DP to dpgrievances@motilaloswal.com.
6 February 2024
8