Quest Holdings (ATHEX: QUEST): Investing in the Engine Behind Info Quest Technologie

Quest Holdings (ATHEX: QUEST): Investing in the Engine Behind Info Quest Technologies

By : Βullmarkets-Εxchanges

When investors consider exposure to the Greek Information and Communication Technology (ICT) sector, particularly the significant market presence of Info Quest Technologies, their attention should turn to its parent company: Quest Holdings S.A. (ATHEX: QUEST). Info Quest Technologies, a cornerstone of the Greek IT landscape for over four decades, is not directly listed on the Athens Stock Exchange. Instead, it operates as a key subsidiary within the diversified Quest Group, making QUEST stock the relevant vehicle for investment participation. This article explores the factors influencing Quest Holdings' stock performance, driven significantly by Info Quest Technologies and the broader Group's activities.

Info Quest Technologies: A Driving Force within the Group

Info Quest Technologies is a major player in the Greek ICT market, acting as a leading distributor for over 250 technology vendors (including brands like Xiaomi) to more than 2,000 resellers. Its operations span IT products, value-added distribution, robust Cloud Services (as a major Microsoft partner), e-commerce support through the Group's you.gr platform, mobility solutions, and newer eco-focused products. It also has a presence in Cyprus and Romania.

This extensive activity forms the backbone of Quest Holdings' "IT Products" segment. In the fiscal year 2024, this segment demonstrated solid performance, contributing significantly to the Group's overall results with an 11.3% increase in sales and a 6.1% rise in Earnings Before Tax (EBT) compared to the previous year. This highlights Info Quest's crucial role in the Group's financial health.

Quest Holdings (QUEST): Stock Performance Snapshot

Quest Holdings (QUEST) has shown notable resilience and growth on the Athens Stock Exchange. Key points include:

• Recent Price: As of mid-April 2025, the stock was trading around €6.32.
• Performance: Year-to-date (mid-April 2025), the stock saw gains of approximately 5.5%, with a 1-year performance showing an increase of around 10.9%. The 5-year performance is particularly strong, exceeding 150%.
• Valuation & Yield: Recent data suggests a market capitalization of roughly €670 million, a Price-to-Earnings (P/E) ratio around 13.7, and an attractive dividend yield of approximately 4.75%.
• Volatility: The stock has a beta coefficient of 0.53, indicating lower volatility compared to the broader market average.

Financial Health and Diversification

Quest Holdings reported strong financial results for the fiscal year 2024 (announced April 2025):

• Consolidated Sales: Reached €1.325 billion, up 10.8% year-over-year (YoY).
• EBITDA: Grew 10.1% YoY to €91.7 million.
• Earnings Before Tax (EBT): Increased 10.3% YoY to €65 million.
• Earnings After Tax (EAT): Rose 9.9% YoY to €49.8 million.

Beyond IT Products driven by Info Quest, the Group benefits from diversification:

• IT Services (Uni Systems): Showed robust growth with sales up 12.7% and EBT up 9.4% in 2024, fueled by digital transformation projects in both the private and public sectors. Notably, 46% of this segment's sales stem from international activities.
• Courier Services (ACS): Posted steady growth with sales +5.6% and EBT +4.3%.
• Renewable Energy (Quest Energy): Also contributed positively with sales +6.6% and EBT +11.5%.

The company maintains a solid financial position, reporting over €300 million in cash and available credit lines at the end of 2023, allowing it to navigate challenges and pursue opportunities. Management forecasts continued, albeit mild, sales growth for 2025, with a more significant increase expected in profitability (targeting EBITDA above €100 million).

Market Context and Outlook

Quest Holdings operates within a favourable Greek ICT market environment. Market research firms like Mordor Intelligence project the Greek ICT market to reach approximately USD 8.72 billion in 2025 and grow at a strong Compound Annual Growth Rate (CAGR) of 12.5% between 2025 and 2030. This growth is propelled by:

• Increased demand for cloud services and cybersecurity.
• Significant government investment in digital transformation (e.g., the "Greece 2.0" plan).
• Growing digitalization across Greek enterprises.
• Expansion of data center infrastructure.

Furthermore, the broader Greek economy is expected to grow by around 2.3-4% in 2025, supported by EU funds and reforms, providing a generally positive backdrop.

Considerations for Investors

Investing in Quest Holdings (QUEST) offers exposure not only to the dynamic Greek IT sector via Info Quest Technologies and Uni Systems but also to the stability of courier services and the growth potential of renewable energy. While the company demonstrates strong performance and operates in a growing market, potential risks include intense competition, reliance on consumer spending trends, potential global economic headwinds impacting investments, and execution risks associated with large IT projects. While some past analyses suggested potential undervaluation, investors should conduct their own due diligence and consult recent analyst reports or financial advisors.

Conclusion

Quest Holdings S.A. represents a significant, diversified player on the Athens Stock Exchange. With Info Quest Technologies as a powerful engine in the thriving Greek ICT market, complemented by strong performance in IT services, courier, and renewables, QUEST stock presents an interesting case for investors looking for exposure to Greece's economic and digital evolution.

A Resilient Ascent: Tracing the Greek Stock Market's Journey Over the Last Five Years

By : Βullmarkets-Εxchanges

Over the past five years, roughly spanning from May 2020 to May 2025, the Athens Stock Exchange (ATHEX) General Index has charted a remarkable course, transforming from a market recovering from a decade-long crisis into one demonstrating significant resilience and attracting renewed investor interest. This period, marked by both global upheaval and crucial domestic developments, has seen the Greek bourse achieve notable milestones and exhibit a generally upward trajectory.

The starting point of this five-year window, May 2020, found the ATHEX, like global markets, grappling with the immediate impact of the COVID-19 pandemic. Following a sharp, albeit brief, downturn in early 2020, the market began a recovery phase. However, the subsequent years have painted a picture of a more sustained and fundamentally driven ascent.

A pivotal factor in the Greek market's performance has been the significant improvement in the Greek economy's standing. After years in the economic wilderness, Greece successfully regained investment grade status from major credit rating agencies starting in 2023. This long-awaited development signaled increased economic stability and reduced risk, making Greek assets, including equities, significantly more attractive to a broader range of international investors. The upgrade by various agencies over this period has been a recurring positive catalyst for the market.

This renewed confidence has translated into tangible results on the ATHEX. The General Index has recorded positive returns for several consecutive years within this five-year span, with particularly strong performances observed in 2024 and the initial months of 2025. This growth hasn't been uniform across all sectors, but certain areas have been particularly instrumental. The banking sector, in particular, has shown remarkable strength, with significant increases in valuation and playing a key role in driving overall market growth. This resurgence is linked to theクリーニング up of balance sheets and improved profitability prospects for Greek banks.

Beyond the banking sector, other areas of the Greek economy have also contributed to the positive market sentiment. Improvements in key economic indicators such as a declining unemployment rate and a return to GDP growth (following the pandemic-induced contraction in 2020, Greece has seen robust economic rebounds) have provided a supportive backdrop for the stock market. Increased foreign investor participation and notable capital inflows into the Greek market underscore the growing international confidence in the country's economic recovery and future prospects. Data indicates a significant increase in the percentage of foreign investor participation in trading activity over this five-year period.

Furthermore, corporate developments, including successful capital raises, initial public offerings (IPOs), and strategic business deals, have added dynamism to the market and provided fresh investment opportunities. The inclusion of Greek stocks in global benchmark indices has also helped to increase their visibility and attract passive investment flows.

While the overall trend has been positive, the Greek market, like any other, has not been immune to global uncertainties. Concerns over potential trade wars, shifts in monetary policy by major central banks, and ongoing geopolitical tensions have at times introduced volatility. However, the Greek market has demonstrated a degree of resilience in navigating these external pressures.

Looking ahead, the trajectory of the Greek stock market will likely continue to be influenced by both domestic reforms and the broader global economic environment. However, the progress made over the last five years, marked by the return to investment grade, the strong performance of key sectors, and the renewed international interest, suggests a market that has turned a significant corner and is poised for further development. The journey has not been without its challenges, but the prevailing sentiment as of early 2025 appears to be one of cautious optimism for the Greek bourse.