Placement firms' stocks to benefit as recruitment activity picks up
The surge in recruitment activity in India has paved the way for success of the placement sector. This has brought in more revenue for both individuals as well as the nation as a whole.
As a result, some stocks such as Info Edge (India) Ltd., Quess Corp Ltd. and TeamLease Services Ltd. have delivered noteworthy returns.
Let us take a look at the stock performance of each of these companies separately.
The stock of Info Edge (India) Ltd. has delivered four times the gains as compared to the broader index and is trading close to its record high. The stock surged 21 per cent in the last 3 months as against a gain of 4.5 per cent in the NSE Nifty 500 Index. It is trading at a premium of 79 times its FY19 price-to-earnings ratio compared with its two-year average of 36. Its revenues in the recruitment segment rose 20.5 per cent YoY due to improved IT sector hiring and traction from sectors such as auto, construction, oil & gas and insurance. In the quarter ended December 2018, growth continued to be driven by the businesses of recruitment and real estate. The company was focused on marketing as well as hiring and upgrading the product and tech talent.
The company delivered one-month return of 9.88 per cent, 3-month return of 24.28 per cent, 6-month return of 24.71 per cent and YTD return of 31.20 per cent. In the last one year, the stock generated return of 57.45 per cent, while delivering returns of 150.36 per cent and 193.91 per cent over 3 years and 5 years, respectively.
On Wednesday, the shares of Info Edge (India) Ltd. opened at the day's high of Rs. 1,894.95 and thereafter hit a low of Rs. 1,850 on the BSE. The stock closed at Rs. 1,868.95, down 1.11 per cent.
Now, let us take a look at Quess Corp’s performance. Its People & Services (P&S) has continued to exhibit strength and grown at a CAGR of 22 per cent over the last three years. This segment is entirely organic.
Quess Corp delivered returns of 13.28 per cent in one month and 22.25 per cent in three months. However, its 6-month return stood at a negative 12.81 per cent, while one-year return stood at a negative 25.26 per cent.
On Wednesday, the stock of Quess Corp opened at Rs. 790, and hit a high and low of Rs. 819.85 and Rs. 747.70, respectively, on the BSE. The stock closed at Rs. 754, down by 4.05 per cent.
Meanwhile, TeamLease Services also showcased good stock performance. Although the stock delivered negative return of 3.93 per cent in the last one month, it yielded returns of 4.51 per cent and 19.37 per cent in 3 months and 6 months, respectively. However, its 1-year and 3-year returns were even more impressive at 40.89 per cent and 235.40 per cent, respectively.
On Wednesday, the stock of TeamLease Services opened at a high of Rs. 3,079.95 and hit a low of Rs. 2,974.05 on the BSE. The stock closed at Rs. 2,991, up 0.65 per cent.