Shares of Quess Corp Ltd. were trading with losses on Thursday, December 26, after the Karnataka High Court quashed tax demands and penalties totaling ₹180.05 crore against its subsidiary, E-NXT Financials Ltd.
The court’s decision removes various demands and penalties issued by the Indian Income Tax Department for assessment years 2015-16 to 2018-19. This includes penalties for outstanding demands, non-submission of responses, and other alleged violations under the Income Tax Act, 1961.
Brokerage firm Antique Stock Broking recently became the first one to ascribe a price target of ₹1,000 for the staffing solutions provider. Antique initiated coverage on the stock with a ‘Buy’ rating.
The brokerage wrote in its note that Quess Corp is a clear beneficiary of strong hiring trends across various segments.
The increased formalisation of India’s economy driven by labour reforms, a rise in the gig economy, capex push through PLI schemes, a higher thrust on manufacturing driven by China+1 strategy, low staffing penetration and opportunities in tier-II cities are some of the key growth drivers for Quess Corp, Antique wrote in its note.
Quess Corp may see its revenue grow at a Compounded Annual Growth Rate (CAGR) between 12% to 14% over financial year 2024 – 2027, according to the Antique note.
Out of the nine analysts that have coverage on Quess Corp, eight of them have a ‘Buy’ rating on the stock, while the other one has a ‘Hold’ rating.
Antique’s ₹1,000 price target on Quess Corp is followed by Phillip Securities’ ₹960 and IIFL Institutional Equities’ ₹940.