Brokerage firm Motilal Oswal has said that getting the company’s funds is a positive step but it also carries a lot of risk.
Quess Corp, the parent company of job search portal Monster.com, announced on December 22 that it has secured Rs 6 billion in funding from Meridian Investments and Volarado Ventures. This fund will further expand Monster.com’s presence. This portal is well-known for online job search and training. The question is whether investing in Quess Corp will be beneficial. Brokerage firm Motilal Oswal has given it a BUY rating. However, there has been no change in the target price of 1100.
Can get good returns but there are also risks
Brokerage firm Motilal Oswal has said that getting the company’s funds is a positive step but it also carries a lot of risk. According to the brokerage firm, Monster.com accounted for only 1.2 per cent of the revenue of Quess during the second quarter of FY 2021-22. However, after raising funds, its value has increased to Rs 6.6 billion. In the current market valuation of Rs 118 billion of Quess, now this share has increased to 5 percent. In fact, the biggest challenge before Monster.com is the dominance of Naukri.com. It is in the leader position in the market. If Monster.com is to expand, it will have to try to break the monopoly of Naukri.com by utilizing the funds it has acquired as soon as possible. Brokerage firm Motilal Oswal sees a risk in implementing this scheme. However, at present it is not considering the valuation of the Quess in this context.
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Rating and target price
However, the hiring trend has shown momentum in industries related to different sectors in the economy. The recruitment speed has increased after the decline in recruitment in Corona. A similar trend was shown after the 2008 global financial crisis and demonetisation, so this trend will help Quess. Its shares can be bought with a target price of 1100.
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
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