DINESH

eClerx Services

Latest CMP 1,897
Today's Change ▲ 1.48%
52-Week High / Low 2,474 | 1,325
Price Date: 14-Aug-2026
Recommendation Hold
Target Price 2,151
Expected Upside 6.5%
Forecast Horizon 2 Years
Historical CAGR 21.7%
1,000 Invested 31-Dec-2007
Today's Value 38,904
Investment Period 19 Years

Stock Snapshot

Post Results Return
+1.3%
Neutral Market Reaction
1-Year Target Price
2,028
2-Year Target Price
2,151
52-Week High / Low
2,474 / 1,325
20-Day Return
+1.0%
Market Cap (Cr.)
17,443
Current PE
24.4
P/BV Ratio
6.8
Dividend Yield
0.0%
Industry PE
24.4

Price Performance

Basis of our Recommendation

eClerx Services is navigating a complex landscape characterized by cautious optimism from management regarding growth drivers such as Agentic AI and analytics, which are expected to outpace overall company growth. The strategic focus on high-value services and diversification of the client base is crucial for mitigating risks associated with wage increases and regulatory changes. Vista's financial outlook reflects moderated revenue growth expectations, with margins anticipated to remain stable despite potential pressures from rising operational costs. The company's balance sheet remains conservatively financed, supporting its resilience in a competitive environment. Industry trends favor digital transformation and automation, enhancing eClerx's competitive position. However, macroeconomic uncertainties and regulatory risks pose challenges. Over the next 12-24 months, key opportunities include leveraging AI capabilities and expanding analytics offerings, while watchpoints include wage pressures and competitive intensity that could impact contract values

👍 Why We Like This Stock

  • Strong execution in AI and analytics is expected to drive faster growth than the overall company
  • Diversification of the client base is reducing concentration risk and enhancing revenue stability
  • A conservatively financed balance sheet supports financial stability and strategic investments

Things To Watch Out For

  • Upcoming wage increments could pressure profit margins in the near term
  • Regulatory uncertainties in the US may impact offshore operations and contract values
  • Increased competitive intensity could lead to deflationary pressures on pricing

Key Parameters

Balance Sheet Strength
Conservatively Financed
Market Share
Stable
Industry Outlook
Improving
Analyst View
Hold
Dividend History
Consistent
FII Holdings
Reducing

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 2,926 3,366 4,117 4,384 4,837
Profit Before Tax (Cr.) 678 689 935 980 1,086
PBT Margin 23.2% 20.5% 2271.1% 22.4% 22.4%
Net Profit (Cr.) 522 511 699 737 817
Earnings Per Share 56.7 55.6 76.0 80.2 88.8

Analyst Recommendations

Broker Recommendation Target Price Date
Emkay Global ▲ Buy 1,800 15-May-2026
Kotak Securities ▼ Sell 1,550 15-May-2026
Nomura ► Hold 1,830 07-Aug-2026
Consensus Recommendation ► Hold
Consensus Target 1,830
Coverage 3 Analysts
Analysts' Viewpoint
eClerx Services operates within the BPO KPO sector, where it demonstrates moderate growth potential supported by a healthy deal intake. However, analysts express concern over the company's ability to maintain margins due to increasing cost pressures. This challenge is a significant factor in the prevailing cautious sentiment, as it may impact profitability despite the positive deal flow.

Company Overview

Show Company Profile

eClerx Services Limited provides business process management, change management, data-driven insights, and advanced analytics services in India, the United States, the United Kingdom, Europe, and the Asia Pacific. It offers omnichannel customer support services, customer care journey mapping and insights, automated quality monitoring, workforce management, and field technical operations; digital marketing services, including omnichannel campaigns, creative production, MarTech enablement, search and media operations, and content and commerce services; and creative and content productions, such as photo/video, post-production, 3D CGI, VR/AR, digital workflows, and omnichannel delivery. The company also provides market intelligence services which include digital shelf analytics, competitor intelligence, pricing intelligence, assortment optimization, product launch, revenue and yield management, and bid management; anti-money laundering, anti-bribery and compliance, fraud detection and prevention, know your customer, compliance monitoring and audits, and regulatory reporting; and customer, marketing, sales, and operations analytics, as well as business intelligence and data visualization, and enterprise data management. In addition, it offers trade support, client lifecycle, asset servicing, settlements and clearing, and data management; and finance and accounting outsourcing services which comprise automation, procure to pay, order to cash, record to report, and specialty finance, accounting, and FP&A. Further, it provides technology services consisting of digital transformation, strategic managed, application development, and partner ecosystem services. The company serves financial services, cable and telecommunications, retail, fashion, media and entertainment, manufacturing, travel and leisure, software, and high-tech industries. eClerx Services Limited was incorporated in 2000 and is based in Mumbai, India.