ECLERX - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.4

📊 Core Financials Overview

Profitability

ROCE: 28.8% and ROE: 23.6% — excellent, indicating strong capital efficiency and shareholder value creation.

EPS: ₹77.9, with PAT at ₹92.9 Cr. (down from ₹108 Cr.) — a 32% quarterly variation, but still robust.

Debt-to-equity: 0.19 — low leverage, supporting financial flexibility.

Dividend Yield: 0.02% — negligible, suggesting reinvestment focus.

Institutional Sentiment

FII holdings slightly increased (+0.04%), DII holdings rose (+0.92%) — positive domestic institutional outlook.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 56.5 High vs. industry average (37.8) — reflects premium pricing.

P/B Ratio ~15.9 Elevated, typical for high-margin tech firms.

PEG Ratio -52.8 Negative — distorted by earnings contraction or volatility.

Intrinsic Value ~₹4,200–₹4,350 (est.) Current price of ₹4,409 is slightly above fair value.

🧠 Business Model & Competitive Edge

Core Operations: eClerx Services Ltd. provides data analytics, automation, and digital operations services to global clients across financial services, retail, and technology.

Strengths

High-margin business with strong EBITDA/Sales ratio

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Global delivery model and deep domain expertise.

Strong historical returns — over 1,000% in 5 years

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Challenges

PEG ratio and recent PAT decline suggest earnings volatility.

RSI at 57.8 — neutral, MACD at 113 — bullish momentum.

Trading near 52-week high — limited short-term upside.

📈 Entry Zone & Technicals

DMA 50: ₹4,061, DMA 200: ₹3,441 — price is above both, indicating bullish trend.

RSI: 57.8 — neutral zone.

MACD: 113 — strong bullish crossover.

📌 Entry Zone: ₹4,200–₹4,350 — ideal for accumulation on dips.

🕰️ Long-Term Holding Guidance

2025 Target: ₹2,984.66 (conservative) to ₹3,700.20 (bullish)

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2026–2028 Target: ₹4,200–₹5,500

2030 Target: ₹6,500+

Holding Strategy: eClerx is a high-quality mid-cap IT play with strong fundamentals, global reach, and consistent reinvestment in innovation. Suitable for long-term investors seeking exposure to digital transformation and analytics. Accumulate during technical pullbacks and hold through cycles.

For detailed year-by-year forecasts, visit StockPriceArchive’s ECLERX target analysis

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and Dailybulls’ long-term projections

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in.marketscreener.com

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stockpricearchive.com

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dailybulls.in

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