Quess Corp (QUESS)

FairStock Score: 52/100 — MIXED

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 1/1

Key Financials

Strengths

• P/E of 12.91 and P/B of 1.01 indicate a cheap valuation near book value
• Dividend yield of 5.11% provides a solid income cushion
• Low debt-to-equity of 0.11 ensures a conservative balance sheet
• Promoter holding of 56.88% aligns management interests with shareholders
• Piotroski F-Score of 6/9 suggests acceptable financial health

Concerns

• ROE of just 1.73% reflects very poor returns on shareholder equity
• Sales growth of -2.22% shows a shrinking top line
• Profit growth of 29.64% may be unsustainable given falling revenue
• Stock price has more than halved from its 52-week high of ₹349.30, indicating negative market sentiment

AI Analysis

Looking at Quess Corp, I see a business selling at a price that would have caught Benjamin Graham's eye. The stock trades at ₹192.69, barely 1.01 times book value of ₹191.47, and at a price-to-earnings ratio of just 12.91. That offers a margin of safety on the balance sheet. But as Graham would remind me, a cheap price on a poor business is not a good investment. The return on equity is a mere 1.73%, and return on capital employed is 9.82%. For a commercial services company, these numbers suggest limited competitive advantage and low pricing power. The moat, if any, is narrow. I also see sales growth of -2.22%, meaning the top line is shrinking. While profits grew 29.64%, I have to wonder if that is sustainable or just a one-time boost from cost cuts. The dividend yield of 5.11% is attractive, but it must be supported by earnings. The low debt-to-equity ratio of 0.11 is reassuring, and promoter holding of 56.88% shows skin in the game. Yet, with ROE this weak, I would rather watch and wait. The stock is down substantially from its 52-week high of ₹349.30, and that fall might reflect deteriorating fundamentals. In value investing, we ask: is this a cigar butt with one puff left, or a turnaround? The Piotroski score of 6 out of 9 is mixed, and the FairStock Score of 45/100 tells me the quality is mediocre. I would need to see stable sales growth and a higher return on equity before committing. For now, it is a low-priced stock, but not an obvious bargain. Patience is key.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer