ECLERX - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | ECLERX | Market Cap | 21,579 Cr. | Current Price | 4,527 ₹ | High / Low | 4,995 ₹ |
| Stock P/E | 49.4 | Book Value | 307 ₹ | Dividend Yield | 0.02 % | ROCE | 28.8 % |
| ROE | 23.6 % | Face Value | 10.0 ₹ | DMA 50 | 4,566 ₹ | DMA 200 | 4,095 ₹ |
| Chg in FII Hold | 0.49 % | Chg in DII Hold | -1.19 % | PAT Qtr | 126 Cr. | PAT Prev Qtr | 110 Cr. |
| RSI | 47.8 | MACD | 25.5 | Volume | 2,86,134 | Avg Vol 1Wk | 2,17,066 |
| Low price | 2,116 ₹ | High price | 4,995 ₹ | PEG Ratio | -46.1 | Debt to equity | 0.18 |
| 52w Index | 83.8 % | Qtr Profit Var | 51.4 % | EPS | 91.8 ₹ | Industry PE | 32.2 |
📊 ECLERX shows strong profitability growth and efficient capital use, but its high valuation (P/E 49.4 vs. industry PE 32.2) and weak dividend yield limit attractiveness. The current price (4,527 ₹) is slightly below the 50 DMA (4,566 ₹) but above the 200 DMA (4,095 ₹), suggesting medium-term strength with short-term consolidation. RSI at 47.8 indicates neutral momentum, while MACD is positive (25.5), hinting at potential upward movement. For swing trading, an optimal entry would be near 4,450–4,480 ₹. If already holding, consider exiting around 4,900–4,950 ₹, close to resistance levels.
🌟 Positive
- Quarterly profit growth of 51.4% (PAT rose from 110 Cr. to 126 Cr.)
- Strong ROCE (28.8%) and ROE (23.6%) show efficient capital utilization
- Low debt-to-equity ratio of 0.18 indicates financial stability
- FII holdings increased (+0.49%), showing foreign investor confidence
- Trading volume higher than average weekly volume, suggesting active interest
⚖️ Limitation
- High P/E ratio (49.4) compared to industry average (32.2), indicating overvaluation
- PEG ratio negative (-46.1), showing weak growth-adjusted valuation
- Dividend yield extremely low (0.02%), offering minimal income return
- DII holdings decreased (-1.19%), showing reduced domestic institutional support
🚨 Company Negative News
- No major negative news reported, but valuation concerns persist
✅ Company Positive News
- Strong quarterly earnings growth with consistent profit variation
- EPS of 91.8 ₹ reflects solid earnings power
🏭 Industry
- Industry PE at 32.2 vs. stock PE of 49.4 highlights premium valuation
- IT & outsourcing sector remains in demand, supporting long-term growth
📌 Conclusion
ECLERX is fundamentally strong with solid earnings growth and efficient capital use, but its high valuation and weak dividend yield limit upside. It can be considered for swing trading with entry near 4,450–4,480 ₹ and exit around 4,900–4,950 ₹. Caution is advised due to overvaluation relative to industry peers.