Why is eClerx Services Ltd ?
1
High Management Efficiency with a high ROE of 25.80%
2
The company is Net-Debt Free
3
Poor long term growth as Operating profit has grown by an annual rate 19.04% of over the last 5 years
4
The company has declared Positive results for the last 3 consecutive quarters
- PAT(Latest six months) At Rs 381.34 cr has Grown at 31.85%
- ROCE(HY) Highest at 33.17%
- NET SALES(Q) Highest at Rs 1,107.29 cr
5
With ROE of 27.6, it has a Fair valuation with a 5.7 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -10.14%, its profits have risen by 30.5% ; the PEG ratio of the company is 0.6
6
High Institutional Holdings at 35.79%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
With its market cap of Rs 14,484 cr, it is the second biggest company in the sector (behind Firstsour.Solu.)and constitutes 33.97% of the entire sector
- Its annual Sales of Rs 4,117.03 are 18.33% of the industry
How much should you hold?
- Overall Portfolio exposure to eClerx Services should be less than 10%
- Overall Portfolio exposure to Commercial Services & Supplies should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commercial Services & Supplies)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is eClerx Services for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
eClerx Services
-10.08%
-0.23
43.13%
Sensex
-7.63%
-0.59
12.97%
Quality key factors
Factor
Value
Sales Growth (5y)
21.35%
EBIT Growth (5y)
19.04%
EBIT to Interest (avg)
24.43
Debt to EBITDA (avg)
0.33
Net Debt to Equity (avg)
-0.26
Sales to Capital Employed (avg)
1.25
Tax Ratio
24.45%
Dividend Payout Ratio
0.87%
Pledged Shares
0
Institutional Holding
35.79%
ROCE (avg)
47.40%
ROE (avg)
25.80%
Valuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
23
Price to Book Value
5.65
EV to EBIT
15.79
EV to EBITDA
13.15
EV to Capital Employed
7.25
EV to Sales
3.36
PEG Ratio
0.57
Dividend Yield
0.03%
ROCE (Latest)
45.91%
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 Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
No Trend
Technical Movement
17What is working for the Company
PAT(Latest six months)
At Rs 381.34 cr has Grown at 31.85%
ROCE(HY)
Highest at 33.17%
NET SALES(Q)
Highest at Rs 1,107.29 cr
PBDIT(Q)
Highest at Rs 283.59 cr.
PBT LESS OI(Q)
Highest at Rs 222.19 cr.
-2What is not working for the Company
INTEREST(Q)
Highest at Rs 11.74 cr
Loading Valuation Snapshot...
Here's what is working for eClerx Services
Net Sales - Quarterly
Highest at Rs 1,107.29 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 283.59 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 222.19 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Latest six months
At Rs 381.34 cr has Grown at 31.85%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for eClerx Services
Interest - Quarterly
Highest at Rs 11.74 cr
in the last five quarters and Increased by 18.47 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)






