ECLERX - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 4.1

📊 ECLERX shows strong fundamentals with high ROCE (28.8%) and ROE (23.6%), supported by low debt (0.18). The company has delivered consistent earnings with EPS at 82.8 ₹, and quarterly PAT improved from 92.9 Cr. to 110 Cr. (+12.8%). Valuation is stretched with a P/E of 55.0 compared to industry average of 36.6, though strong efficiency metrics justify part of the premium. Technically, the stock is trading above both 50 DMA (4,470 ₹) and 200 DMA (3,906 ₹), with RSI at 49.4 indicating neutral momentum. This makes ECLERX a good candidate for swing trading with tactical entry.

✅ Optimal Entry Price: 4,450–4,500 ₹ (near DMA 50 support)

🚪 Exit Strategy (if already holding): Consider exit near 4,850–4,950 ₹ (resistance zone), or if RSI rises above 60.

Positive

• 📈 Strong ROCE (28.8%) and ROE (23.6%) highlight efficient capital use.
• 💰 Low debt-to-equity (0.18) ensures financial stability.
• 📊 Quarterly PAT growth (+12.8%) shows earnings improvement.
• 📉 Price above DMA 50 & DMA 200 confirms bullish technical setup.

Limitation

• ⚠️ High P/E (55.0) vs industry average (36.6) indicates overvaluation risk.
• 📉 Dividend yield (0.02%) offers negligible income return.
• 📊 Negative PEG (-51.4) signals weak growth prospects relative to valuation.
• 📉 Volume (50K) is lower than weekly average (73K), showing reduced trading activity.

Company Negative News

• 📉 DII holding decreased (-0.32%), reflecting weaker domestic institutional support.

Company Positive News

• 📈 FII holding increased (+0.79%), showing foreign investor confidence.
• 💹 EPS at 82.8 ₹ reflects strong earnings power.

Industry

• 🏭 Industry P/E at 36.6 is lower, suggesting peers may be more attractively valued.
• 📊 IT and outsourcing sector outlook remains positive, driven by digital transformation and global demand.

Conclusion

⚖️ ECLERX is a strong swing trade candidate with robust fundamentals and bullish technicals. Entry near 4,450–4,500 ₹ offers tactical opportunity, while exit near 4,850–4,950 ₹ is prudent. Traders should maintain strict stop-loss discipline due to stretched valuations and low dividend yield.

Would you like me to extend this into a peer benchmarking overlay so you can compare ECLERX against other IT outsourcing peers like Infosys BPM, WNS, and Firstsource for relative strength and valuation positioning?