Why is eClerx Services Ltd ?
1
Poor long term growth as Operating profit has grown by an annual rate 16.68% of over the last 5 years
2
Flat results in Jun 26
- OPERATING PROFIT TO INTEREST (Q) Lowest at 17.83 times
- INTEREST(Q) Highest at Rs 14.88 cr
- PAT(Q) At Rs 164.34 cr has Fallen at -6.9% (vs previous 4Q average)
3
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 4.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -13.96% returns
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commercial Services & Supplies)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is eClerx Services for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
eClerx Services
-13.96%
-0.29
47.48%
Sensex
-2.63%
-0.19
13.57%
Quality key factors
Factor
Value
Sales Growth (5y)
20.39%
EBIT Growth (5y)
16.68%
EBIT to Interest (avg)
23.83
Debt to EBITDA (avg)
0.33
Net Debt to Equity (avg)
-0.26
Sales to Capital Employed (avg)
1.25
Tax Ratio
24.49%
Dividend Payout Ratio
0.87%
Pledged Shares
0
Institutional Holding
34.86%
ROCE (avg)
47.43%
ROE (avg)
25.80%
Valuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
27
Price to Book Value
6.50
EV to EBIT
17.62
EV to EBITDA
14.60
EV to Capital Employed
8.39
EV to Sales
3.69
PEG Ratio
0.69
Dividend Yield
0.03%
ROCE (Latest)
46.09%
ROE (Latest)
27.57%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Sideways
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
12What is working for the Company
PAT(Latest six months)
At Rs 353.70 cr has Grown at 20.37%
ROCE(HY)
Highest at 33.17%
NET SALES(Q)
Highest at Rs 1,152.36 cr
-8What is not working for the Company
OPERATING PROFIT TO INTEREST (Q)
Lowest at 17.83 times
INTEREST(Q)
Highest at Rs 14.88 cr
PAT(Q)
At Rs 164.34 cr has Fallen at -6.9% (vs previous 4Q average
Loading Valuation Snapshot...
Here's what is working for eClerx Services
Net Sales - Quarterly
Highest at Rs 1,152.36 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Here's what is not working for eClerx Services
Interest - Quarterly
At Rs 14.88 cr has Grown at 26.75%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 17.83 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest - Quarterly
Highest at Rs 14.88 cr
in the last five quarters and Increased by 26.75 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Profit After Tax (PAT) - Quarterly
At Rs 164.34 cr has Fallen at -6.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 176.55 CrMOJO Watch
Near term PAT trend is negative
PAT (Rs Cr)






